The Perfect Match: Artificial Intelligence and Global Logistics
Artificial intelligence is making a profound impact in the global logistics sector and AI applications are helping logistics managers around the world streamline their operations, improve efficiencies and enhance their teams’ productivity levels.
Combined, the uptick in e-commerce plus urbanization—or, the movement of people from rural areas to more urban areas—are both heavily influencing the current state of logistics and transportation operations. More than 50% of the world’s population (4.4 billion people), now resides in urban areas. By 2045, the world’s urban population is expected to increase by 1.5 times and reach 6 billion, The World Bank reports. By 2050, nearly seven out of every 10 people will reside in cities.
The global e-commerce growth rate for 2023 is forecast at 8.9%, which would bring total online sales to $5.8 trillion. That growth rate is expected to hold steady over the next few years, according to Oberlo. This rapid expansion of online shopping has created a higher demand for efficient and timely logistics services.
At the same time, supply chain disruptions and unpredictable order volumes have both become more prevalent, requiring companies to adapt and find new ways to manage their operations effectively. Furthermore, customer expectations continue to evolve as shoppers demand faster delivery times, greater transparency of their orders and more personalized buying experiences.
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