AI is essential in logistics because it enhances efficiency, reduces costs, and improves accuracy in supply chain operations. It optimizes route planning, predicts demand, and automates warehouse management, ensuring faster deliveries and reduced fuel consumption. AI-powered predictive analytics help prevent disruptions by identifying potential delays and optimizing inventory levels to prevent shortages or overstocking. Additionally, AI enables real-time tracking, enhances customer experience, and streamlines operations by automating repetitive tasks. By integrating AI into logistics, companies can improve decision-making, enhance scalability, and maintain a competitive edge in an increasingly complex global supply chain.