The move toward artificial intelligence (AI) is gaining traction across all sectors, including within the logistics space. Across all areas, the industry is now seeing AI systems, like those that can read and process emails or handle various tasks, being adopted to simplify and speed up processes – crucial for an industry that values efficiency.
Initially, there was a lot of scepticism about AI. However, as people have observed its functionality, they’ve become more comfortable with it. The hesitation still exists in the second level of trust: allowing AI to make the final decision.
While tools can effectively handle tasks like converting booking requests into digital transactions, some users are reluctant to let AI take complete control, still wanting to have manual approval at the end stage. So, while AI is making significant inroads, the industry still grapples with letting go of that last bit of control.
“The air cargo market is highly transactional with volatile supply and demand. Companies often want to upsell or down-sell to optimise their capacity, especially if they don’t have a sophisticated revenue management system. This need for flexibility drives their caution,” Tristan Koch, Chief Commercial Officer of Awery Aviation Software (Awery), stated.
“Additionally, many people in the cargo business transitioned from passenger airlines, which were early adopters of distribution platforms. Some airlines experienced problems with these platforms, and they didn’t always make decisions in line with the airlines’ interests. As a result, airlines pulled their inventory back from these platforms and then cautiously reintroduced it. This experience has contributed to a lingering nervousness about fully embracing new systems.”
“But the technology available to us now is too beneficial to ignore or to be hesitant towards. ERP platforms, such as Awery’s, are transforming operations for aviation companies, handling the expensive, time-consuming manual processes that are still so prevalent in this sector.”
The personal touch
Airfreight has traditionally been a very personable industry, and there may be concerns that moving to a fully digital approach could undermine this element. Companies often pride themselves on building strong, personal relationships with their clients, and there’s a fear that these relationships might be lost if everything becomes digital and impersonal. “From my experience running a global relationship programme for large airlines, I understand this concern. Building and maintaining these relationships with major clients, like DHL or Kuehne + Nagel, is crucial,” Koch explained.
“Each year, airlines and these large clients negotiate high-value contracts that include specific capacity commitments and service levels. These discussions are vital for establishing trust and meeting mutual needs.
“However, once these major deals are finalised, the fulfilment of day-to-day transactions, such as booking air waybills, is often handled through more automated processes.
“While personal relationships are critical at the strategic level, routine transactions can be efficiently managed through digital systems. Digital solutions enhance efficiency; they do not entirely replace the value of personal relationships in the industry. By freeing workers from the mundane, lower-value tasks, technology is actually enabling them to dedicate more time to developing these relationships.”
