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The competitive market, customer preferences, and technology are driving changes in freight forwarding. Companies need to adopt innovation to cope with such challenges. The old-school way of doing business doesn’t keep up with the updates. One of the technology advancements that has enormous potential is human-in-the-loop AI.
This approach pairs human expertise with the power of artificial intelligence to bring new opportunities and streamline operations in full truckload shipping. It strikes the perfect balance between both worlds. In this article, we explain the concept and its benefits.
What is Human-in-the-Loop AI?
This approach fosters collaboration that pairs AI’s advanced capabilities with human expertise. It brings together both aspects where human input is crucial in the decision-making process. The process includes processing and analyzing data by AI and generating recommendations and insights. Humans will analyze the reports, which will help them during the decision-making.
This concept includes humans as providing input, expertise, and contextual understanding, which are the pain points of AI algorithms. Pairing human expertise and AI increases reliability, relevance, and accuracy. The process includes a few stages, starting with the AI algorithm collecting and processing the data. It relies on machine learning to generate insights and foresee. The results are structured and presented to humans that will review them.
At this point, they will use their judgment, knowledge, and expertise to provide feedback. This approach helps drive freight forwarding toward the future with improved decision-making, accuracy, and cost efficiency.
Understanding Human-in-the-Loop AI
We share some practical examples of where AI algorithms find applications so you can understand this concept more easily. For example, AI algorithms help doctors make more accurate diagnoses. The technology doesn’t replace the doctor but assists and provides information.
Self-driving cars are a similar implementation of this approach in the automotive industry. These vehicles use AI but still require human input. Freight Forwarding Challenges The current process includes many steps that are completed manually, which results in errors, inefficiency, and delays.
However, the logistics process requires accurate and fast decisions to streamline the supply chain. This is where AI can help optimize the process and overcome challenges. AI algorithms can be beneficial for route planning. They can consider factors such as weather conditions, traffic, and delivery deadlines to come up with optimal routes.
AI in Freight Forwarding
AI can also help with manual tasks, such as generating and managing shipping documents, such as commercial invoices, certificates of origin, bills of lading, etc. AI can also help with manual tasks, such as generating and managing shipping documents, such as commercial invoices, certificates of origin, bills of lading, etc. However, the benefits of implementing AI don’t stop here. The AI algorithm can flag suspicious activities and detect anomalies indicating fraudulent activities.
AI can also assist in providing customer support. ChatBots can handle simple inquiries, answer frequently asked questions, and help with shipment tracking. This does not eliminate the need for customer service agents but leaves them more time to solve the more critical issues. This practice helps enhance customer satisfaction.
Regarding inventory management, AI can perform cargo inspection, barcode scanning, and container identification.
Final Thoughts
While AI can’t replace human input, it can be paired with human expertise for more accurate decisions. Humans can save some precious time by leveraging AI for data analytics. The human-in-the-loop AI approach keeps the balance between human input and technology, which is highly requested in freight forwarding.
