AI will drive innovation, sustainability, and competitiveness in cargo sector. There is misconception that AI can solve the industry’s biggest challenges, but it does not. Airports and airlines must strategise on how data can optimise commercial decision-making, says Vivek Pandit, VP, Air Cargo Digitisation, Kale Logistics Solutions.
Is the global cargo industry ready to adopt AI to improve operational efficiency?
We are in the era of AI, and its transformative power is evident across all industries, including air cargo. AI has proven beneficial in various aspects of air cargo operations, such as handling, first-mile and last-mile delivery, route and traffic management, and capacity handling. While some applications are still in their early stages, successful use cases include AI-based cargo handling algorithms, predictive maintenance, automated warehouses, dynamic pricing models, and demand and supply forecasting. AI is also revolutionising air cargo security by deploying advanced surveillance systems and anomaly detection algorithms. These systems can monitor and analyse video feeds in real time, identifying unauthorised access or suspicious activities around airside and cargo areas, thereby enhancing security measures. AI chatbots and virtual assistants are increasingly used to handle customer inquiries and track shipments, providing real-time updates and improving the customer service experience, while allowing human agents to focus on more complex issues.
How will it benefit the sector in the coming years?
The adoption of AI in the air cargo industry will bring numerous benefits in the coming years. This leads to reduced operational costs, and faster TATs. AI can provide valuable insights through data analytics, helping stakeholders make informed decisions and anticipate market trends. Overall, AI will drive innovation, sustainability, and competitiveness in the air cargo sector. AI is shaping the future of air freight by improving operational efficiency, enhancing security, optimising logistical tasks, and creating a more responsive customer service environment. As technology advances, the role of AI in air freight is expected to grow, driving innovations that could redefine global air freight logistics.
Do we have skilled workforce to understand and adopt tech in this sector?
While the industry boasts growing pool of skilled professionals, continuous upskilling and education are crucial to fully leverage advanced technologies such as AI. As the industry evolves, the future workforce will need a unique set of skills and training to adapt to changes brought about by automation and technological advancements. Ongoing reskilling and substantive retraining will be essential for workers who may be displaced by automation, ensuring they remain relevant and capable of contributing to the industry’s growth and innovation.
What are its pros and cons?
Any technology comes with its pros and cons, and it is up to each entity to leverage the pros while minimising the cons. While the benefits of AI in air cargo are undeniable, there are challenges to consider. Air cargo entities must navigate the complexities of integrating AI into their operations, including the need for skilled AI professionals and the potential for technological disruptions. This integration requires substantial investment and involves a learning curve for employees. Ethical considerations and governance measures are crucial as the air cargo industry integrates AI into operations, particularly regarding safety, security, and privacy. There is a common misconception that AI alone can solve some of the industry’s biggest challenges. However, AI does not address foundational issues: airports and airlines must still strategise on how data can optimise commercial decision-making. AI does not replace the need for commercial teams to devise innovative use cases that drive value through better decision-making. Instead, AI should be viewed as an enabler rather than an end goal.
