FedEx CTO Discusses Harnessing Generative AI at AI Summit New York 2023

FedEx is committed to innovation in its business operations, particularly through the advancements in generative AI. During a discussion at the AI Summit New York 2023, CTO Adam Smith outlined the company's strategic approach, categorizing its exploration of generative AI into three key areas.

**1. Collaboration with Partners:**

As an "applied technology" organization, FedEx actively collaborates with various partners. Smith emphasized the importance of leveraging these partnerships to enhance their business processes. “We’re really leaning into those partners as they advance their platforms with internal generative AI capabilities. Our goal is to tap into that innovation to unlock value for our operations,” he shared.

**2. Development of Core Applications:**

FedEx is focused on building its own generative AI applications to reform its core processes. “Generally, we are a build company,” Smith noted. “Given the size and scale at which we operate, purchasing off-the-shelf solutions is not feasible.” This historical approach to developing tailored applications ensures that the systems they implement can support their extensive operations effectively. The company is especially concentrated on integrating large language models within its processes to enhance efficiency and deliver greater business value for both operations and customers.

**3. Enhancing the Developer Experience:**

Smith highlighted an additional avenue for generative AI application: improving the overall developer experience across various disciplines. “We are looking to create greater consistency and efficiency by leveraging generative AI capabilities that have surfaced recently in the market,” he explained. This initiative aims to optimize the workflow for all developers, not just those focused on coding, and ensure that teams can collaborate and innovate more effectively.

When asked for advice to fellow C-suite leaders regarding generative AI, Smith emphasized urgency. “If leaders don’t have small teams working on generative AI projects with targeted objectives right now, they are already falling behind.”

**Autonomous Trucks and Automation:**

FedEx is also deeply invested in digital transformation through automation. One significant project involves using AI and robotics to perfect the packing of boxes of various sizes. Smith likened this process to an intricate game of Tetris: “Robotics and AI help us optimize how to place packages in trailers, maximizing the use of available space.”

Another exciting development is the ongoing testing of autonomous delivery trucks. Currently, these trucks are being piloted on routes between two Texas cities, always with a safety driver present. Smith reported, “We have tested thousands of miles between cities in Texas without any safety incidents.” He underscored that autonomous trucking addresses the growing challenge of driver shortages for long-haul routes. “As the workforce for these long-haul runs continues to contract, we recognize the necessity of exploring alternative methods to transport trailers between cities in the future,” he remarked.

Through these innovative strategies and technologies, FedEx is paving the way for more efficient operations and enhanced service delivery in a rapidly evolving landscape. The company’s commitment to harnessing the potential of generative AI and automation positions it to meet current challenges and explore future opportunities in logistics and beyond.