Assessing the Impact of AI on Operational and Supply-Chain Decision-Making: Evidence from Companies in the Kingdom of Saudi Arabia (KSA)

Abstract

This study investigates the impact of Artificial Intelligence (AI) on flexible and responsive supply chain decision-making within Saudi Arabian enterprises. Using a mixed-methods approach, the research incorporates qualitative insights from seven semi-structured interviews and quantitative data from 96 survey respondents. The findings show that AI enhances supply chain flexibility and responsiveness; however, challenges remain related to strategic integration, cultural readiness, and financial accountability. Although AI adoption in Saudi enterprises is still at an early stage, it has significant potential to transform decision-making, improve agility, and strengthen competitiveness in global markets. The study highlights that current AI integration is fragmented and uneven, suggesting that further research is needed to explore sector-specific adoption patterns and long-term financial impacts, as well as the cultural and leadership barriers influencing AI-enabled supply chain transformation.