In a recent discussion at the AI Summit New York 2023, FedEx Chief Technology Officer (CTO) Adam Smith shed light on the company's proactive stance towards innovation and the strategic integration of generative AI to enhance business operations. Smith outlined three key areas where FedEx is leveraging generative AI to drive business value and revolutionize processes.
1. Partnering for Applied Technology: As an "applied technology" company, FedEx collaborates with various partners to harness the evolving capabilities of their platforms. Smith emphasized the importance of leaning into these partnerships as they advance their platforms with internal generative AI capabilities. The goal is to tap into these advancements and utilize generative AI to bring significant value to FedEx's business operations.
2. Building Generative AI Applications for Core Processes: FedEx adopts a unique approach as a "build company" when it comes to its core processes. Rather than relying on off-the-shelf solutions, the company is actively developing generative AI applications. Smith highlighted the intention to integrate large language models into core processes, optimizing efficiency and driving greater business value for both internal operations and customers. This approach aligns with FedEx's historical strategy of building its applications to support its extensive scale of operations.
3. Enhancing the Developer Experience: Beyond coding developers, FedEx aims to improve the experiences of various disciplines within the development ecosystem. Smith stressed the importance of driving greater consistency and efficiency among developers by leveraging the capabilities offered by generative AI. This holistic approach seeks to enhance the overall development process and ensure a seamless experience across different disciplines.
Advice for C-Suite Leaders: Smith provided valuable advice to other C-suite leaders, emphasizing the need for small teams focused on generative AI with clear outcomes. He noted that leaders not currently investing in the generative AI space are at a disadvantage, highlighting the urgency of integrating this transformative technology into business strategies.
Automation Initiatives and Autonomous Trucks: Smith delved into FedEx's digital transformation initiatives, particularly the integration of AI and robotics to optimize the packing of packages in trailers. Describing it as a large game of Tetris, he explained how robotics and AI contribute to maximizing space utilization within trailers, ultimately enhancing efficiency.
In the realm of autonomous trucks, FedEx is actively testing these vehicles on routes between two Texas cities. While still accompanied by a human driver, the company has achieved thousands of miles with zero safety issues. Smith underscored the importance of autonomous trucking in addressing workforce contraction for long-haul runs, emphasizing the need for alternative solutions to ensure the seamless transportation of trailers between cities in the future.
In conclusion, FedEx's strategic embrace of generative AI and automation reflects a commitment to staying at the forefront of technological advancements, ensuring operational efficiency, and meeting the evolving demands of the logistics industry.
