THE USE OF ARTIFICIAL INTELLIGENCE IN LOGISTICS

Abstract

Technological developments aiming at increasing efficiency, accuracy, and cost-effectiveness are causing a rapid change in the worldwide logistics industry, which is valued at over 4.3 trillion USD. This development is greatly supported by artificial intelligence (AI), which makes robotic automation, real-time tracking, and predictive analytics possible. The article analyses how artificial intelligence (AI) influences logistics, highlighting its advantages, adoption barriers, and ways to reduce expenses. By improving route planning, inventory control, and warehouse automation while lowering operational costs and human error, AI-driven solutions improve supply chain operations. However, barriers including high implementation costs, cybersecurity risks, and employee dislocation limit widespread adoption. This study investigates the ways in which demand forecasting, predictive analytics, and AI-driven automation enhance logistics cost effectiveness using secondary research and content analysis. The results show that integrating AI enhances operational performance and reduces costs, but it also calls for workforce adaptability and strategic investment. To effectively utilise AI's potential for long-term growth in the logistics sector, multiple challenges have to be addressed.