Artificial intelligence is likely to shake up the transportation industry — transforming how supply chains are managed and reducing the number of jobs carried out by people, according to analysts and industry insiders.
Sidewalk robots, self-driving trucks and customer service bots are on their way, along with generative AI that can predict disruptions or explain why sales forecasts may have been missed, according to industry executives.
“AI may be able to totally (or nearly) remove all human touchpoints in the supply chain including ‘back office’ tasks,” Morgan Stanley’s analysts led by Ravi Shanker stated in a research note last month.
“The Freight Transportation space is on the cusp of a generational shift driven by disruptive technologies incl. Autonomous, EV, blockchain and drones. AI is the latest one of these potentially transformative technologies to emerge – and perhaps the most powerful to-date,” the analysts added.
For example, the bank said it expects several hundred autonomous trucks to begin operations in the U.S. in 2024, reducing the cost-per-mile by 25% to 30%, and eventually eliminating the need for drivers entirely (its timescale for this is “beyond three years”).
No more empty shelves?
Supply chains are often long and multifaceted: A company might source from manufacturers in different parts of the world, with components shipped to a central assembly plant before goods are distributed to customers globally.
Producing and transporting goods, already a complex process, was disrupted by the Covid-19 pandemic and the Russia-Ukraine war — which led to a shortage of components such as computer chips and the rerouting of shipments. That complexity means companies are often unaware of what happens to their products from one end of the process to the other.
“This is where AI (and machine learning) come in. By predicting what could go wrong with a fluid Transportation network … before it does, AI/ML systems could … potentially even avoid the disruption scenario entirely,” Morgan Stanley’s analysts added.
This is a theme picked up by analysts at investment firm Jefferies, who made multiple predictions about the effect that generative AI will have on transportation and logistics. That includes forecasting demand, predicting when trucks need maintenance, working out optimal shipping routes and tracking shipments in real time.
“A shortage of truck drivers, polar vortexes halting interstate commerce, and a dearth of baby formula on grocery store shelves will be a distant memory with the adoption of generative AI in the Trucking & Logistics space,” its analysts, led by Stephanie Moore, wrote in a research note published on June 6.