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Driving innovation: Accelerating AI adoption in UK transport

Posted 10 Dec 2024

Since 2011, productivity in the transport sector has declined by up to 25% (Office for National Statistics), yet, 89% of businesses within the industry report that AI does not apply to their operations (Office for National Statistics).

Only 1.3% of AI companies operate in the transport sector, highlighting the lack of small and medium-sized (SMEs) businesses in this space (Innovation Eye). This disconnect is attributed to various factors, including the difficulty of navigating between hype and concerns surrounding the impact of AI.

With the right tools and resources, AI presents an opportunity to address operational inefficiencies, enhance human workflows, and drive productivity. AI can also play a significant role in driving sustainability; for instance, buses and coaches in the UK emit approximately 3 million tonnes of CO₂ annually, illustrating the urgent need for more environmentally friendly solutions. (GOV.UK)

Enhancing operational efficiency

Improving operational efficiency in the transport industry is often viewed as an impossible challenge, with different modes of transport governed by distinct systems, policies, and protocols (A Year in Review), as well as different private companies and local authorities. But, AI is a proven, powerful tool for overcoming these barriers and with the right support, SMEs can use this deep tech to streamline operations and reduce costs, as well as scaling their own business more effectively.

For example, Bahut, an alumnus of the High Growth AI Accelerator, demonstrates how AI can drive significant improvements in business productivity through tailored support and resources. By collaborating with Port of Tyne, Bahut leveraged AI to improve operational efficiency by 20%. This success highlights the power of customised AI solutions to address specific pain points such as inefficiency in operational processes, scaling challenges, and high operational costs, enabling SMEs to scale effectively while maintaining high performance.

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Seamlessly integrating AI into existing workflows and strategies

To fully unlock AI’s potential, it is critical to integrate it into existing workflows and strategies. In its current form, AI excels in handling specific tasks—such as anomaly detection or classification in large datasets—but its real value emerges when it complements, rather than replaces human expertise.

In the transport sector, AI-powered tools simplify complex processes, such as route optimisation, by determining the fastest and most fuel-efficient routes. However, human dispatchers remain essential for making judgment calls during unexpected disruptions like road closures or severe weather. Similarly, AI-powered solutions like those offered by OpenCapacity, an alumnus of the High Growth AI Accelerator, demonstrate impressive capabilities in enhancing operational efficiency. Their tools accurately identify when wheelchairs, prams, or empty spaces are present on a vehicle, enabling apps to share this real-time availability with users and optimise dwell time (the time a vehicle spends at a stop), leading to significant improvements in accessibility, scheduling, and overall service.

Paving the way to net zero

Beyond operational gains, AI offers significant potential to advance sustainability within the transport industry, supporting the UK’s goal of achieving net zero carbon emissions by 2050.

By optimising routes, reducing waste, and minimising emissions, AI is enabling SMEs to adopt more environmentally responsible practices while remaining competitive and providing larger transport companies with tools that help meet sustainability goals.

Through the BridgeAI programme, DigiHaul partnered with the Alan Turing Institute to integrate AI into road haulage networks. Its digital freight-matching platform addresses the inefficiency of “empty running,” which accounts for 20% of all haulage journeys on UK roads. By optimising route planning, DigiHaul reduced carbon emissions and cut operational costs, demonstrating how sustainability and profitability can go hand-in-hand.

Similarly, iPurvey, another High Growth AI Accelerator alumnus, used AI to enhance its operational efficiency by 25% and improve AI model accuracy by 20%. Not only did iPurvey see its product develop significantly, but it simultaneously reduced its carbon footprint during the programme.

Looking ahead

While AI is transformative, its adoption must be strategically approached. Rather than getting lost in the hype, businesses should focus on how AI can help achieve broader goals. Whether through improving efficiency, enhancing customer service, or prioritising sustainability, AI’s role is to support, not replace, human workflows and amplify business objectives, ultimately empowering organisations to thrive.

By focusing on practical applications and leveraging available resources, funding, and tools, UK transport SMEs can transform operations, improve customer experiences, and drive progress toward a more sustainable future.

Tools for strategic AI adoption

For companies seeking to integrate AI into their business goals, Digital Catapult and the BridgeAI programme offer valuable resources.

The AI Adoption Toolkit helps businesses evaluate their AI readiness and identify key areas for improvement
Discover AI insights in the Innovate UK BridgeAI annual report.
Our Ethics Framework is a highly practical tool for individuals and organisations developing AI-enabled products and services that want to build value-aligned technologies with positive effects whilst avoiding negative consequences.
Read more about our past alumni of the High Growth AI Accelerator programme