AI isn’t new. It’s been lurking in the background, crunching numbers, routing deliveries, and optimizing supply chains for years. But now? It’s everywhere. At the Air Cargo Conference in Dallas, the conversation wasn’t about whether AI will shape logistics but rather how it’s already doing it.
I had the privilege to speak on a panel titled Harnessing the Benefits and Mitigating the Risks of AI in Logistics at the Air Cargo Conference, and the key takeaway? AI isn’t just a futuristic concept; it’s here, it’s evolving fast, and if you’re not leveraging it, you’re already behind.
AI isn’t just getting smarter; it’s getting better fed. The flood of available freight data, from real-time rates to capacity tracking, means AI models have more fuel than ever. That’s why AI is scaling at warp speed, turning what used to be ‘nice-to-have’ automation into an industry necessity.
Let’s break down the key themes from the panel.
AI’s Best Use Cases in Freight
Not all AI is created equal. Traditional AI – the kind that powers pricing algorithms and route optimization – follows set rules. Generative AI, on the other hand, learns patterns and generates responses, making it ideal for customer inquiries, document processing, and predictive analytics. Both have their place, but together? That’s where the real magic happens.
Here are some of the most effective applications in logistics:
- Automating Repetitive Tasks
2023 WebCargo research reveals that 64% of logistics professionals want AI to streamline pricing and rate management. No question – AI is excellent at eliminating tedious manual tasks like extracting shipment details or sorting through emails for rates.
- Routing & Optimization
UPS’s ORION system is a prime example. AI-driven routing saves 100 million miles driven per year, cutting costs and emissions. Now imagine applying that efficiency to global air cargo networks.
- Document Processing & Data Extraction
Bills of lading, invoices, customs declarations – AI can process them in seconds, reducing errors and speeding up workflows.
Top digital forwarders are already doing this. 80% of those offering instant quoting also enable digital booking – because why stop at a rate when you can close deals instantly?
- Customer Service Enhancements
AI chatbots aren’t just for “Where’s my shipment?” questions anymore. They can handle complex rate requests, bookings, and proactive notifications – freeing up humans for higher-value interactions.
- Training & Onboarding
AI can streamline system training, flag common errors, and act as a real-time assistant, making tech adoption smoother for teams.
The Future: AI as Your Assistant, Not Your Replacement
AI isn’t here to take your job – it’s here to amplify it. A recent Freightos survey found that 96% of logistics professionals are planning to use AI in their operations over the next year, and for good reason. AI’s about replacing tasks, not people, so teams can focus on what actually moves the needle. The ones who lean into AI? They’ll be the ones pulling ahead.
What’s Next?
- Agentic AI: AI making decisions autonomously within set guardrails.
- AGI (Artificial General Intelligence): Still far off, but worth keeping an eye on, as AI systems grow more adaptive and capable..
AI Isn’t Perfect: The Risks Are Real
AI is powerful, but it also comes with real risks. It is important to be very clear as to what those risks are so that you can mitigate them appropriately.
Key Risks to Watch
- Free AI tools: Tempting, but risky. The old adage still applies. If a product is free, you’re the product. The data you put into the tools will be used and or resold. They can also compromise data security and potentially introduce compliance risks.
- Data Poisoning: Bad data input means unreliable outputs. AI is only as good as the data it learns from.
- Bias & Poor Data Quality: Biased AI models can reinforce inefficiencies instead of fixing them.
- Privacy & Security Risks: Sensitive shipping data in AI tools? That’s a regulatory minefield.
- Lack of AI Leadership Experience: Many logistics leaders don’t have an AI playbook (yet).
- Regulatory Uncertainty – Compliance with TSA, CTPAT, and SSI policies is non-negotiable.
Big Question: Who’s responsible when AI gets it wrong? That’s a conversation logistics providers still need to have.
AI is great until it makes a bad call. If an algorithm misquotes a shipment or approves a booking that doesn’t comply with regulations, who takes the hit? Logistics companies need clear AI governance: when things go sideways, is the responsibility on the AI provider, the user, or the company deploying it? Without transparency, AI is just a black box waiting to cause compliance nightmares.
Getting Started: The Right AI Adoption Strategy
A lot of companies hesitate when it comes to AI. “We’ll start once we have more data.” “We need a bigger budget.” But here’s the truth: the biggest risk is doing nothing.
AI isn’t just about efficiency. It is about driving revenue. Forwarders using AI-driven quoting and booking tools aren’t just saving time; they’re increasing conversions. The best AI investments pay for themselves by reducing errors, speeding up workflows, and optimizing yield – because in freight, efficiency is profit.
AI Adoption Blueprint
- Start Small: Get moving with low-risk AI pilots (automate quoting, streamline documentation, etc.).
- Clean Your Data: AI without clean data is just fancy guesswork.
- Get Leadership Buy-in: AI adoption requires a top-down approach.
- Leverage Existing Solutions: As Gero from Levity put it,
Freight companies don’t build their own trucks or planes – they shouldn’t build their own AI from scratch.
The Bottom Line
AI in logistics isn’t optional. It is essential.The logistics industry has always been about speed, efficiency, and optimization. AI is just the next evolution of that. The companies that embrace it strategically – balancing benefits with risks – will define the future of freight.on of that. The companies that embrace it strategically – balancing benefits with risks – will define the future of freight.
