Artificial Intelligence is a powerful technology that is revolutionizing the logistics industry. Businesses are now able to achieve unprecedented levels of efficiency and accuracy in the way they manage workflows and operations.
With a strong CAGR of 16.5% expected between 2023 and 2023, AI-powered robots are set to dominate a market worth US$38 billion by 2033.
Additionally, a survey from Forbes Insights found that 65% of senior transportation executives believe logistics, supply chain and transportation processes are in the midst of a renaissance—an era of profound transformation.
AI in Logistics Statistics
- By 2035, AI would boost logistics productivity by more than 40%.
- 36% of large, mid-size, and small businesses have successfully implemented AI for supply chain and logistics processes, and 28% of survey respondents are on the verge of doing so.
- Early adopters were able to reduce logistics costs by 15% by implementing AI.
- estimates that by integrating AI into their processes, logistics companies will generate $1.3 to $2 trillion in economic value each year for the next 20 years.
- Efficiency gains of up to 30% are being seen when using AI for local “last-mile” deliveries.
- Early transportation and logistics AI adopters have profit margins over 5%, while non-adopters are in the red.
Sources: (Accenture, Mckinsey, Economist, Geektime, BusinessInsider).
How AI is changing the logistics industry?
The impact of Artificial intelligence in the logistics industry never seen before.
Self-driving vehicles are now being developed to optimize transportation operations and further reduce cost.
AI algorithms are becoming incredibly accurate in gathering historical data and trends to accurately and precisely forecast inventory needs, allowing companies the ability to adapt quickly to variable demands placed on their supply chains.
Additionally, customer service is being improved with the help of artificial intelligence (AI), according to the ILS company, by offering a variety of ways to automatically resolve customers’ questions about logistics services as well as vital insights into customer behavior that may ultimately prove invaluable for better service.
The possibilities of where AI can lead the logistics industry seem boundless.
Will AI replace logisticians?
With this increase in AI usage, people worry if it will one day replace their jobs—especially those who are logisticians.
The US Bureau of Labor Statistics reports that the number of logistician job openings is expected to rise 27.7% by 2031, so there are still plenty of job prospects for this career field.
Furthermore, because technology will continue to evolve in novel and interesting ways over the coming years, many newly developed professions in logistics will necessitate both knowledge and experience in AI integration.
This means that people with more traditional backgrounds will help maintain balance between human expertise and machine automation which ultimately results in better decisions, ensuring that our economy remains “man made” rather than entirely reliant on emerging technologies such as AI.
Disadvantages Of AI In Logistics
Artificial Intelligence is often seen as an incredible boon for logistics operations, but it does come with a few disadvantages.
The first of these is the matter of cost; investing in AI technology for your business can be expensive and may not give you the returns you expect according to Alibaba Cloud.
Another common drawback is the need for specialized skills and knowledge to manage such sophisticated systems. AI isn’t something that just anybody can use or understand – personnel will have to be trained in order to effectively use its features.
All in all, while AI can offer incredible advantages in terms of efficiency and productivity, it could also carry a heavy price tag both figuratively and literally.
Future Of AI In Logistics
Artificial Intelligence has brought about a major transformation in the logistics industry. The future of AI in logistics is nothing short of fascinating, with experts predicting that by 2035, it could increase logistics productivity by a whopping 40% according to latest data from Accenture.
Over the next two decades, the impact of AI is expected to generate between $1.3-2 trillion in economic value.
AI-powered inventory and warehouse management systems are set to play a pivotal role in reducing expenses, saving time, and improving efficiency in the logistics sector according to Gep who provide supply chain & procurement consulting service.
With its ability to connect people, processes, and data in a truly intelligent way, AI enables logistics companies to streamline their Enterprise Resource Planning (ERP) framework for a more future-ready environment.
The significance of AI in logistics cannot be overstated. Businesses may optimize their supply chain management, improve predictive maintenance, and obtain valuable insights into customer behavior by using the potential of AI.
From route optimization to demand forecasting, AI can help logistics companies make informed decisions and increase their operational efficiency.
The future of AI in logistics is filled with endless possibilities. With significant technological breakthroughs, logistics firms have the opportunity to use AI to improve their operations, generate new revenue streams, and provide greater client experiences.
By embracing AI, logistics companies can unlock their full potential and drive growth in a highly competitive market.