Analysts and industry insiders expect AI to transform the transportation business, changing supply chain management and reducing human-operated positions.
Industry leaders expect sidewalk robots, self-driving vehicles, and customer service bots, along with generative AI that can predict disruptions and explain failed sales estimates.
In a research note, Morgan Stanley analysts lead by Ravi Shanker said AI may replace human touchpoints along the supply chain, including “back office” jobs. They called AI the most potent revolutionary technology, with autonomous trucks expected to join the US market in 2024, decreasing costs per mile by 25% to 30% and eliminating human drivers within three years.
The COVID-19 pandemic and geopolitical events like the Russia-Ukraine war significantly damaged complicated supply chains. Computer chip shortages and shipment rerouting slowed production and shipping. Thus, companies often lack visibility from sourcing to delivery.
Morgan Stanley analysts believe AI and machine learning can foresee and resolve fluid transportation network challenges. AI-powered systems could prevent supply chain problems by predicting them.
Jefferies analysts agree that generative AI will change transportation and logistics. Demand forecasting, predictive truck maintenance, optimal shipping route determination, and real-time cargo tracking are its applications. Jefferies analyst Stephanie Moore says generative AI might solve truck driver shortages, extreme weather disruptions, and empty grocery store shelves.
Shipping giant Maersk uses AI. Maersk’s CTO, Navneet Kapoor, sees generative AI as fundamental to the company’s operations. Kapoor said AI and machine learning are now used in enterprises. He sees great potential in generative AI to mainstream AI.
Maersk uses AI for customer planning. The company uses AI to construct a predicted freight arrival model, boosting scheduled reliability and helping customers arrange their supply chains more efficiently, cutting costs. Maersk plans to use generative AI to recommend whether items should be flown or stored amid route congestion. Kapoor aims to use huge language models, a sort of generative AI, to acquire sales insights and improve client interactions.
AI integration promises great benefits, but employment losses loom. Kapoor believes AI disruptions bring new career prospects, even though established roles may decline. Prompt engineers, who educate AI systems to respond better, will be in demand.
Morgan Stanley warns about high-tech digital transportation newcomers. AI may reduce dependency on third-party logistics firms for packing, storage, and shipment while increasing efficiency.
Maersk Growth invests in AI companies to stay ahead. This includes agreements with Einride, a self-driving electric vehicle manufacturer, Pactum, which automates sales negotiations, and 7bridges, an AI platform that predicts stock delays. Kapoor stresses the significance of proactively engaging with data companies to lead the market and understand new trends.
AI is also helping “knowledge assistants.” These AI-powered helpers aim to improve internal team communication and optimize the ordering process by analyzing large data sets. Igor Rikalo, President and COO of o9 Solutions, a software company that analyzes consolidated data, envisions a scenario where AI-driven knowledge assistants explain situations like suppliers delivering less goods than required.
As generative AI grows, integrated business planning teams, which set long-term goals, revenue predictions, and demand forecasts, may shrink. Rikalo predicts that a 1,000-person planning function might be reduced to 100.
AI integration promises transportation industry benefits but also hurdles and uncertainty. AI’s ability to change professions and business dynamics necessitates proactive adaptation by stakeholders.
