AI Could Push Logistics Into a New Operating Era

Artificial intelligence could drive a major shift in logistics over the next few years, according to Jett McCandless, founder and CEO of project44 and its AI-focused spin-off LSP44.

Speaking from the Port of Hamburg, McCandless described AI agents that can communicate with transport operators, resolve problems in shipment information and identify indicators of potential cargo theft. The applications point to a move beyond experimental automation, with software increasingly able to interpret events and initiate operational responses.

The commercial case is also emerging. Improved supply chain visibility helped one company reduce its inventory by approximately $150 million, illustrating how better logistics data can affect working capital as well as transport management.

For businesses, the next phase will involve more than selecting an AI tool. Companies must determine how third-party platforms can handle commercially sensitive information, how human staff will supervise automated activity and which decisions require direct intervention.

AI is also expected to alter logistics jobs by reducing repetitive work while increasing demand for skills in data analysis, oversight and exception management. McCandless believes technological progress could accelerate sharply over the next five years. Businesses that delay may find themselves at a disadvantage as competitors use automation to react faster and operate with less uncertainty.