Artificial Intelligence (AI) has become a key determinant of a company’s survival. With global supply chains in flux, inflation unstable, and geopolitical crises prolonged, many companies are turning to AI as a critical tool for crisis management. Yet, while AI adoption is swift, its integration into management lacks strategy.
The global economic analysis agency ‘Economist Impact’ conducted a survey commissioned by Canadian supply chain management company Kinaxis, revealing that 97% of companies worldwide have piloted AI. However, only 20% of these can effectively perform real-time data analysis and decision-making. Moreover, only 22% have a systematic strategy to operate AI.
The report points out that although most companies focus on the technology itself, they falter in connecting it to practical management systems, essentially ushering in an era where “AI is present but directionless.”
Many companies believe that adopting AI will automatically enhance their competitiveness. However, the reality is that technology is merely a tool. Without a strategy for problem-solving and decision-making, it is futile.
The report presents fascinating data: companies with well-defined AI strategies achieve more than three times the return on investment (ROI) compared to those without. Conversely, companies that adopt technology without a strategy see increased costs with negligible results.
Fab Brasca, Senior Vice President of Market Strategy at Kinaxis, stated, “AI is no longer experimental; it’s a survival issue. Companies unable to connect real-time data to decision-making will fail to turn crises into opportunities.”
Companies face complex issues: different data formats across departments, incomplete information, and failures in system interoperability stymie AI integration.
Some industry insiders confessed, “Deciding to adopt AI took a year just to organize the data,” highlighting that internal preparation is far more challenging than the technology itself.
Many executives regard AI as a new growth engine, yet the operational staff sees it as a technology that adds more burden than efficiency. While two-thirds of CXOs believe AI will deliver noticeable results within a year, only half of the middle managers share their optimism.
This disparity stems from a lack of understanding of AI’s nature. AI is not a technology that yields instant results; it requires time for data learning and system optimization. However, companies prematurely demand ‘results’ without patience for this process.
Ultimately, the problem lies more with people than technology. There’s a shortage of talent capable of understanding and managing AI, and organizations fail to adapt to changes. A global consultant remarked, “Innovation doesn’t happen merely by adopting AI. Instead, introducing it without a strategy only leads to confusion.”
For AI to function effectively, quality data is essential. Yet, much of a company’s data remains unorganized.
Data acts as the fuel and heart of AI. If information is inaccurate or redundant, the AI’s resulting judgments will be flawed.
The report indicates that as companies increasingly aim to manage supply chain crises and geopolitical risks via AI, their data management systems and accountability structures remain underdeveloped.
Oliver Sawbridge from Economist Impact warns, “Despite AI ambitions being ahead, proper preparations aren’t keeping pace. Implementing AI without aligned data, systems, and strategy can skew decision-making.”
In practice, many companies limit AI applications to specific departments or certain processes, inadvertently reducing decision-making efficiency organization-wide.
To use AI as a management tool, a structural shift is necessary for data sharing and management across the company.
The notion of AI as merely an automation tool is outdated. Current AI technologies can learn independently, alter their decisions based on situations, and anticipate predictable crises.
Kinaxis refers to this as ‘Agentic AI,’ where AI transcends being a mere executor of commands to think and act alongside humans. Though less than 10% of companies are experimenting with this concept, the report suggests it will shape future corporate competitiveness.
Brasca emphasizes, “True resilience stems not from efficiency, but from adaptability. Companies viewing AI merely as a productivity tool will only react to crises; those integrating AI into management can anticipate and proactively address challenges.”
Successful companies are not those that adopt AI rapidly, but those that understand it thoroughly. Technology is available to all, but strategies cannot be purchased.
AI is a tool that revolutionizes management methods and culture. It changes how data is handled, the speed of decision-making, and the organizational response to risk.
The critical question now is not ‘how much AI is used,’ but ‘how AI is used.’
AI has already entered organizations. The only question left is whether they’re ready to use it.