GXO Logistics, the world’s largest pure-play contract logistics provider, has introduced GXO IQ, an AI-powered platform intended to transform the management of global supply chains by orchestrating a wide spectrum of logistics operations. According to the company, GXO IQ represents the first AI-first, cloud-native operating system specifically designed for the logistics industry, aiming to address the complexity and dynamic nature of modern warehouses and supply chains.
The platform, developed using proprietary AI algorithms and built on technology from Google Cloud’s Vertex AI and Snowflake’s Cortex AI, processes over 200 million signals daily. These signals originate from billions of transactions accumulated over GXO’s 20 years of operational experience, which the company claims enhances the AI’s predictive and orchestration capabilities. GXO IQ is said to manage multiple logistics functions including inventory distribution, order picking, packing, shipping, and staffing decisions in real time.
GXO IQ’s architecture consists of four main layers: the Data Fabric Layer, which aggregates and organises the data; the AI Orchestration Layer, which runs continuous predictive analytics; the End-to-End Execution Layer, which integrates logistics management capabilities such as order management and transportation; and the Experience Layer, featuring an interactive AI agent called “GIL” that provides insights and recommendations for operational management.
The company states that GXO IQ is currently operational within its GXO Direct service for customers in the United States and is expected to be commercially available more broadly in the second half of 2025.
Industry observers note that GXO’s approach reflects a broader shift in logistics technology from simple automation towards integrated AI orchestration, which aims to anticipate disruptions and optimise operations dynamically across the supply chain. Paula Natoli, a Google Cloud executive involved with the project, described AI as “the central nervous system of the modern supply chain,” highlighting the transformative potential of platforms like GXO IQ to create interconnected and intelligent ecosystems.
However, while the platform promises significant efficiency gains, some industry experts caution that the reliance on AI also introduces challenges around data security, interoperability with existing logistics systems, and the complexity of deploying AI at scale across diverse operational environments. Additionally, the effective use of GXO IQ will depend on its adaptability to different customer requirements and supply chain contexts.
GXO’s push into AI-enhanced logistics aligns with other initiatives by the company, such as its partnership with robotics firm Dexterity, which involves piloting AI-enhanced robots that self-train and improve performance autonomously. These efforts collectively underscore GXO’s strategy to leverage advanced technology to maintain competitiveness in a rapidly evolving logistics sector facing increasing demand for speed, flexibility, and resilience.
As GXO prepares for a wider rollout of GXO IQ, the logistics industry will be closely monitoring how this platform performs in real-world conditions and its impact on supply chain efficiency and responsiveness amidst ongoing global disruptions and changing market dynamics.
Source: Noah Wire Services
