AI: The next generation of automation

In an unsettled global economy, businesses across industries are emphasizing efficiency and return on investment as primary strategic goals. That trend was clear in a recent survey we conducted with Zebra Technologies and a series of in-depth executive interviews for the same research program. One director of manufacturing transformation at a top automotive company in Europe told us about the pressures he faces to increase automation as a key driver of operational improvement: “Either you do that and can compete on cost, or you will not survive.”  

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Organizations already integrating hardware and software solutions are reporting tangible results—from higher productivity and customer satisfaction to measurable financial gains quantified for each industry by our econometric team. Foundational tools like RFID, barcode readers, and mobile computers remain central to these efforts, with artificial intelligence becoming an increasingly important factor.

Empowering frontline workers is a big part of the story. As one director of supply chain sourcing and procurement at a major US retailer told us: “The best thing that happened for us, along with updating the software systems, is that we upgraded the technology and put it in the hands of actual associates and employees in the facilities.” 

AI as a Catalyst for Competitive Advantage

For organizations still playing catch-up, AI offers a way to leapfrog years of incremental progress by unifying data across devices, predicting bottlenecks, and enabling faster decision-making. For example, just one-fifth of surveyed retailers that improved loss prevention over the past two years relied on AI to do so—but for those still struggling with loss prevention, roughly a third say AI is essential for future gains. The same pattern applies to a number of other workflows, including delivery and field operations in the T&L sector.

Most organizations across all three sectors are experimenting with AI for a variety of purposes, from inventory management and demand forecasting to cost optimization and quality intelligence. For many, AI is already driving meaningful efficiency gains in frontline operations. One US-based senior operations director at a global T&L company explained how AI is being piloted to help his drivers deliver with more accuracy and increased speed. Data is still being collected, but early feedback has been positive. “If we can finish stops sooner and increase productivity by adding an additional stop—even if it’s an additional stop every other day—that’s huge,” he said.

The ultimate business value of AI is a central question for businesses—and the global economy—as the technology matures and the hype around it proliferates. Yet one early impact is clear: AI is helping already-efficient organizations go further, while giving those still catching up a faster path to compete.