AI’s role in Logistics: Shaping the future of supply chain in India

The logistics sector is undergoing a rapid transformation with the integration of Artificial Intelligence (AI) across operations. From warehouse automation to real-time route optimization, AI is redefining how goods move through the supply chain. This shift is not only improving operational efficiency but also creating new job roles, skill requirements, and training opportunities. As logistics becomes increasingly data-driven and intelligent, building a workforce equipped to work alongside smart systems is becoming essential.

Let’s explore how AI is reshaping logistics in India, driving innovation, and creating new skilling and employment pathways.

AI-powered transformation in logistics operations

The integration of AI into logistics is driving automation, accuracy, and agility at every stage of the supply chain. Here’s how AI is making a difference:

• Smart warehousing: AI-powered robots and Automated Guided Vehicles (AGVs) handle sorting, picking, and packing with high efficiency and minimal error.
• Predictive analytics: AI models forecast demand and optimize inventory management, helping companies remain agile and responsive.
• Dynamic route optimization: Real-time data on traffic and weather helps AI suggest the fastest, most cost-effective delivery routes.
• Customer interaction: AI-enabled chatbots manage customer service, tracking queries, and updates with 24/7 availability.
• Predictive maintenance: Vehicles equipped with AI systems can detect and address maintenance issues before they become costly disruptions.

These technologies don’t just replace manual tasks, they create a demand for skilled professionals who can manage, monitor, and continuously improve AI systems.

New job roles and the rise of AI-driven employability

AI is not eliminating jobs, it’s reshaping them. With automation enhancing productivity, there’s growing demand for new roles that blend technical and domain expertise, such as:

• Logistics data analysts
• AI and automation technicians
• Warehouse robotics operators
• AI-assisted route planners
• Supply chain software developers

To meet this demand, training institutions and skilling bodies are introducing specialized certification programs that combine logistics fundamentals with AI, machine learning, and data analysis. For example, last-mile delivery staff are learning to use AI-powered navigation tools, while warehouse workers are being trained to operate collaborative robots (cobots). The focus is on human-machine collaboration.

Skill development: Institutional support and government initiatives

India is responding proactively to the shift with structured efforts to align skilling with AI adoption:

• Logistics Sector Skill Council (LSC): Under the Ministry of Skill Development and Entrepreneurship (MSDE), LSC collaborates with companies like AI Logistix to provide manpower training through the National Apprenticeship Promotion Scheme (NAPS). It also develops AI-integrated training programs aligned with NCVET standards.
• Academic integration: Institutions such as the Indian Institute of Materials Management (IIMM) have embedded AI modules in their logistics programs to ensure professionals are industry-ready.

Specialized training focus areas include

• Predictive analytics for demand forecasting
• Route optimization for timely deliveries
• Warehouse automation using robotics and sensors
• Inventory management using AI algorithms
• Real-time tracking with IoT and AI integration

Emerging career paths in AI-driven logistics

With the AI revolution in full swing, several high-impact job roles are emerging:

AI and data-centric roles

• Predictive maintenance engineers
• Route optimization specialists
• Inventory optimization analysts

Warehouse and automation roles

• Robotics engineers and cobots technicians
• Automation system integrators

Sustainability and smart logistics roles

• Green logistics coordinators
• AI-supported compliance officers

Companies like AI Logistix are actively hiring for these roles, especially in areas aligned with global sustainability and digital supply chain transformation.

AI’s contribution to industry growth

According to Straits Research, the global AI in logistics market was valued at USD 7.96 billion in 2022 and is projected to reach USD 238.89 billion by 2031, growing at a CAGR of 45.93%.

In India, the logistics market is set to grow from USD 435.43 billion in 2023 to USD 650.52 billion by 2028. AI is playing a central role in this expansion by:

• Improving inventory accuracy by up to 40%
• Reducing operational costs by 30% through smarter delivery routing
• Enhancing transparency and customer satisfaction with real-time tracking

AI adoption is also being accelerated by the growth of e-commerce, international trade, and digital infrastructure, which supports IoT and cloud-based logistics platforms.

Also read: How AI is shaping the future of Construction through skill development

Government’s vision for smarter logistics in India

The government recently emphasized that AI will be critical in reducing India’s logistics costs from 13–14% to 9% of GDP. He highlighted the role of digitization, automation, and intelligent transport systems in making the sector globally competitive.

Initiatives like the Unified Logistics Interface Platform (ULIP) under the National Logistics Policy aim to foster seamless digital connectivity and real-time decision-making using AI, IoT, and big data; reflecting the government’s long-term commitment to smart logistics.

Building an AI-ready logistics workforce

AI is not just modernizing India’s logistics sector, it’s creating a wave of inclusive employability and entrepreneurship. As operations evolve, the focus must shift towards continuous upskilling, innovative training methods, and public-private collaborations.

To truly harness the power of AI in logistics, India needs a future-ready workforce that is digitally empowered and operationally agile. This transformation presents a unique opportunity to improve not just efficiency and sustainability; but also the lives and livelihoods of millions across the logistics value chain.