Uber Freight Bets Big on AI Tools to Revolutionize Logistics

Uber Freight is making a significant push into artificial intelligence, aiming to streamline supply chains and boost efficiency for its customers. Following a “logistics blitz” orchestrated by Colgate-Palmolive’s chief supply chain officer Luciano Sieber, the company found itself overwhelmed with data. Uber Freight is now offering AI-driven solutions to manage and leverage this data effectively.

About a year ago, Colgate-Palmolive partnered with Uber Freight to pilot Insights AI, a logistics-focused Large Language Model (LLM). Now, Uber Freight is formally launching a suite of AI features, including an expansion of Insights AI, which quietly launched in 2023, and over 30 AI agents designed to automate key logistics tasks.

While Uber Freight isn’t alone in this endeavor – Flexport recently announced its AI tools – Uber Freight believes its established knowledge base and relationships give it a competitive edge. Since its inception eight years ago, matching long-haul truckers with shippers, Uber Freight has gathered substantial expertise in the logistics domain. Flexport AI tools, and there are myriad startups trying to help companies wrangle data, reduce inventory stockpiles, and better predict supply and demand.

“Supply chain is inherently a data-rich problem. It’s complex, it’s nuanced, and AI can serve a fundamental role in shaping it and accelerating it,” said Uber Freight founder Lior Ron in an interview with TechCrunch.

Uber Freight began as a brokerage business in 2017, evolving into a service provider for global shipping companies. The company emphasizes the importance of AI, noting that Ron’s academic background focused on AI, even back when it was referred to as ‘neural networks.’

Ron added, “That sort of led me to the foundational belief, nine years ago, that supply chain is fundamentally a data-first, technology-first challenge that could be accelerated with data connectivity, and over time, AI,” he said. “We’ve been building towards this moment, I think, since I started Uber Freight.”

Initially, Uber Freight’s AI co-pilot faced challenges with accuracy, but after rigorous testing, the technology now boasts a 98% accuracy rate. The Insights AI model is trained on internal and external data related to the $20 billion worth of freight managed annually, utilizing multiple undisclosed AI models for optimal performance.

Insights AI allows customers to quickly access data-driven insights, such as identifying poorly performing origin points or tracking shipments to specific clients. The interface resembles other popular LLM tools, providing transparency about data sources.

Colgate-Palmolive, an early adopter of Insights AI, uses it to identify carriers not meeting contractual obligations. This real-time insight allows them to address performance issues or find alternative carriers.

The next step involves creating proactive AI solutions. Uber Freight aims to provide alerts to customers about overspending on routes or faster shipping options. These small savings, when combined across an entire network, can significantly reduce costs.

Ultimately, these AI-driven efficiencies are pleasing Colgate-Palmolive’s CFO, who appreciates the reduction in logistics costs. Uber Freight is focusing on leveraging AI to transform supply chain management, offering data-driven insights and proactive solutions to optimize operations and reduce expenses.