Top 7 Ways to Use AI in Transportation and Logistics in Transportation Industry

AI Impact on Transportation

Market surveys show that only 1/3 of transportation companies hesitate about whether AI is important for their development. Most freight businesses plan to adopt AI in their operational routines or have already done so.

New marketing strategies prove that AI saves up to 50% of transportation costs for full truckload services and this number is becoming even more impressive. Yet, cost saving is not the only benefit AI brings to the industry.

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Main Benefits of AI Implementation

Key benefits AI brings to freight services are:

• Fast response:
  AI technologies monitor requests 24/7, classifying them, and responding to urgent ones immediately. That cuts waiting time significantly.
• Route optimization:
  AI helps to optimize routes to reduce both fuel spending and time of delivery.
• Minimizing employee workload:
  AI can successfully do repetitive work, so the employees can have more time for creative tasks.
• Lower risk of errors:
  Automatic monitoring and data processing reduce the risk of human error and provide a more exact and unbiased evaluation of operation processes.
• More effective communication:
  AI technologies secure fast and reliable connections between company employees, partners, and clients.
• Convenient interfaces:
  Digital AI-operated products allow quick and easy data access for both staff and clients.
• Eco-friendly solutions:
  AI helps to reduce carbon imprint by implementing better routes, improving driving habits, and optimizing truckloads to limit fuel use.

Potential Challenges of AI Implementation

Successful AI implementation is only possible if companies can cope with some challenges like:

• Data availability: accurate data is the crucial condition for effective AI decisions and strategies.
• Information security: implementation of new AI systems may put sensitive data at risk which may harm the company’s reputation.
• Lack of skilled staff: many businesses face a lack of experienced specialists ready to work with AI systems and technologies.

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7 Mayor Ways to Use AI in the Transportation Industry

Here we’ll explain how AI technologies may be applied to freight services and transportation companies.

Traffic Control:

AI analyzes data from GPS trackers, vehicle sensors, and truck telematics to optimize routes, minimize delivery time and risks, and reduce pollution.

Driving Skills Improvement:

AI solves traffic safety issues, keeping drivers alert on the way. The system can determine and react to negative changes immediately, giving life-saving instructions or providing ongoing driving training to avoid accidents.

Enchased ETA Precision:

Monitoring delivery distance, road, and weather conditions, AI technologies can accurately predict delivery time, which is very convenient for clients. Moreover, more accurate précising optimizes workflow planning and helps to avoid complaints from customers.

Robo-vehicles:

Atomized AI-operated vehicles are becoming a part of the operational reality for many companies. Robo-trucks may be a key to increasing profit and cutting delivery time, as such vehicles can work 24/7 without breaks or limitations, minimizing the risk of human errors.

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Ongoing Tracking

Modern tracking devices can provide data on a vehicle’s condition, speed, location, situations on the road, and drivers’ behavior. Coupled with AI, such devices can play a great role in optimizing routes and cargo safety, choosing places for parking, avoiding traffic jams, etc.

Maintenance Predictions

By collecting and proceeding data from sensors and trackers that are connected to freight vehicles, AI systems can predict maintenance and safety issues before they occur. Such information helps to reduce downtime, minimize risks of accidents, and increase the lifespan of vehicles.

Atomized Inventory Management

AI analytics monitors stock levels and ensures product availability. AI systems can also go much further, providing detailed analyses of the market, upcoming trends, and customer behavior, and, finally, creating an effective marketing strategy for inventory management.

Popular Cases of Successful AI Integration

Several market giants have become inspiring examples of creating and integrating AI products:

• Tesla created an Autopilot system for atomized transport operations.
• Amazon developed a robot-operated system that manages the warehouse, picking, and packing ordered goods for delivery.
• Hitachi upgraded tracking equipment by connecting it to an AI system, which resulted in receiving complex and accurate data about the location and technical conditions of vehicles.
• FedEx presented a unique AI-package for real-time tracking and predictive analytics of delivery routes and time.

First Steps Towards AI Adoption

Heading toward AI-optimized operational reality, it’s necessary to start by getting some solid knowledge in the sphere of new technologies and training your staff to use AI products. It’s also important to upgrade the existing IT database, to prepare it for further AI integration.

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Conclusion:

AI is transforming the transportation industry, offering more opportunities for businesses. With the increasing interest from market leaders and tech giants, AI technologies are evolving very fast and becoming more available within freight companies. Introducing some AI systems into delivery operations may increase profitability, reduce safety risks, and boost levels of client satisfaction.