The world of logistics has gone AI-crazy. Every conference, every phone call, every board meeting. AI is front and center for logistics professionals. But behind all the shiny demos and “revolutionary” products is a new technology which is fundamentally difficult to control.
In many domains where these modern AI systems are being applied, accuracy is not mission critical. In fact, where they seem to shine the most is in supporting creative work, or coding, or writing, where humans are inherently in the loop, and many drafts are common.
Logistics is not like this at all. Errors can be catastrophic, accuracy is paramount, and reputation is critical.
At Rygen, we have the benefit of being rich in our experience within the logistics industry. Our teams consist of individuals who have spent many years building solutions for logistics companies. Many of us have over a decade in the industry. So, we are well aware of the stakes.
Like many companies, we began using and building AI systems tactically. We depended on the deep expertise of our tech leads and our close collaboration to cultivate and pilot grassroots projects. As we matured in our approach to AI, we shifted from that tactical approach to a strategic one. We got serious about AI, so to speak.
Given the novelty of this technology and the obvious risks involved, we decided to lean on our logistics experience and take a systems approach. To that end, our leadership initiated the Rygen AIMS Charter, which laid the path for establishing an AI Management System to govern AI systems that we use and build, to reduce risk to ourselves and our customers, and to capitalize on the many new opportunities the technology presents.
This approach of establishing a system to govern ourselves and the systems we build may seem counter productive. After all, aren't there hundreds of logistics companies running head first into development? What good is it to spend time and money building a system to manage systems, when we could be building a fancy demo?
The answer is that we know better. We know that deliberate, systematic development delivers sustainable results, and you can only build on a firm foundation. Having a governance framework in place is an enabler, not a hindrance.
But this wave of technology is new, and as we assessed, we decided to lean on our experience. We looked for a standard to guide us.
Many of us have worked within logistics companies that were certified to ISO 9001 or 27001, two of the many standards published by the International Organization for Standards. Knowing the value of management systems implemented to those standards, we searched for one related to our strategy and found the newly minted ISO 42001 International Standard for Artificial Intelligence Management Systems.
Luckily, we have team members who have built management systems from scratch and achieved ISO certifications in the past. So we immediately began building our AIMS, following the standard line-by-line. Our leadership began regular reviews of our progress and operations, as well as our operating environment. We established an AI Governance Committee charged with guiding and overseeing the day-to-day AI Ops of the organization. And we took systematic stock of risks that we were facing.
Unlike many companies, we did not outsource this effort, or rely on a “certification factory” platform. We built our AI Management System in-house and from scratch, with our own intelligence, our own way. We fit it to our company processes so that it works like an exoskeleton, supporting our operations, welded into our development processes.
Now that our AI Management System is in place and we are experienced AI Governance practitioners, we continue to execute our long-term AI strategy. But now, unlike many “move fast and break things” companies, we can go forward with speed and confidence, knowing that we have established the framework and practices to manage our efforts and ensure that we achieve our objectives while being responsible stewards of this new technology.
Sometimes, it pays to be humble and recognize that we need a system to manage our efforts. Doing so isn't weakness, but rather, maturity. Maturity that thinks strategically and plans for the long-term. That is why we started with governance.
FAQs
What is an AI Management System?
An AI Management System is a formal framework, such as the one built under the ISO 42001 standard, that governs how an organization develops, deploys, and monitors the AI systems it uses and builds. Rygen's includes an AI Governance Committee, regular leadership reviews, and a systematic accounting of risk.
What is ISO 42001?
ISO 42001 is the international standard for Artificial Intelligence Management Systems, published by the International Organization for Standards. It is newer than widely adopted standards like ISO 9001 and ISO 27001, and it gives organizations a structured way to govern the AI systems they build or use.
Why does AI governance matter more in logistics than in other industries?
In creative work, coding, or writing, humans are naturally in the loop and multiple drafts are expected, so mistakes get caught before they matter. Logistics does not work that way. Errors can be catastrophic, accuracy is paramount, and reputation is critical, which is why Rygen treats AI governance as foundational rather than optional.
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