Emerging economies face a perfect storm: ageing infrastructure, surging populations, rapid urban growth, and, in some regions, increasing wealth that fuels more vehicles on the roads. The result? Congestion, freight bottlenecks, and mounting pollution. Yet, artificial intelligence is stepping forward as a powerful ally — unlocking new market opportunities, enabling access to underserved communities, and attracting fresh waves of private investment.
AI is more than just a buzzword; it is a suite of technologies reshaping how humans interact with their environment. In transport, it’s quietly revolutionising the way we move people and goods — from streamlining shipping routes to reducing road accidents, and from enhancing passenger experience to cutting carbon emissions.
Beyond Driverless Cars
While headlines often fixate on autonomous vehicles, AI’s impact in transport extends far beyond self-driving systems. Deployed wisely, AI can tackle a wide range of sector challenges: boosting safety and reliability, improving service predictability, and enhancing both efficiency and environmental performance.
Efficiency Gains Where They Matter Most
In many developing nations, logistics costs are disproportionately high — sometimes consuming 15–25% of GDP, compared to just 6–8% in wealthier countries. Poor infrastructure and cumbersome customs processes play a big part. AI-driven e-logistics is offering a way forward by matching shippers to carriers, optimising routes, and reducing costly inefficiencies.
Delivering Reliability
Public transport thrives on consistency. The ability to provide accurate arrival and departure times can transform passenger trust and usage. Ride-hailing giants like Uber and Lyft are already using AI to maintain dependable pickup and drop-off schedules — principles that could easily translate into global public transport systems.
A Safer Journey for All
Road safety remains a serious challenge. Ageing infrastructure, unsafe vehicles, and human error all contribute to high accident rates. Research suggests autonomous vehicles could reduce fatalities by as much as 90% in some high-income countries by 2050. Early trials, such as Tesla’s initial self-driving systems, have already seen collision rates fall by 40%. While widespread AV adoption in developing countries is still distant, the technology’s potential is undeniable.
Driving Sustainability
Transport accounts for roughly 23% of global energy-related CO₂ emissions — a figure that could triple by 2050 without intervention. AI can help reverse this trend, optimising routes to eliminate unnecessary journeys and improve fuel efficiency. Innovations such as truck platooning, where convoys of lorries travel in close formation under AI guidance, promise substantial cuts in fuel use and emissions.
Harnessing the Potential — and Managing the Risks
The benefits are tangible: safer roads, greener operations, more reliable services, and leaner logistics. But to realise AI’s full promise, countries must navigate complex socio-economic, institutional, and political hurdles. Managed well, AI could be a catalyst for economic growth and shared prosperity in the decades ahead.
