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ARTIFICIAL INTELLIGENCE IN
BUSINESS MANAGEMENT

Sruthi.S
Biswadip Basu Mallik
Subrata Das
Dr .I. Mohana Krishna
E. Fantin Irudaya Raj

Archers & Elevators Publishing House

Bangalore – 560 090 India.
ARCHERS & ELEVATORS PUBLISHING HOUSE

No.54, MM Layout,

Hesaragatta Main Road,

Bangalore -560090

Mob: + 91 9164362263
E-mail: archerselevators@gmail.com
Website: www.aeph.in

Artificial Intelligence in Business Management

Archers and Elevators Publishing House

First Edition 2021

ISBN: 978-93-90996-50-6

Price: Rs.850/-
All rights reserved. This book or parts therefore, may not be reproduced in any form or
by any means, electronic or mechanical, including photocopying, recording or an
information storage and retrieved system now known or to be invented, without written
permission from copyright owners.

PRINTED IN INDIA
A & E printers, Bangalore-90.
 CONTENTS
S.NO TITLE OF THE PAPER PAGE
NO
1 ARTIFICIAL INTELLIGENCE AND EDUCATION 1
(CREATIVE CRITICAL THINKING CAPACITY AND
CREATIVITY)
Anchal Saxena, Ms Pushpalata Bagati

2 ARTIFICIAL INTELLIGENCE IN MARKETING 10

Biswadip Basu Mallik

3 ARTIFICIAL INTELLIGENCE AND ITS APPLICATION IN 16

FINANCE
Biswadip Basu Mallik

4 AUTOMATED DETECTION OF EMOTIONS FROM 20

TEXTUAL COMMENTS AND FEEDBACK
Dr D David Winster Praveenraj, Mr A Prasanth

5 A STUDY ON PROFITABILITY ANALYSIS OF HDFC LIFE 28

INSURANCE AND ICICI PRU LIFE INDUSRNCE
Dr.HimanshuMathur

6 INFLUENCE OF ARTIFICIAL INTELLIGENCE IN 33

POWERING HRM
Dr. A. Shameem

7 USE OF ARTIFICIAL INTELLIGENCE IN INNOVATIONS 41

BY ENTREPRENEURS
Dr. Chintamani Avinash Ramesh

8 A STUDY ON DISEASE AND HEALTH PROBLEMS OF 50

SMALL RUMINANTS IN TAMILNADU
Dr. R.L.Poonguzhal

9 COMPUTER VISION FOR ARTIFICIAL INTELLIGENCE 58

(AI) AND MIND
Dr.A.Velayudham , Pavithra M , Ashwini R

10 ROLE OF SMALL SCALE INDUSTRIES IN INDIA 72

Dr.R.L.Poonguzhali

11 DATA MINING APPROACHES AND ITS APPLICATIONS 81

IN CUSTOMER RELATIONSHIP MANAGEMENT
E. Fantin Irudaya Raj

12 SIGNIFICANT REVIEW, FRAMEWORK AND RESEARCH 96

AGENDA ON ARTIFICIAL MANAGEMENT AND
INNOVATION MANAGEMENT
Jayadatta S, Gangadhar Sheeri
13 IMPACT OF ARTIFICIAL INTELLIGENCE (AI) ON 107
HUMAN RESOURCES MANAGEMENT (HRM):
CHALLENGES AND OPPORTUNITIES
Mahanish Panda

14 ROLE OF AI IN SUPPLY CHAIN MANAGEMENT 114

Ramshankar Varma

15 AI IN LOGISTIC 123
Reetu Singh

16 ARTIFICIAL INTELLIGENCE IN BUSINESS 130

MANAGEMENT
Rekha Naidu

17 CHANGING ANALYTICS AND BUSINESS INTELLIGENCE 133

Sajna.M

18 SUSTAINABLE DEVELOPMENT AND INCLUSIVE USAGE 142

OF ARTIFICIAL INTELLIGENCE IN HIGHER
EDUCATION
Sindhu Poudyal

19 CHANGING ROLE OF QUALITY EDUCATION IN 148

PRESENT SCENARIO TO FULFILL THE NEEDS OF
SOCIETY ACCORDING TO GLOBAL TRENDS
Ms. Sunita Devi
 978-93-90996-50-6 Artificial Intelligence in Business Management

AI IN LOGISTIC
Reetu Singh
Guest Faculty,
Dr. ShakuntalaMisra National Rehabilitation University, Lucknow.

ABSTRACT
One of the fields where AI has begun to make an impact is logistics, by making
supply chain management a more fluid operation. It is now an essential
component of every company's future software system. AI aids in logistics route
optimization, lowering shipping costs. Every day, we observe tremendous
technical advancements in big data, algorithmic development, connection, cloud
computing, and processing capacity. AI's performance, accessibility, and prices
have never been better thanks to these new technologies. In this chapter I will
cover Role Of AI in Logistic sectors, Impact Of AI in Logistic sectors, what does AI
means in Logistic companies as well as Applications of AI in Logistics.
Keywords: Artificial Intelligence, Logistics
INTRODUCTION
The unorganized and fragmented logistics business has been altered by the
introduction of current and emerging technology such as artificial intelligence,
machine learning, and blockchain. Predictive analytics, autonomous trucks, and
smart highways are just a few of the innovations that these technologies have
brought to the logistics industry.
Artificial intelligence and Machine Learning are encroaching on every area and
dimension of our existence, and logistics is no different. When it comes to the
supply chain, AI and machine learning may be extremely beneficial in terms of
streamlining procedures, avoiding human errors, saving time, and predicting
future opportunities and Challenges.
Role of Artificial Intelligence In Logistics Sector
With cognitive automation, AI plays a critical role in saving time, lowering
expenses, enhancing productivity, and improving accuracy. It helps us save time
and money by automating a variety of time-consuming operations and assisting
with demand forecasts. AI aids in logistics route optimization, which helps to
reduce shipping costs, which in turn helps to generate more profits. Artificial
intelligence allows computers to gather, analyse, and make informed decisions in
a matter of seconds, saving time for humans.
In the form of data collection and analysis, or inventory processing, AI can assist
entirely alter warehousing operations. Robots are already commonly utilised in
warehouses, for example, to transport, track, and find inventory. Logistics
companies can use AI to produce datasets and use data platforms to govern
patterns and anomalies.
Everything in logistics is time-bound, and there are slight unpredictability
difficulties. Every procedure in this industry is interdependent on the one before
it, and a little delay at one stage has a magnified rippling impact on all the
others. At the time of delivery, there ends up being a delay of days because of a
few hours of down-time.

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Impact of AI in Logistics Industries

Many logistics organizations rely heavily on third-party logistics, which includes
common carriers, subcontracted labor, charter airlines, and other third-party
vendors who are needed to run their core operations. It adds to the workload of
logistics accounting teams in firms that process millions of invoices from
thousands of vendors, partners, and providers each year.
Many logistics organizations are using AI to extract critical information from the
sea of unstructured invoice forms they receive, such as billing amounts, account
information, dates, addresses, and parties involved. These are the reasons which
made the companies to adapt Artificial Intelligence (AI) for better service.
What Does Artificial Intelligence (AI) Mean in Logistics Companies?
Logistics organizations can benefit from a wide range of capabilities, including
autonomous equipment and predictive analytics, thanks to the technology.
According to Mckinsey study, AI has mostly been used in the logistics industry
for four business functions: service operations, product and service development,
marketing and sales, and supply chain management. In logistics, these four
business areas account for 87 percent of AI adoption. According to Mckinsey,
incorporating AI into logistics processes will generate $1.3-$2 trillion in annual
economic value.

SOURCE: MCKINSEY

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Application of AI in Logistic
Planning
Logistics planning necessitates extensive preparation that involves coordinating
suppliers, customers, and various company units. Machine learning solutions
can help with planning since they are effective at scenario analysis and
numerical analytics, which are both important for planning.
• Forecasting demand
Organizations may leverage real-time data in their forecasting attempts thanks to
AI capabilities. As a result, when compared to classic forecasting methods like
ARIMA, Autoregressive Integrated Moving Average, and exponential smoothing
methods, AI-powered demand forecasting approaches cut error rate dramatically.
• Manufacturers can better manage the number of deployed trucks to local
warehouses and decrease operational expenses by improving their workforce
planning with increased demand prediction accuracy.
• Local warehouses/retailers can cut storage expenses (opportunity cost of
holding the item instead of investing the money elsewhere)
 customers are less likely to experience stock outs that reduce customer
satisfaction
• Supply chain management
Artificial intelligence assists firms in analyzing demand in real-time so that
supply planning parameters can be updated dynamically to optimize supply
chain flow. Businesses utilize fewer resources when they adopt dynamic supply
planning because it reduces waste.
• Warehousing Automation
Only 12% of organizations are employing AI technology in their warehouses,
according to the 2020 MHI Annual Industry Report, but that number is predicted
to rise to 60%+ in the next six years.

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SOURCE: MHI/DELOITTE
• Robots in warehouses
Another AI technology that is being heavily invested in to improve supply chain
management is warehouse robots. Between 2017 and 2022, the warehouse
robots industry is predicted to increase at a CAGR of 11.8 percent, with a market
value of USD 2.28 billion.
Amazon, for example, bought Kiva Systems in 2012 and renamed it Amazon
Robotics in 2015. Amazon already employs 200,000 robots in their warehouses.
Robots assist humans in picking, sorting, transporting, and stowing items in 26
of Amazon's 175 fulfillment centers.
• Visual inspection/detection of damage
Customers may become dissatisfied and churn as a result of damaged
merchandise. Businesses can use computer vision technology to detect damage.
Businesses can assess the extent of the harm, as well as the sort of damage, and
take steps to mitigate further damage.
• Preventative upkeep
Predictive maintenance analyses real-time data acquired from IoT sensors in
machines to predict possible machine faults in the plant. Machine learning-
powered analytics solutions improve predictive analytics by detecting trends in
sensor data, allowing technicians to intervene before a malfunction occurs.
• Things with their own minds
Autonomous things are AI-enabled technologies that operate without the need for
human input. Self-driving cars, drones, and robotics are examples of
autonomous things. Because of the logistics industry's aptitude for AI, we should
expect to see more autonomous gadgets.
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• Autonomous vehicles
By reducing the need on human drivers, self-driving automobiles have the
potential to revolutionise logistics. Platooning, for example, benefits drivers'
health and safety while lowering carbon emissions and vehicle fuel use. With
companies like Tesla, Google, and Mercedes-Benz investing substantially in the
concept of autonomous cars, it'll only be a matter of time before driverless trucks
are visible on roads all over the world. However, according to BCG estimates,
only about 10% of light vehicles will be able to drive themselves by 2030.
• Drones that deliver packages
Delivery drones are valuable tools for product logistics when firms send things to
regions where ground transportation is not viable, safe, reliable, or sustainable.
Delivery drones can help firms cut wastage costs and avoid costly storage
facilities, especially in the healthcare industry where pharmaceutical supplies
have a limited shelf life.
• Pricing that changes with the market
Dynamic pricing refers to real-time pricing in which a product's price adjusts in
response to changes in demand, supply, competition, and subsidiary product
prices. Pricing software typically use machine learning algorithms to examine
past data from clients in real time, allowing it to respond to demand variations
more quickly by altering prices.
• Freight management/route optimization
Businesses can use AI models to examine existing routing and track route
optimization. To find the most effective route for logistics trucks, route
optimization employs shortest path methods from the graph analytics discipline.
As a result, the company will be able to lower transportation expenses and
expedite the shipment process. Valerann's Smart Road System, for example, is
an AI-powered web-based traffic management platform that informs autonomous
cars and users about road conditions.
• Administrative support
Back office activities exist in every company unit, and logistics is no exception.
There are a variety of logistics-related forms, such as bill of lading, from which
structured data must be manually retrieved. The majority of businesses do this
by hand.
Automating office duties that are currently done by hand
Hyper automation, also known as intelligent business process automation, is the
use of a mix of artificial intelligence (AI), robotic process automation (RPA),
process mining, and other technologies to automate processes from start to
finish. Businesses can use these technologies to automate a variety of back-office
processes, including
1. Transportation scheduling and tracking: AI systems can plan
transportation, organize cargo pipelines, allocate and manage staff to specific
stations, and track goods in the warehouse.

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2. Report generation: RPA systems can be used by logistics organisations to

automatically generate regular reports that are required to inform management
and guarantee that everyone in the company is on the same page. RPA solutions
may simply generate reports, analyse their contents, and email them to relevant
stakeholders depending on the contents.
3. Processing of invoices, bills of lading, and rate sheets: These papers
facilitate communication between customers, suppliers, and logistics service
providers. By automating data input, error reconciliation, and document
processing, document automation technology can improve the efficiency of
processing these documents.
Chatbot for customer service
Customers will call logistics providers if they have a delivery issue, therefore
customer service is critical. Chatbots for customer service can do low-to-medium
call centre activities like: • requesting a delivery
 modifying an order
 keeping track of shipments
 responding to a frequently asked questions (FAQ)
Chatbots are also useful for analysing customer experience; chatbot analytics
metrics allow businesses to better understand their customers and improve the
customer journey they provide.
Marketing and sales
Artificial intelligence can help logistics companies improve their sales and
marketing efforts. The following are some examples of applications:
o Lead scoring: Allowing sales professionals to concentrate on the correct
prospects.
o Increasing the amount of automation in tasks like email marketing
o Sales and marketing metrics that are more exact.
CONCLUSION
Modern technologies such as artificial intelligence (AI) and machine learning
assist in delivering truckloads of data to the transportation business, which has
been collecting data for years. Trucking, rail, and sea cargo were all tracked by
satellite via telematics a few years ago.
Because of the increasing expansion of digitalization and transformation, more
firms are using artificial intelligence (AI) and machine learning into their supply
chains in order to maximize their resources by lowering the time and money
spent tracking items and sending packages to any place.
Companies are under enormous pressure to incorporate AI, whether in
manufacturing, energy, or transportation, to assist boost operational efficiencies
and better business decisions through futuristic technologies. These technologies
can also assist logistics operators by allowing for various levels of optimization in
manufacturing, logistics, warehousing, and last-mile delivery, despite the high
start-up costs that have stifled early adoption in logistics.

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It also assists customers in getting their items delivered where and when they
need them by utilizing flexible courier services. It assists with the creation of a
platform and interface that makes management easier than ever before, allowing
a business to grow more effectively.
REFERENCES
1) ARTIFICIAL INTELLIGENCE IN THE LOGISTICS INDUSTRY,September 23,
2019 VitalyKuprenko.
2) The application of artificial intelligence in logistics and express
delivery,October 2019, Journal of Physics Conference Series 1325:012085.
3) How AI Changes the Logistic Industry
4) Learn about AI Use Cases, VitalyKuprenko, Jul 3, 2019.

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