This archive report was first published on 8 July 2021.
Published on July 8, 2021, a report by the World Bank's International Finance Corporation highlighted the growing impact of artificial intelligence (AI) and machine learning (ML) on the transport sector.
According to the report, the global market for transportation-related AI technologies reached between Sh128 billion and Sh149 billion in 2017, and is expected to grow to Sh331 billion to Sh374 billion by 2023, registering a compound annual growth rate of between 12 and 14.5 per cent.
Kenyan transport and logistics company Sendy has already begun to leverage AI and ML technologies to optimize its operations. In an interview, Sendy Chief Technology Officer Evanson Biwott explained that the company has automated everything in the value chain using existing technology to make it easy for customers and partners to get services from them.
Biwott noted that AI/ML systems have been useful in cost optimization, which is a delicate balancing act in the logistics sector. The company uses data points such as the weight of items, their fragility, and distance to figure out how to match orders to drivers or whether to pool some deliveries.
Sendy's restructuring into three divisions - Sendy Transport, Sendy Supply, and Sendy Freight - has also helped reduce overlapping functions across the business, making operations leaner and unlocking new product lines.
According to the World Bank, emerging markets like Kenya can leverage existing technology ecosystems in the global market to register some wins for their industries. AI-powered technology can allow small players with few assets and little capital to tap into existing resources such as a city's truck drivers or motorcycle couriers to provide efficient solutions for their clients.
