Embracing AI in logistics: A pathway to improved operational efficiency and strategic decision-making in Dubai logistics firms

Abstract

The study looks at how artificial intelligence in manufacturing affects risk assessment, cost reduction, and efficiency in Dubai's logistics industry. We used the structural equation modelling approach for the replies of 304 respondents, categorizing them based on their work status and years of service. According to the findings, the application of A.I. increases logistics efficiency by optimizing process operations and eliminating time loss caused by operational procedures. Furthermore, predictive analytics enables artificial intelligence to minimize costs by better managing demand and inventories. A.I. improves strategic decision-making, enabling logistics managers to make timely data-driven choices. The study also finds that if a company has a strong digital infrastructure, technical preparation will act as a mediating factor, amplifying the impact of A.I. on risk management. When employing the greatest potential A.I., comparison studies with other recent research emphasize the need to focus equally on workforce and technological preparedness. The research indicates that Dubai's industrial enterprises need investment in digital infrastructure, AI-specific training, and ongoing system review. This will enable enterprises to harness A.I. to create a better, more efficient, and competitive logistics environment by encouraging industry cooperation in developing A.I. standards.