The five largest waste and recycling companies in North America are implementing artificial intelligence across routing, pricing, and customer service to drive margin gains through 2027. Executives from WM, Republic Services, Waste Connections, GFL Environmental, and Casella Waste Systems detailed these operational shifts at the Stifel Investors Summit, part of the National Waste & Recycling Association's Waste Leadership Summit 2026, on June 10.
Routing and margin gains
GFL Environmental CEO Patrick Dovigi identified routing efficiency, pricing, and employee retention as primary targets for AI implementation. The company tested a new tracking tool at a Toronto facility managing 200 residential routes.
The system monitored daily stops, idle time, collected volume, and truck working hours. GFL reported the tool increased facility margins from 35 percent to 38 percent within a couple of months.
"The challenge has been every month there's a new shiny object," Dovigi said. "It's really getting people focused to where we think we can get the biggest bang for our buck, but ultimately the beauty is nothing you see on the AI side is going to disrupt our business. We do have the ability to take costs and make our business better for operators."
Real-time data and pricing models
Waste Connections approved $100 million for seven enterprise AI initiatives, with a routing optimization tool launching in the second half of 2026. CEO Ronald J. Mittelstaedt said the system will replace static routes with real-time data from internal software, Google Maps, and Waze.
The company expects this routing update to drive 100 basis points of margin improvement by 2029. Mittelstaedt identified 47 potential AI applications across the organization, projecting 150 to 200 basis points of total margin improvement over five to seven years.
Republic Services is also advancing AI routing into a pilot phase, with plans to scale the program in 2027. CEO Jon Vander Ark said the company is using AI to analyze the unique service history and relationship fingerprint of each customer to optimize pricing.
Automating customer service and safety
WM deployed a coaching intelligence program that uses AI to generate detailed daily reports for operations managers. Executive Vice President and COO Tara Hemmer said the system ensures route coverage, monitors safety, and verifies equipment availability.
Republic Services expects AI to reduce its 11 million annual customer service calls by half over the next three to five years by delivering information directly to customers.
Casella Waste Systems is laying the groundwork for AI by overhauling its payment portals, general ledger, and procurement systems. CEO Ned Coletta said the company will use AI to automate overage charges when customers overload dumpsters.
"All of these things are helping us to drive either efficiency on the street or safety," Coletta said. "Trying to automate that flow of information and get it into systems to have productive moves for the business is a big goal of ours."
Why this matters for operations
Operations leaders in asset-heavy industries can look to these deployments as a blueprint for integrating AI into physical workflows. The focus remains on marginal gains in routing, automated reporting, and dynamic pricing rather than replacing core business models.
Professionals managing daily logistics should evaluate how AI for Operations can turn static route data into real-time adjustments. Building the foundational data infrastructure, as Casella and Waste Connections demonstrated, is a prerequisite before scaling advanced optimization tools. For those looking to structure these skills, an AI Learning Path for Operations Managers provides a framework for integrating these technologies into existing workflows.
Your membership also unlocks:
