Logistics emerging as AI commercialization frontier

As artificial intelligence moves at an accelerating pace from technological breakthroughs to large-scale industrial applications, logistics is emerging as a promising avenue for commercialization, underpinned by China's vast delivery market, well-developed supply chains and supportive policies, a senior executive said.

"Combining large AI models with autonomous driving to serve logistics is one of the most promising applications of AI today," said Qu Yuechuan, chief public affairs officer of Zelos, a Suzhou, Jiangsu province-based developer of autonomous logistics vehicles.

Autonomous vehicles can provide additional capacity as operators seek to contain costs and ease driver shortages, Qu said in an exclusive interview with China Daily during the recent 2026 World Internet Conference Wuzhen Summit in Zhejiang province.

His comments come as China steps up efforts to translate advances in AI into productivity gains across the real economy.

Wang Ruomeng, deputy director of the National Development and Reform Commission's department of innovation and high-tech development, said at a news conference last week that China will deepen its AI Plus initiative during the 15th Five-Year Plan period (2026-30), using practical applications to drive technological innovation.

National AI application pilot bases, including those in transportation, will help businesses address common industry challenges and lower barriers to adoption, Wang said.

Driverless delivery is an example of where physical AI could help cut the cost of moving goods. An action plan issued in November 2024 encourages commercial applications of autonomous driving as part of efforts to bring the ratio of total social logistics costs to GDP down to around 13.5 percent by 2027.

The ratio stood at 13.8 percent in the first three quarters, down 0.2 percentage points year-on-year, according to the China Federation of Logistics and Purchasing.

Qu attributed the scope for wider adoption to China's extensive delivery networks, established automotive supply chains and customers' willingness to embrace new technology. Varied operating conditions help refine autonomous driving systems, while cooperation with vehicle manufacturers supports commercial production, he said.

Some smaller operators have expanded from using a single vehicle to running fleets serving local businesses, he added.

The opportunity to make delivery services more economical extends beyond China, although operating models must adapt to local regulations and commercial conditions, he said. In Singapore, Zelos has worked with postal and retail operators and contributed to revisions of autonomous vehicle standards.

As AI becomes more deeply embedded in economic activity, gaps in countries' technological capabilities are increasingly translating into differences in industrial competitiveness and development, said Wang Yanfen, an academician of the Chinese Academy of Sciences and director-general of its Bureau of International Cooperation.

Those disparities also affect a country's ability to participate in global governance, she said.

"International cooperation should help translate technological progress into better public services and greater social resilience," Wang Yanfen said.

She called for shared infrastructure, research cooperation and training to help developing economies adopt AI, with regional demonstration projects supporting applications suited to local needs.

"The Wuzhen summit serves both as a showcase for global digital innovation and as a platform for developing applications together and deepening industrial cooperation," Qu said.

The summit gave Chinese companies and international partners an opportunity to explore how AI can move from exhibition halls into wider industrial use, he said, adding that closer cooperation on applications and governance can help extend the technology's benefits to more businesses and communities.

"Large-scale deployment of physical AI depends on collaboration across the value chain, rather than breakthroughs by any single company," Qu added.

zhangchenxu@chinadaily.com.cn