Why are global supply chain executives deploying AI in the wrong place?

• FourKites and ABI Research uncover a major disconnect: 28 percent of supply chain leaders prioritize working capital optimization, yet only 37 percent use AI to manage risk — key to preventing costly disruptions and cash traps.
• The report shows that US companies lead Germany in adopting AI, with 48 percent of US companies using AI for risk management compared to just 33 percent in Germany, and far fewer German companies seeking independent implementation.
• Integration barriers, not data quality, remain the biggest obstacle, with 46% citing legacy systems as the main obstacle – leaving many unable to directly link AI-based prevention to financial performance gains.

FourKites released research in collaboration with ABI Research that reveals a costly contradiction: While 28% of supply chain executives cite working capital optimization as a key investment driver, only 37% are deploying AI for risk management — the same capability that prevents disruptions, detention fees, and accelerated shipping costs that lock up cash in… Operations.

The report, titled “The Execution Gap: What Supply Chain Leaders Say About the Technology,” surveyed 490 supply chain professionals in the manufacturing, retail and logistics sectors, revealing that companies are deploying AI where they cannot unlock the working capital they desperately need.

“Executives want improvements in working capital, yet they are using AI to forecast demand instead of preventing disruption,” said Matthew Ellingical, founder and CEO of FourKites. “They are analyzing problems instead of preventing them.”

“In contrast, 27% of organizations willing to use AI for autonomous fulfillment can prevent holding charges before they happen, eliminate drop-shipping by proactively managing exceptions, and reduce safety stock by ensuring reliable operations. These are direct hits to the balance sheet, delivered by AI that acts, not just analytics.”

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

• Among all survey respondents, working capital optimization tops investment priorities at 27.6 percent – ​​nearly double the competitive advantage (14.9 percent) and triple sustainability (8.4 percent) – yet only 37 percent are deploying AI for risk management where it directly prevents cash drain disruptions.
• In Germany, only 33% of respondents said they use AI to manage risks compared to 48% of Americans
• Companies are deploying AI in areas such as inventory management (31% in Germany and 55% in the US), avoiding automation to mitigate disruptions that effectively lock up working capital
• Only 20% of German companies plan to use AI for autonomous execution compared to 31% of US companies, preventing the real-time responses needed to avoid accelerating costs and operational delays.

“The survey identified key factors that determine whether AI investments achieve strategic objectives such as improving working capital,” said Ryan Wiggin, senior analyst at ABI Research. “Success requires data interoperability across systems, defined business processes, and organizational readiness – elements that many companies currently lack.”

Barriers to integration reveal why separation persists

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

The report identifies 156 respondents who “strongly agree” with independent decision-making. These organizations have successfully connected the dots: improving working capital requires preventing disruptions, not just detecting them. As they deploy AI agents to automatically prevent detention charges and cancel shipments in emergency situations, their competitors are debating whether to trust AI with anything beyond prediction.

Click to download the full report

The article Why Global Supply Chain Executives Are Deploying AI in the Wrong Place first appeared on Air Cargo Week.