Brains Behind the Chains: Exploring the Drivers of Artificial Intelligence (AI) in Modern Supply Chain Management Success

Abstract

Artificial Intelligence (AI) in supply chain management is rapidly transforming how manufacturing companies optimize operations and make strategic decisions.However, manufacturers in low-income countries are fraught with persistent challenges, such as inadequate infrastructure, frequent supply disruptions and lack of technical know-how, that hinder AI supply chain management adoption.This study investigates the impact of internal and external factors on AIdriven supply chain management.Using multiple regression analysis, the results reveal that all five variables significantly and positively affect AI-driven supply chain management.Management support (β = 0.411, p < 0.05) emerged as the strongest predictor, underscoring the pivotal role of executive leadership in digital transformation.Workforce digital skill (β = 0.256, p < 0.05) and technology infrastructure (β = 0.215, p < 0.05) were also found to be critical enablers of effective AIdriven supply chain management.Additionally, market complexity (β = 0.103, p < 0.05) and competitive pressure (β = 0.295, p < 0.05) act as external motivators that push firms toward adopting AI technologies to maintain agility and competitiveness.The study concludes that a successful transition to AI-driven supply chains requires a holistic approach that combines internal readiness with strategic responses to external pressures.Therefore, for AI-driven supply chain management to succeed, manufacturing companies must ensure strong support from senior leadership, invest in workforce digital skills training and upgrade their digital infrastructure to support AI integration.