Applications of Artificial Intelligence in Logistics Industry

This report discusses the various applications of artificial intelligence in logistics industry. It includes a case study of PC Log Pvt. Ltd and proposes three applications of AI for their business growth. Expert systems, machine vision, speech recognition, video manipulation and optical character recognition are discussed. Suitable recommendations are provided for this organization.

Running head: APPLICATIONS OF ARTIFICIAL INTELLIGENCE
Applications of Artificial Intelligence
Name of the Student
Name of the University
Author’s Note:

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Abstract
The major objective of this report is to learn about various applications of artificial
intelligence. There are various products or services, which are majorly linked with the
information technology and amongst them, the most significant services are hardware,
telecom equipment, semi conductors, software, electronic commerce, Internet connectivity
and many others. AI or artificial intelligence is considered as one of the most important
advancement in information technology. Each and every human intelligence process mainly
includes self correction, learning and finally reasoning. There are various cognitive
functionalities that are linked with human minds of users such as learning or problem solving.
There is a matching for the respective human flexibility on the wider domains to obtain
excess knowledge. Few of these programs have properly attained the major performance
levels of the human experts or even the professionals. This report has properly explained the
several applications of artificial intelligence with their impact on the PC Log Pvt. Ltd.
Suitable recommendations are also provided for this organization.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Case Study........................................................................................................................3
2.2 Definition of Artificial Intelligence.................................................................................4
2.3 Five Different Types of Applications of Artificial Intelligence with Examples..............4
2.4 Proposal of Three Applications of Artificial Intelligence................................................6
3. Conclusion..............................................................................................................................9
4. Recommendations..................................................................................................................9
5. Reference List......................................................................................................................11

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1. Introduction
IT or information technology is the specific usage of various important and significant
systems and computers for the core purpose to either store, retrieve, transmit, record and even
manipulate confidential and sensitive data or information for any specific business or
organization (Russell, Dewey & Tegmark, 2015, p. 109). Information technology is the most
important requirement in any organization to solve the various issues related to data security
and privacy. The machine intelligence or AI could be eventually demonstrated with the help
of various machines and hence is completely different from the natural intelligence, which is
being displayed by human beings (Müller & Bostrom, 2016, p. 561).
The following report provides a detailed discussion on the broad ideology of artificial
intelligence as well as the several applications on the basis of artificial intelligence. These
typical technologies have stronger impacts on the entire world of technologies and even for
the users. There is always a high possibility and probability of innovation with the presence
of artificial intelligence. PC Log Pvt. Ltd is one of the largest and famous logistics
organizations within Australia. They are majorly responsible to provide the services of end to
end logistics to many other popular companies. This particular logistics organization has
taken the decision for including various services or applications of the artificial intelligence
for their business growth. The report will eventually document five different applications of
artificial intelligence and amongst them three will be proposed for them. Moreover, suitable
recommendations will also be provided in this particular report.
2. Discussion
2.1 Case Study
PC Log Pvt. Ltd is one of the largest logistics organizations within Australia and was
eventually established more than twenty years ago. Over two hundred staffs are working here
and the respective head office of this company is situated in Sydney. PC Log Pvt. Ltd is
substantially operating within numerous Australian states and even in other parts within
Oceania region. This logistics organization is responsible to provide several solutions of end
to end logistics for the large number of companies. These services majorly include to the
warehousing, manufacturing and mining industries. Few of the customer companies are now
expanding their businesses and hence they are wishing for providing the logistical solutions

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based on the artificial intelligence. Hence, PC Log Pvt. Ltd is thinking to explore several
options to expand their business within next 5 years to involve the various services based on
artificial intelligence. The chief executive officer of the organization has given a
responsibility to the Head of ICT to investigate these technologies or the several applications
for the purpose of providing major services in the warehousing, manufacturing and mining
industries.
2.2 Definition of Artificial Intelligence
Artificial intelligence or simply AI is defined as a specific ability of any computerized
robots or digitalized systems to obtain better performance of the tasks, which are eventually
linked or compared with any intelligent human being (Bennett & Hauser, 2013, p. 13). The
artificial intelligence can be thus applied to various computerized programs for the successful
development of the several systems that are then endowed with the intellectual feature of
human beings such as discovering or generalizing meaning, learning from past or previous
experiences. The artificial intelligence is the newest advancement of information technology
(Raza & Khosravi, 2015, p. 1360). The simulation of this procedure of human intelligence
with the help of computers or systems is the most important factor for any user and hence the
human’s ability of taking decisions is much easier with AI.
2.3 Five Different Types of Applications of Artificial Intelligence with Examples
The several applications of the artificial intelligence, which are to be used by few of
the Australian industries and even in all other parts in Oceania region, are quite popular for
logistics industry (Webber & Nilsson, 2014, p. 3). All of the applications of AI majorly
consist of developments related to solutions. Five distinct applications of AI are as follows:
i) Expert System: This is the first and the most important application of AI. It is a
completely computerized system that can emulate the major ability to take decisions instead
of a human expert (Nourani, Baghanam, Adamowski & Kisi, 2014, p. 361). These expert
systems are eventually designed to solve the complicated problems with the help of reasoning
through knowledge bodies. Expert system is considered as the most successful and innovative
form of AI technology. Two distinct sub systems of expert system are present that are
inference engine and knowledge base (Bench-Capon, 2014, p. 7). The inference engine can
include the significant ability of debugging and explanation. The forward chaining and the
backward chaining are the two modes of this inference engine. The several approaches can be
dictated with the help of inference engine and hence is driven by antecedents. The second sub

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system is knowledge base. This helps to represent several facts and rules and thus utilization
of the AI technologies is for the simulation of behaviour and judgment of users. These
systems can include abilities of machine learning to allow the systems to improve overall
performance (Warwick, 2013, p. 2). There is a strong impact of expert systems in logistics
industry.
ii) Machine Vision: The next significant AI application is the respective machine
vision. This specific application mainly deals with the major process of systems obtaining
higher level of understanding either from digital images or from digital videos (Brownlee,
2018). The several tasks are completely automated and hence the human visual system is
being executed easily and promptly. This particular application of machine vision mainly
consists of some of the methods such as processing, acquiring, understanding and finally
analyzing the digital images after extraction of high dimensional data. This data is extracted
after producing the symbolic and numerical information for taking relevant decisions
(Artificial Intelligence., 2018). The various sub domains of machine vision application are
image restoration, event detection, scene reconstruction, 3D pose estimation, object
recognition, indexing and video tracking. This is highly efficient and effective for logistics
industry as the users can promptly track the data or position of all other rival organizations
and hence detect major events. Furthermore, the specific motion of products is also easily
estimated and thus faster delivery could be possible (The Neural Network., 2018).
iii) Speech Recognition: Another important application of artificial intelligence is
speech recognition. It is the major ability for all programs and machines, which are helpful
for properly recognizing the phrases or words in the specific spoken language and then
converting these phrases or words to machine readable formats. This software of speech
recognition comprises of restricted vocabulary of words or phrases and thus it could only
identify those words or phrases, whenever they are spoken with utmost clarity (Artificial
Intelligence Game Changer., 2018). This software is much sophisticated to accept the natural
speech of any human being. This software uses algorithms either by acoustic modelling or by
language modelling. Amongst these two, acoustic modelling is more effective to represent the
basic relation in the audio signals or linguistic speech unit. The performance is obtained
based of accuracy and speed and hence this is highly efficient for the logistics industry.
iv) Video Manipulation: The fourth important application of artificial intelligence is
video manipulation (Rubin, 2018). It is the newest variety of media manipulation that

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substantially targets digitalized videos after combining the major techniques of the video
processing and video editing or auxiliary methodologies like face recognition system. All of
the results of this application range from several artistic videos, which are produced for
aesthetic effects to the videos for mass manipulation and propaganda. Apart from few
computer aided probabilities, this is suggested that unrealistic frequencies of the motion of
products for identifying the forged videos (Henry, 2018). The industry of logistics should use
video manipulation application for tracking products’ videos.
v) Optical Character Recognition: The mechanical conversion of the images of a
product and then identifying printed text to machine encoded text either from scanned
document or from subtitle text types, which is superimposed on those specific images (Raza
& Khosravi, 2015, p. 1371). The optical character recognition application is used as the most
significant form of information entries from the data records and is then used in machine
processes such as cognitive computing, key data, machine translation, text to speech and text
mining.
There are various important examples of organizations in Australia that are utilizing
AI applications in their business. Amongst them, the most popular examples are Telstra,
Flamingo, Lisa, Daisee, Woolworths and many others. These specific companies have gained
better effectiveness and efficiency by implementing AI applications (Nourani et al., 2014, p.
359). The various logistics organizations of Australia such as SCT Logistics, Glen Cameron
Group, Air Road and many more have included these applications within their company to
obtain the competitive benefits.
2.4 Proposal of Three Applications of Artificial Intelligence
The three proposed applications of artificial intelligence for this logistics company of
PC Log Pvt. Ltd to expand the business within the next 5 years are as follows:
I) Expert Systems: The first and the most important proposed artificial intelligence
based application for this company of PC Log Pvt. Ltd is the expert system (Müller &
Bostrom, 2016, p. 556). The expert systems are certain computerized applications, which are
eventually designed for the purpose of solving several problems within a specified domain.
The most accurate or relevant knowledge from human experts can be easily stored in the
computerized memory. Thus, this accurate knowledge is served with the help of the expert
system as soon as needed (Bennett & Hauser, 2013, p. 18). These expert systems are much

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effective for any logistics company. Several benefits and disadvantages are also present
within this particular application.
i) The various benefits of the expert systems for PC Log Pvt. Ltd are as follows:
a) Presence of Consistency: The first and the foremost benefit of this expert system is
that the consistency is present within the data (Russell, Dewey & Tegmark, 2015, p. 106). As
the expert system is absolutely based on the computers, the knowledge as well as logic is
being programmed in this system. Thus, the process of decision making is much easier here.
b) Large Memory: The capacity of the memory of this expert is quite large than any
other system and hence huge and bulk data could be eventually stored in the information
system (Warwick, 2013, p. 4). The data access is much easier in this system and thus loss of
memory not possible in the expert system.
c) Easy Data Access: The confidential data or information can be easily and promptly
extracted from the specific application and thus PC Log Pvt. Ltd would be able access their
data.
ii) The various disadvantages of the expert systems for PC Log Pvt. Ltd are as
follows:
a) Lack of Data Integrity: The most significant disadvantage of the expert system for
PC Log Pvt. Ltd is that there is lack of data confidentiality and integrity (Artificial
Intelligence., 2018). Thus, the hacker could easily access the data and even change
accordingly.
b) Consumption of More Resources: The next disadvantage of this expert system is
that it consumes more resources like time and cost. Excess time is required for using this
application and the expenses are much high than usual (Rubin, 2018).
c) Work in Specific Domain: Another significant disadvantage of the expert system is
that this can easily work in any one specific domain. This could be a problem for the
organization of PC Log Pvt. Ltd.
II) Machine Vision: The second suitable application of the artificial intelligence for
this organization of PC Log Pvt. Ltd is machine vision or computer vision. This is the basic
technology and methodology with the major purpose to provide accurate image based

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automated analysis or inspection for various applications such as robot guidance, process
controlling and automated inspection (Artificial Intelligence Game Changer., 2018). For any
logistics company, machine vision is considered as the most efficient and effective
application.
i) The various benefits of the machine vision for PC Log Pvt. Ltd are as follows:
a) High Persistent: The most important benefit of this application is that is highly
persistent for the non destructive feature for the high speed, possessed by it.
b) Involvement of Human Visual: The next benefit of the machine vision for PC Log
Pvt. Ltd organization is that this enables the involvement of human and visual (Henry, 2018).
c) Extremely Cost Effective: The machine vision is extremely cost effective and thus
can be easily afforded by this organization of PC Log Pvt. Ltd.
ii) The various disadvantages of the machine vision for PC Log Pvt. Ltd are as
follows:
a) Need of the Expert Labours: The major demerit of this machine vision is there is a
constant need of expert labours in the application.
b) Lack of Sensitivity: The second demerit of the machine vision application is the
sensitivity is not present here and thus is often avoided by the users (Artificial Intelligence
Game Changer., 2018).
III) Speech Recognition: This is the final suitable application of AI for PC Log Pvt.
Ltd. The users’ speeches are being matched to identify or verify the authenticated person.
This is one of the most important AI based application that is popular for the users.
i) The various benefits of the speech recognition for PC Log Pvt. Ltd are as follows:
a) No Requirement of Training: The first and the foremost benefit of this application
is that there is absolutely no major requirement of the employees’ trainings. Everyone could
easily use this.
b) Easier: Speech recognition is much easier and prompt for using and the speed of
this application is quite high.

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ii) The various disadvantages of the speech recognition for PC Log Pvt. Ltd are as
follows:
a) More Errors: Speech recognition application often provided more errors and biases
for the respective output of this application (Warwick, 2013, p. 8).
b) Uses Huge Memory: Another demerit of this application is that it utilizes huge
memory for data storage or usage and hence is often avoided by various users.
3. Conclusion
Therefore, from this above report, conclusion could be drawn that the artificial
intelligence is a proper simulation of various processes of the human intelligence with the
help of several machines such as computerized systems. There is a major scope of this
artificial intelligence and this scope is absolutely disputed as the various machines are
subsequently becoming capable and these tasks require intelligence of the information
technology and then are being removed from the core effect of every AI based application.
These applications are extremely popular and advanced for the users and provide accurate
data or output. The human effort is reduced to a greater level with the help of these
applications and a strong impact is present for the companies and even for the several users.
The most popular and important applications of artificial intelligence are expert systems,
speech recognition system, optical character recognition, machine vision, image processing,
artificial creativity, natural language processing, virtual reality and many more. This above
report has clearly explained the major impact as well as importance of the artificial
intelligence for a large Australian logistics company, namely, PC Log Pvt. Ltd. This logistics
company is responsible to provide various services of logistics for their customers. For these
advantages, the organization has become popular within very short span of time. Five distinct
types of applications of the artificial intelligence are described in this report and within these
five applications, three suitable are proposed for better growth of PC Log Pvt. Ltd. Proper
recommendations are also given in the report.
4. Recommendations
Since, PC Log Pvt. Ltd has taken the decision to involve various applications and
services of artificial intelligence in their business, few recommendations could be provided to
them before their implementation. These recommendations are as follows:

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i) Using Computer Vision: The most important and significant recommendation for
this logistics organization of PC Log Pvt. Ltd regarding AI applications is that they must
involve the application of computer or machine vision to properly expand their business in
the world. This specific AI application eventually deals with every procedure to obtain high
level of understanding from digitalized images as well as digitalized videos. This application
has the core ability for acquiring, processing, analyzing and finally extracting the high
dimensional information from real time with the major purpose to produce numerical as well
as symbolic data to undertake decisions. The expansion of business is much easier after
obtaining accurate information regarding all other companies.
ii) Using Expert Systems: The significant usage of the expert systems is the second
suitable recommendation for PC Log Pvt. Ltd. The main advantage of this AI based
application is that they provide the capability of taking relevant decisions instead of a human
expert. This expert system would be helpful to solve the various complex problems with the
help of basic reasoning and this organization will be benefitted.
iii) Releasing Trials: The final suitable recommendation for this company of PC Log
Pvt. Ltd is that before the implementation of AI based application, they should run the
respective released trials to ensure that any error or bias is not being amplified to the
algorithm issues or data.

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5. Reference List
Artificial Intelligence Game Changer. (2018). Why artificial intelligence is the game-changer
for SMEs. Retrieved from
https://www.telegraph.co.uk/business/ready-and-enabled/artifiicial-intelligence-in-
business/
Artificial Intelligence. (2018). Retrieved from https://www.independent.co.uk/topic/artificial-
intelligence
Bench-Capon, T. J. (2014). Knowledge representation: an approach to artificial
intelligence (Vol. 32). Elsevier. Retrieved from https://books.google.co.in/books?
hl=en&lr=&id=u8vSBQAAQBAJ&oi=fnd&pg=PP1&dq=artificial+intelligence&ots
=NRKRiV4IVn&sig=e-6POhvlIWPhet49V6Ly46ohhjI#v=onepage&q=artificial
%20intelligence&f=false
Bennett, C. C., & Hauser, K. (2013). Artificial intelligence framework for simulating clinical
decision-making: A Markov decision process approach. Artificial intelligence in
medicine, 57(1), 9-19. Retrieved from
https://arxiv.org/ftp/arxiv/papers/1301/1301.2158.pdf
Brownlee, J. (2018). Indoor Movement Time Series Classification with Machine Learning
Algorithms. Retrieved from https://machinelearningmastery.com/indoor-movement-
time-series-classification-with-machine-learning-algorithms/
Henry, M. (2018). Henry Markram Talks Brain Simulation. Retrieved from
https://spectrum.ieee.org/robotics/artificial-intelligence/henry-markram-talks-brain-
simulation
Müller, V. C., & Bostrom, N. (2016). Future progress in artificial intelligence: A survey of
expert opinion. In Fundamental issues of artificial intelligence (pp. 555-572).
Springer, Cham. Retrieved from https://philpapers.org/archive/MLLFPI.pdf
Nourani, V., Baghanam, A. H., Adamowski, J., & Kisi, O. (2014). Applications of hybrid
wavelet–Artificial Intelligence models in hydrology: A review. Journal of
Hydrology, 514, 358-377. Retrieved from

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https://www.mcgill.ca/bioeng/files/bioeng/applications_of_hybrid_wavelet-
artificial_intelligence_models_in_hydrology.pdf
Raza, M. Q., & Khosravi, A. (2015). A review on artificial intelligence based load demand
forecasting techniques for smart grid and buildings. Renewable and Sustainable
Energy Reviews, 50, 1352-1372. Retrieved from
https://www.sciencedirect.com/science/article/pii/S1364032115003354
Rubin, G. (2018). Will Artificial Intelligence take over healthcare?. Retrieved from
https://www.telegraph.co.uk/health-fitness/body/will-artificial-intelligence-take-
healthcare/
Russell, S., Dewey, D., & Tegmark, M. (2015). Research priorities for robust and beneficial
artificial intelligence. Ai Magazine, 36(4), 105-114. Retrieved from
http://www.aaai.org/ojs/index.php/aimagazine/article/view/2577
The Neural Network. (2018). Retrieved from
https://spectrum.ieee.org/computing/software/the-neural-network-that-remembers
Warwick, K. (2013). Artificial intelligence: the basics. Routledge. Retrieved from
https://content.taylorfrancis.com/books/download?dac=C2009-0-24897-
0&isbn=9781136629839&format=googlePreviewPdf
Webber, B. L., & Nilsson, N. J. (Eds.). (2014). Readings in artificial intelligence. Morgan
Kaufmann. Retrieved from https://books.google.co.in/books?
hl=en&lr=&id=tySjBQAAQBAJ&oi=fnd&pg=PP1&dq=artificial+intelligence&ots=
GvGuj1fR1i&sig=9WygVGYzJt-f7YhrKmbuMoGwhbE#v=onepage&q=artificial
%20intelligence&f=false