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“Flesh and Breath” – The Appeal of Delegating to AI and its Limits

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“flesh And Breath” – The Appeal Of Delegating To Ai And Its Limits

At the airport for an early flight, returning home after a speaking engagement, I was having a moment, feeling “tweepy” (my new word for tiredness that makes me weepy) as I stood in line to order breakfast. The trip had been a busy several days on top of a difficult year. The woman taking my order looked directly at me, smiled, and wished me a nice day. Her words were not remarkable but delivered with such utter sincerity, with light in her eyes, that they touched me just enough to lift my spirits. After eating I returned to the counter to thank her for making a difference. This may seem like an insignificant moment, but most of life is a series of small moments punctuated by a few big ones, some stupendous, others shattering. In a year heavy with crushing moments I’ve gained appreciation for the gifts of kindness, and this small exchange shone a light for me on why they matter, what I want to delegate to AI, and what remains uniquely human.

In my last commentary I argued that AI lacks what I call the 3C’s: context, collaboration and conscience. The challenges I’ve faced in the last year have reinforced the importance of two additional fundamentally human capabilities AI lacks: connection and compassion. As appetite for AI continues to grow at an astonishing pace, navigating the boundaries of what to delegate to AI and what to preserve for humans is essential.

The Appeal of Delegating to AI

AI is a tool designed by humans to do things it can do better or we cannot or do not want to do. Automation powered by AI takes over tedious grunt work involved in areas like supply chain procurement, with chatbots negotiating routine contracts with suppliers, saving money and freeing up time for professionals to handle more complex deals.

AI thrives on large volumes of data, so it can scale far beyond our cognitive capacity to crunch through reams of information quickly and synthesize the results. Googling now often places a generative AI result at the top of the page, a single answer from searching and summarizing the most relevant information. It can find and learn from patterns in big data sets to make predictions, such as when a machine is likely to fail in a factory, which external signals will most impact a demand forecast, or what actual lead times for parts will be.

AI has potential to reduce bias, since people can make inconsistent and subjective decisions based on personal opinions, so there is promise for its application in areas like hiring, lending, and medical diagnosis. But these same areas of AI promise also show risk. Since bias is primarily a problem of the underlying data reflecting existing human bias, efforts must be made to leverage AI’s strengths and mitigate its pitfalls. AI fairness is thorny, but I am hopeful that combining human and AI strengths for some of these decisions can make them more consistent and objective.

In addition to these applications of AI’s strengths, it doesn’t get tired (or weepy), irritable, bored or overwhelmed. On a different trip during another tweepy moment, exacerbated by a cascading series of flight cancellations and reroutings preventing me from getting home that night, I had to make a decision between a variety of unattractive flight and hotel options. I would have loved to simply delegate to AI finding me a room and getting me home.

The appeal of delegating to AI is borne out by data. The US National Bureau of Economic Research reported last month that Generative AI is already on track to outpace the speed of adoption of the internet and PCs. ARK Investment Management found that every four months the cost of operating AI models drops by half, beating the famous Moore’s Law on chip costs by a factor of 4-6 times. New research by Morgan Stanley finds that 50% of AI projects are delivering and 40% exceeding expected ROI. In short, delegating to AI is moving fast and making an impact.

Never Delegate Understanding – the Limits of AI

Charles and Ray Eames designed some of the most iconic furniture of the 20th century through a deep study of an object’s purpose, a process that led to their famous adage, “Never delegate understanding.” Their philosophy was grounded in foregoing assumptions about how things worked in favor of learning for themselves. We delegate understanding when we expect tools and technology to solve all our problems and surrender our own expertise. As researchers have found, we still don’t fully understand the boundaries of AI’s capabilities, a phenomenon they call the jagged technological frontier. Their experiments showed how blind trust in AI’s results was a delegation of understanding that actually led to a 19% dip in performance.

The problem is that as dazzling as generative AI can be, it doesn’t “understand,” it is a probabalistic sentence completion machine. It responds to queries based on AI models, not comprehension. Language has structure and rules, but human emotion is far less predictable. AI techniques like sentiment analysis can identify the emotions in language to provide insights for certain purposes like customer service or targeted marketing, but these methods don’t achieve true emotional intelligence, they only barely scratch the realm of human feelings, which defy rationality.

The Importance of “Flesh and Breath”

My father spent the last year and a half of his life in a skilled nursing facility, and while visiting him I was saddened to observe so many elder adults languishing alone, because research is clear that we are wired for connection. This exposure piqued my interest in so-called social or care robots that can mimic pet therapy, visit residents, facilitate social interactions, offer tailored suggestions for healthy behaviors like exercise, and more. While I in no way see these devices as substitutes for humans, I’m open to anything that might plug the dike of what former US Surgeon General has called “an epidemic of loneliness.”

And yet I understand the response of a friend who spent many years working with the elderly – she is adamant that stemming loneliness requires “flesh and breath,” not electronic devices. Her reaction points to the limits of AI – given enough data, it can analyze facial expressions and voices to detect emotions and even respond, but it doesn’t understand, because it doesn’t feel. And the ability to feel, in spite of the inevitable heartache, is what fuels connection and compassion.

The Power of Compassion and Connection

My circumstances over the last year forced me to discuss very personal details with strangers as well as colleagues. The kindness I’ve received in response has been astounding. People I hardly knew checked in to ask how I was doing. A colleague on maternity leave sent regular doses of baby photos. One man I know professionally but have never even met in person offered to host me at his house in New Hampshire so I could hike, knowing it is both a hobby and solace. My compassion cup has been overflowing.

When I opened to the door to my own experience, people walked in to share their own stories of heartbreaking challenges, some past, some present. I heard tales of fire, death of a parent, loss of work, sexual assault, mental illness, addiction, degenerative disease. People shared understanding of my pain and a common message that I will make it, no matter how hard it may seem now. They didn’t delegate understanding but created it by listening, greeting me with compassion, and walking alongside me in sharing their own stories, creating connection we can’t delegate to AI.

Call centers are heavily studied in part because of the abundance of data, and one area of research is how to improve customer service through analyzing emotions callers express in order to offer employees guidance in responding more effectively. I’m all for anything that can make these calls better, but the reason my small moment in the airport warmed my heart is because this woman’s customer service was exemplary, not based on a script but borne of authenticity and compassion, brimming over and creating connection. AI is impressive in its abilities to help manage crew schedules, design optimal flight paths, detect plane safety issues, predict parts needed for maintenance and reduce emissions from fuel, but in my tweepy airport moment I was grateful for compassion and connection delivered via flesh and breath.

A significant challenge with AI today is hyperinflated expectations that bring the risk of another AI winter – a phenomenon that has beset the field before, when disappointments in progress chill both interest and funding.

Polly Mitchell-Guthrie

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The New Economics of Logistics Visibility

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Knowing that a shipment will arrive six hours late is information. Knowing it early enough to reschedule labor, protect a customer commitment, avoid detention, or change an inventory decision is economic value.

That distinction is becoming central to the logistics visibility market. The earlier argument that exceptions are becoming the real unit of work explains why visibility economics depend less on event volume than on whether the organization can convert important events into timely resolution.

The first era of visibility was largely about answering a basic question: Where is my shipment? The next era is about a harder question: What should I do because its state has changed?

Visibility Is Not the Outcome

Location and status data can be valuable, but they are intermediate products. A business does not earn a return because a dot moved across a map more accurately. The return appears when information changes an operational decision. A useful way to think about visibility is as a chain: signal -> interpretation -> decision -> intervention -> economic outcome. If any link is missing, much of the potential value disappears.

A Signal Has to Arrive Inside the Decision Window

Timing matters.

A delay discovered after the customer has already missed production is history. The same delay identified early enough to expedite an alternate shipment may be actionable. An ETA update received after warehouse labor has reported for a shift may have less value than the same update received while the schedule can still be changed.

This means visibility quality is not only about accuracy. It is about whether the signal arrives with enough lead time to support an intervention.

Not Every Exception Deserves Attention

As visibility improves, organizations often discover a new problem: too many exceptions. A network with thousands of shipments will always contain delays, deviations, missed scans, changing ETAs, and incomplete data. If every deviation creates an alert, planners become the bottleneck. The more important capability is prioritization.

Which late shipment threatens a high-value order? Which delay creates a stockout? Which container risks demurrage? Which arrival change will disrupt a dock schedule? Which event is likely to self-correct without intervention?

Visibility becomes intelligence when the system can distinguish operational consequence from mere deviation.

ETA Is a Decision Input

Estimated time of arrival is a good example of how the economics are changing. ETA was once primarily a customer-service or tracking metric. Increasingly it can influence warehouse scheduling, yard planning, labor, inventory, customer promises, and downstream transportation. That makes ETA a shared operating variable.

The value increases when the prediction is connected to the systems that can respond. A changing ETA that remains trapped in a visibility dashboard creates less value than one that can trigger a workflow or decision elsewhere.

Dwell, Detention, and Demurrage Make the Economics Visible

Some visibility use cases have direct financial consequences. Better awareness of arrival, dwell, free-time windows, and container status can help organizations manage detention and demurrage exposure. Yard visibility can reduce unnecessary trailer search and moves. Earlier exception detection can protect delivery appointments and reduce costly service recovery. These cases make an important point: visibility value is often realized outside the visibility platform itself.

More Visibility Can Increase Work

This is the uncomfortable side of digital transparency. If a company exposes ten times as many events but does not improve prioritization or workflow, it may create ten times as many things for people to inspect. The result can be an expensive monitoring layer sitting on top of the same manual decision process.

That is why visibility and autonomous exception management are converging. The system must increasingly help decide which events require action, assemble context, recommend a response, and automate routine resolution where appropriate.

Measure Intervention, Not Just Coverage

Visibility programs are often measured by tracking coverage, data completeness, ETA accuracy, or number of connected carriers. Those are necessary operating metrics, but they do not fully describe business value.

Organizations should also ask: How many material exceptions were identified early enough to act? How quickly were they resolved? How often did intervention protect service or avoid cost? How many alerts required no useful action? How much planner time was consumed per exception?

Those measures connect visibility to economics.

The Market Is Moving Toward Action

This shift has strategic implications for technology providers. Pure visibility is becoming less differentiated as location and event data become more widely available. The higher-value layer is interpretation and action: understanding what an event means to a specific operation and helping execute the appropriate response.

That pushes visibility platforms toward orchestration, workflow, decision intelligence, and AI. It also pushes TMS, WMS, and other execution systems toward richer external event awareness.

The Bottleneck Moves

For years, logistics organizations complained that they could not make better decisions because they could not see what was happening. Increasingly, they can see more.

The bottleneck is moving.

When a network can identify exceptions continuously, the constraint becomes the speed and quality with which the organization can interpret and resolve them. That is precisely the environment in which AI agents become interesting—not because logistics needs another conversational interface, but because it needs more capacity to do operational work.

Related Logistics Viewpoints research

The New Architecture of Logistics
Systems Engineering in Logistics
2026 Autonomous Exception Management Market Map
The Economics of Decision Latency
Previous in this series: Transportation Is Becoming Computational

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If your organization is assessing connected execution, orchestration, AI, observability, decision velocity, or selective autonomy, I would be glad to provide the complete client edition and discuss the implications for your logistics operating model and technology architecture.

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o9 Solutions Uses a Knowledge Graph to Connect Supply Chain Decisions

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Supply chain decision-making is difficult partly because the relevant information is distributed across products, locations, suppliers, orders, capacities, policies, and external events. A system may have access to all of those records and still struggle to understand the relationships among them quickly enough to support a consequential decision.

o9 Solutions addresses that problem through its Digital Brain architecture, including an enterprise knowledge graph and in-memory modeling designed to connect demand, supply, inventory, planning, and operating context. That semantic layer is important because it gives analytics and AI a structured representation of how supply chain entities relate to one another rather than treating the environment as a collection of independent tables and documents.

The company combines this architecture with integrated planning, optimization, scenario modeling, machine learning, and human oversight. The strategic direction is toward a continuous decision environment where changes can be interpreted quickly, alternatives can be modeled, and recommendations can be traced back to the assumptions, events, and constraints that produced them.

As with any broad planning and intelligence platform, the value depends on implementation quality. Knowledge models need strong data governance, entity resolution, process ownership, and clear decision rights. A sophisticated model of the supply chain is useful only if the organization can keep it current and use it consistently in real operating workflows.

o9 Solutions appears in the Logistics Viewpoints Supply Chain Decision Intelligence MarketMap and Autonomous Exception Management MarketMap. The two MarketMaps highlight the relationship between integrated decision intelligence and the faster exception-response capabilities now developing around it.

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AI Will Not Transform the Supply Chain Until the Architecture Around It Catches Up

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Executive thesis. The model is becoming the least durable layer of the AI stack. Sustainable advantage will come from the operating architecture around AI: authoritative context, governed tools, permissions, observability, and connection to enterprise workflows.

The model is only one component

Supply chain AI discussions often begin with model capability: prediction accuracy, reasoning quality, computer vision performance, or the fluency of a generative system. Those capabilities matter, but operational value depends on everything around the model. The system still needs authoritative context, enterprise tools, permissions, workflow, observability, and a reliable path from recommendation to action.

Different AI patterns solve different problems

Prediction, optimization, generative AI, vision, and agents should not be treated as interchangeable technologies. Forecasting demand, selecting a route, extracting information from a document, interpreting an image, and executing a multi-step workflow require different evidence, control, and performance measures. A mature architecture starts with the decision or task and chooses the AI pattern that fits it.

Context is the operating fuel

An AI system can produce a plausible answer while using stale or incomplete operational context. In logistics, that can be dangerous because the truth may reside across orders, inventory, rates, carrier status, warehouse state, supplier records, and policy documents. Retrieval, master data, identity resolution, and system access therefore become part of the AI architecture, not secondary data-engineering concerns.

Tool access turns intelligence into consequence

The moment an AI system can create a shipment, change an order, contact a carrier, release inventory, or approve an exception, governance becomes an operational requirement. Tool permissions, financial limits, approval gates, idempotency, retries, and rollback are the mechanisms that separate an interesting demonstration from a dependable production workflow.

Measure workflow performance

A fluent response is not the right success metric for operational AI. Supply chain leaders should measure decision latency, manual context gathering, exception closure, override behavior, error recovery, tool failure, and the business outcome being improved. That measurement discipline also creates a rational basis for expanding autonomy as evidence accumulates.

The Logistics Viewpoints AI in Logistics: Use Cases, Architecture, and Implementation Guide separates the major AI patterns and connects them to data, tools, governance, workflow, observability, and ROI—the architecture required to move from model capability to operating value.

Executive implication

AI strategy should separate model selection from control architecture and measure value through workflow performance, decision quality, and operational outcomes.

Go deeper: provides the durable buyer, architecture, and implementation reference for this topic. AI & Advanced Analytics connects this analysis to the broader Logistics Viewpoints research architecture.

Related Logistics Viewpoints research

Download: AI in the Supply Chain — From Architecture to Execution
The New Architecture of Logistics

Go Deeper

Read the full AI in Logistics: Use Cases, Architecture, and Implementation Guide.

Explore the broader AI & Advanced Analytics domain for related Logistics Viewpoints research and analysis.

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