A s the ever-expanding capabilities of artificial intelligence continue to find more applications in the last-mile delivery sector , it is giving providers new tools to help them operate and grow their companies more efficiently . There is no doubt that applications of AI in the last-mile delivery sector should help companies better solve the issues of traffic congestion , routing , predictive analytics , and communication in the delivery process . But does integration and reliance on AI make a last-mile delivery company safer ? Will it translate to fewer incidents and claims ? The answers to these questions remain to be seen , but as we have seen with prior applications of technology in the last-mile delivery sector , it is usually a double-edged sword with respect to risk reduction and claims .
When telematics were first introduced in the early 2010s , the prevailing opinion was that dash cams would make for safer drivers and fewer claims . Dash cam providers promised customers that they ’ d improve performance and reliability and reap the benefits of savings on their auto insurance . While some transportation companies did realize savings , most did not . The stark reality was that for every instance where dash cam video provided proof that a driver was not at fault , it also provided proof , without a shadow of a doubt , that a driver was at fault .
As dash cams began offering additional AI-powered features , such as driver performance tracking , the thought was that driver coaching would help correct poor driving behaviors before an incident occurred . The reality was that most transportation companies did not apply the time and effort to coaching . Therefore , the incidents didn ’ t stop occurring . The failure to apply the coaching when the data existed only spelled more doom in the courtroom for transportation companies and insurers .
When Electronic Logging Devices ( ELDs ) were introduced , most in the last-mile industry believed that these devices would allow for greater oversight into driver hours of service and drastically reduce the number of drivers on the road operating vehicles while fatigued or tired . Even as the Federal Motor Carrier Safety Administration ( FMCSA ) mandate on ELDs took hold , requiring the use of these devices , we did not see a dramatic decrease in claims activity across the entire transportation sector . Once again , the failure to properly monitor the application of technology left many transportation companies at a disadvantage when defending themselves in a claim situation .
Examples like the two above are everywhere within the sector through the years . Technology has a funny way of making our lives easier and harder at the same time . What it provides in efficiency by
winter 2024 I customized logistics & delivery Magazine 27