How AI Is Changing the Logistics Industry

Clock  3 minutes to read

Artificial intelligence (AI) is the development of machines that are able to perform tasks that typically require human intelligence. This can include such things as reasoning and making decisions, visual perception, speech recognition and translation, and self-correction (learning).

The world is being transformed as the possibilities and opportunities offered by AI are realised. Research indicates the industry could be worth $1.3–$2 trillion annually, with the sales of warehousing and logistics robots projected to reach $22.4 billion in 2021.

So, what else can we expect to see that will affect and benefit logistics? Here are six areas where we expect to see AI have an impact.

Smart roads

Smart roads employ technology to alert drivers about road conditions and hazards. They can also monitor traffic volume and patterns, as well as identify when a vehicle leaves the road or is involved in an accident and alert the emergency services. This helps facilitate safer journeys and faster deliveries.

Self-driving cars

We’re a way off seeing fully autonomous vehicles on the roads, but the technology has advanced enormously in recent years. Currently, self-driving vehicles are not allowed on the road unless under the control of a human driver, but full autonomy will undoubtedly come. 

They won’t just be a feature on public roads either. Businesses with large sites and warehouses will benefit from self-driving vehicles in numerous ways.

Intelligent and automated warehousing

It’s not too bold an assertion to say that in the very near future, a great many warehousing tasks will be carried out by robots and computers. From automated stock control systems to the delivery and retrieval of goods by robots, there is a great deal of scope for automation. Ocado and Amazon already rely heavily on robots to handle order fulfilment.

Predicting demand and improving customer experience

Logistics often operates in a reactive way. However, AI offers the benefits of predictive intelligence, whether that means predicting air freight transit times, expected levels of global trade or shortages due to outside influences. Satellite imaging and smart road technology can also provide accurate information for predicting delivery times.

Big data

Big data refers to huge data sets – too large and unwieldy to be interpreted by humans – that may be analysed by computers to reveal patterns, trends and associations. In logistics, big data can reveal such things as shipping volumes, weather patterns, expected political impact and more, helping companies to make informed decisions on issues that might otherwise be too vague to interpret.

Back office operations

There is a great deal of scope for AI to revolutionise back office operations. A lot of the functions carried out are repetitive but detail-orientated, which allows human error to occur when concentration lapses, whereas machines would handle such things effortlessly. The management of paperwork such as contracts, bills of lading, or customs documentation offers opportunities to save time and money.

AI is already having a huge impact on the logistics industry, and this trend is only set to continue. At HGL, we are actively exploring opportunities to harness AI for the benefit of our customers and employees. Get in touch today to discuss how we can assist with your international shipping and logistics needs.