Proof Over Promises: UPS's Bold AI Initiatives Enhance Products, Services and Customer Experience

Key Terms

reverse logistics technical

Reverse logistics is the process of moving products from customers back to a company for returns, repairs, recycling, or disposal — like the reverse of a delivery route when a returned package comes back to the warehouse. It matters to investors because efficient reverse logistics can cut costs, recover value from returned goods, reduce waste and regulatory risk, and protect brand reputation, all of which affect profitability and long-term cash flow.

rfid technical

RFID, or Radio Frequency Identification, is a technology that uses radio waves to automatically identify and track objects, animals, or people. It involves small tags or chips that emit signals when scanned, similar to a barcode but without needing direct line-of-sight. For investors, RFID enhances supply chain efficiency and inventory management, potentially reducing costs and improving business operations.

digital twin technical

A digital twin is a live virtual replica of a physical asset, process, or system that mirrors real-world behavior using data and models so users can test changes, predict problems, and measure performance without touching the real thing. For investors, digital twins matter because they can lower maintenance costs, speed product development, improve uptime and reliability, and make future cash flows and risks easier to forecast — like using a flight simulator to safely train and tune a real airplane.

landed costs financial

Total landed cost is the full amount a company pays to buy and deliver a product to its location, including the purchase price plus shipping, insurance, import duties, taxes, packaging, and handling. Investors care because it determines the true cost basis for inventory, affects profit margins and pricing decisions, and can reveal hidden risks in supply chains—like unexpectedly high tariffs or shipping fees—much like the final price on an online order after shipping and taxes.

digital trade documentation technical

Digital trade documentation are electronic versions of the papers used to buy, move and clear goods—things like contracts, invoices, bills of lading and certificates—stored and exchanged in secure digital formats instead of on paper. For investors, digitizing these records can speed up payments and deliveries, cut costs and fraud, and improve tracking and regulatory compliance, much like switching from mailed checks to instant online banking improves reliability and lowers friction.

control tower technical

A control tower is a centralized operations hub that gives managers real-time visibility and coordination over complex activities like supply chains, logistics, or risk management. Like an air-traffic control room for a business, it helps spot delays or bottlenecks quickly and direct resources where they’re needed, so investors can gauge whether a company is likely to cut costs, maintain reliable deliveries, and react faster to disruptions—factors that affect profits and growth.

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AI investments deliver simplified solutions and greater predictability, reliability, visibility and control

ATLANTA--(BUSINESS WIRE)-- For more than three years, UPS (NYSE: UPS) has strategically deployed AI to transform global logistics. Today, the company is detailing AI-powered solutions that combine the expertise of its approximately 460,000 employees with technology to shape the future of UPS. These initiatives advance a companywide priority: simplification.

UPS is scaling AI, automation and advanced analytics to improve end-to-end visibility and the overall customer experience; make its global logistics network faster, more predictable and resilient; and ignite innovation.

"After 118 years of reinventing logistics, we have entered a defining moment – using AI to simplify how we work across the enterprise, from customer acquisition and onboarding to how we plan, move and deliver," said Carol B. Tomé, UPS chief executive officer. "We are pairing the deep expertise of our people with the power of AI to drive faster decisions and a better experience for our customers around the globe."

Each year, UPS customers ship packages that generate billions of tracking numbers. With market volatility driving supply chain complexity, customers increasingly demand visibility that goes far beyond an anticipated delivery date. UPS is applying AI to power industry-leading end-to-end visibility and control – and to improve customer support. Specifically, the company is:

• Redefining tracking to support more than 98% of customer service requests by the end of 2026, using AI and human expertise across digital and voice channels – including AI-enabled intelligent assistants in more than 20 countries.
• Equipping customer care teams with AI-powered, real-time shipment insights to resolve inquiries and claims faster.
• Transforming reverse logistics through Happy Returns, using a conversational, AI-powered experience to simplify the post-purchase journey and reduce returns fraud.
• Combining RFID and AI-powered tracking to deliver near real-time, package-level visibility – giving customers greater transparency, flexibility and enabling faster, smarter decisions.

Further, UPS is delivering AI solutions to better serve customers around the globe including:

• Scaling proprietary network planning tools that model "what if" scenarios using real-time inputs – weather, transportation delays, volume forecasts – to stress-test operations and generate execution-ready plans before disruptions impact service.
• Expanding a real-time digital twin of the global network to include all modes of transportation, creating a digital replica of facilities, air and ground networks, and end-to-end package flows that updates every 10 minutes – continuously tracking performance so the network can adjust and self-heal in real time.
• Deploying agentic "control tower" capabilities on-site with customers, combining data, predictive models and connected services to go beyond shipment tracking – flagging, prioritizing and helping resolve disruptions across complex, multi-carrier networks with full end-to-end visibility and customer control over their data.
• Simplifying international shipping with next-generation brokerage services that use AI, cross-border data and human expertise to help customers accurately interpret customs requirements worldwide for shipments of all sizes.
• Improving the cross-border experience with more predictable landed costs at checkout, more accurate product classifications via UPS Export Assure and digital trade documentation via UPS Paperless Invoice – reducing errors and accelerating processing.
• Enabling faster customs clearance with AI built into UPS's industry-leading brokerage capabilities. Outpacing the competition, 97% of UPS shipments clear customs on the first day of entry.

"When trade rules changed, we needed to adjust fast without disrupting our customers," said Michael Garcia, vice president of operations, Audien, the world's largest over-the-counter hearing aid company. "UPS helped us take a realistic, end-to-end look at how our products move so we could stay compliant and protect service. The result was a clearer path forward during a period of uncertainty – without slowing our business."

Finally, as part of its Network of the Future transformation, UPS is redesigning operations to be more data-driven and resilient. With AI embedded across planning, routing and execution, the network will dynamically adapt to changing conditions.

"Every step we're taking supports our strategy – putting customers first, empowering our people and accelerating innovation," Tomé said. "AI isn't a buzzword at UPS. We are building on a rich history of technology embedded in every facet of our business. We are doing the work – using AI to transform global commerce."

About UPS

UPS (NYSE: UPS) is one of the world’s largest companies, with 2025 revenue of $88.7 billion, and provides a broad range of integrated logistics solutions for customers in more than 200 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s approximately 460,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. More information can be found at www.ups.com, about.ups.com and investors.ups.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20260618712848/en/

UPS Media Relations
pr@ups.com

Source: UPS