Generative Artificial Intelligence in Logistics

The use of Generative AI (Gen AI) in logistics is gaining significant attention, with expectations of cost reduction and improved efficiency. However, there has been a lack of structured evaluation and practical guidance for its application in the field. A practitioner-focused study by the Institute for Production and Supply Chain Management (PSCM-HSG) at the University of St. Gallen addresses this gap. It offers a theoretical foundation of Gen AI, explores current and future use cases in logistics, and provides actionable frameworks and recommendations for businesses. The study identifies 16 potential use cases, categorized into: • Knowledge Enablement (e.g., digital knowledge twins, training support), • Decision Drafting (e.g., offer creation, contract and invoice checks), and • Operational Intelligence (e.g., data management, customs clearance). A four-phase framework is proposed to help companies: 1. Identify relevant use cases, 2. Assess their potential, 3. Implement them using an eight-step method, and 4. Deploy & control solutions effectively. Developed through collaboration with various companies, the study offers both practical and academic insights, aiming to support the successful integration of Gen AI in logistics.