Artificial intelligence is not enough to enhance organizational performance

This study examines the relationship between Artificial Intelligence (AI), supply chain visibility, supplier integration, and organizational performance through the lens of Organizational Information Processing Theory (OIPT). Drawing on empirical data from UK-based organizations that have adopted AI technologies, we employ structural equation modeling along with mediation and moderation analyses to test our hypotheses. The findings indicate that AI does not have a significant direct effect on performance; instead, its impact is fully mediated through supply chain visibility and supplier integration. This supports the view that AI-driven supply chain visibility acts as an information-processing mechanism that enhances firms' ability to coordinate, collaborate, and integrate with supply chain partners, thereby improving organizational performance. Furthermore, supply uncertainty positively moderates the relationship between supplier integration and performance, amplifying the benefits under conditions of higher uncertainty. This study contributes to the literature by clarifying AI's indirect role in driving performance and highlighting the importance of embedding AI within broader organizational capabilities. It also offers practical insights for managers seeking to leverage AI to enhance supply chain integration and organizational effectiveness. • AI does not directly enhance organizational performance. • AI-enabled supply chain visibility strengthens supplier integration. • Supply chain visibility and supplier integration jointly mediate the AI–performance link. • Supplier integration contributes more strongly to performance under high supply uncertainty. • The findings extend Organizational Information Processing Theory in AI-enabled supply chains.