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Today, I’ll be discussing how artificial intelligence (AI) is evolving and actively participating in reshaping the transportation industry. I chose the transportation industry because as someone who both drives regularly and commutes to university using public transportation, I see firsthand the frustration of traffic congestion, unpredictable delays, along with safety concerns. These experiences make me curious about how AI can help create a smoother, potentially safer, and more sustainable experience.

On my Padlet wall, I will cover several major applications of AI in transportation. These include autonomous vehicles such as the ones developed by Waymo, INRIX and its AI-powered traffic management systems, and UPS' usage of AI route optimization algorithms for deliveries. Especially when referencing MIT Sloan’s analysis, AI is already being used in logistics to optimize routing and reduce “empty miles,” helping companies cut waste and improve environmental sustainability (Burnham). This industry is significant to me because I interact with transportation daily, and I see both its potential and its problems. The U.S. Department of Transportation has stated that federal agencies are investing in deploying AI for transportation safety, internal operations, and public services (US. DOT), therefore we as the public know that AI rise in transportation is inevitable when our own government is investing in it. This is why I find it important to look at both the benefits and the risks, since ​​it is important to make sure that such technologies are responsibly implemented and to evaluate how the effects will be managed.

Sources:

Burnham, Karen. “How Artificial Intelligence Is Transforming Logistics.” MIT Sloan School of Management, 20 Aug. 2024, https://mitsloan.mit.edu/ideas-made-to-matter/how-artificial-intelligence-transforming-logistics

U.S. Department of Transportation. “U.S. DOT Artificial Intelligence Activities.” U.S. Department of Transportation, https://www.transportation.gov/AI

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Waymo developed autonomous vehicles (aka self-driving cars) that use advanced artificial intelligence to operate without a human driver. The company has completed over 10 million rides, positioning it as a leader in autonomous transportation (TIME). Waymo’s cars are able to drive in city streets, highways, and in busy traffic, avoiding pedestrians and following traffic rules. But it does operate in limited cities as of now.

Source: TIME. “Waymo.” TIME100 Companies 2025, https://time.com/collections/time100-companies-2025/7289599/waymo/

Technology Used/ Benefits:

Waymo cars use computer vision, lidar(lasers that measure distances), and radar to navigate safely and efficiently. Its cameras detect and classify pedestrians, vehicles, and traffic signals, allowing the car to “see” its surroundings, while lidar sensors create detailed 3D maps of the environment, even in low-light conditions (Waymo).

In its operating cities, Waymo reports that its autonomous vehicles experience 91% fewer serious injury or worse crashes, 79% fewer airbag deployment crashes, and 80% fewer injury-causing crashes compared to human drivers, very important to consider when global road traffic causes 1.19 million deaths annually (Waymo). This comparison does a great job at demonstrating the potential of AI to improve safety and reduce fatalities.

Sources: Waymo. “How Our Cars Drive: Sense, Solve, Go.” https://support.google.com/waymo/answer/9190838

Waymo. “Safety and Performance.” Waymo, https://waymo.com/

Challenges:

Legal and ethical accountability in accidents is still a huge concern with these cars. This means questions about who is responsible if a self-driving car causes a crash and how insurance and regulations adapt to autonomous technology.

I find Waymo interesting because, as a commuter and driver, especially when I see the statistics of how much safer it claims to be. However, It makes me wonder if those statistics are due to the fact that less people are still less likely to use it compared to either driving themself or using a human driver through services such as uber or taxis.

Here's a youtube video explaining more about Waymo Cars and other ethical concerns: https://youtu.be/ErgD-ZHVMsQ?si=iyxGAsacjWKB9X6s

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Above you'll find a Youtube video where CEO of INFIX further explains how the AI traffic management systems work and what his plans to expand them include.

INRIX uses AI to improve traffic management by analyzing real-time and historical traffic data. Essentially, they collect information from millions of vehicles, GPS devices, road sensors, and traffic cameras. Then INRIX processes this data using machine learning algorithms to helps drivers choose faster routes and allows cities to adjust signals and respond to incidents efficiently (INRIX).

Benefits/Challenges:

INRIX technology can reduce congestion and help drivers find faster routes. It also improves safety because traffic updates allow for quick responses to accidents or road hazards. The system is cost-efficient for cities since it uses existing data instead of requiring a lot of new infrastructure Since INRIX’s technology depends heavily on the quality and amount of data collected, it raises privacy concerns, as vehicle and location information is tracked and analyzed constantly.

I find INRIX’s AI traffic management system interesting because it addresses problems I encounter as a daily commuter as well as many other people. AI can definitely support improved traffic planning and infrastructure decisions. However, its effectiveness depends on the data collected and city cooperation meaning it can easily be limited.

Sources:

INRIX. (2024b). AI traffic. INRIX Products  https://inrix.com/products/ai-traffic/

INRIX. (2024a). Understanding AI, machine learning, and generative AI. INRIX Blog. https://inrix.com/blog/understanding-ai-machine-learning-and-generative-ai/

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Generative AI Journeys - Fireside Chat with INRIX | Amazon Web Services

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UPS, one of the leading package delivery companies in the U.S began using AI systems around 2018, to optimize delivery routes and improve logistics efficiency. It is known as ORION (On-Road Integrated Optimization and Navigation) which analyzes package destinations, traffic patterns, and delivery constraints to determine the most efficient routes for drivers (UPS).

Benefits/Limitations:

Through road optimization, fuel consumption, delivery times, and operational costs are all reduced. It also has an environmental benefit by lowering emissions and improving, but overall it improves service reliability for those who want their packages. However limitations still pose due to unexpected events, such as accidents, road closures, or even severe weather, which can disrupt the AI generated optimized routes and then require human intervention.

As someone who receives packages regularly, I can appreciate how AI-driven route optimization, like ORION, can reduce delivery times and improve reliability. The environmental benefits, such as reduced fuel consumption and emissions, are also significant in my opinion. However, I can't help but wonder in what other ways AI will affect UPS workers.

Source: UPS. (2018, December 4). UPS deploys purpose-built navigation for UPS service personnel. https://about.ups.com/us/en/newsroom/press-releases/innovation-driven/ups-deploys-purpose-built-navigation-for-ups-service-personnel.html

Below you'll find a video that does further into depth about how AI is changing how UPS delivers: https://youtu.be/FFFBWhPdK6M?si=gTDqtdoTDm598lsf

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Future Trends and Ethical Considerations 

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Future Trends and Ethical Considerations 

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The future of AI in transportation is most likely full of rapid expansion and innovation. Autonomous vehicles (AVs), such as those developed by Waymo, are likely to expand all throughout the country. Although Waymo operates in limited cities, we’re already seeing their attempt to expand into New York City. Even when their laws currently prohibit AVs without a safety driver, Waymo will still begin with manual driving, and work towards pushing state law changes in their favor (Campbell). This is probably something we’ll see not just with Waymo but other AI operating companies, attempting to push the legislature in their favor to expand AI usage, not just in transportation but all kinds of sectors. AI-powered traffic management, which is currently being exemplified by INRIX, will continue to integrate data collection to reduce congestion, optimize routes, in an attempt to improve safety. Similar to the goal that companies like UPS have for delivery efficiency with AI for route optimization. However, these advancements come with important ethical considerations. Autonomous vehicles raise questions about accountability in accidents, whether responsibility falls on the company or not. The collection and analysis of massive amounts of traffic and location data by AI systems bring up privacy concerns, especially when sensitive personal or location information is involved. There is also the potential for job displacement, as AI takes over roles in driving, traffic monitoring, and logistics planning.

The future of AI in transportation directly impacts not just my daily commute as a university student and day-to-day driving, but everyone else on the road. It’ll be interesting to see how it’ll change the way we commute as it continues to expand. But at the same time, I am concerned about mitigating potential harms such as accountability, data privacy issues, and even the displacement of jobs from taxi/uber drivers.

Source: Campbell, H. (2025, June 20). Big Apple Bound: Waymo Eyes Expansion into New York City. The Driverless Digest. https://www.thedriverlessdigest.com/p/big-apple-bound-waymo-eyes-expansion

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AI is definitely altering parts of the transportation industry. For example, AV technology like Waymo’s has shown significantly fewer crash-related injuries compared to human drivers (TIME). The AI predictive traffic tools like INRIX reduce road time alongside reducing fuel waste.  While UPS’s AI route optimization decreases delivery time/costs and has a positive environmental impact as it reduces the commute time. People are also able to get their packages quicker as a result. Hence, the environmental and personal benefits are there.

Employment is one of the most pressing concerns since automation may replace millions of driving and delivery jobs such as Ubers, doordash, and taxis. Therefore, affecting the thousands of people employed by those companies. As well as privacy concerns arise from the massive amount of location data collected by connected vehicles and their smart traffic systems. Equity is another challenge, as rural or low-income communities may not benefit equally from AI-powered transportation upgrades, as some may not afford such services as they are more expensive to run. Rural communities may not see these services expand to their areas as they are considered to have less traction.

From my perspective, I think that AI’s role in improving transportation efficiency and safety is impressive. Yet, these benefits must be balanced with fairness and accountability. I believe it is vital that companies and governments establish ethical frameworks to ensure that they don’t undermine privacy, employment, or social equity.

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I learned how much these AI systems depend on massive amounts of data which I don’t think I was aware of to the extent. One challenge I faced was finding reliable, recent sources, which I overcame by focusing on academic and industry publications. This project made me more aware of both the potential benefits and ethical risks of AI in an important sector such as transportation. I now see AI is a great tool but must be developed responsibly to ensure fairness and accessibility especially after looking at the potential effects on employment, privacy, and equality that could come from the expansion of AI.

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Burnham, K. (2024, August 20). How artificial intelligence is transforming logistics. MIT Sloan School of Management. https://mitsloan.mit.edu/ideas-made-to-matter/how-artificial-intelligence-transforming-logistics

Rationale: This article provides credible insights into how AI is reshaping logistics and delivery systems, directly relevant to transportation industry.

Campbell, H. (2025, June 20). Big Apple bound: Waymo eyes expansion into New York City. The Driverless Digest. https://www.thedriverlessdigest.com/p/big-apple-bound-waymo-eyes-expansion

Rationale: This article provides updated information on Waymo’s geographic expansion and their plans to push for state laws to change in order for them to operate their AVs in other cities.

INRIX. (2024a). Understanding AI, machine learning, and generative AI. INRIX Blog. https://inrix.com/blog/understanding-ai-machine-learning-and-generative-ai/

Rationale: This article offers a deep explanation behind the technology of how INRIX uses AI and machine learning in traffic management systems.

INRIX. (2024b). AI traffic. INRIX Products. https://inrix.com/products/ai-traffic/

Rationale: This article describes INRIX AI-powered traffic platform and examples of real-world applications.

TIME. (2025). Waymo. TIME100 Companies 2025. https://time.com/collections/time100-companies-2025/7289599/waymo/

Rationale: It highlights Waymo’s role as a leader in autonomous vehicle innovation using reliable and up-to-date reporting/statistics.

U.S. Department of Transportation. (n.d.). U.S. DOT artificial intelligence activities. https://www.transportation.gov/AI

Rationale: The article outlines federal government AI initiatives and safety frameworks relevant to transportation technology and ethics.

UPS. (2018, December 4). UPS deploys purpose-built navigation for UPS service personnel. https://about.ups.com/us/en/newsroom/press-releases/innovation-driven/ups-deploys-purpose-built-navigation-for-ups-service-personnel.html

Rationale: It provides first-hand details of UPS’s AI route optimization system and the effects it will have on their services.

Waymo. (n.d.). How our cars drive: Sense, solve, go. https://support.google.com/waymo/answer/9190838

Rationale: This article explains Waymo’s AI sensor technologies used in their self-driving vehicles.

Waymo. (n.d.). Safety and performance. Waymo. https://waymo.com/

Rationale: This article provides Waymo safety statistics that support how AI is improving traffic safety.

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https://drive.google.com/file/d/1jLNFE2SCK5HccnwhJEEO71ZLoj5Qgo3d/view?usp=sharing

Overview Video.mp4