AI is everywhere. Today it helps you find something faster using your smartphone and voice assistant. Besides that, many other sectors use AI and machine learning to improve their working processes and make them smarter.

5 Methods How Artificial Intelligence May Drastically Change Logistics
5 Methods How Artificial Intelligence May Drastically Change Logistics

Sergey Lypchenko | Cleveroad

Logistics is not an exception. We will explore 5 ways of how AI revolutionizes the logistics industry.  


How AI is used in logistics

As McKinsey notes, companies inf various industries may multiply their revenue by up to $2 trillion per year due to AI integration into the supply chain or manufacturing process. 

Giant companies like Amazon, Intel, etc. already use AI in favor of their business, and it helps them benefit. Let’s proceed to the primary use cases of AI in logistics. 

Automated warehousing

Everything starting from data collection to inventory processes on warehouses may be modified using artificial intelligence. AI makes it possible to speed up many warehousing processes and make them more accurate. As an example, AI helps build the demand forecast for the required products. Thus, companies may purchase only the necessary amount of products and sell everything clean off. 

Some companies use AI-based automated warehouse systems to automate many warehousing processes, like in the example below. 



A British online supermarket that integrated AI for warehousing processes automation. It uses the robot that moves and lifts grocery items, and they can fulfill up to 65,000 orders per week. When the robot does its job, workers then pack these goods and send them. Thus, the delivery time is reduced substantially, and everybody is satisfied. 

Some companies start using AI-based computer vision technology that scans all goods and helps organize inventory processes. Consequently, employees may become unnecessary since digital technologies will solve all relevant issues. 

If there are a few warehouses, AI makes it possible to build a network and recommend specialists what warehouse is better to use for goods transportation. 

Self-driving vehicles

Well, self-driving vehicles are already used for passenger transportation. So why not use it for cargo transportation? It will allow companies to reduce expenses for shipping. Of course, for a start, it is better to launch driverless cars with a human in the cabin who will control the situation and may drive the vehicle in case of any breakdowns. Nevertheless, self-driving vehicles pave the way to the great future where AI will rule many technical processes. 



This US-based company was the first that launched a commercial taxi service with self-driving cars. It was done recently - in December 2018. And now Waymo plans to build driverless trucks and use it for cargo transportation to enhance the logistics industry. 



This company that is famous for luxurious and expensive cars started the collaboration with Intel company to create autonomous ships. Rolls-Royce has been working on this idea since 2010. So, Intel designed the so-called Intelligence Awareness system that may monitor engine condition, detect various objects in the water and recognize them, and navigate ship via an optimal route. As a result, cargo transportation by sea will be done faster. According to MarketsAndMarkets, the autonomous ship market may reach up to 13,8 billion by 2030. 

Well, autonomous cars are a real innovation that also improves logistics and optimizes transportation. 


Smart roads

If there are smart cars, smart roads should also exist. And they also may have a good impact on the logistics sector. 

For example, roads may be equipped with solar panels and LED lights. Apart from electricity generation, lights may notify drivers about changes in road conditions, and so on. Besides, solar panels heat the road, and it will prevent road accidents in winter due to slippery ice. When trucks deliver goods using such roads, they will do it faster and without delays. 


Integrated Roadways 

This company has built the Smart Pavement system that is tested now in Colorado state, USA. Smart Pavement system connects all vehicles to the Internet and notifies them about road conditions, accidents, traffics jams, weather, etc. Besides, Smart Pavement system provides drivers with good navigation. 


Back office operations 

Well, working with documents is not less important in the logistics sector, as you know. Thus, AI and RPA (Robotic Process Automation) combination allows employees to switch to more manageable tasks. Since robots will do more complicated and repetitive tasks, it contributes to the accuracy increase and saving of money. 

So, the more robotic assistance is used during the fulfillment of data-related tasks, the possible human errors will be eliminated. 



The company that creates robotic equipment for doing human tasks. Robots from UiPath are designed to “see” screen elements. And owners of the company claim that their robots may handle almost all tasks. APR of UiPath was grown up to more than $200 million for the last two years. 

Apart from this, it is possible to use AI for reading through the contracts to detect some issues or controversial moments. It means that the job of lawyers may be automated. Moreover, LawGeex’s study claims that AI does lawyers’ jobs more accurate (94%) than human lawyers do it (85%). 



Leverton creates AI-based applications for reviewing contracts. Its contract analytics software has the capability of working with more than 30 languages. Furthermore, machine learning allows this app to learn continuously and extract the required data from contracts. If you use Leverton app, you will save up to 50% of the time. 

AI to predict demand and improve customer services

Well, it is not a secret that AI also helps predict trends and forecast the demand to provide the customer with the required amount of products. Artificial intelligence makes it possible to analyze the market situation and give entrepreneurs accurate results. Thus, it helps business owners manage warehousing processes better and more efficiently.  Besides, customers’ loyalty will be increased as well, and your business will multiply a profit. Bingo!



A world-know shipping company collaborates with Amazon to give users a personalized experience. Now you can use Alexa from Amazon and ask it to inform you concerning the location of your parcel. Perfect, isn’t it? It may give you the full information on shipment details as well. 

AI in the logistics sector is not limited to these five use cases. But these we listed are the most awesome. They may augment your business processes and let your sales grow. 


3 Top AI-based Startup In Logistics 

And now I recommend you to explore three high startups that use AI in logistics and do it successfully. 


Locus Robotics

This company is specialized in the development of autonomous robots. These robots are designed to replace humans and make diverse warehousing operations. Its robots are equipped with touchpads, and all workers may control robots using a simple user interface. These robots become popular. 



Valerann is a startup company that is engaged in the building of AI-based systems for the transportation area. For example, it provides a smart road system that may collect data that is sent to the cloud and stored there. Then, machine learning algorithms may predict anything that may happen on the road. 



Convoy startup provides users with an app that finds for you a truck if you need fast shipping. The app may match logistics companies with various vehicles if companies need the shipping ASAP. It helps such companies save time and make transportation faster. And cheaper as well. 

Your startup may become next in this list if you want to take your business to the next level. We hope the information in the article was cognitive and useful for you. Be calm and follow the right road!

About Sergey Lypchenko
Sergey Lypchenko is a technical writer at Cleveroad. It is a web and mobile app development company located in Eastern Europe. Our main goal is to develop first-rate and competitive software for our customers. My mission is to provide people with interesting material about innovations in the world of IT.

The content & opinions in this article are the author’s and do not necessarily represent the views of RoboticsTomorrow

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