AI in Logistics: How to Get Real ROI, Not Just Hype

The logistics industry faces a rapidly changing landscape due to global political shifts and unexpected disruptions. To thrive in this dynamic environment, Adrian Smith, Co-Founder & CEO of Ripple, emphasizes the importance of leveraging AI tailored to specific value streams. Smaller AI models are recommended for routine tasks, while high-cost, high-accuracy models should be reserved for complex decision points.

Companies must avoid indiscriminate deployment of expensive AI models, as this can lead to minimal returns and high token costs.

Data security is a critical concern, and Smith advises using open-weight models on company infrastructure to prevent sensitive data from leaving a controlled environment. Pentagon Freight, a Dubai-based freight forwarder, is partnering with Ripple to manage import/export workflows for oil and gas companies near the Strait of Hormuz.

The company is investing in real-time customs AI intelligence and bespoke AI software development to maintain continuous operations despite geopolitical challenges. Smith urges logistics firms to treat their own data as a strategic asset, auditing SaaS providers, consolidating data into accessible repositories, and retaining control over their data as AI tooling evolves.