Accelerated AI Adoption Amidst Economic and Geopolitical Pressures
In the face of trade tariffs, inflationary pressures, and geopolitical volatility, companies worldwide are rapidly embracing artificial intelligence (AI) technologies, according to a new global study by Economist Impact and sponsored by Kinaxis.
The report, titled “Supply Chain’s Big Bet on AI For Geopolitical Resilience,” reveals that 71% of organizations have increased their implementation of AI as a response to this challenging environment. However, there is a significant gap between ambition and the ability to fully leverage AI: while 97% of companies experiment with AI, only 20% make real-time decisions and just 22% have formal strategies.
Fab Brasca, Senior Vice President of Market Strategy and Product Management at Kinaxis, stated, “The disruption is no longer cyclical; it’s structural. AI has become the key accelerator of adaptability.”
Growing Adoption, Limited Impact
The study shows that companies have progressed more quickly in specific use cases. Fifty-two percent report full integration of predictive analytics, identified as the primary AI application in supply chains. Nevertheless, critical areas remain unattended: less than 15% use this technology to monitor suppliers, detect anomalies, or track geopolitical developments—elements that exert the most pressure on global logistics systems today.
Economic pressure also pushes companies to act faster. Seventy-nine percent have shifted their highest costs to consumers, while more than three-quarters report reduced availability of key components.
Europe and Asia Pacific Lead, North America Trails
The study highlights clear regional disparities. Asia Pacific (81%) and Europe (78%) show a faster acceleration in AI adoption compared to North America (57%). Moreover, European and Asian executives (38% and 31%, respectively) report a stronger investment dynamic than their North American counterparts (22%).
Despite this, AI adoption remains superficial even in the most advanced markets: only 11% apply AI for scenario modeling, and just 3% for geopolitical monitoring.
Governance: The Looming Challenge
One of the key findings is the lack of preparedness. Less than a quarter of leaders anticipate an increase in AI-related risks over the next three years, indicating a disconnect between confidence and actual implementation capability.
Oliver Sawbridge, Senior Director of Trade and Geopolitics at Economist, noted: “Ambition has outpaced preparation. Companies lack the data, systems, and strategies for real-time AI operation. Resilience depends on both preparation and innovation.”
The Future Outlook: The Era of Autonomous AI
Although fewer than ten percent of organizations have begun exploring autonomous AI, Kinaxis identifies it as the next technological frontier: systems where autonomous agents and humans collaborate continuously and securely.
Under this vision, AI transitions from a mere automation tool to an adaptation mechanism where each decision is auditable and aligned with business objectives.
Key Questions and Answers
- Q: What is driving companies to adopt AI? A: Economic and geopolitical pressures, such as trade tariffs, inflationary pressures, and geopolitical volatility.
- Q: How many companies have formal AI strategies? A: Only 22% of organizations have formal AI strategies.
- Q: What percentage of companies use AI for real-time decision making? A: Only 20% of organizations make real-time decisions using AI.
- Q: Which regions are leading in AI adoption? A: Asia Pacific (81%) and Europe (78%) show faster AI adoption acceleration compared to North America (57%).
- Q: What is the main challenge companies face in implementing AI? A: Lack of preparedness, data, systems, and strategies for real-time AI operation.
- Q: What is the future of AI in business? A: Autonomous AI, where agents and humans collaborate continuously and securely, is the next technological frontier.
