By 2025, Artificial Intelligence (AI) has evolved from a faraway future idea to a tangible differentiator for supply chains.

A lot of things are changing behind the scenes in global logistics due to AI. These include demand forecasting, route optimisation, warehouse automation, and customs paperwork.

However, how will this impact the supply chain in the long run? There are four major changes happening right now:

1. Transitioning from data-rich to decision-smart: Data has always been abundant in supply networks, but insights have been scarce. AI alters that. Companies can now take immediate action in response to market fluctuations, supplier delays, or geopolitical threats thanks to predictive models.
2. Strengthening through modelling: There was a time when scenario planning took weeks. Now, digital twins powered by AI can mimic stress tests on the supply chain in a matter of hours. When problems arise, such as a port closure, fuel scarcity, or natural disaster, this allows for quicker and more informed decision-making.
3. More intelligent warehouses, simplified operations: Intelligent sorting and dynamic space management are just two examples of how machine vision and autonomous systems are improving warehouse productivity. In times of limited resources, such as labour and real estate, AI allows companies to accomplish more with less.
4. Measuring sustainability: AI allows for detailed monitoring of emissions across many modes of transportation. This facilitates benchmarking, optimisation, and reporting on sustainable performance, which aids businesses in meeting consumer and regulatory demands.

AI is really giving logistics workers more authority, rather than taking their jobs away.

Intelligence on a massive scale and with lightning speed will be the only way to compete in this increasingly complicated sector. Now that logistics company CEOs know they should use AI, the only remaining question is how quickly.

(The writer is the Chief Executive Officer of Envio Global Logistics)