AI Use Is More Niche Than Expected

Developments over the past year confirm the growing interest in AI in warehouses, but put into perspective the speed at which the announced investments are actually translating into productive applications. Artificial intelligence is increasingly being used by logistics companies—though primarily for administrative tasks. And those AI solutions that do make it into productive use tend to provide support in specific, clearly defined areas such as order picking or inventory analysis, rather than serving as a comprehensive warehouse management system.

Many initiatives remain at the demonstration stage without making the transition to regular operation. Solutions become productive when they integrate seamlessly into existing processes and quickly deliver concrete, measurable benefits. In this context, a decision-support approach is gaining traction: AI provides the basis for decisions, but the user continues to make the final choice. Pure “black box” approaches find little acceptance in business-critical warehouse processes.

From Pilot Project to Standard

The key is the ability to evolve AI from an innovation into a product that is affordable and readily available to every customer—and that delivers immediately tangible added value. This is precisely an integral part of PSI’s strategy for the future. For example, Batch AI has become the first AI module to be integrated into the standard PSIwms system. In practical use, this solution has helped customers reduce picking routes by about 30 percent and increase picking efficiency by over 20 percent. In the coming months, additional AI modules will be added that, following the example of Batch AI, will provide tangible optimizations for clearly defined tasks in day-to-day warehouse operations. The focus is on quickly answering user questions, providing context-sensitive support for system operation, and accelerating the setup of logistics processes.

Conclusion: Pragmatism Trumps Vision

At first glance, the interim assessment may seem more sobering than hoped for. Upon closer inspection, however, it becomes clear that the use of AI in logistics is gradually taking shape. It’s also evident that AI is not a silver bullet. Too much can also be overwhelming. Rather than radical system overhauls, it is the easily integrable pieces of the puzzle that offer operational benefits.