AI in Secure Logistics: The Future of Smart, Safe and Efficient Supply Chains

In recent years, Artificial Intelligence (AI) has begun to revolutionise how we live and work. So far, however, the logistics sector has been relatively slow to adopt the new technology. Much of the industry continues to rely on legacy systems, manual processes and fragmented data infrastructure due to the complexities of a global supply chain.

The push for AI adoption in global logistics is no longer optional, as growing demands from regulators, clients and suppliers are reshaping industry standards. Compliance with evolving regulations, heightened security protocols and the expectation for faster, more efficient services are driving this shift. 

Meeting these challenges is key to building a more resilient, sustainable, and secure logistics network.

Some of the key expectations propelling the need for change:

• Real-time updates 
• Improved security 
• Regulatory compliance
• Optimised route planning

AI offers the logistics sector huge potential to enhance the safety, efficiency and reliability of global transportation. However, as the world begins to rely more and more heavily on AI systems, there are also challenges and risks to be considered and managed.

What is AI?

AI is any computer system which solves problems or performs tasks normally requiring human intelligenThe technology uses algorithms and machine learning to automate and optimise various processes. This means that humans can now delegate tasks previously not achievable by a computer to these self-learning systems. 

In summary, AI is a game changer. 

What is AI’s role in international logistics?

In international logistics, AI can optimise the way companies organise and run shipments, interpret data patterns to make intelligent decisions and, ultimately, create better operational resilience. 

The key advantages over human analysis are speed and the ability to identify patterns humans could miss.

The rise of AI in logistics is even expected to result in increased industrial demand for the precious metals used to build hardware. The early application of AI is already changing the way that precious metals are traded. AI can analyse markets, trends and supply chains, determine entry and exit points, and generate regression models to predict future outcomes and optimise operations.

It is also expected that in the future AI will assist in authentication processes and offer solutions for identifying and grading bars and coins. As an industry disrupter, Ava is always proud to be at the forefront of change, which is why Ava has collaborated with trueGold, enhancing our ability to preserve and verify the traceability of gold within the supply chain. trueGold’s molecular marking technology is an AI-based system which creates a fully traceable and verifiable supply chain for gold. This collaboration enables us to level up our transparency and accountability to our clients.

Key Applications of AI in Logistics

The genius of AI lies in its adaptability: it can help people solve a whole range of problems and simplify a variety of systems because it is able to analyse and compare different types of data. 

Here are some of the key ways we believe AI will be essential in meeting the ever-changing demands of international logistics: 

• Risk prediction and management: Historical data and real-time analytics help to identify potential threats and reduce uncertainties, meaning companies can work proactively to decrease risk.
• Route optimisation: AI uses data from the Internet of Things (IoT) to analyse the best routes, considering information such as real-time traffic data, road closures and weather reports. This can in turn reduce fuel costs, improve delivery times and make things safer for transportation workers.  
• Cybersecurity enhancements: AI enables advanced threat detection by identifying vulnerabilities. These can also be addressed by automated response actions. 
• Regulatory compliance: AI can examine huge amounts of data quicker than a human and with less margin for error, helping businesses to identify regulatory requirements more efficiently and maintain a higher, more consistent standard of compliance.
• Real-time tracking and monitoring: The utilisation of IoT technology means AI has unparalleled tracking capabilities. Logistics companies can level up their customer service by guaranteeing accurate, real-time updates. This technology also offers improved accuracy and better security by comprehensively monitoring cargo using different types of data provided by IoT devices, such as heat sensors, cameras and alarm systems. 
• Provenance Tracking & Authentication: AI analyses historical transaction data, certificates, and documentation to detect inconsistencies or fraudulent activities in luxury goods & precious metals.

The overarching benefit of AI is its ability to offer actionable insights based on large amounts of data. Businesses can make better-informed decisions and continuously improve their operations based on forecasts and reports generated by AI systems.

Considerations for AI in Logistics

AI has huge potential for revolutionising international logistics, but, as with all new technologies, there are factors which must be examined in order to mitigate risk. 

Here are some key considerations which must be taken seriously by those utilising AI technologies: 

1. Costs: It can be expensive to adopt these intelligent systems. Once installed, there will often be additional maintenance and updates, as well as staff needing training to ensure the technology works to its full potential and provides accurate results. 
2. Environmental Impact: AI-powered systems use significant computing power, meaning high energy consumption for processing vast amounts of data. Data centres that support AI models generate a great deal of heat and so require extensive cooling, adding to their carbon footprint. 
3. Ethics and regulations: Finding a balance between innovation and integrity is difficult but necessary. Data collection and usage will always raise questions about privacy and security, especially for any kind of sensitive information. Businesses must ensure they are complying with international data protection legislation such as GDPR. 
4. Quality control: If data is flawed or inaccurate, the results will be too. If data is biased, then AI will perpetuate those biases because that is the information it is working from. AI Risk Management must be prioritised by any business hoping to benefit from the technology. 
5. Security: Inputting vast amounts of sensitive data into automated systems can pose a security risk, requiring robust encryption and additional access controls.. Organisations should consider when AI is appropriate and necessary. 

Ava prioritises integrity and transparency by being part of the aXedras Ecosystem. The secure, distributed ledger technology (DLT)-based platform is able to digitalise processes along the value chain of precious metals. aXedras utilises data standards to support the bullion market on its digitalisation journey. Ava is proud to be the first logistics member focused on mining to have joined aXedras.

Conclusion 

AI is a new technology which we are still learning to use and understand. Companies will need to exercise caution as we all navigate this new digital world. If risks are considered and managed properly, then the positive potential of AI is incredible. 

While the logistics industry has been cautious in adopting AI, external pressures are accelerating the need for change. Regulatory bodies demand stricter compliance, while clients and suppliers expect greater transparency, efficiency and security across the supply chain. To remain competitive, logistics companies must evolve to meet these rising expectations and deliver a more reliable, sustainable and secure service.

Ava believes that – to remain the best – organisations should always be learning and adapting. New problems require new solutions. AI is an impressive tool and will support forward-thinking companies to achieve continual improvement and growth, delivering success through its detail-driven analysis. 

AI supports Ava to achieve excellence. Across borders, beyond expectations.

Ava covers six continents, with regional offices in major cities across the globe. Get in touch with your local expert to learn why Ava is the home of secure global logistics.