The logistics sector is undergoing a profound digital transformation, driven by the need for real-time supply chain visibility, predictive capabilities to manage disruptions, and adaptable systems that respond swiftly to changing demands. This transformation involves the integration of automation, artificial intelligence (AI), data analytics, and cloud-based solutions. The logistics sector plays a vital role in ensuring the continuous flow of goods, services, and information, with a global value of $15.5 trillion and the movement of over 92 billion tons of cargo, according to Transparency Market Research.
In recent decades, the supply chain has seen significant advancements, from containerization and air freight to digital tools. However, what can we anticipate in the years to come?
According to Statista’s report “Artificial Intelligence – In-depth Market Insights & Data Analysis,” the AI software market is projected to witness a 35% annual revenue growth on average until 2025, reaching $126 billion. As stated by Mario Veraldo, a logistics expert with over 30 years of experience, and the current CEO of MTM Logix, the ongoing technological revolution will shape the global supply chain and the logistics industry for the next 25 years.
2023-2028: The Dawn of AI Integration
Since the introduction of ChatGPT by OpenAI, the world has witnessed the potential of artificial intelligence in its simplest form. The years between 2023 and 2028 will mark the initial integration of AI into supply chain processes. Predictive analysis will become the norm, enabling companies to proactively address potential failures and disruptions. The automation of routine tasks will commence with AI-driven control towers that offer real-time visibility into supply chain operations.
As AI takes over repetitive tasks, a noticeable shift occurs in the job market. The workforce begins to enhance its qualifications, focusing on roles that demand human ingenuity and creativity.
2028-2033: The Emergence of Strategic Functions
AI capabilities extend beyond predictions. At this stage, advanced algorithms will provide prescriptive analysis, suggesting and acting upon data-informed strategies. Supply chain control towers will have become more sophisticated, capable of simulating multiple scenarios and recommending optimal strategies.
The labor landscape in the supply chain sector will undergo a significant transformation. The focus will shift from operational to strategic functions. Professionals will work alongside AI, interpreting its insights and making informed decisions. Management of relationships, strategy formulation, and ethical considerations in AI application will become highly sought-after competencies. The emergence of AI-based strategic functions in the supply chain and logistics will require a specific type of professional who connects with customer operations, provides data-driven solutions, and reduces operational friction.
2033-2038: AI and Human Collaboration
Veraldo emphasizes that the integration of AI systems and other emerging technologies like the Internet of Things (IoT) and blockchain will be seamless during this period. As a result, we will witness the birth of “co-botting,” where human and AI systems work in synergy, reinforcing each other. While AI handles data-driven decision-making, humans focus on areas that require empathy, negotiation, and complex problem-solving.
2038-2043: AI, Ethics, and Global Standards
As AI systems become ubiquitous, attention will shift towards ethical application. Global standards for AI in the supply chain will emerge to ensure that AI systems are transparent, fair, and free from biases. In this phase, advanced AI models will be capable of explaining their decision-making processes, instilling greater trust among users.
Ethical considerations in AI deployment will become an essential part of supply chain curricula. Professionals will not only be trained to use AI but also to understand its social and ethical implications. The role of “AI ethics officer” is expected to become commonplace in organizations, ensuring that AI deployments align with global standards and societal values.
2043-2048: The Golden Age of the Supply Chain
The culmination of this 25-year journey is a supply chain ecosystem where artificial intelligence and human expertise seamlessly blend. Predictive, prescriptive, and descriptive analytics will become part of daily decision-making.
Concerns about job losses will become a thing of the past. We will witness an abundance of high-quality jobs focusing on strategy, innovation, and relationship management. The fusion of AI’s analytical capability with human creativity and strategic thinking will lead to unprecedented growth and prosperity.
“In the next 25 years, AI will undoubtedly be at the forefront of supply chain transformations. However, instead of a dystopian future of job losses, we envision a new era where jobs not only remain but are of much higher quality. The fusion of AI’s analytical capacity with human creativity, empathy, and strategic thinking will mark the beginning of a golden age for the supply chain sector,” concludes Veraldo.
The future of logistics is an exciting journey marked by technological advancements and enhanced human-AI collaboration, promising a thriving, innovative, and ethical supply chain industry.
