Why global supply chain executives deploy AI in the wrong place

Why global supply chain executives deploy AI in the wrong place

  • FourKites and ABI Research uncovered a major disconnect: 28 percent of supply chain leaders prioritise working capital optimisation, yet only 37 percent use AI for risk management—the key to preventing costly disruptions and cash traps.
  • The report shows US firms lead Germany in AI adoption, with 48 percent of American companies using AI for risk management compared to just 33 percent in Germany, and far fewer German firms pursuing autonomous execution.
  • Integration barriers, not data quality, remain the biggest obstacle, as 46 percent cite legacy systems as the main hurdle—leaving many unable to link AI-driven prevention directly to financial performance gains.

 

FourKites has released research with ABI Research exposing a costly contradiction: while 28 percent of supply chain executives cite working capital optimisation as their top investment driver, only 37% deploy AI for risk management — the very capability that prevents the disruptions, detention fees, and expedited freight costs that trap cash in operations.

The report, “The Execution Gap: What Supply Chain Leaders Are Saying About Technology,” surveyed 490 supply chain professionals across manufacturing, retail, and logistics, revealing that companies are deploying AI exactly where it won’t unlock the working capital they desperately need.

“Executives want working capital improvements, yet they deploy AI for demand forecasting instead of disruption prevention. They’re analyzing problems instead of preventing them,” said Mathew Elenjickal, founder and CEO of FourKites.

“In contrast, the 27 percent of organisations willing to use AI for autonomous execution can prevent detention fees before they occur, eliminate expedited freight by managing exceptions proactively, and reduce safety stock by guaranteeing reliable operations. These are direct hits to the balance sheet, delivered through AI that acts, not just analyses.”

The research reveals that German companies often lag behind American counterparts:

  • Amongst all respondents, working capital optimisation leads investment priorities at 27.6 percent — nearly double competitive advantage (14.9 percent) and triple sustainability (8.4 percent) — yet only 37 percent deploy AI for risk management where it directly prevents cash-draining disruptions.
  • In Germany only 33 percent of respondents say they’re using AI for risk management compared to 48 percent of Americans
  • Companies deploy AI in areas like inventory management (31 percent in Germany and 55 percent in the US), while avoiding automation to mitigate the disruptions that actually trap working capital
  • Only 20 percent of German companies plan to use AI for autonomous execution compared to 31 percent of U.S. companies, preventing the real-time responses needed to avoid expedited costs and operational delays

“The survey identified key factors that determine whether AI investments achieve strategic goals like working capital optimisation,” said Ryan Wiggin, Senior Analyst at ABI Research. “Success requires data interoperability across systems, defined processes for action, and organizational readiness — elements that many companies currently lack.”

Integration barriers reveal why the disconnect persists

The research also revealed that integration challenges often overshadow data issues. While 46 percent cite legacy integration and tool fit as top workflow barriers, data quality appears more often as a secondary concern, highlighting that success depends on connecting AI to existing systems

The report identifies 156 respondents who “strongly agree” with autonomous decision-making. These organisations have connected the dots: working capital optimisation requires preventing disruptions, not just detecting them. While they deploy AI agents to automatically prevent detention fees and eliminate emergency freight, their competitors debate whether to trust AI with anything beyond forecasting.

Click to download the full report

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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