Artificial Intelligence in Logistics: Opportunities and Challenges

2024;
: pp. 303 - 312
1
Lviv Polytechnic National University, Information Systems and Networks Department
2
Lviv polytechnic National University, Information Systems and Networks Department

The integration of artificial intelligence into the logistics industry is a rapidly evolving field with the potential to revolutionize the way goods are transported and managed. Artificial intelligence can be used to optimize a wide range of logistics processes, from demand forecasting and route planning to warehouse management and customer service. However, the integration of artificial intelligence also raises a number of technical and ethical issues that need to be addressed to ensure its successful implementation.
Choosing the right artificial intelligence algorithms for specific logistics tasks is crucial to ensure their efficiency and accuracy. This requires careful consideration of factors such as data type, task complexity, and desired performance metrics.
The growing amount of data collected and processed by artificial intelligence systems raises concerns about data security and privacy. Companies need to implement robust security measures to protect sensitive data from unauthorized access, breaches, and misuse.
The use of artificial intelligence in logistics raises ethical issues related to bias, transparency, and accountability. Artificial intelligence algorithms should be developed and used fairly, transparently, and with respect for the right to privacy and in compliance with all relevant laws and regulations.
In order to eliminate or prevent these problems, recommendations for the effective implementation of artificial intelligence in the logistics sector have been developed and formulated. They include aspects that need to be addressed in the first place when developing mechanisms for automating logistics processes.
The integration of artificial intelligence into logistics offers significant opportunities to increase efficiency, reduce costs and improve customer service. However, it is crucial to address the technical and ethical challenges associated with artificial intelligence integration to ensure that it is used responsibly and beneficially. By following the recommendations, logistics companies can successfully use artificial intelligence to transform their operations and achieve their strategic goals.

  1. Fuel Transport. Challenging an Unconscious Bias in Logistics. https://fueltransport.com/challenging- unconscious-bias/
  2. Oladimeji, S., & Kerner, S. M. (2023, November 3). SolarWinds hack explained: Everything you need to know. TechTarget. https://www.techtarget.com/whatis/feature/SolarWinds-hack-explained-Everything-you-need-to- know
  3. OmneelabWMS (2023, August 9). Ethical Considerations in AI-Enabled Supply Chain Decision-Making. Medium. https://medium.com/@omneelabWMS/ethical-considerations-in-ai-enabled-supply-chain-decision-making- 4e9575c036c3
  4. Richey Jr, R. G., Chowdhury, S., Davis-Sramek, B., Giannakis, M., & Dwivedi, Y. K. (2023). Artificial intelligence in logistics and supply chain management: A primer and roadmap for research. The Journal of Business Logistics, 44(4), 532–549. https://doi.org/10.1111/jbl.12364
  5. Silberg, J., & Manyika, J. (2019). Notes from the AI frontier: Tackling bias in AI (and in humans).McKinsey Global Institute.
  6. The American Transportation Research Institute (2018, October 18). Trucking Industry Congestion Costs Now Top $74 Billion Annually. ATRI. https://truckingresearch.org/2018/10/trucking-industry-congestion-costs-... top-74-billion-annually/
  7. Vernall, M. (2023, December 16). How To Keep Supply Chains More Secure by Leveraging AI & ML. Linkedin. https://www.linkedin.com/pulse/how-keep-supply-chains-secure-leveraging-ai-ml-mark-vernall-az3kc
  8. Voitsekhivska, I. (2024, January 11). AI in Logistics: How Does It Truly Transform The Field? Eliftech. https://www.eliftech.com/insights/ai-in-logistics-explained/
  9. Medvedev, E., Popova, Y., & Kovalenko, M. (2023). Innovative technologies of artificial intelligence in the logistics management of social enterprises. Economy and Society, (56). https://doi.org/10.32782/2524-0072/2023- 56-53
  10. Muzychenko, T., Skorba, O., & Shevchuk, A. (2023). Artificial intelligence as a means of optimizing business processes in e-commerce. Academic Visions, (25). https://doi.org/10.5281/zenodo.10081884
  11. Pozniak, O., & Melnyk, K. (2020). Logistics aspects of artificial intelligence in the management of strategic goods. Scientific view: economics and management, 3(69), 153–158. https://doi.org/10.32836/2521- 666X/2020-69-25
  12. Falovych, N., & Dubchak, O. (2023). Implementation of artificial intelligence in logistics: the future of the logistics industry. Materials of the All-Ukrainian scientific and practical Internet conference „Marketing technologies of enterprises in the modern scientific and technical environment“, 143–144.
  13. Shmatkovska, T., Stashchuk, O., & Dziamulych, M. (2021). Big data and business modelling of economic systems. Effective Economy, 5. https://doi.org/10.32702/2307-2105-2021.5.96