While 71% of companies have accelerated AI deployment in response to tariffs, inflation, and geopolitical volatility, a wide gap remains between AI ambition and implementation, according to Supply Chain’s Big Bet on AI For Geopolitical Resilience by the Economist Impact and commissioned by Kinaxis Inc.
“Disruption is no longer cyclical, it’s structural, and AI has become the defining accelerator of adaptability,” says Fab Brasca, SVP, market strategy and product management at Kinaxis. “In a world of constant geopolitical and economic turbulence, companies cannot afford to experiment in isolation or chase hype. Those that orchestrate intelligence across the enterprise, by turning data into continuous decisions, will convert volatility into advantage.”
Key takeaways:
· Nearly every company (97%) is experimenting with AI, but only 20% can make real-time decisions, just 22% have a defined AI strategy, and those with a strategy are more than three times as likely to see measurable ROI.
· Moreover, while business leaders tend to underestimate the new risks and complexities that AI may introduce, staff are more focused on the practical realities with the effort, change management, and technical challenges involved in turning AI ambition into everyday impact.
- 52% of organizations report full integration for predictive analytics (the leading use case).
- Fewer than 15% of companies use AI for supplier monitoring, anomaly detection, or geopolitical tracking, the very risks now driving adoption.
- 79% of companies have already passed higher costs on to consumers.
- More than three-quarters report worsening availability of key components inside organizations, a confidence gap is emerging between leadership optimism and day-to-day execution.
- Two-thirds of C-suite executives expect AI to deliver returns within 12 months.
- Less than 50% of junior leaders share that view.
- Executives in Asia-Pacific (81%) and Europe (78%) report faster AI acceleration than those in North America (57%).
- Executives in Europe (38%) and Asia-Pacific (31%) report stronger AI investment momentum than those in North America (22%), reflecting differences in regulatory environments and risk appetite.
- Even in the fastest-moving regions, adoption remains shallow - just 11% use AI for scenario modeling and only 3% for geopolitical tracking.
- Fewer than one in four business leaders expect AI-related risks to increase over the next three years, revealing a major gap between confidence and capability.
