Image credits: Franki Chamaki
/
News Article

Artificial Intelligence: Key Tool for Logistics Players

By Jorge Ramos Zwanziger | Wed, 04/28/2021 - 16:03

Artificial intelligence (IA) is becoming extremely important as technology plays a bigger role in everyone’s lives. The pandemic only accelerated this trend. “The global pandemic has pushed AI to the top of the corporate agenda, empowering business resilience and relevance,” said Ritu Jyoti, Program Vice President of AI Research at the International Data Corporation (IDC). IDC predicts that by 2023 the global logistics industry will increase its investment in AI by 250 percent, reports T21.

This should not come as a surprise, as companies that were most adept in modern processes fared better throughout the pandemic. Technology allowed companies to optimize their expenses through these uncertain times, explains T21. "AI is becoming ubiquitous across all the functional areas of a business. Advancements in machine learning, conversational AI and computer vision AI are at the forefront of AI software innovations, architecting converged business and IT process optimizations, predictions and recommendations and enabling transformative customer and employee experiences,” said Jyoti. This makes the implementation of AI even more impactful when thinking not only about revenue, but profit.

AI technology offers companies the possibility to anticipate events, mitigate risks, improve and plan future routes, predict demand, analyze data from transactions and improve response times to offer faster and better solutions, explains T21. David Rocha, Managing Director and Director General for Latin America and Brazil at SparkCognition, explained to MBN that AI is crucial in logistics, as it allows companies to address complex challenges in ways that even throwing more people at the problem would not accomplish. “Challenges, such as optimizing how an offshore platform or power plant operates or going from 10,000 planes to operating millions of drones, are problems where human capabilities and expertise can be augmented with AI-based solutions,” said Rocha. AI offers the opportunity to maximize people’s hard-earned expertise.

However, according to IDC, AI is no longer a competitive advantage when it comes to profit maximization. Due to the optimized solutions it offers and how many global players are incorporating it, AI has become vital for success. “To be clear, the incorporation of AI is no longer an advantage, it is a minimum from which we must continue to advance in order to stay afloat in an increasingly competitive and globalized industry,” argues T21. According to the World Bank’s Logistics Performance Index for 2007 to 2018, Mexico ranks 51 in logistics. AI could help the country overcome intrinsic challenges and become more competitive. 

The data used in this article was sourced from:  
MBN, T21, IDC
Photo by:   Franki Chamaki, Unsplash
Jorge Ramos Zwanziger Jorge Ramos Zwanziger Junior Journalist and Industry Analyst