What is AI and how it can be applied to Transport and Logistics Industry?

What is AI and how it can be applied to Transport and Logistics Industry?

AI is currently one of the most overhyped topics. There is this misguided belief that one day, computers are going to be smarter than people. That they are going to take many jobs from us and that they are going to start a war against people. In actuality, computers cannot be people because they lack creativity, imagination, and they cannot think abstractly. Artificial intelligence is a set of algorithms which can provide very complex outputs and decisions based on incoming data. Therefore when you have an individual stream of data such as anything from transport shipments to video and audio data coming from a self-driving car, AI is the software that can make decisions that are much more complicated compared to the decisions the traditional software makes.

For example, you have an incomplete shipment data. You have the weight or the density, but you do not have the dimensions of a particular shipment. AI can systematically go through the data, look and learn about how past shipments behaved and then it can come up with precise deductions about all the properties for each shipment. Such AI algorithm would require only 5-10% of data being correct in order to create a training dataset, which serves as a basis for data cleansing and enrichment. As a result, it would represent the whole picture about shipments’ properties and would ultimately provide a clear understanding of how empty or full your vehicle is.

This is something that probably people could do, but then you would need an army of people who understand the business in detail in order to do it precisely and consistently. Of course, it would be very expensive, while artificial intelligence can do it with just a computer running.

I believe the market for AI and predictive analytics is going to grow over the next few years. The most recent Gartner Hype Cycle features “AI Everywhere” as one of the three mega-trends among the emerging technologies, because AI and predictive analytics can be applied in so many industries and the potential impact can be enormous. As a result, the world will need a lot of specialists who know how to work with data science, artificial intelligence, machine learning and so on. The shortage of such specialists is already a serious constraint, and even though their number will increase over time, the competition for such talent will remain fierce.

If you have any questions about the innovation in logistics or wanted to learn more about particular topics, please let us know in the comment section and we will answer them in our future posts!