Industry consensus: A.I. has greater short-term ROI than blockchain

A study from the supply chain and logistics intelligence organization eyefortransport (EFT) shows that industry professionals perceive artificial intelligence (A.I.) as a better investment than blockchain.

When asked to choose among the options of A.I., robotic process automation (RPA), internet of things (IoT) or blockchain, A.I. was the most popular choice among respondents – 33 percent voting it as the best return on investment (ROI). IoT came in second, between 25 and 30 percent. Blockchain was the least popular answer among respondents, coming in at about 9 percent, reflecting the industrywide apprehension about the sensationalized technology.

“One year ago, I would have said blockchain was a game-changer,” said Rob Cook, vice president of technology and solutions at Sheer Logistics. “Six months ago, it was hype. Now, I’m on the fence. Having said that, we have derived a few business use cases that fit well into the blockchain universe.”

The study contacted 230 individuals – predominantly from North America – from shipping companies, 3PLs, ground transportation companies and freight management companies.

The report gauged the industry’s view on top up-and-coming technological innovations, like bionic enhancement, digital identifiers, self-learning systems and self-driving vehicles. Over the next 12 months, companies said they intend to invest in forecasting, IoT and predictive analytics before they invest in blockchain.

A.I. is believed by respondents to have the biggest impact on the industry in both the short term (12 to 18 months) and the next five years. Biju Kewalram, vice president of operational transformation of Agility Logistics, told Air Cargo World in a recent interview that  A.I. is one of its top three technology initiatives.

“At the moment, we’re setting up A.I. infrastructure,” he said. “We’re working on projects in the area of everything from pricing to customized visibility. Our main focus right now is to do two things – participate in ecosystems that are pilot-ready.”

Undoubtedly, integrating blockchain-based technologies will require more time and effort to see impacts on companies’ bottom lines. According to the survey results, only 10 percent of firms are currently seeing any return on their investment in the technology and less than 10 percent have completed concept proofs for its internal use.

While the short-term payoff of blockchain technology is less appealing, purely from a profit-driven mindset, Kewalram said that blockchain will have “significant different to all e-commerce over time.”