Artificial Intelligence: friend or foe in modern logistics?

Find out how AI is affecting warehouse and logistical processes

Probably the most discussed technology today is artificial intelligence (AI). It’s the applied science that enables computers and machines to simulate human learning, comprehension, problem-solving, decision-making, creativity and autonomy. Perhaps that’s also why it’s equally feared – because of its enormous potential to replace most of the jobs out there. In this article, Gian Schiava explores areas where AI is already making an impact today in modern logistics, and where it can support logistics professionals in their daily lives.

Leading marketing and tech platform Frankwatching signalled an accelerated adoption of AI for 2025, whether that’s within companies, classrooms or in our homes. In all honesty, AI has already been around for a few decades, but today we can witness a real boom in its uptake.

Frankwatching backs up this growth statement by sharing impressive current usage numbers. In 2024, GPT had 200 million active users. That’s twice the amount in the year before. It’s now being used by 92% of the large companies. Gemini, the chatbot developed by Google, has many heavy users contributing toward its total of more than 100 million interactions per month. Meta’s Llama has been downloaded over 350 million times and is used by companies like Spotify, Shopify and Goldman Sachs. Investors poured $64 billion into AI startups last year, and the Big 4 tech companies Amazon, Apple, Alphabet and Microsoft have already spent more than $100 billion on AI in the last year. These are astronomical amounts, which will accelerate many developments even further.

AI and logistics: a match made in heaven?

By now, it’s not a question of if, but how, AI will make logistics processes more efficient. Logistics provider DHL zooms in on this topic in its recent “Full Logistics Trend Radar 7.0”. This edition of the authoritative yearly report highlights specific AI solutions that can directly add value to logistics operations.

One of the most promising applications of AI, according to DHL, is the use of AI-based predictive technology in inventory management. These systems can predict future demand, optimise inventory levels and anticipate potential disruptions in the supply chain. Also, on the physical side, the warehouse itself can be optimised by making better decisions on where to put the inventory, automating picking and packing processes, and monitoring equipment maintenance schedules.

Next, we zoom out and discover possibilities for providing real-time visibility across the entire supply chain. DHL’s researchers find that logistics professionals are starting to use AI for tracking goods, identifying bottlenecks and limiting risks. And while all of this is going on, the logistics back office is using AI in scanning, processing, organising and sharing of information needed to perform their daily tasks.

With continued advances in algorithms, the availability of more data, and greater computing power, DHL expects AI applications in logistics to continue to expand and deepen.

AI supporting the logistics shop floor

AI is not only here for the extreme and complex calculations and predictions. It can just as easily be deployed as a daily assistant, coexisting with humans to make their life a bit easier.

For example, one of the more time-consuming activities in the warehouse is order picking. Most operations work with picking lists, generated by the warehouse management system, to create routes. Obviously, these are as short and effective as possible. However, during the day, data and situations change, resulting in unfound products, shortages on picking locations, unexpected congestions or other undesired surprises. Not with AI.

AI monitors situations in real time and adapts routes on the fly, always leading to reduced travel time and the shortest amount of picking time possible. In addition, AI solutions like computer vision tools analyse all movements in warehouses in real time and help drivers to get as quickly from A to B as possible. In short, AI helps the order picker to get things done quicker, better and with fewer annoyances.

For sure, the implementation of AI can pose various challenges in the fields of data reliability, privacy violations or cybersecurity. These are hurdles that need to be overcome, but there’s no doubt that AI is in logistics to stay.

Big applications and daily improvements

AI will make its way into logistics rapidly. It can solve extremely complex issues, but at the same time it can help with simple, day-to-day searches for information essential to completing the tasks that lie ahead. Forklift and warehouse equipment manufacturer Cat® Lift Trucks offers a nice example. In its continuous effort to support Cat® lift truck dealers, it has developed a solution to address the numerous product-related questions received every day.

To provide quicker responses, an AI chatbot named Nexxie was introduced. Nexxie is described as an intelligent, self-learning system, designed to cater specifically to dealer-related issues. The solution is available 24/7 and grows and learns from every interaction.

The manufacturer says the Nexxie solution goes beyond rule-based chatbots with their limited, static interactions. It gives more dynamic and context-aware responses and proactive assistance. The tool was launched to Cat dealers with a series of explanatory webinars. Nexxie users found they could quickly master its many possibilities for enhancing their daily sales and service activities in support of forklift customers.