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AI’s subtle but powerful impact on transport and logistics – Opinions

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AI’s subtle but powerful impact on transport and logistics – Opinions


The rapid growth of urban populations and the increasing complexity of supply chains have made the efficient movement of goods and services a top priority for businesses worldwide and in this region. As both commercial and passenger vehicles play a critical role in these systems, the challenge lies in optimising mobility across a range of modalities.

One part of the solution lies not in more infrastructure, but in leveraging advanced technologies – especially AI – to improve and optimise the movement of people and goods through intricate and dynamic transportation networks.

AI is a powerful enabler for the next generation of digital mapping capabilities and location-based services that serve as the foundation for mobility services across the various modes of transportation. A fresh, continuously updated map with their AI-driven capabilities, can allow businesses to gain deeper insights, enabling them to navigate congestion, reduce emissions and improve delivery times — all without needing major infrastructure changes.

AI makes logistics intelligent

For companies that depend on efficient logistics, the stakes are high. Late deliveries, inefficiencies in routing and poor fuel management can significantly impact both profitability and customer satisfaction. AI enhances mobility solutions by adding a layer of intelligence to live maps and routing systems, making them adaptable to real-time conditions such as traffic congestions, road closures or unexpected detours. This adaptability ensures that delivery routes are optimised, not just for speed, but for overall efficiency, reducing fuel consumption and lowering emissions.

In this context, dynamic routing, is a critical capability that is essential to more efficient mobility solutions. By processing real-time data – including traffic conditions, road closures and accidents, AI-enabled systems can adapt instantly, offering optimised routes for drivers and commercial vehicle fleets. This does not just save time but also reduces fuel consumption, lowers carbon emissions and alleviates congestion.

The question now is how quickly cities and businesses are willing to embrace it. As traffic networks become more congested and less predictable, AI is a critical tool for achieving operational efficiency and sustainability in urban transit. It’s a subtle but powerful shift: AI does not replace the systems we rely on; it can make them better.

– Deon Newman, Senior Vice President & General Manager, Asia-Pacific, HERE Technologies.

The importance of AI in sustainable mobility

Achieving sustainability goals has become a key focus for the logistics industry, where emissions from the movement of goods are under increasing scrutiny. AI can have an outsized impact on reducing emissions and optimising how vehicles operate within supply chains. By intelligently routing vehicles, optimising driving patterns and identifying energy-efficient paths, AI can significantly reduce the environmental footprint of existing mobility systems.

AI can also enhance the scheduling of vehicle maintenance, reducing the downtime for delivery fleets, and ensuring that vehicles are operating at peak efficiency. By maximising the lifespan of vehicles and minimising wasted energy, AI-driven systems provide immediate sustainability benefits.

For example, companies that adopted OptETruck, a cloud-based, location-powered transport management solution developed by port operator PSA Singapore, have been able to demonstrate about 50 percent reduction in empty runs. This translates to an annual reduction of approximately 10 million kg of carbon emissions, equivalent to planting 300,000 trees in a year. These outcomes demonstrate that immediate and meaningful change is not only possible, but also happening now. We should celebrate and champion these advancements.

Discussions on carbon neutrality often revolve around electric vehicles (EVs), charging infrastructure and government regulations. While these are important, they are a part of the solution. The other part of the solution lies in conservation and how the transportation industry manages current and future vehicle fleets. Digital mapping and navigation solutions, powered by AI, have the opportunity to optimise routes and charging schedules, as well as manage fleets in real-time. This makes a powerful tool today, for driving down emissions in a meaningful way.

How AI can boost the automotive value chain

AI’s influence is not limited to delivery logistics; it is also influencing the way vehicles are developed, tested, and even how supply chains are managed, leading to higher efficiency and better products.

A recent study highlights the urgency for automotive OEM to ramp up their AI capabilities, as the global market increasingly values these advancements. China has emerged as a leader in AI expertise within the automotive sector, using AI as a key differentiator to attract car buyers. However, this lead may not last indefinitely. Within the next five years, Japanese OEMs are expected to take the forefront in AI innovation, leveraging their tradition of precision and quality to set new industry benchmarks. Korean automakers are also making great strides.

What this means is AI is now enabling more proactive, real-time decision-making, whether in the context of logistics or passenger vehicles. By learning and adapting continuously, AI goes beyond optimisation to anticipate and address challenges as they arise, making mobility solutions smarter and more responsive. Its capabilities are evolving from the concept of AI-as-a-Tool to a more proactive role where AI acts as an intelligent agent.

In logistics, this shift allows vehicles to autonomously manage tasks like route adjustments based on traffic and weather or scheduling maintenance before it disrupts operations. For passenger vehicles, AI is creating more personalised experiences, offering services that adjust to driver preferences – suggesting routes, adjusting cabin conditions, or even booking charging stations without user input. With AI, mobility can be more intuitive and efficient across the board, ultimately delivering personalised, intelligent solutions that are always learning and adapting to improve user experiences and operational efficiency.

AI’s future in mobility: Enabling, not replacing

Looking forward, AI’s role in both commercial and passenger vehicle mobility is set to expand dramatically. For logistics providers, AI could power autonomous delivery vehicles, enabling smarter and more efficient last-mile delivery in dense urban environments. AI-driven systems will also be able to predict customer demand more accurately, improving inventory management and allowing businesses to scale operations in real time.

The future of mobility is not a sudden leap into an AI-driven world but a steady progression towards smarter, more responsive systems. As AI continues to evolve, it will shape the way cities manage traffic, the way vehicles are designed and built, and how users interact with their transportation options. AI is adding valuable tools to the mobility industry’s toolkit, enabling businesses and cities to navigate an increasingly complex world with greater agility and intelligence.

Now is the time to embrace AI as a powerful tool that will enable us to reach new heights in efficiency, sustainability and user satisfaction.

Deon Newman is Senior Vice President and General Manager for Asia-Pacific, HERE Technologies.



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