Impact Of Artificial Intelligence In Transport And Logistics
Big logistic companies such as logistics in Perth have been using analytics as well as research teams for a long time. These are used in order to understand the data they gather from the day to day operations. The challenge is that data is increasing in large volumes and processing these data is not as easy as before. The insights gathered can be different every time and not as clear thus many companies are starting to utilize computer techniques employing AI or Artificial Intelligence such as natural language processing, machine learning, process are automated and streamlined and deep learning.
Computers are programmed through these techniques in order for them to analyse data into parts in order to gather the needed information, analyse supply and organize events based on the results. They are recommended to be used when analysing data sets in large amount and can be used in many applications in various sectors of the logistics and supply chain.
AI has the capacity to organize logistics functions coupled with supply chain to make things more efficient. This provided an advantage to the companies especially those starting out as it helps them save in shipping times as well as shipping costs. According to the study by McKinsey, startup companies using AI is able to have profit margins higher than 5 per cent. On the other hand, companies that are not yet using AI are found to be in the red region.
Despite the crucial benefits of the technology, many companies are still not using it. According to the same survey, only 21 per cent of companies in the logistics and transportation industry are using AI after they have experienced the testing phase. The main reason why many companies are not adopting the technology is that it requires a large capital investment. There are also changes in the organization that must be surpassed.
Just like any technology, its widespread use can impact the entire industry and the transportation and logistics company such as logistics in Perth are hoping that the cost will also decrease along with the popularity.