Let’s make a decision about making decisions

By Simon Duddy, Editor, Logistics Matters

According to many, agentic AI, that is decision making AI, is making consequential changes in the warehouse and its use will expand. It’s an exciting time as the innovation promises to bring a great deal of efficiency gains. And what is logistics but a continual pursuit of efficiency gains? However, I am bit concerned with how this might impact our attitude to decision making over time.

What I am getting at, I guess, is if you take this trend to the ultimate conclusion over a number of years and trust the AI over people more often than not, including being confident enough not to sense check from time to time, then you simply don’t need people making decisions. A lot of people’s jobs revolve around their ability to make the right call more often than not…

Furthermore, if we have, as a society, AI making decisions for long enough, will people lose the ability to make decisions? Are we training the people of tomorrow to not bother to understand how things work?

But perhaps these thoughts are more suited to a sci-fi novel than the reality right now on the warehouse floor. Indeed, AI is already making shapes in logistics, and I have spoken to numerous supply chain executives who are deeply impressed by it.

That is one of the reasons we have included the category of ‘AI Innovation of the Year’ in our Warehouse Transformation Awards.

You can’t ignore the impact it is having. Our judges are greatly anticipating reading the entries to this category, as well as all of our other categories. We have broadened the scope of our Awards this year, to make it easier for suppliers, OEMs and integrators to enter, as well as warehouse occupiers. The supply chain is indeed a chain, and a rich one at that, and each link is worthy of praise.

The Awards takes place as the final session of our hugely successful Tomorrow’s Warehouse conference, on May 14, which takes place at the CBS Arena Coventry. Registration for the event will open in early February. For more information on the Tomorrow’s Warehouse conference, remember there will also be an event at the Old Trafford Cricket Ground in Manchester on September 30, keep an eye on the website.

If you would like to be a speaker at either of the events, if you have a tale of warehouse transformation and lessons to impart, please do drop me a line on [email protected]

Companion article

As a supplement to this article written by a flawed human being, I prompted a well known AI to write a 400 word opinion article on how the emergence of AI may lead to the erosion of the decision making ability of managers in a logistics setting.

And faster than you can say, ‘get back in your box’ here it is…

The Silent Erosion: How AI Could Blunt Managerial Decision-Making in Logistics

The integration of Artificial Intelligence into logistics operations is often heralded as a revolution, promising unparalleled efficiency, predictive accuracy, and cost savings. From optimizing delivery routes to automating inventory management, AI’s capacity to process vast datasets and identify patterns is undeniably transformative. Yet, beneath this glossy veneer of progress lies a subtle, often overlooked risk: the potential erosion of human managers’ fundamental decision-making abilities.

In the fast-paced world of supply chains, managers are constantly faced with complex choices, from rerouting shipments during unexpected disruptions to balancing capacity with fluctuating demand. Historically, these decisions relied on a blend of data analysis, experience, intuition, and critical thinking. Now, AI systems can perform many of these tasks with astonishing speed and precision, offering “optimal” solutions backed by complex algorithms. The temptation for managers to simply accept these recommendations, rather than critically evaluate them, is immense.

This over-reliance can foster a dangerous dependency. When AI consistently provides the “right” answers, managers may stop exercising the very cognitive muscles that enable independent, nuanced judgment. The ability to question assumptions, identify external factors not fed into an algorithm, or creatively solve novel problems – skills essential for true leadership – could atrophy. What happens when an unforeseen global event, a sudden regulatory change, or a unique customer request falls outside AI’s trained parameters? A manager accustomed to simply executing AI-generated directives might find themselves ill-equipped to navigate uncharted waters.

Furthermore, decision-making in logistics isn’t always purely quantitative. It involves human elements, ethical considerations, and strategic foresight that AI, despite its sophistication, struggles to fully grasp. The “optimal” AI solution might be technically sound but overlook the morale of a warehouse team, the long-term relationship with a supplier, or the subtle nuances of local market conditions. If managers delegate these complex judgments entirely to machines, they risk losing the holistic perspective vital for sustainable, human-centric operations.

To prevent this silent erosion, logistics leaders must foster an environment where AI serves as a powerful co-pilot, not an unchallenged autopilot. Training should emphasize critical thinking, ethical reasoning, and the ability to interpret, rather than just accept, AI outputs. Managers need to remain the ultimate decision-makers, leveraging AI for insights while retaining their capacity for intuitive judgment, creativity, and the uniquely human ability to navigate ambiguity. Otherwise, we risk creating a generation of “button-pushers” rather than strategic thinkers, leaving our supply chains vulnerable to anything AI hasn’t been programmed to anticipate.