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UPS Leverages AI to Assess Delivery Risk and Combat Package Theft

  • UPS is using AI and machine learning to assess delivery risk and prevent package theft.

  • The DeliveryDefense program analyzes UPS delivery data and address info to generate a delivery risk score.

  • Retailers can use the score to recommend safer delivery options like in-store pickup.

  • Package theft resulted in $2.4 billion in stolen goods in 2022.

  • Consumers can redirect deliveries using UPS's My Choice program.

marketwatch.com
Relevant topic timeline:
### Summary Artificial Intelligence (AI) can support and enhance human decision-making in addressing supply chain challenges exposed by the Covid-19 pandemic. ### Facts - đź’ˇ AI can provide insights into inventory management, container allocation, demand fluctuations, freight pricing, and port operations. - đź’ˇ The Covid-19 pandemic revealed vulnerabilities and inefficiencies in global supply chains. - đź’ˇ AI-driven predictive analytics can help businesses navigate evolving dynamics in their supply chains.
Package theft, or "porch piracy," is a significant and rising crime, with approximately 260 million delivered packages stolen in 2022, prompting logistics companies like UPS, DHL, and Amazon to implement various technologies and programs to prevent theft, including AI-powered approaches, signature requirements, and delivery customization options.
As retail theft continues to rise during the pandemic, merchants are turning to artificial intelligence (AI) systems to combat theft by detecting illegal activity in real-time, coordinating with data from cash registers, and using facial recognition to track likely suspects; however, concerns about privacy and the need for clear guidelines on data usage are also emphasized.
Artificial intelligence is rapidly being adopted in the grocery industry, with the potential to transform shopping experiences, personalize marketing, and optimize decision-making for retailers.
Toshiba Global Commerce is developing AI technology to combat retail theft and improve the checkout process, aiming to reduce losses for stores and ultimately lower prices for consumers. The technology uses AI to identify scanned products and detect potential theft, providing video evidence to deter shoplifters. Retailers lost $112.1 billion last year due to theft, and Toshiba aims to address this issue by leveraging AI and innovative solutions.