ABSTRACT The emergence of AIoT has profoundly influenced supply chain management (SCM) and new product development (NPD) performance. However, the AIoT and its strategic alignment with the supply chain (SC) strategy have not received equal attention in academia and industry. By incorporating concepts of strategic alignment, AIoT, and NPD from previous literature, this study proposes a new concept of AIoT-SC strategic alignment and examines its role in SC intelligence (SCI) and NPD performance. By using a partial least squares structural equation modelling (PLS-SEM) approach, the survey data results demonstrate that AIoT-SC strategic alignment in planning, making, delivery, sourcing, and return is positively related to SC intelligence regarding market intelligence quality (MIQ), SC partner intelligence quality (SCPIQ), and NPD performance. The study’s findings can guide managers in improving firms’ business functions through AIoT-SC strategic alignment. Furthermore, this research provides researchers with sound theoretical grounds/basis for further academic development of AIoT, SCM, and NPD.