Benefits and Drawbacks of AI in the Transportation Industry

Technology is advancing quickly and we all get to experience quick changes in innovation devices. It has become almost impossible today to do any job without using technology. Our lives are greatly influenced by technology, to an extent that from our daily chores at home to our professional jobs and interactions, everything is being affected by technology. 

What is AI?

Artificial Intelligence refers to the ability of an advanced computer to perform operations normally executed by humans. To lay it out plainly, AI has human-like capacities regarding programming, however, it runs on significantly more impressive equipment. In contrast to people, smart machines can deal with huge amounts of information in real-time. 

AI Spring in Action

The last few decades have witnessed the spring of AI. The dramatic surge in AI resulted from its progress in advanced neural networks NNs and genetic algorithms GAs from the ‘60s and ‘70s. For any organization planning to move ahead and succeed, integration of technology in its operation is a must.

AI Incorporation 

Artificial Intelligence is now being incorporated by organizations all across the globe in a variety of ways, from robotizing a part of interacting with customers to deciding upon the products best suited for the market. The domination of artificial intelligence can already be seen in today’s market. Various tasks can be performed using artificial intelligence. 

AI in the Transportation Industry

The transportation industry is one of the major fields which have been transformed by AI. Owing to the amazing combination of hardware and software of AI, transportation managers are interested in including it in their daily operations. Some ways where it is already helping are discussed below:

Traffic Patterns 

Traffic congestion not only causes financial losses but also increases the carbon emission percentages around the globe. According to analysts, if AI is allowed to manage the traffic flow, congestion would be reduced exponentially and so will the carbon footprint. Many sustainable measures are already in action, for instance, smart traffic light and real-time tracking can assist in looking after the higher and lower traffic flows. 

Public transport can also make use of it to optimize scheduling and routing. 

Safety of the Public 

AI can assist the crime control departments to keep a better track of the crime in real-time. Based on this information, police can improve their performance through efficient patrolling and bring about the safety of the public.  

Where Are We Heading?

The news about self-driving vehicles and semi-autonomous trucks is all over the media. Even then many companies, almost two-third are still reluctant in using any innovation. No technology can be assessed in terms of black and white. 

Anyone hardly discusses where are we heading with it and how else is it impacting the transportation industry? AI is transforming the transportation industry gradually yet consistently. This has been going on for quite a while, which has made many supply chain managers confused on whether to incorporate AI in their operations or not. We decided to help people out in deciding if they should adapt to the technologies or not by discussing all the pros and cons of AI. 


With growing competition in the transportation industry, different organizations need to adopt new technologies and improve their services to gain a competitive advantage. The way to gain a competitive edge in the transportation market is to offer services that are

  • Cost-effective 
  • efficient 
  • have a greater level of adaptability 

It has become essential for different transport companies to stay updated with all the latest trends in the market. Knowledge about the latest requirements and regulations related to electronic books, working time, tracking, security rules, etc is necessary. 


AI can help support cleaner and greener vehicles and eco-friendly technologies. Potential advantages include

  • Reduced carbon emissions 
  • Lesser vehicle expenses 
  • less fuel utilization. 
Better Customer Services

The world is becoming more interconnected every single day. Millions of products are transported daily to different parts of the world and with the progress in technology, the expectations from the transportation industry have increased considerably. Customers expect a smooth, safe, and secure journey free from the old hassles whether they want to go to their jobs or for recreational journeys. Along with that, the pressure on the logistics and freight forwarder companies has also increased for fast delivery and efficient operations.

Efficient Deliveries

In order to gain a competitive edge in the market, transportation companies need to ensure efficient working with the help of technology. Because along with lower costs, customers look for safe, secure, and efficient deliveries.  

Accurate Order Completion

Transportation operations hold fundamental importance in completing the supply chain operations right from the manufacturing of the product to its final delivery. Efficient transportation can lead to the success of the order completion and any mistake or flaw can turn the tables and harm a company’s reputation.

Chatbots and Voicebots

The modern supply chain needs to offer excellent customer services. Chatbots can assist organizations to save money on client care costs by accelerating response time and satisfying as much as 80% of customers’ inquiries. These chatbots are accessible 24/7 and they get better with every interaction. According to some experts, in the future, they will probably completely supplant human operators.


It is the most significant advantage of using AI to control supply chain operations. For example, an AI-controlled warehouse mostly depends on robots to stock, find, and pick products. AI-supported machines can do it regularly and can speed up the picking, packaging, and delivery of the products.

Self-Driving Vehicles

The issues in the transportation industry emerge mostly due to human failure in the predictable patterns leading to mistakes, blunders, accidents, mishaps. This system of frameworks can be improved using AI. 

Self-driven vehicles have been gaining attention recently. Uber and Tesla have introduced their self-driving vehicles to improve the driving experience and reduce the number of accidents on the highway. 

Inventory Operations

With its ability to collect, channel, and examine huge volumes of data, AI can efficiently perform all the inventory operations. AI can analyze the selling patterns and control the supply and demand to keep the stocks in minimum quantity without harming the supply chain operations.

Quick Deliveries

When it comes to delivery, AI makes transportation better and more efficient. New frameworks consider different factors, for example,

  • Weather forecasts 
  • Alternate routes 
  • Traffic jams 
  • Delays, etc.  

 It makes them fit for making exact time assessments, so you can convey products without hurdles as guaranteed in lesser time.

Better Security

As supply chain operations continue showing signs of improvement and are now more sorted out, security at the workplace is additionally gaining its ground. AI-supported procedures minimize the threat of human blunders and other incidents. 


Cost-effectiveness is one of the most favorable benefits of adding AI to the supply chain. A large portion of the work is presently automated, which implies that you can have lesser staff.

24/7 Services and less Mistakes

Other than that, machines can work day in and day out without a break. At the same time, the possibility and chances of mistakes and blunders go down. Subsequently, AI makes the supply chain more productive in the longer run.  


You’ve seen the advantages, however, now the time has come to specify the drawbacks of using AI to deal with supply chains:  

Lack of Expertise 

Traditional ways cannot be replaced overnight. The whole procedure of adapting to a new technology requires some time and some skills need to be acquired. In case one opts for AI, he/she needs to make sure that all the concepts related to AI from software development to data science are crystal clear to them.  

AI Needs Human Assistance 

In spite of the fact that being able to do things, AI is not a totally independent system. To ensure efficient working, there is a need for human assistance and control.  

It’s Hard to Detect an Error

AI intelligence isn’t just based on handling data yet in addition it’s about learning and getting wiser after each operation. It transforms into an unpredictable checking framework after some time, yet this is actually why it’s hard to see and recognize mistakes when they happen.

Security issues

Many companies use artificial intelligence to manage huge data that can have sensitive information. This can be a major issue if the organizations don’t put resources into high-quality security systems. Just a single security mishap could lead to grave consequences for the organizations.  


Moreover, the advancement in technology has also led to an increased number of cybercrimes worldwide which put the companies dependent on AI at risk. So, it’s important to keep the system updated and protected against any mishap or cybercrime. 


The other concerning matter is the implementation of such models. The infrastructure of 

some countries, especially that of third world countries, does not support autonomous driving vehicles. Reconstruction and big changes would be required just to introduce self-driving vehicles. 


It is expected that by next year almost 33% of assembling supply chains will have cognitive abilities to do data analytics which will improve the cost-efficiency. 

Analysts predict that by the end of 2050 there would be millions of self-driving vehicles operating on the roads. But some fear the instances where AI could fail to interact with humans or try to subdue and overpower humans. Such things pose a great threat to humanity.

Danielle Gregory is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for QAFILA. Danielle’s writing relates to a range of subjects such as logistics and IoT. Besides writing, she enjoys traveling, Cooking, and Riding

Kim Reuter


From humble beginnings working the import docks, representing Fortune 500 giants, Ford, Michelin Tire, and Black & Decker; to Amazon technology patent holder and Nordstrom Change Leader, Kimberly Reuter has designed, implemented, and optimized best-in-class, highly scalable global logistics and retail operations all over the world. Kimberly’s ability to set strategic vision supported by bomb-proof processes, built on decades of hands-on experience, has elevated her to legendary status. Sought after by her peers and executives for her intellectual capital and keen insights, Kimberly is a thought leader in the retail logistics industry.

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Jose Miguel Irarrazaval

Host, Logistics with Purpose

Jose Manuel Irarrazaval es parte del equipo de Vector Global Logistics Chile. José Manuel es un gerente experimentado con experiencia en finanzas corporativas, fusiones y adquisiciones, financiamiento y reestructuración, inversión directa y financiera, tanto en Chile como en el exterior. José Manuel tiene su MBA de la Universidad de Pennsylvania- The Wharton School. Conéctese con Jose Manuel en LinkedIn.

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