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AI needs humans to make it work

04 Mar 2024 - by Ed Richardson
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While artificial intelligence (AI) is increasing efficiency by automating repetitive tasks such as documentation, cargo tracking and customs compliance, freight forwarders need to be careful not to lose the personal touch. Customer service is being automated through AI-enabled chatbots and virtual assistants. This reduces the need for call centre staff.Emmanuel Jin recently completed a master’s thesis on the impact of digitisation on clearing and forwarding processes. He says: “Trade liberalisation and the standardisation of global customs procedures means that customs clearing and forwarding agents must deal with greater volumes of goods within a short timeframe.“This has necessitated the digitalisation of these processes to perform these tasks quicker and with more accuracy, often requiring little or no human intervention.”Kim Botti, a director of Lee Botti & Associates, agrees, saying: “Automation has certainly developed in leaps and bounds over the last two decades. Consider the role of an entry clerk, who had to know all about using the Jacobsens tariff book – now all that information is accessible on online systems. There has been tremendous advancement within the warehouse space, too.”While there were job losses in the first phase of digitisation between 2000 and 2010, Jin found that companies that have digitised their processes have employed more young and technologically savvy staff.He says agencies should leverage what they save in time and manpower to focus on higher-value activities. They should also be careful not to jettison institutional knowledge.Jin recommends that agents “still tap into the experience of less technically skilled personnel and pair them with young, digitally minded people to bridge the divide in skills tra nsfer ”.His findings correlate with those of Marisa Brown, senior principal research lead at APQC, who found that “rather than replacing employees, AI is changing the skills needed by supply chain professionals”.Says Botti: “Many of the specs (specifications) we receive within the shipping industry stipulate specific systems knowledge as a requirement to apply for the vacancy – and, in many cases, the spec comes with no leniency for other systems worked on.“The clients want the candidates to be able to sit down and get on with the role from day one, and have a working knowledge of the systems they work on.”Headcounts had been reduced only marginally in some companies surveyed, and had increased in others following digitisation.Technology is freeing up staff to do what most companies in the sector claim differentiates them – customer service.“AI and its resulting automation of tasks leaves the humans on staff to engage in work involving analysis and insight,” writes Brown. “Technology is no substitute for the relationship-building skills that support listening to stakeholders, communicating effectively with business partners, innovating and thinking strategically about how to approach challenges.”Botti agrees: “Logistics is a service industry and there is still a need for the human element. This is an industry where problem-solving is a vital part of providing a service to clients and being able to find solutions. “Thinking out of the box and being agile requires skilled staff with relevant experience to be able to assist their clients.”

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