By now just about everyone will be aware of the waves being caused by ChatGPT – the language generation software (also known as artificial intelligence or AI) that can write passable content at 300 words per minute.But, although it is making news at present, the system and others like it have been around for some time.ChatGPT itself lists 10 alternatives.One of the first attempts was ELIZA, developed at the MIT Artificial Intelligence Laboratory between 1964 and 1966.It predates logistics automation systems. The reason these developments are receiving so much attention is possibly that many are feeling really threatened by AI technology.Most of us thought our work was too complex and creative for a machine to do.It follows, therefore, that very few jobs are safe – including those involved in the clearing and forwarding of cargo.Automation software for freight forwarding is as old as the barcode, which was introduced on June 26, 1974, with the scanning of a pack of Wrigley’s Chewing gum at the checkout of Troy’s Marsh Supermarket in the town of Troy, Mia mi C ount y.By 2004, Fortune magazine estimated that the bar code was used by 80 to 90% of the top 500 companies in the United States.Automated systems are now used to track and trace everything, from a container to the smallest parcel inside it, from the production line (and sometimes earlier to include the raw materials) to delivery.AI helps to predict shortages, identify bottlenecks and reroute cargo if there is a problem – all activities which were once unique selling points for forwarders who had the necessary knowledge and experience. According to research by McKinsey, the successful implementation of AI has helped companies reduce logistics costs by 15%, reduce inventory by 35%, and up service by 65%. Logistics companies can potentially generate $1.3-$2 trillion in economic value for each of the next 20 years by adopting AI into their processes.AI is not the silver bullet that will solve all logistics challenges, warns PwC, which surveyed 244 companies for a survey of digital trends in the supply chain.Top of the list of concerns by companies was attracting and retaining the right talent – people still matter.“Enterprises today need the best of both technical and functional talent, with the addition of a sound technology platform and quality datasets to successfully digitise their supply chain operations,” said Matt Comte, operations transformation leader at PwC, during a briefing on the findings.AI will, he believes, help companies to address a global shortage of people with a collaborative mindset and understanding of business and technical capabilities.The available talent can be freed up by using robotic process automation or AI to undertake routine tasks.Creativity and relationships built on commitment to customer service will still be the big differentiators. This has been the experience of clearing agents. The advent of electronic customs clearance means, in theory, that agents do not need a physical presence at border posts.In practice, there are continuous hiccups which require agents on the ground to provide support to drivers at all border posts in southern Africa.
