AI Is Not Improving Productivity: What Supply Chain Leaders Can Learn From This
Nobel Prize-winning economist Daron Acemoglu, Professor of Economics at MIT, is unequivocal: artificial intelligence has yet to provide evidence of structural productivity improvement. In his book Power and Progress and in a recent conversation on the Me, Myself, and AI podcast by MIT Sloan Management Review, he argues that technology has no predetermined fate. The choices we make today will determine whether AI augments workers or simply replaces them.
For professionals in supply chain, logistics and operations, this is no abstract academic debate. It bears directly on how organisations position their people, which skills they value, and how they structure leadership as automation continues to advance.
The Myth of Automatic Productivity Gains
Acemoglu warns that the current incentives within the technology sector are steering AI towards centralisation and automation as the default option. Companies are investing heavily in AI tools, yet rarely measure whether the promised efficiency gains actually materialise. Macroeconomic productivity figures, for now, do not reflect them.
This is a significant signal for supply chain organisations that are deeply engaged in digital transformation. Implementing technology without clearly defining which human tasks it is meant to enhance leads to disappointing results. Acemoglu explicitly advocates for new tasks that complement human skills, rather than technology that renders those skills redundant.
What This Means for Talent in Supply Chain
The question is no longer whether AI plays a role in supply chain and logistics. That role already exists: from predictive inventory management algorithms to automated planning systems. The question is which people and which competencies will make the difference going forward.
Acemoglu’s analysis has several concrete implications for talent strategy and recruitment:
- Human judgement remains essential. AI systems perform reliably within predictable parameters, but supply chains are defined by unpredictable disruptions. Leaders who can make sense of complexity and take decisions beyond the dataset are irreplaceable.
- Hybrid profiles are gaining in value. Professionals who combine operational depth with technological insight are becoming scarce and, consequently, highly sought after. They serve as the bridge between data sources and strategic decision-making.
- Adaptability is a core competency. Organisations that deploy AI successfully do so with people who are willing to continuously evolve their ways of working. This places new demands on leadership at every level.
- Critical thinking about technology. Acemoglu underscores the importance of deliberate direction. Leaders who understand the limitations and risks of AI make better decisions for their organisations.
Leadership That Steers Technology in the Right Direction
According to Acemoglu, the real risk lies not in the technology itself, but in how organisations and policymakers choose to deploy it. When AI is used purely to reduce costs and replace people, it exacerbates inequality and undermines employee motivation and engagement.
Supply chain directors and operations managers face a concrete leadership challenge: how do you ensure that technology strengthens the organisation without eroding its human capital? This requires strategic insight, but also the courage to push back against the pressure to automate when that is the appropriate course of action.
Now more than ever, the quality of leadership is decisive. Whether in a permanent director role or a temporary assignment through interim management: organisations need people who understand technology, but who also know when human judgement must take precedence.
Recruitment in a Changing Landscape
For recruitment in supply chain and logistics, Acemoglu’s insights signal a clear shift in what candidates must bring to the table. Technical knowledge of systems and data has become a baseline expectation. What sets candidates apart is the ability to critically evaluate those systems, bring teams along through change, and extract genuine strategic value from technological capabilities.
In executive search within supply chain, we are already seeing this shift clearly reflected in the profiles organisations are requesting. The strongest candidates combine domain expertise with adaptability and a clear-eyed view of what technology can and cannot do.
Acemoglu’s message is unambiguous: technology has no fixed destiny. People and organisations make the choices. Those who approach this thoughtfully will build a supply chain that is both efficient and resilient.
Are you looking for leaders to guide your organisation through this transition? Inspired Search would be delighted to help you find the right people for your supply chain, logistics or operations challenge.
Source: Sam Ransbotham.
Me, Myself, and AI is a podcast produced by MIT Sloan Management Review and hosted by Sam Ransbotham. It is engineered by David Lishansky and produced by Allison Ryder.
Sam Ransbotham is a professor in the information systems department at the Carroll School of Management at Boston College, as well as guest editor for MIT Sloan Management Review‘s Artificial Intelligence and Business Strategy Big Ideas initiative.
, Tue, 24 Fe, https://sloanreview.mit.edu/audio/ai-is-not-improving-productivity-nobel-laureate-daron-acemoglu/
