Authored by Troy Hollings and Brandon Knight.

It times like these in the transportation and logistics industry that we really begin to look for opportunities to reduce our costs. Times when rates and demand are down, and we begin to look at our people, processes, and technologies for things that will directly impact the bottom line. In these moments, you might have wished your organization had two superpowers. First, the ability to put your most time-consuming, labor-intensive, and detail-oriented processes on autopilot so you could focus on improving your growth outcomes. Second, the ability to answer questions that seem too complicated, confusing, or contradictory to make sense of.

With the advent of artificial intelligence (AI) and machine learning (ML), teams are accomplishing what used to seem impossible and learning what was once thought unknowable. And it’s happening now throughout transportation and logistics companies — not just the big ones — pushing expectations for innovation and excellence to new heights.

Let’s dig into why AI and ML are such transformative technologies. Then, we’ll illustrate how these companies are using these technologies to solve their biggest challenges and unlock opportunities.

A new kind of tool

Let’s start with some basic definitions:

• Artificial intelligence — AI allows digital systems to think as a human would, applying reason, logic, and deductive thinking to data in order to complete complex workloads or accomplish massive feats of analysis.
• Machine learning — Machine learning is an application of AI. It gives digital systems the ability to learn from repeated analysis, gaining new knowledge and capabilities without having them “programmed” in.

What makes AI and ML different from past technologies?

These technologies don’t just support the work that humans do; they replicate that work and multiply it many times over to operate on a speed and scale even a team of seasoned professionals can’t match.

And while many people are excited, there also plenty who are hesitant. With tools as novel as AI and ML, it’s easy to assume they are too technical, expensive, or niche to apply in most settings. But technology that thinks and learns on its own is more accessible than people realize — and it’s already in action in many places.

Longstanding companies embracing cutting-edge technology

Any organization with data (which is every organization) can leverage AI and ML. Companies are already using it to their advantage:

• Freight Optimization — Empty miles represent about 20% of commercial miles traveled in the US. Companies are leveraging AI and ML to reduce the number of empty miles traveled.
• Recruiting — Hiring managers have used machine learning to better understand what their ideal candidate looks like and relied upon AI to search through massive talent pools for people who match those same criteria to expedite and improve recruiting efforts.
• Manual Processes — Transportation and Logistics companies are finding various ways to leverage ML and AI to turn antiquated processes into automated functions.

These use cases are just the beginning. When thinking if ML and AI apply to your business, think not of what can be solved, but instead what the pain points are that hold you back from becoming more successful.

Brandon Knight of CLA

Brandon Knight – Managing Principal of Industry – Transportation & Logistics – 612.397.3262

Brandon is a CPA and trusted advisor with providing accounting, assurance, tax, and consulting services to transportation & logistics industry companies and their owners. Brandon is also the Managing Principal of the Transportation & Logistics Industry Group at CLA.