While use of AI in logistics is a hot topic, it seems that adoption of this technology has a way to go. Just 25% of respondents to a new survey, 2024 Transportation Management Outlook Study, said that they use new applications or insights from AI in their organization.
The study, conducted by Peerless Research Group for Odyssey Logistics, found that while the broader pool of respondents acknowledged that AI has the potential to enhance freight matching, operational efficiency, and route optimization, many respondents also expressed strong distrust of AI. The survey notes that this aligns with broad reports of trust in AI dropping over the last five years.
“Transformation is certain, and practical uses for AI are gaining traction to advance this effort," said Maneet Singh, chief information officer at Odyssey Logistics, in a statement. "However, this study shows skepticism and distrust around AI, and a seismic shift in how we do business will take time to unfold. Yet, in reality, we have only a short window to adapt.”
AI’s acceptance and distrust in the logistics industry can be attributed to the generational shift, increasing cybersecurity concerns, shipping practices, sustainability concerns, and the necessity of resilient supply chains.
The study revealed that 52% of the respondents favored a human-led approach to AI, where AI tools and insights serve as support. Additionally, as AI gains prominence, cybersecurity has surpassed fuel prices as the primary concern for survey respondents, with 46% prioritizing it over traditional concerns like fuel prices.
Responses also highlighted that the industry still struggles to fully embrace sustainability as a core value. However, there is a growing demand for improved sustainability practices. The ability of AI to process complex data inputs will be invaluable, especially when combined with human expertise. AI and other emerging technologies are already improving reporting, which can provide actionable data to support more sustainable transportation mode choices.
“The main strategy behind building supply chain resilience has been technology upgrades, and half of the study respondents have used this tactic since the pandemic began,” said Singh. “Now, we need to course correct on what’s traditionally been slow technology adoption in our industry and move past the ambivalences and distrust around AI because it is truly at the frontier of a supply chain resilience.”
