Reimagining Businesses with AI

CHAPTER 5Transforming Transportation with AI

“If I had asked people what they wanted, they would have said faster horses.”

—Attributed to Henry Ford

INTRODUCTION

It has been debated whether Henry Ford uttered the above statement; nevertheless, it set the standard for defining innovation. The history of the transportation industry is rich with innovation examples for thousands of years that have had a very profound impact on humankind. From the first wheel to the steam engine to mass production of vehicles to lean manufacturing to autonomous mobility systems, new technological eras have been ushered in by this industry.

The transportation industry is a massive component of any economy. As per Plunkett Research, globally, the transportation industry is greater than $5 trillion and contributes 6% to the global GDP directly or indirectly. Transportation also has a big impact on the environment and is one of the major sectoral contributors to greenhouse gas emissions. For example, as per Total Logistics, in the EU in the year 2019, 24.3% of emissions were contributed by the transportation industry. It came down a bit from 27% in 2017.⁽¹⁾

There is a significant growth in digital technologies, smart capabilities, and AI in the transportation industry. Technology is helping the industry become more efficient and more responsive to customer needs, helping prevent fraud and counterfeiting in many key categories like medicines, reducing shrinkage and waste, and enabling a more globalized ...