AI Hustle: News on Open AI, ChatGPT, Midjourney, NVIDIA, Anthropic, Open Source LLMs: UPS Battles Package Theft with AI: Game-Changing Strategies

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It seems as though barely a day goes by without the reports of, you know, packaged theft or

porch piracy as a lot of people are calling it.

This is a trend that is, you know, really viral recently if you've seen on YouTube.

I believe there's a video every year where they pretty much prank porch pirates by putting

things on the porch that are like exploding glitter bombs or all sorts of things.

So the porch pirate goes and they think they're stealing like a new speaker or a new set of

headphones and when they grab it and run back to their apartment and open it up, in reality

it's a giant exploding glitter bomb that sprays bad smells and makes police siren noises

and has phones that are recording them and collects their, you know, their location.

So this is obviously a problem.

It's definitely gone viral, you know, 50 million views on a lot of these kind of porch pirate

prank videos.

But in any case, I think it underlines definitely a much bigger problem, which is that people

across the United States right now, there's a surge of theft where people are going stealing

brand new iPads and brand new laptops, all sorts of electronics, other things from people's

porches.

There were thousands of dollars and this is an issue.

So despite the typical stolen package costing around $50, which was highlighted in a 2022

study from security.org, I think the sheer volume of package theft is what's really alarming.

Safewise, which is a home security consultancy, notes a jump from $210 million to $260 million

in stolen, delivered packages in just the last year.

So astonishingly, around 79% of Americans reportedly have been, you know, fell prey to porch pirates

just last year.

So I think big logistics players have kind of entered the space right now with technological

advancements aimed at curbing this theft spree that we're seeing.

So UPS specifically unveiled its latest weapon in June, which is a delivery defense.

And it's touted as an AI powered tool.

It leverages historical data and machine learning to allocate a delivery confidence

score on a scale of a thousand for each delivery location.

This is so interesting.

Mark Robinson, who's the president of UPS Capital said, quote, if we have a score of

a thousand to an address, that signals our high confidence in the package reaching its

recipient.

Conversely, a score closer to 100 suggests a potential delivery issue at that point.

This initiative will inform recipients of possible theft risks, allowing them to opt

for safer delivery methods such as in-store collection or UPS pickup points.

Okay, this is really interesting.

I think what's happening here is the fact that right now we're using AI and I'm seeing

this kind of as a trend that's coming up right now as a predictive tool.

We're seeing this in a lot of different areas, right?

I talked recently to some people at Square that are saying they're using AI to predict

when a customer is going to churn, and then preemptively they will go in and have a whole

kind of campaign to keep the customer.

Then I've also spoken recently about the big acquisition of Splunk that is happening in

Splunk as a security firm.

One of the things that they are doing is predicting security vulnerabilities so that you can preemptively

measure them.

Now, we have UPS who is preemptively predicting package theft, and then it's not even just

being like, oh, it's like a neighborhood that has a lower median income or something

like that.

They have a whole bunch of things that use machine learning.

They're looking at how often packages have been reported missing or stolen.

They have all of this data and use machine learning, and they just automatically tell

you, look, you don't have a very good odd of collecting your package, here's your alternatives,

go pick it up, or other things.

This is really interesting, and I think using AI in this predictive manner is really, really

powerful.

I think this innovative solution was initially integrated with existing retail software systems

through an API with Costco Wholesale in Colorado, being one of the first testers that were testing

over there in Colorado.

However, both UPS and Costco remain really tight-lipped on the specifics of this partnership.

They're not really sharing a lot about it or how it works, per se.

Robinson believes that delivery defense provides merchants an enhanced decision-making tool

when shipping packages with small to medium-sized businesses in mind.

UPS is set to roll out a web-based version of the system in October, aligned with, of

course, the holiday season, this was right before Black Friday and then Christmas, so

this might be just in time to save us all from getting all of our packages stolen.

I think the final call on leveraging this technology is still going to come down to

the individual merchants, so this is going to allow them to determine how they address

potential delivery risks.

This isn't going to be just automatic UPS is saying, sorry, you have to come into the

office.

I think it's going to come down to the actual individual merchants themselves and the delivery

people deciding what they're going to do.

And then also this comes from, there's a lot of implications, right?

So there's potential delivery risks, should packages be insured, right?

Should they say like, you're sending this package to an area that is highly likely to

be robbed, maybe get insurance on this, rooting them to different pickup locations, there's

all sorts of different options, but it's going to come down to the individual merchants.

So the big question I have after kind of reading and researching a little bit about this is

like, okay, very cool, but like how are UPS' competitors addressing this?

Awesome, UPS is doing it, but you don't always get a pick how your packages are delivered.

So I think DHL, FedEx, and Amazon's countermeasures that they've been rolling out are kind of

interesting.

DHL employs a signature first approach where delivery staff need a signature to hand over

a package.

This is, of course, maybe the best way to prevent this, right?

You don't need AI when you just get a signature.

However, it's also one of the most annoying if you're not at your home and then they just

leave that little slip, that dreaded slip at your door that says, come into our office

because you weren't here.

So there definitely are a few different ways to do this, but I really do think that this

kind of AI predictive analysis that UPS is doing is very forward thinking, I'll be very

interested to see the adoption and how this has continued as it is rolled out.

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Machine-generated transcript that may contain inaccuracies.