The Role of Artificial Intelligence in Logistics Firm Performance with Supply Chain Consistency and Logistics Capabilities in Saudi Arabia

Background: Rapid adoption of artificial intelligence (AI) in logistics enhances operational efficiency and firm performance; however, empirical evidence on its capability-driven impact remains limited, particularly in Saudi Arabia’s e-commerce sector. This study’s purpose is to examine the influence of AI on logistics firm performance through the mediation role of supply chain consistency and logistics capabilities. Methods: A quantitative study was conducted and data were collected using a convenience sampling technique from 275 employees working in the Saudi Arabian logistics firms. Partial Least Squares Structural Equation Modeling was used to perform data analysis. Results: The study findings indicated that AI usage has significant and positive influence on supply chain consistency (β = 0.290) and logistics capabilities (β = 0.303). Furthermore, supply chain consistency (β = 0.115) and logistics capabilities (β = 0.171) play mediating role between AI usage and firm performance. The research model exhibits substantial predictive capability, explaining 74.6% (R2 = 0.746) of the variance in firm performance, while AI usage explains a smaller portion of the variance in supply chain consistency 8.4% (R2 = 0.084) and logistics capabilities 9.2% (R2 = 0.092). Conclusions: The findings demonstrate that AI-based logistics operations provide extensive support to streamline operations and reduce costs.