Kenya: Industrial Firms Struggle to Turn AI Ambitions Into Real-World Gains, Report Shows

Industrial companies are racing to build AI-powered digital ecosystems to improve efficiency, cut emissions and manage supply chain shocks, but most are still failing to share data effectively across their operations and partners, a new global report by AVEDA IMD Business School shows.

The inaugural Industrial Intelligence Report, which surveyed more than 275 senior executives across 12 sectors, found that 74 percent of leaders consider digital ecosystems a top strategic priority, yet only 27 percent report sharing data substantially or extensively with ecosystem partners.

The findings highlight a growing gap between ambition and execution as industries increasingly rely on artificial intelligence, connected systems and real-time data to navigate operational disruptions and climate pressures.

For Kenya, the report's findings come as manufacturers, logistics firms and energy companies accelerate digital transformation efforts amid rising fuel costs, supply chain volatility and pressure to decarbonize operations.

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Kenya's industrial sector has increasingly embraced automation, cloud systems and AI-driven monitoring tools, particularly in manufacturing, agriculture and energy distribution. However, many firms continue to face challenges linked to legacy infrastructure, fragmented data systems and weak digital governance.

The report defines "industrial intelligence" as the integration of operational technology, information technology and artificial intelligence to support connected, data-driven decision making across industrial ecosystems.

It argues that companies able to coordinate data flows across suppliers, transport systems and production facilities are better positioned to respond to disruptions and improve operational efficiency.

"With this collaboration with IMD, our ambition is not merely to understand the motivations behind the move to digital ecosystems, but to define the frameworks, competencies and leadership practices that will concretely enable companies to transcend silos and build more adaptive, ecosystem-driven operating models," said AVENA CEO Caspar Herzberg.

The report cites integration complexity, outdated systems and weak governance structures as the main barriers slowing adoption.

"Governance, integration and learning matter more right now than algorithms. Ecosystems are already delivering operational value. The next phase is about converting that foundation into strategic advantage through better data sharing, coordination, clearer roles and more deliberate leadership," said Michael Wade, Director of IMD Global Center for Digital and AI.

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