AI Propels Transportation Management to Competitive Edge, While Automation Lags

AI and automation put transportation management on the growth agenda

Transportation is moving from back-office overhead to strategic value. In fresh research from Descartes Systems Group, 81% of respondents say transportation management differentiates their business. Only 19% still see it as basic or low priority.

The automation gap you can't ignore

Adoption is uneven. Only 17% report being fully automated, while more than a third still rely heavily on manual work. Leaders are pulling away: 51% of top performers are fully automated vs. just 5% of below-average performers. The consequence is predictable-slower cycle times, higher costs, and weaker service.

Generative AI is already in play

AI is no longer a pilot project. 96% say they use generative AI in transportation operations. The most common use cases are practical and measurable:

• AI-assisted data entry: 41%
• Route and load optimization: 39%
• AI-driven freight forecasting: 35%
• Automated load matching and capacity sourcing: 35%

The 4% not using generative AI are more likely to view transportation as a necessary evil and expect limited growth over the next two years.

Where budgets are going

Investment is rising, with 80% planning to increase TMS spend. Top priorities: performance management, end-to-end visibility, and fleet routing. Fraud and theft prevention are gaining ground too-carrier monitoring (insurance, safety, fraud) ranks in the top three desired capabilities, cited more often in North America than Europe by seven points.

Outlook and who was surveyed

Confidence is strong: 72% expect at least 5% annual revenue growth over the next two years. The study included 616 respondents split between logistics service providers (brokers, forwarders, 3PLs) and shippers (manufacturers, distributors, retailers), primarily in the U.S., Canada, and Western Europe. Higher digital maturity in transportation correlates with stronger growth and competitiveness.

What this means for management

If transportation touches your margin, customer experience, or cash flow, treat it like a growth system, not a cost bucket. Here's a focused plan.

• Define outcomes: on-time performance, cost per shipment, tender acceptance, dwell time, and capacity utilization.
• Close the automation gaps: e-tendering, eBOLs, EDI/API with carriers, auto-rating, and auto-invoicing with exception workflows.
• Deploy GenAI where it pays back fast: shipment data entry, exception triage, ETA updates, and load matching.
• Tighten fraud controls: continuous carrier monitoring (insurance, safety scores), identity checks, and clear escalation paths.
• Fund visibility and performance management: real-time milestones, predictive ETAs, and KPI dashboards at lane, customer, and carrier levels.
• Upskill your team: analytics proficiency and AI prompt skills for planners, dispatchers, and customer ops.

90-day execution checklist

• Select two high-volume lanes with recurring exceptions or high cost variance.
• Map manual touches per shipment; target a 30% reduction through TMS features and AI assistance.
• Turn on auto-tendering and carrier scorecards; standardize acceptance SLAs.
• Pilot AI-supported data entry and exception handling; measure cycle time and accuracy.
• Enable carrier monitoring and basic fraud alerts.
• Review KPIs weekly; expand to the next set of lanes after proof of impact.

KPIs to watch

• Manual touches per shipment
• Tender acceptance rate and time to cover
• On-time pickup and delivery
• Cost per shipment and cost to serve by customer
• Dwell time and detention
• Fraud/theft incidents and carrier qualification status

Transportation is now a lever for growth. Teams that automate, apply AI to everyday workflows, and harden fraud controls will cut noise, improve service, and free capacity for higher-value work.

Want practical training for your team on AI and automation in operations? Explore curated options at Complete AI Training - Automation.