According to experts and industry insiders, artificial intelligence (AI) is poised to transform the transportation sector, bringing about substantial changes to supply chain management and possibly decreasing human participation in a variety of functions. The rise of customer service bots, self-driving trucks, sidewalk robots, and generative AI capable of foreseeing disruptions and explaining differences in sales forecasts is predicted by experts.
Morgan Stanley analysts recently emphasized the revolutionary potential of AI in the field of freight transportation in a research note. They said that AI could be able to do away with human involvement in the supply chain’s back-office duties in particular. By 2024, Morgan Stanley predicts that several hundred autonomous trucks will begin operating in the US, resulting in a 25% to 30% decrease in cost-per-mile and perhaps making drivers unnecessary in the long run.
The necessity for AI-driven solutions has been further underscored by the complexity of global supply chains, which has been made more difficult by circumstances like the Covid-19 outbreak and geopolitical crises. Systems using artificial intelligence and machine learning may anticipate and stop disturbances in fluid transportation networks, assisting businesses in proactively addressing problems before they arise. The financial services company Jefferies has highlighted the revolutionary effects of generative AI on logistics and transportation, including demand forecasting, truck repair predictions, shipping route optimization, and real-time cargo tracking.
Maersk, a leading shipping company, intends to use generative AI heavily in its operations. Navneet Kapoor, the company’s chief technology and information officer, emphasized how the emergence of generative AI marked the transition of AI from a research project to a common utility. In order to assist clients plan better, increase planned dependability, optimize shipment routes amid traffic jams, and acquire a thorough grasp of sales processes via massive language models, Maersk has already been utilizing AI for years and wants to incorporate it on a wider scale.
Despite the possibility of job losses brought on by the adoption of generative AI, Kapoor thinks there will also be new career possibilities, such as those for prompt engineers who train AI systems. “High tech digital entrants” have been cited by Morgan Stanley as posing a threat to established transportation firms. Although AI may increase productivity, it may also lessen the dependency on outside logistics companies that handle shipping, storing, and packaging. Maersk has invested in AI startups to remain ahead of the curve because it recognizes the value of ongoing education and working with data-driven businesses.
The use of AI in the transportation sector also include knowledge assistants. These AI-enabled assistants can deal with issues like over- and underordering of items brought on by misunderstandings between internal departments. AI may shed light on supplier disparities and improve integrated corporate planning processes by analyzing massive information, thereby eliminating the need for big planning teams.
The future of the transportation sector is being dramatically transformed as AI technology develops. In an increasingly linked world, businesses are adopting AI-driven solutions to simplify operations, increase efficiency, and improve customer experiences despite the obstacles and possible disruptions that lie ahead.
