Why Execution — Not Innovation — Will Define the Winners

As in the greater business world, the potential of Artificial Intelligence has everyone in logistics talking. The promise of easy business gains is enticing. Which AI promises to make even easier: from enhanced reasoning to increased productivity and insights, this bold new leap in technology has excited people as much as it challenged the status quo. 

Yet while it’s still early days, less than 10% of AI adopters in logistics have so far been able to see measurable value. What’s more, the majority of those interested in the power of AI are still in the piloting phase. Which means while they agree on the transformative potential, they’re hardly adopting it. With this in mind, Boston Consulting Group conducted a recent survey in collaboration with Alpega, to get a clearer picture of how AI is viewed by the industry, and where it feels it can be of value. 

The results were as interesting as the insights. 

Here are some of the highlights: 

Balancing myth against business basics 

It’s understandable that this game-changing technology - which has already disrupted several other industries - promises to do the same in logistics. While AI makes innovation and disruption almost synonymous, daily operational needs remain in place. And if respondents of this year’s survey (numbering over 180 experts among both Logistics Service Providers and Shippers) were considerably more convinced of AI’s value this year, doubts still remain, and adoption lags. 

Why? Respondents feel that AI will still have to tie into operational performance across these points: 

• planning 
• forecasting 
• visibility 

Unpacking this further, transport planning and execution, demand forecasting, and end-to-end shipment visibility consistently rank as top priorities for both shippers and LSPs. This level of agreement on AI priorities suggests that the market is maturing.  

Yet the marked agreement on these priorities is one thing. Increasing investment to move it from promising pilots to scalable success, quite another. 

What are the biggest barriers to AI adoption in logistics? 

The latest report signals a major shift. Whereas three years ago, discussions about AI focused on whether the technology was ready and cost-feasible; these issues have receded. As adoption today is far easier and more affordable. 

Rather, other pressing issues have emerged. As approximately 40% of survey respondents—both LSPs and shippers—cite these factors as top barriers: 

• Unclear return on investment 

AI sounds promising, but without guaranteed cost savings or efficiency gains, leaders hesitate to invest in technology that may not deliver measurable results. 

• Internal capability gaps 

At present, limited data expertise and tech knowledge make teams fear failed projects, vendor dependence, and tools they can’t operate confidently or effectively. 

• Integration with existing systems 

AI must plug into messy, aging systems. Concerns about disruptions, long integrations, and unreliable data flows make teams fear AI will complicate operations instead of simplifying them. 

Clearly, operating models will have to be honored for AI to serve it, instead of upending systems for the sake of the technology. 

Slow – and low – adoption 

What emerges in the survey is that AI adoption is generally slow, and not equal among businesses.  

About 40% of LSP’s report AI deployment beyond pilots, yet only one in ten have embedded AI into core operations at scale. And only 13% report measurable value from embedding AI into daily operations. Scaled, end-to-end adoption remains rare across the industry. 

Adoption among shippers has been even slower.  

• Almost 70% are still exploring or piloting AI 
• Fewer than 10% say they can measure tangible performance gains. 
• Just 7% can point to measurable improvements in their supply chain activities,  
• Only 1% have embedded AI as part of their core logistics processes. 

In short, while shippers are still exploring AI, LSPs are slightly ahead when it comes to execution, if far from scaling it.  

So why AI? Shippers and LSPs speak up 

In the report, nearly 80% of both shippers and LSPs cite cost reduction and operational efficiency as primary triggers for AI adoption, and LSPs cite efficiency as the top benefit so far, followed by faster decision-making. 

Shippers mirror these priorities, with 60% focusing on visibility and tracking, and about half on transport demand forecasting. This suggests that AI is viewed primarily as a productivity tool, not a revenue or service differentiation engine. 

Clearly, at this stage, cost and efficiency drive everything.  

A shift, and separation between competitors 

The survey’s findings reveal that most players are still focused on pilots, with the small group who are scaling AI starting to enjoy an advantage. This gap will only widen, creating a competitive separation. This will happen fast, and in keeping with this technology, it will only accelerate. 

Already, the 13% of providers who have embedded AI in core operations are already pulling away from the 56% still exploring or testing it. 

What’s clear: the deciding factor for those who pull ahead won’t be the AI technology they employ, but how effectively they can connect it to the needs and parameters of their operations. 

Next steps: How can logistics executives get value from AI? 

As promising as AI appears, it’s still an uncertain area with changing goalposts. To benefit, businesses need to move cautiously, but consistently. 

• Connect AI to business outcomes 

Logistics providers must make ROI explicit and operational, not conceptual. This means aligning AI initiatives to specific outcomes shippers care about: lower cost-to-serve, improved on-time delivery, faster replanning, and fewer manual exceptions. 

• Embed AI into logistics workflows 

Integration is vital. Real value comes from embedding AI directly into TMS and operational workflows where work happens.  

• Invest in people, not just tech 

Whereas AI was once regarded as something that would replace a lot of systems, processes and thinking, and by implication, workers, it is emerging more as a complement. A tool that multiplies effort, not replacing it. Shippers and LSP’s should recognize the value of people and invest in reskilling them with AI for scalable and measurable results. 

To demonstrate: We reveal how a leading shipping company is taking advantage of AI 

What else?  

Discover 6 key factors for LSP’s to successfully implement AI.