The Value of Adopting GenerativeAI in Freight Rail

GenerativeAI holds immense potential to deliver significant value and efficiencies to railroad operations that may justify the initial investment.

Conrail Brian Dunn Wirestock Creators Adobe Stock 542367621 Editorial Use Only
Conrail Brian Dunn Wirestock Creators AdobeStock_542367621

In 2024, 77% of U.S. companies were either using or exploring the use of GenerativeAI in their businesses, with 83% of companies claiming that artificial intelligence (AI) was a top priority in their business plans, according to research completed by Exploding Topics.

In the freight railroad industry, which has traditionally been slower to adopt new technology relative to others, it is estimated that approximately only 35% of railroad companies are working on developing some application of generative AI to work within their organizations.  

That’s because the rail industry faces obstacles in adopting GenerativeAI, such as incomplete data, inconsistent standards, and the substantial costs of necessary capital improvements. Nevertheless, GenerativeAI holds immense potential to deliver significant value and efficiencies to railroad operations that may justify the initial investment.

Railroads are advised to take a hard look at adopting GenerativeAI. Here’s seven advantages where installing GenerativeAI can generate meaningful value and cost savings for railroads.

1. Safety. Anticipating danger zones and potential accidents thereby reducing injuries and creating a safer work environment for employees.

2. Preempting track failure and preventing damage, blockages and delays.

3. Preempting rolling stock failure and preventing damage, blockages and delays.

4. Predicting maintenance needs and recommending less expensive proactive service well before equipment experiences complete failure, potentially creating costly damage and/or tying up parts of the system.

5. Recommending more efficient train assembly, saving time both assembling and disbanding strings of cars.

6. Improving customer service by providing more efficient train routing, speeding delivery times.

7. Giving railroads a competitive advantage against slower adopter competitors.

Imagine the potential cost reduction achieved by implementing GenerativeAI, even in just one of the above areas.

In taking the first step, set up an AI task force. Study the actual cost of each of the above issues at your organization and compare it against the anticipated savings AI could provide. Run the numbers relative to the investment required to adopt an AI system in that area. Once the numbers are known, select those areas that make the best financial sense, allocate the investment and implement.

Although the cost of entry to using AI can be high for railroads, it may also make good financial sense. Instead of dismissing AI implementation outright, railroads need to prioritize exploring its adoption. AI’s potential to save money, provide a competitive advantage and more effectively position companies for the future make it a prime consideration for inclusion in planning strategies and budgets now and in the future.     

Latest