The research question is to understand how the adoption of Artificial Intelligence (AI) affects the supply chain performance, with the focus on the mediating effects of marketing innovation and organisational agility, and the moderating effects of technological readiness. It aims to determine the benefits of AI-led digital transformation for the efficiency, flexibility, and competitiveness of operations in the Indian context. A quantitative and explanatory research design was used. A structured questionnaire was used to gather data from 368 professionals who were employed in the manufacturing, logistics, and retail industries in India. Validated multi-item scales were used to measure constructs, and Structural Equation Modelling (SEM) was used to analyse the constructs. The soundness of the proposed model was confirmed using reliability, validity, and model fit indices. The research shows that AI implementation has the potential to positively impact supply chain performance, directly and indirectly, through marketing innovation and organisational agility. Technological preparation reinforces the connection between marketing innovation and performance, and, according to this, companies with strong digital infrastructure and capabilities have greater advantages in AI-driven strategies. The managers must focus on building marketing innovativeness and responsiveness, coupled with sound technological preparedness. By aligning AI efforts with strategic and operational goals, one can respond faster, improve customer satisfaction, and become more competitive. The present paper is interdisciplinary and combines marketing, innovation, and supply-chain perspectives to propose and empirically support a comprehensive model explaining how the adoption of AI can lead to performance. It adds to the literature on AI-based digital transformation in the emerging economies.