AI through the looking glass

AI through the looking glass

Over the course of the last year, FOCUS has profiled the role artificial intelligence (AI) is playing across a variety of industries. Continuing this theme, several of the contributors to this handbook discuss what the future holds, at what many are describing as an inflection point for the industrial application of AI.

Throughout the last year, AI has been a consistent touchpoint when discussing supply chains, fleet operations and a host of other sectors.

What they said in 2025

In July, supply chain strategist Tjaka Segooa pondered whether AI will be able to transform South Africaโ€™s logistics sector, or whether outdated systems, policy lag and a skills gap stunt our progress. She reported that while 96% of firms are reportedly developing AI strategies, just 37% consider their current infrastructure scalable enough to support such systems.

โ€œThis disconnect reveals a deeper issue: a strong desire for innovation is being thwarted by outdated systems at the operational level,โ€ she said, emphasising that there is a through-line in successful case studies of AI implementation: โ€œA potent mix of strategic publicโ€“private partnerships, consistent national policy, and โ€“ most importantly โ€“ relentless investment in human capital. These nations didnโ€™t just plug in AI tools; they rewired their entire ecosystems to support them.โ€

In May, we looked at the importance of future-proofing delivery services with AI in the face of ongoing labour shortages in supply chains across the globe โ€“ one possible solution to alleviating skills gap concerns. This could come in the form of an AI assistant โ€œembedded into the day-to-day work of logistics and postal workers,โ€ to help embed new hires by swiftly providing them with a range of necessary information, ranging from HR policies to timely best route recommendations.

In this way, said Andre Luecht, global strategy director of transport and logistics at US-based Zebra Technologies, โ€œEmbedding AI into frontline parcel delivery tasks could form part of a growth strategy that drives a reduction in the time and money needed to train staff, adds value by getting new hires into the field faster, and makes them more productive.โ€

In March, we profiled how leading telematics providers have begun to harness AIโ€™s immense processing power to transform fleet operations. In that article, Webfleetโ€™s Scott Elkington likened AIโ€™s transformative potential to the dot-com boom, saying, โ€œDo you remember when Google came along? This is like the next Google. It changed the scope of things โ€“ being able to use Google to find things out. AI is going to be like that.โ€

Similarly, in February we covered how AI is stepping up to redefine how fleet management operates, with the promise of safer roads, more efficient operations, and a data-driven approach to decision-making. In South Africa, where cost pressures and safety concerns are always front of mind, AI has huge potential to be a game-changer for many businesses, not least via its ability to streamline operations to improve efficiencies and use predictive analytics to pre-empt potential crashes and other safety concerns.

AI is even improving border clearance processes, with Zimbabweโ€™s Beit Bridge Border Post a shining example. Here, as we reported in February, a turnkey system integrates hardware and software to streamline border operations, enhance security, and improve efficiency. A host of innovative technologies are now helping to resolve long-standing challenges โ€“ and, incredibly, these have slashed clearance times from three days to just three hours.

Security concerns paramount

Across the breadth and scope of AI insights that have covered the pages of FOCUS, one of the major overarching concerns continues to be the security of sensitive and private data. For fleet managers, this can include customer addresses and goods being transported.

As Elkington noted in March last year, any information put into ChatGPT (for example, when producing a report) is an immediate breach of a fleet operatorโ€™s data policy. The solution he put forward was for organisations to adopt closed-loop AI systems that do not share information externally. He equated this to โ€œa walled garden, which helps you maintain control of your data.โ€

Segooa highlighted Microsoftโ€™s pledge to train one million South Africans in AI and cybersecurity by 2026 as a step in the right direction. In September, iAfrica.com reported that this target had been achieved. In addition, it noted, other key achievements included 50,000 industry-recognised AI certifications issued to young professionals; 300,000 youth trained through a partnership with the Youth Employment Service (YES); and 200 SMMEs and 2,000 individuals equipped with advanced AI and digital capabilities.

2026: AI in transportation at an inflection point

Looking ahead as we move into the second half of the decade, US software, hardware and services technology company Trimble has released its annual Transportation Pulse Report 2026.

The report emphasises that the transportation industry is at an AI inflection point as adoption accelerates.

Surveying more than 230 supply chain and logistics executives across Europe and North America, the report finds that both shippers and carriers are already using AI to improve transport planning, pricing and execution. Their priorities differ, however. While 86% of shippers expect AI to have a major impact on transport planning and optimisation over the next three to five years, carriers place greater emphasis on pricing and lane optimisation, with 59% identifying this as AIโ€™s primary source of value.

The report further highlights other opportunities, including the rise of โ€œAgentic AIโ€ โ€“ autonomous software agents that monitor data, make decisions and execute tasks within defined boundaries. Despite the potential of automation, however, Trimble stresses that many shippers and carriers still see AI’s primary role as augmenting human decision-making rather than replacing it. โ€œStill, this marks a turning point,โ€ it says. โ€œLogistics teams are in the early stages of trusting systems to act on their behalf and not just provide insights.โ€

(A)I on Industry

AI is unsurprisingly at the forefront of industry discussions and projections, and our Eye on Industryย section kicks off with Trimbleโ€™s Chris Keating unpacking transport industry predictions for 2026 on page 86.

Keating says that the industryโ€™s relationship with AI is maturing and that we are moving from experimentation to real adoption: โ€œIn 2026, AI will move into mainstream applications such as predictive maintenance, network optimisation and dynamic pricing. Conversations about full autonomy are already happening at the operational level,โ€ he emphasises, adding that โ€œAI as colleagueโ€ is replacing โ€œAI as toolโ€. He does, however, echo the ongoing concerns about security concerns, warning: โ€œA major global breach involving data exposure from unsafe AI use appears to be a question not of if, but of when.โ€

Keating reminds us that data quality is the true enabler of automation โ€“ a sentiment echoed by RS South Africaโ€™s De Wet Joubert on page 102, where he describes how AI is driving efficiency, predictive insight and smarter decision-making in the maintenance, repair and operations supply chain. โ€œWhen data is complete, accurate and contextualised, AI can forecast component failures, optimise inventory and improve overall supply chain reliability,โ€ Joubert says, adding, โ€œOrganisations that embrace AI strategically, align it with core processes and invest in data quality will not only improve efficiency, but also unlock entirely new ways of operating.โ€

On page 94, the 2026 Air Freight Outlook Report from market analytics platform Xeneta highlights the growing influence of AI in the sector, with 43% of global merchandise trade growth in the first half of last year coming from AI-related goods like semiconductors, processors and finished computers โ€“ despite these accounting for only about 15% of total trade. โ€œMuch of this cargo is high-value, time-sensitive hardware โ€“ key air freight selling points โ€“ putting AI investment at the centre of demand in 2026,โ€ the report notes.

The fact that major US tech firms are predicted to increase their annual capital spending to over US$500 billion this year is also telling, with the report stating that much of this expenditure will be on AI data centres and their connection networks, adding that accounting for investment peaks in previous technology waves, there appears to still be substantial room for growth in AI investments.

On page 98, we investigate the potential for digital twins (DTs) to transform how we approach transport infrastructure planning, implementation and management. Again, AI and machine learning (ML) models will undoubtedly play a significant role in the evolution of this technology. Future systems, say researchers, could leverage advanced analytics and AI to provide deeper insights and optimise transportation networks throughout their lifecycle, amongst a plethora of other potential applications.

Transforming the landscape, from supply chains to tyres

Elsewhere in the Handbook, on page 40 Oxyonโ€™s Maureen Phiri discusses the logistics of everything and how AI, robotics, cloud computing and the Internet of Things (IoT) are transforming supply chains into smart, interconnected ecosystems. Part of this transformation, she says, will be the rise in demand for a new type of tech-savvy professionals, โ€œwho can interpret data, integrate digital tools and optimise operations across multiple sectors,โ€ opening up a variety of new career pathways for todayโ€™s youth.

Additionally, on page 72 we look at how AI systems are expected to integrate with other smart tyre technologies to ramp up performance, with one proposed system looking to leverage ML algorithms, AI-powered sensors and predictive analytics to detect terrain characteristics and dynamically modify the tyre structure for optimal grip, stability and durability.

Smart tyres are particularly appealing for electric vehicles: real-time feedback optimises energy use, improves performance and extends battery range. The arrival of autonomous vehicles, meanwhile, represents another potentially transformative application, as AI is integrated to meet their sophisticated demands. Continual data analysis from integrated sensors will be critical for autonomous vehicle safety considerations in the absence of human input, with AI algorithms predicting tyre wear and identifying a range of potential issues before they escalate into failures.

A word of caution

Amidst all this optimism and burgeoning potential, one aspect of AIโ€™s rise tends to be glossed over: its environmental impact.

In May 2025, Massachusetts Institute of Technologyโ€™s MIT Technology Review provided a comprehensive examination of the exorbitant energy requirements of AI data centres. The authors point out that data centre energy demand remained relatively stable between 2005 and 2017, โ€œthanks to increases in efficiency, despite the construction of armies of new data centers (sic) to serve the rise of cloud-based online services, from Facebook to Netflix.โ€

However, AI began to change this in 2017, when these centres started to be built โ€œwith energy-intensive hardware designed for AI, which led them to double their electricity consumption by 2023.โ€ The authors report that as of 2024, 4.4% of all US energy was going towards data centres.

The International Energy Agency (IEA) further states that electricity consumption from data centres grew at 12% per year from 2019 to 2024, projecting that it would grow by 15% per year between 2024 and 2030.

โ€œThe rise of AI is accelerating the deployment of high-performance accelerated servers, leading to greater power density in data centres. Understanding the pace and scale of accelerator adoption is critical, as it will be a key determinant of future electricity demand,โ€ the agency advises.

Diverse forms of renewable power will be critical to help minimise this rise in energy use. โ€œItโ€™s in Europeโ€™s best interest to have highly energy efficient and sustainable data centres and ensure that they support, rather than detract from the clean energy transition. This calls for more reuse of waste energy and more use of renewable energy sources,โ€ emphasises the European Commissionโ€™s (ECโ€™s) directorate-general for energy.

Another compounding energy concern is the vast amounts of water required for cooling at these centres. โ€œSome energy is wasted at nearly every exchange through imperfect insulation materials and long cables in between racks of servers, and many buildings use millions of gallons of water (often fresh, potable water) per day in their cooling operations,โ€ note the MIT authors.

The need for sustainable implementation

AI is here to stay, and it will only get more pervasive as time goes on. While much of this energy consumption is directed at the use of automation for individual users, such as AI assistants like ChatGPT, it is critical that we all remain aware of its associated environmental challenges. Curbing transport emissions is a futile gesture if these are simply replaced by emissions from power supply and unsustainable energy use to automate our vehicles, fleet management systems and supply chains.

Providers need to make AIโ€™s energy demands more transparent, with the MIT Review noting, โ€œWithout more disclosure from companies, itโ€™s not just that we donโ€™t have good estimates โ€“ we have little to go on at all.โ€ If this can be achieved, effective legislation will also be needed to ensure that things do not get out of control โ€“ and the sooner, the better.

AI is a potentially bounteous gift, but only if we acknowledge the need to approach its adoption and implementation in a sustainable manner. We would do well to remember the words of Dr. Ian Malcolm (Jeff Goldblum) to the founder of Jurassic Park: โ€œYour scientists were so preoccupied with whether or not they could, that they didn’t stop to think if they should.โ€

ย [Unknown A1]Pls link to the Eye on Ind. cover page and link all bolded page numbers to the articles in the handbook

Published by

Rowan Watt-Pringle

ROWAN WATT-PRINGLE is editor of the Transport Manager's Handbook. He also works as a freelance writer, editor, and sub-editor predominantly in the transport, non-profit, and environmental sectors.
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