The use of Artificial Intelligence (AI) can transform production and logistics in Mexico, as it will allow for improving, simplifying and optimizing processes, in order to trigger the country’s economic growth , although there are challenges to enhance this tool, such as investment, regulation and government support, considered Álvaro Echeverría, CEO of SimpliRoute , a last-mile logistics optimization platform.
The country has made progress in adopting AI in physical operations, with 50% of operations leaders indicating its widespread use in their organizations, however, the industry continues to lag behind when compared to other markets, due to the lack of a regulatory framework and greater government attention.
According to the consulting firm Mordor Intelligence , the cargo and logistics market is estimated at 136.11 billion dollars (mdd) for this year, with a growth projection of up to 171.40 billion dollars in 2029, at a compound annual rate of 4.72 percent.
He also highlighted that the growth in transportation services has strengthened the competitiveness of Mexico’s exports, which in 2022 reached 590.93 billion dollars .
Given this scenario, the challenge is to overcome some challenges, such as the lack of investment and the absence of a clear focus on the part of the government, which is why a long-term vision is required that promotes innovation and technological development in the country, with regulations that guarantee the ethical and safe use of Artificial Intelligence.
“Mexico needs a robust regulatory framework that addresses data security and privacy in order to foster trust in technology and attract investors,” Echeverría stressed, adding that “the adoption of AI can transform logistics in Mexico by improving inventory management, optimizing delivery routes and estimating sales demand.”
The SimpliRoute specialist pointed out in a statement that companies must collaborate with recognized suppliers and train their staff to counteract the risks that come with the implementation of AI, which include data security and the lack of specialized human capital .
He also indicated that the Mexican government would have to work together with local producers and manufacturers to establish a sustainable practice with the use of technology , which in addition to helping to consolidate our country as a competitive player in the context of the relocation of production lines ( nearshoring ), would allow for reducing costs and increasing efficiency.
According to a Samsara study , 94% of operations leaders believe it is necessary to invest in AI solutions to stay competitive, and 87% of organizations plan to increase their investment in AI in the next 12 months, which is crucial to meet the demands of the logistics sector .
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