Looking Toward the Future to Prevent Cargo Theft

Q: How has the artificial intelligence (AI) solutions market changed over the years in the logistics sector and how did this help AI27 to start operations? 
A: We are a technology-based logistics security company with over 25 years of experience. Over this time, we have fine-tuned our business model to focus on data analytics and AI. Over five years ago, we developed the first algorithm that allowed us to predict the risk faced by each of the transports we monitor daily with a certain level of reliability. Over the past three years, we have refined this system to such an extent that we now have the world's first AI capable of predicting robberies related to transportation, not only in Mexico but globally.

As a company with several years in the market, we have noticed that there is increasingly more openness toward technology. Our first years were quite difficult due to the challenge of implementing technology everywhere, particularly in Mexico and the Latin American region. People tend to oppose things they do not fully understand.

I do not believe in coincidences but our solutions found a great opportunity during the pandemic. In 2020, we were already launching our AI application. This technology allowed us to navigate through the very difficult years of 2021 and 2022. Supply chains were disrupted worldwide and there was a shortage of basic supplies. Industries and companies sought to boost efficiency within their organizations and we were completely ready to help them with their transition. 

Q: How can supply chains benefit from AI solutions and what are the main incentives for Mexican companies to adopt your services? 
A: We are able to predict and prevent 9 out of 10 robberies linked to our units in Mexico. Each robbery typically amounts to around US$30,000 to US$50,000 in losses. Another benefit of implementing our solutions is making the company’s supply chain more efficient. By leveraging the data we gather, we provide visibility into their operations and predictability of companies’ processes, which was not possible before. This means that we not only assist with logistics security but also contribute to overall logistics efficiency. 

Q: What are the main security concerns for companies in Mexico? 
A: Without doubt, personnel safety is a major concern. This layer of physical integrity directly relates to logistics security because it deals with physical events. While cybersecurity is currently in the spotlight and is undoubtedly essential, it primarily operates in a less physical and less violent realm, focusing on protecting against attacks on systems rather than people. 

When organizations look inward, their first priority is to protect their assets, including machinery and buildings. But, above all, they want to safeguard their people. This is where our technology-driven approach to AI becomes highly beneficial. By eliminating the need for personnel involvement, weapons or confrontations, we provide a significant advantage.

Q: How does AI27 adapt to each client’s budget? 
A: To serve different clients, we have three packages specifically designed for our AIS business line, which focuses on transporters, truck drivers and independent cargo operators. By independent, I mean they are not the large Triple-A multinational organizations that are our main clients.  We developed this solution to cater to a niche market and provide access to individuals who typically do not have the budget or operational structure to access AI27 solutions.  

The basic level is autonomous risk management. Our AI autonomously proposes solutions based on real-time risk measurement. The scalability extends up to our highest level, where you have a complete AI27 solution. This includes not only artificial intelligence and digital twins for your operations but also our dedicated Reaction Group of more than 600 patrols and 60 drones distributed throughout the country. When a risk materializes, we are capable of intervening and recovering the goods to prevent any loss for our clients.

Q: As a pioneer in your field, how has the market for technologies similar to AI27’s evolved over the years?  
A: There is competition and some companies are doing an excellent job. I believe that these solutions will increasingly contribute to a deeper understanding and acceptance of technology in Mexico and the region, driving the penetration of such services. 

Adoption highly depends on demand, which is the main driver for market penetration. As I mentioned, the resistance among some people to adopting technology is still high. Another challenge is addressing requirements from insurance companies, which still insist on physical security, such as having people behind a truck for custody purposes. This approach is highly inefficient in terms of cost and, more importantly, yields different results compared to using technology. 

Also, companies like AI27 not only offer technological advances in security but in terms of sustainability. We are experiencing unprecedented heat due to climate change and, through our technology, we are reducing emissions by the tons every day. 

Our penetration level in these types of solutions is around 55% to 60%, with an annual growth rate of around 10% to 20% in terms of product dispersion, excluding traditional products. 

Q: What are the main trends that AI27has identified in the logistics sector? 
A: When you speak with people in the logistics industry, everyone talks about technology. However, when you try to understand what they mean by "technology," they usually mention GPS, which is indeed a great tool. But, GPS has been in the market for over 35 years and has barely changed. 

The trend is to move the conversation forward and start talking about companies that adopt technology like AI-powered solutions. Digital twins, like our SofIA solution, are replacing human-operated monitoring centers. SofIA can do the same tasks a human can but with 11,000 times greater capacity. SofIA can handle 11,000 simultaneous calls, which a human could never do. Also, it does not make mistakes or get tired and it cannot be corrupted. Increasingly, the natural trend is to adopt these types of solutions and integrate them into the supply chain and logistics. 

Q: Has AI27 experienced the same personnel shortages that other companies complain about and what are your thoughts on the matter? 
A: The lack of professionals is real and it will be one of the biggest challenges for the Mexican industry. Many talented individuals, including engineers, usually aspire to work in the US or other countries. The US is focusing on attracting Mexican talent, offering competitive salaries in dollars and promising career growth. However, what we have been able to accomplish here is to convey a clear idea and vision of transforming the logistics industry in Mexico, and even globally. We have successfully retained and attracted talent who genuinely believe in what we are doing and are eager to make a quick impact.

Q: What are the company’s plans for the mid- and long term? 
A: This year, we are finalizing our AIS technological model and launching a product called AInsurance specifically for the insurance industry. It is focused not only on protecting cargo but also on protecting units. We are forming several important alliances with the insurance sector and by the end of 2023, we will be operating in various regions, including Central America, parts of Latin America and even the US, where we are just beginning to operate.  

In the medium term, we aim to have our operation fully consolidated in Central America and the US. Looking ahead, we envision supporting some clients in specific regions in Europe. While insecurity may not be such an issue in this region, companies do encounter challenges in terms of visibility and logistics traceability. Our solution has been well received by global logistics companies that have been unable to find a similar solution.

Our goal is to create an ecosystem where companies no longer need to engage with multiple providers or manage logistics from different perspectives, such as security, traceability, insurance and financing. These elements, among others, present significant challenges for every industry, which often relies on a variety of solutions or providers to solve them. With AIS, we are striving to build the first ecosystem that seamlessly integrates essential solutions into a single platform.