AI in Transportation
Use Cases Shaping the Industry
The evolution of the transportation sector greatly relies on technology. The invention of IoT, cloud technology, and digitalization aided the industry in making a huge leap. Now that AI in transportation is transitioning from theoretical concepts to practical applications, businesses are in new competitive dynamics. Undoubtedly, the opinions on AI vary, and critics would argue against the decision to jump into spending their budgets on costly solutions. So, does it mean that artificial intelligence will pass someone by without any impact? Let’s discover the state of the market, the future of AI in transportation, and whether such investment truly pays off.
Our Story
The transportation industry is an economically significant sector encompassing a broad range of activities and stakeholders. It’s not only a substantial contributor to global economies but a major employer. In the EU alone, this sector provides jobs for 10 million people and accounts for 5% of the GDP. In the US, the transport sector’s contribution to GDP reached a staggering 561.90 billion USD in the first quarter of 2023. On a household level, about 13.2% of a family’s budget is typically allocated to transport expenses. It’s also important to mention that this sector relies on fossil fuels and contributes to CO2 emissions, which contradicts the world’s sustainability and environmental friendliness efforts. Where does artificial intelligence in transportation stand? Well, artificial intelligence in transportation market is expected to be $3.5 billion in 2023, indicating the growing interest in this technology.
Artificial intelligence in transportation: balancing promise and complexity
When it comes to transportation artificial intelligence is a tricky offer. Before choosing your strategy, you need to find the balance between the promise of this technology and its complexity. There is an advantage to progress, and all new technologies, yet not all companies can afford to implement them, and oftentimes, they pass on such decisions. Indeed, when it comes to AI in transportation, developing your model or even training it may not be in the best interest of a business. But it is not a reason for declining the idea for good.
Leveraging advanced solutions offered in the AI industry can be a highly effective strategy for transportation businesses. Tech giants like AWS and Google offer a range of tools and platforms backed by extensive research and continuous updates. In this way, companies can bypass the resource-intensive process of building AI systems in-house.
Let’s start with the benefits of AI in transportation. They are numerous, but some are universal and beneficial for many stakeholders, namely transportation companies, vehicle manufacturers, urban planners, municipal authorities, insurance companies, and transportation and logistics staff.
The benefits of AI in transportation industry
Artificial intelligence, along with machine learning in transportation, reinforces multiple existing functionalities. It fits perfectly into the technological landscape and promises a new tech revolution.
Along with predictive analytics, real-time video monitoring, and other technologies, AI in transportation can find gaps in safety and prevent more incidents on the road, within a warehouse, and in other locations. For example, in autonomous vehicles, AI is used to detect and react to hazards faster than a driver.
AI also succeeds in managing traffic flow and reducing congestion. Siemens Mobility plans to develop “digital twins” for infrastructures across the globe using AI. One of their projects, digitalizing the Norwegian railway expects completion in 2034, showcasing the potential of artificial intelligence in transportation and urban mobility.
Here are more benefits of AI in transportation:
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