The launch of ChatGPT and other generative AI platforms ushered in a new era for businesses across all industries. Everyone from the C-suite to the front lines considers how large language models (LLM) will impact their business and jobs.
According to S&P Global Market Intelligence forecasts, generative AI technology offerings will generate revenues of $3.7 billion this year and skyrocket to $36 billion by 2028.
Industries that traditionally were slow to adopt new technology, like transportation and logistics, realize AI is more than a fad. It is an arms race where one cannot afford to fall behind.
Generative AI has numerous possibilities for trucking and logistics. This article reviews the top five opportunities to use AI-powered solutions to improve the efficiency and security of critical back-office functions.
Generative AI uses LLM algorithms that can produce new content, data, information, images, stories, processes, etc., based on vast amounts of existing data the models are trained to learn from. Gartner’s 2022 Impact Radar estimates that generative AI will produce 10% of all data by 2025.
This differs from traditional machine-learning models trained to identify data patterns and make predictions. This difference is essential to understanding how generative AI can improve five core office functions, as outlined below.
Accurate Forecasting:
Generative AI can swiftly analyze vast amounts of historical and real-time data from disparate sources (such as ELD, TMS, GPS, telematics, and more) to provide cohesive insights that improve decision-making processes.
For example, generative AI can give load planners insights into future loads and capacity fluctuations up to five days in advance. Accurately forecasting network imbalances enables planners to work proactively to reduce deadhead mileage and increase customer service and profitability.
Automate Routine Tasks: AI-powered solutions can automate routine tasks and improve the quality and speed of responses based on accurate, real-time data and business rules, not guesswork or emotions.
For example, AI-powered solutions can transform:
Order entry: Electronic load tenders are commonplace. Still, companies receive many orders via unstructured formats like email and phone calls. AI solutions can turn this unstructured data into structured formats and apply decision logic to accurately price loads and enter orders into a transportation management system (TMS) for planning and dispatch.
Load communications: Companies can automate status updates by combining disparate datasets to provide highly accurate ETAs, real-time updates, and alerts when exceptions occur.
For instance, Magnus TMS uses a proprietary Load Chain Sequencing (LCS) algorithm to calculate dynamic ETAs. The algorithm considers a complete chain of events, including drivers’ pre-assigned loads, current load status, hours of service, weather, traffic, and historic dwell times for planned stops on a route so customers know when to expect their load.
Pricing and bidding: By analyzing market conditions, historical data, and various factors, generative AI can predict competitive prices and suggest the right price point to make a winning bid.
Risk Management: AI can identify risky driver behaviors and vehicle maintenance needs to address problems before they lead to accidents and breakdowns.
For example, AI tools can combine real-time video and telematics data analysis with road and traffic data to alert drivers to risky behaviors and conditions. Additionally, operations managers or load planners can be made aware of the same issues to mitigate risks and positively change outcomes.
Network Optimization: Generative AI can optimize transport networks in real-time by analyzing various data points and algorithms to assign loads and route freight intelligently. This can reduce travel time, fuel consumption, and operating costs while increasing overall performance and customer satisfaction.
AI-driven optimization solutions help fleets maximize asset utilization through enhanced route planning, reducing empty miles, finding the best loads for the available trailers and drivers, etc. The convergence and use of the data to optimize processes and asset utilization significantly enhance fleet performance and cost savings.
Fraud Protection: An explosion in fraud — everything from identity theft and doctoring documents to fraudulent load tracking and double brokering — poses a significant threat to AI's benefits. According to CargoNet, freight fraud reports more than quadrupled in 2023 from 2022, costing the industry more than $500 million in losses last year.
Generative AI offers powerful tools for detecting and preventing early signs of risk and/or fraudulent activities. They include:
Customer and Carrier Monitoring. AI-powered shipper, broker, and carrier monitoring and onboarding services can validate credentials by comparing brokers' and carriers' email addresses with those on file with the FMCSA. The services can also monitor other activities, like companies using foreign IP addresses.
Payment auditing. Ideally, companies would transact business with shippers through a secure network with structured data that wouldn’t require AI to detect fraudulent activity. However, many invoices are emailed and use paper or digital documents that can be altered.
Payment platforms incorporating AI and machine learning can instantly audit invoices and documents received via email.
AI has the potential to transform trucking company operations by improving data utilization, enhancing efficiency, ensuring safety, optimizing network operations, and combating fraud.
However, as with any transformative technology, AI adoption comes with its own unique set of challenges. Trucking companies must balance technological innovation and human expertise to reduce the potential for disruption. This will allow generative AI's full potential to drive success in an increasingly competitive industry.
Magnus Technologies recently unveiled game-changing, AI-powered innovations to its Magnus Platform, including Magnus EDI Manager, Magnus Customer Tracking Portal, and enhanced load planning visibility. The Magnus Platform now eliminates network blind spots up to five days in advance so that load planners can make profitable decisions proactively.
Schedule a customized demo to learn how the AI-powered Magnus Platform can streamline your operations today!