How AI is altering airfreight

How AI is altering airfreight

As the global AI in the supply chain market is projected to skyrocket from USD 4.5 billion in 2023 to USD 157.6 billion by 2033, companies are increasingly turning to AI-driven solutions to revolutionise their operations.

From enhancing forecasting accuracy by up to 50 percent to slashing equipment downtime in half, AI is not just improving efficiency—it’s reshaping the future of logistics. The rapid adoption of AI across the supply chain is set to deliver significant cost savings, bolster resilience, and elevate customer satisfaction in an increasingly competitive market.

Enhanced efficiency through AI

AI-driven solutions are revolutionising supply chain efficiency,, leading to significant enhancements in overall operational performance. This level of precision enables companies to make more informed decisions, ultimately driving productivity and reducing waste.

Cost reduction

AI implementation in supply chain operations is a powerful tool for reducing costs. Automating manual processes, improving demand forecasting, and optimising inventory management can result in cost reductions of up to 15 percent. These savings are crucial for maintaining competitive advantage in today’s fast-paced market.

Real-time data and visibility

The growth of omnichannel retail has made tracking inventory across multiple channels increasingly complex. Traditional systems often silo data, leading to discrepancies and blind spots. AI-powered tools provide real-time data and visibility across the entire supply chain, with forecasts suggesting that by 2025, over 75 percent of supply chain operations will rely on AI for demand forecasting and planning. These advanced systems are expected to deliver up to 20 percent in cost savings and reduce stockouts by an impressive 50 percent.

Predictive maintenance

AI’s predictive capabilities are game-changing for maintenance operations, cutting equipment downtime by up to 50 percent and extending asset lifespans. This not only ensures smoother day-to-day operations but also significantly reduces the risk of costly disruptions.

Supply chain resilience

AI enhances the resilience of supply chains by proactively identifying potential disruptions and recommending alternative strategies. Companies leveraging AI can experience a 20-25 percent improvement in risk management, helping to minimise interruptions and maintain continuity in the face of challenges.

Customer satisfaction

AI’s impact extends to customer satisfaction as well. By improving order accuracy and reducing delivery times, AI can boost customer satisfaction by 25 percent, fostering greater customer loyalty and retention. This is critical in a market where customer expectations are higher than ever.

The global AI in supply chain market is poised for tremendous growth, with its value projected to soar to approximately USD 157.6 billion by 2033, up from USD 4.5 billion in 2023. This reflects a CAGR of 42.7 percent between 2024 and 2033, underscoring the profound impact AI will continue to have on the industry.

The evolution of AI in logistics and supply chains will persist in the future. With the advancement of AI technologies, their capacity to manage intricate systems will be enhanced. This could result in increased efficiencies and the emergence of new capabilities. Nevertheless, human involvement will remain crucial in offering intuition and ethical judgement that AI is unable to imitate.

Robert Khacthatryan Founder and CEO of Freight Right Global Logistics
Founder and CEO of Freight Right Global Logistics

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