UK transport and storage companies are increasing their use of artificial intelligence, with new Office for National Statistics survey data showing adoption in the sector has risen by 11 percentage points since December.

The figures show 27.1% of businesses in the category, which includes logistics, parcels, haulage and warehousing, now use AI in some part of their operations. That means 72.9% still do not use the technology, down sharply from 83.9% at the end of last year.

Parcelhero said the data points to a rapid shift in attitudes across the sector as operators test where AI fits into day-to-day business tasks. Compared with other industries, transport and storage does not appear notably behind similar parts of the economy in adopting the technology.

Manufacturing recorded the same share of businesses not yet using AI, at 72.9%, while retail was slightly further ahead, with 67.7% yet to adopt it. This leaves transport and storage broadly in line with sectors facing similar pressures around cost control, service delivery and administration.

Current uses

Among transport and storage companies already using AI, the most common application is improving business operations. Survey figures cited by Parcelhero show 29.8% of adopters use AI for that purpose.

A smaller group, 15.7%, uses the technology to provide or personalise products or services, while 10.2% say it is helping them explore new markets.

The data also highlights where businesses say AI is changing work inside their organisations. The roles most affected so far are data analysis, cited by 16.4% of respondents, followed by administration at 11.3% and creative or design roles at 11%.

Training is already part of that adjustment, with 28.5% of transport and storage firms using AI saying they are training or retraining existing staff in the technology.

On staffing levels, the survey does not suggest widespread cuts linked to AI adoption in the sector. Among businesses already using the technology, 31.3% said there would be no change in workforce numbers, while the share saying AI would definitely reduce headcount was too small to register in the published figures.

Investment choices

The figures show no single dominant model for deploying AI. Some businesses are building their own tools, while others rely on bought-in or free software.

Among companies in the sector that have already adopted AI, 12.4% said they had developed AI programs in-house. A slightly larger 13.3% said they had purchased external software or ready-to-use solutions, while 12.6% said they were using free software.

The split suggests an early-stage market in which companies are still weighing cost, control and ease of implementation. For operators with limited internal technical resources, ready-made products may offer a quicker route, while larger groups may prefer systems tailored more closely to internal processes.

Next steps

The survey suggests more investment is likely in the near term, with many businesses planning to expand AI use over the next three months. The focus remains on internal operations rather than more ambitious transformation projects.

Some 20.6% of respondents said they planned to use AI to improve business operations. Another 12% said they intended to adopt it to develop a new product or service, while 10.3% planned to use it to provide products or services for customers.

Reservations remain, however, among both adopters and non-adopters. Of the companies already using AI, 11.8% said they were concerned about the level of adequate business knowledge surrounding the technology within their organisation, 11.5% cited ease of use and 5.4% pointed to affordability.

Among businesses that have not yet introduced AI, 4.9% said cost was the main reason for holding back. A further 3.6% said they had difficulty identifying a business use case.

David Jinks, Head of Consumer Research at Parcelhero, said the latest figures show a marked change in uptake.

“The number of transport & storage firms now reporting they are making use of AI is still surprisingly small: 72.9% admit they are not yet using it. However, there has been a sharp jump in uptake since last December, when a frankly shocking 83.9% of transport & storage firms said they weren’t using the technology. In other words, 27.1% of companies in the sector are now using AI, an increase of 11 percentage points.

“Incidentally, that 72.9% of transport & storage sector firms not yet using AI is exactly the same as the number of manufacturing sector companies that haven’t yet adopted the technology, and only slightly more than the 67.7% of retailers yet to take the plunge. That means transport & storage firms are not lagging notably behind equivalent sectors in their uptake of AI.

“The data gives a fascinating insight into the areas transport & storage businesses are focusing their AI use on, what impact they think it will have on their business, and where they see their AI investment focusing in the future.

“29.8% of transport & storage companies that have adopted AI say they are using it to improve business operations, 15.7% are using it to provide or personalise products or services, and 10.2% to explore new markets.

“Of course, adopting AI has an impact on businesses in terms of training and work practices. Some 28.5% of firms in the sector are training or retraining their existing staff in the use of AI. Contrary to recent headlines from some industries, it does not look as if the increased use of AI in transport & storage will lead to reduced headcount. In all, 31.3% of companies now adopting AI said there would be no change in workforce numbers, and the number reporting that it would definitely reduce headcount was so small it did not register in the figures.

“Predictably, the roles transport & storage companies said have been most affected are data analysis (16.4%), admin (11.3%) and creative/design roles (11%).

“Whether to develop AI in-house or outsource or use off-the-peg AI solutions is a question many companies have been considering. Some 12.4% of transport & storage businesses that have already adopted AI say they have developed AI programs in-house, while 13.3% have purchased external software or ready-to-use solutions and 12.6% are using free software.

“Many more transport & storage companies are planning to adopt AI technologies in the next three months. Some 20.6% plan to use it to improve business operations, 12% plan to adopt it to develop a new product or service, and 10.3% to provide products or services for their customers.

“However, a number of companies in the sector still reported reservations about the new technology. Of those already using it, 11.8% are concerned about the level of adequate business knowledge surrounding AI within their organisation, 11.5% about its ease of use and 5.4% about its affordability.

“For companies that have not yet adopted AI, 4.9% said cost was the main reason they have not yet taken the plunge, while 3.6% said they had difficulty identifying a business use case.”

Based at Bliss Willows in Chipping Norton, the scheme promotes independent businesses by featuring their products throughout the interiors of Cala’s new Rowan and Laurel showhomes.

The scheme forms part of the developer’s wider Community Pledge.

Alex Richards, regional managing director at Cala Chiltern, said: “We are very excited to bring our Showhome of Support initiative to Bliss Willows.

“It’s a terrific way to champion local businesses, and our new showhome in Chipping Norton is full of unique touches thanks to these fantastic creators.

“From artwork and candles to artisan food and accessories, the showhome reflects the character of Oxfordshire.”

Items displayed in the showhomes include bread flour from Bruern Farm Shop, a handmade wooden bowl from Oats Shop, and a bottle of Cotswolds Dry Gin from Cotswolds Distillery.

The living space features a scented candle from the Cotswold Candle Company, a country tote bag from Soho Farmhouse, and a ceramic coffee mug from The Beehive.

Artwork by Oxfordshire artist Josephine Trotter is also displayed.

Each product is accompanied by signage crediting the business, and all contributors will also be profiled on Cala’s website.

Bliss Willows offers a selection of two, three, four, and five-bedroom homes set within a new community that includes allotments, play areas, and open space.

For more information on the showhome and the businesses featured, visit cala.co.uk/homes-for-sale/south-east-england/oxfordshire/bliss-willows-chipping-norton.

According to the latest Business Barometer from Lloyds, confidence in the South East fell by one point to 44 per cent in April.

Despite the overall drop, optimism in companies’ own trading outlook increased by one point to 50 per cent.

Amanda Dorel, regional director for the South East at Lloyds, said: “While overall confidence has dipped slightly this month, it’s encouraging to see South East firms remain optimistic about their own trading prospects and commitment to growth.

“Firms are prioritising investment in technology, like AI and automation, to shore up their position in a disrupted market.

“This shows businesses are thinking strategically about their future.

“We’re here to support these ambitions with the finance, expertise and guidance firms need as they embrace these opportunities.”

The monthly survey, which collects responses from 1,200 businesses across the UK, has been running since 2002 and offers early insights into regional and national economic trends.

In the South East, 55 per cent of businesses identified the adoption of new technology, such as AI or automation, as a key growth driver for the next six months.

Meanwhile, 46 per cent plan to invest in workforce training, and 40 per cent aim to explore new markets.

Confidence in the wider economy, however, fell by four points to 38 per cent.

Nationally, business confidence dropped by 11 points in April, also landing at 44 per cent.

Optimism in trading fell by six points to 54 per cent, while confidence in the broader economy declined by 17 points to 33 per cent.

Those in the East Midlands reported the highest levels of confidence at 53 per cent, followed by London at 51 per cent and the West Midlands at 49 per cent.

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said: “Businesses told us their confidence fell as inflation pressures re-emerged, global uncertainty persisted and costs remained elevated.

“While sentiment declined, it remained above the long-term average, with nearly two-thirds expecting stronger output in the coming year.

“In this environment, as with other recent market disruptions, we continue to observe that sustainable success comes from discipline, resilience and clarity about what really drives long-term value.”

Lloyds said businesses in the South East are proactively seeking growth despite economic uncertainty, with a strong emphasis on embracing technology, upskilling their workforce, and expanding into new markets.