AI @ UPS

UPS deployed AI automation extensively to replace 43,000 workers (about 8% workforce reduction) over three years, reducing labor hours by 10%, cutting costs by up to 40%, and maintaining operational capacity, with AI-driven sales tools achieving 79% deal win rates.

• TraxTech: UPS Deploys AI Automation to Replace 43000 Workers
• UPS: Streamline Your Wholesale Operations With Automation and AI

UPS explored partnerships with robotics startup Figure AI for humanoid automation, implemented AI for dynamic pricing maximizing revenue, adopted AI to adjust workforce amid evolving demand, and improved data center resilience with AI-tolerant UPS devices.

• SE Blog: AI-tolerant UPSs: The first line of defense in data center resilience
• Transport Topics: UPS in Talks With Startup Figure AI to Use Humanoid Robots
• Forbes: UPS Uses Artificial Intelligence For Pricing
• PYMNTS: UPS Considering Partnership With Robotics Startup Figure AI
• Fox Business: UPS, Cisco, and other companies are using AI to adjust workforce

Focus on AI data center infrastructure power stability emerged, highlighting concerns for UPS systems to support growing AI workloads, indicating infrastructure adaptations for AI technology.

• Salicru: UPS systems for artificial intelligence

UPS extensively expanded AI-driven automation across operations, including generative AI for customer service and machine learning optimizations, further transforming logistics workflows.

• AI Expert Network: Case Study: UPS Leverages AI to Transform Operations - AIX

UPS utilized Google's Data Cloud and AI for porch piracy prevention, launched generative AI for customer service automation, and integrated AI and machine learning in new Velocity facilities to boost operational efficiency.

• Google Cloud Blog: UPS leverages BigQuery and Striim for AI-secured package delivery
• CIO: UPS delivers customer wins with generative AI - CIO
• About UPS: 5 ways the new UPS Velocity facility orchestrates

UPS enhanced workforce integration by deploying AI-powered language platform 'Languages Across Logistics' to break communication barriers, while also announcing layoffs attributed partly to AI-driven operational changes.

• About UPS: UPS is improving careers and access to opportunity with the help of AI
• ABC11: UPS takes hit as AI's impact on the workforce plays out

UPS expanded its DeliveryDefense program using machine learning to combat package theft by analyzing location, loss frequency, and delivery attempts data.

• AI Business: UPS Combats Theft With Machine Learning, Expands Automation Tech
• About UPS: UPS's DeliveryDefense pits AI against criminals

UPS advanced AI and robotics for package sortation and network capacity optimization partnering with Dexterity, Fortna, and Plus One Robotics to assist employee efficiency for small package sorting.

• Supply Chain Dive: UPS uses AI, machine learning to match network capacity
• Robotics247: UPS Uses Robots and AI to Strengthen Network

UPS leveraged AI across multiple operations achieving $200 million annual savings, utilizing AI chatbots for package tracking and dynamic routing to optimize delivery efficiency.

• Marketing AI Institute: How UPS Uses AI to Save $200 Million a Year

UPS introduced AI-enabled conversational chatbots to answer customer queries about package tracking and location services, marking early adoption of AI in customer engagement.

• Forbes: The Brilliant Ways UPS Uses Artificial Intelligence