AI in logistics - statistics & facts
As the logistics industry has consistently been trying to simplify and speed up its processes, it is perhaps somewhat predictable that artificial intelligence (AI) would play a part in this objective. With the artificial intelligence utilized in the worldwide cargo drone market which set to increase to 17.88 billion U.S. dollars by 2030, most forecasts conclude that whether we like or loathe the use of AI, it will continue to be a fundamental and impactful part of our society. The question is: will it help the world develop to new successes, or will it be the undoing of many years of hard work and progress?
Due to the speed in which artificial intelligence can receive and process data, this versatility has become a life-saving factor in countries such as Africa. Remotely-operated drones infused with AI coding have delivered vital medical supplies to some of the remotest regions in the continent. For example, the American drone start up Zipline operates the worlds first commercial blood donation system in Rwanda, providing life-giving blood and plasma where conventional logistical processes cannot.
Focusing on the United States, AI has also had a negative effect on customer service representation. A study found that in 2022, from the 1,059 people surveyed, 43 percent of respondents said they weren’t satisfied when speaking to an AI operated customer service assistant, compared to only 25 percent who said they were happy with the service. Although AI can provide a realistic human interaction, the extent of which it can assist with customer queries is limited.
In response to some of the increased risks, companies in countries such as the United States are implementing a holistic approach to tackling AI-related issues. Strategies such as protecting AI systems against cyber-threats and the consistent monitoring of AI performance will help regulate the usage of artificial intelligence in the logistics industry.
The clarion call for automated processes provides the platform for artificial intelligence to continue expanding its influence on the logistics sector. From warehousing to product delivery, artificial intelligence has already made its far-reaching presence known. Although AI will not always be the solution to all logistical issues, it is already prevalent from the current situation that artificial intelligence is, for better or for worse, here to stay.
The benefits of machine learning
According to logistical insights provided by Danish freight carrier Maersk, artificial intelligence solutions such as digital twin technology are helping to improve the performance of the logistics industry by creating a virtual replica of a physical asset, for example, a truck or a warehouse. This aids logistics companies in identifying issues along the supply chain in real- time, speeding up reactions to potentially problematic situations. Other current uses of AI predominantly used by third-party logistics companies such as Amazon and FedEx are in warehouse and transport automation. AI software is used for forecasting, inventory taking, route planning, and operating automated assets, including robots and forklifts. These uses are a clear demonstration of the versatility of artificial intelligence. With the speed of AI learning increasing, there are still further uses to come.Due to the speed in which artificial intelligence can receive and process data, this versatility has become a life-saving factor in countries such as Africa. Remotely-operated drones infused with AI coding have delivered vital medical supplies to some of the remotest regions in the continent. For example, the American drone start up Zipline operates the worlds first commercial blood donation system in Rwanda, providing life-giving blood and plasma where conventional logistical processes cannot.
What are the challenges?
Despite the obvious positives of using AI in logistics, equally worrying dangers come with its usage. Organizations such as IC3 and the Federal Bureau of Intelligence (FBI) have have warned of an increase of cyber-crime. In 2023, the FBI recorded almost 300,000 phishing cases in the United States alone. Other crimes, such as identity fraud, also pose a serious risk to consumers. Within the context of artificial intelligence, criminals have been known to use AI such as ChatGPT and WormGPT to illegally obtain customer information, heavily impacting the security of the CEP and 3PL markets. There are further security concerns with regards to the AI technology in drones as the ability to record footage and beam it wirelessly to other electronic devices has raised significant security concerns across the globe. These issues will impact the logistics sector as consumers and companies alike will be at increased risk of falling victim to AI-related cyber-crime.Focusing on the United States, AI has also had a negative effect on customer service representation. A study found that in 2022, from the 1,059 people surveyed, 43 percent of respondents said they weren’t satisfied when speaking to an AI operated customer service assistant, compared to only 25 percent who said they were happy with the service. Although AI can provide a realistic human interaction, the extent of which it can assist with customer queries is limited.
In response to some of the increased risks, companies in countries such as the United States are implementing a holistic approach to tackling AI-related issues. Strategies such as protecting AI systems against cyber-threats and the consistent monitoring of AI performance will help regulate the usage of artificial intelligence in the logistics industry.
Is AI the future of logistics?
The clarion call for automated processes provides the platform for artificial intelligence to continue expanding its influence on the logistics sector. From warehousing to product delivery, artificial intelligence has already made its far-reaching presence known. Although AI will not always be the solution to all logistical issues, it is already prevalent from the current situation that artificial intelligence is, for better or for worse, here to stay.
