Are we moving toward an AI-first future in logistics?

26/06/2024
Image couresy of Mohamed Nohassi

By Laura Littler

AI has already become somewhat of a buzzword over the past half-decade or so. It seems to find a way into most conversations, whether about the future of remote work or how Spotify is adapting its approach to recommending new songs. 

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While its importance can be overstated in some contexts, there are many who believe that this doesn’t apply to the future of logistics. From enhancing efficiency, in pretty much all contexts, to the positive effects it promises in terms of sustainability, let’s take a closer look. 

Why AI will continue to drive logistics optimisation

There are a number of important reasons why AI will continue to have a profound impact on the future of the logistics industry. 

Increasing efficiency

One of the things that AI is best at currently is sifting through vast data sets and coming up with insights incredibly quickly. Obviously, these insights will only be as good as the data that is fed into the model, but in logistics, you should have access to heaps of data. In many cases, these AI-derived insights provide easily actionable changes that can have a significant impact on efficiency, whether that’s in warehouse optimisation or route planning. 

Integration into physical solutions

What we can expect to see with increasing frequency is the integration of AI solutions into physical solutions. For example, automated loading solutions produced by companies such as Joloda Hydraroll will increasingly rely on insights derived from AI to self-optimise, rather than simply relying on human operators to tell them what to do. 

Predictive prowess

AI-powered solutions are known to be able to make predictions faster and more accurately than even the most experienced human operator. In logistics, this is having a transformative effect on everything from reducing bottlenecks to decreasing the amount of unnecessary stock stored in warehouses. Again, these predictions are only as good as the data that the models are fed – the results still need to be checked over by people, but they can make analytics professionals’ jobs a whole lot easier. 

Real-time updates

The logistics sector is only able to function as a well-oiled machine when all of the different parts are fully linked. AI-powered tools increase the ease with which real-time updates can be generated and shared, making it easier to successfully integrate the various parts involved as a result.

Increases in sustainability

Lastly, given how important sustainability-related concerns have become in recent years, it would be remiss not to mention the positive impact that AI is having on the logistics industry’s environmental impact. Historically an emissions-intensive sector, many of the benefits associated with AI listed above also tend to have substantial benefits when it comes to sustainability.

How seriously AI is taken in the coming years will determine the future of logistics to a surprising extent. It’s easy to pass it off as just another gimmick, but in doing so, logistics professionals risk losing out on a whole range of profound benefits. It’s important to look to the future with open eyes, to ensure that no potentially revolutionary systems are overlooked and left on the sidelines.

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