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AI in transportation: use cases,
trends, real-world examples & challenges

August 7, 2025

Use cases & benefits of AI in transportation

Transportation companies can implement artificial intelligence in a wide range of corporate functions and business scenarios. Here are some key applications of AI and related payoffs.

Advanced driver-assistance systems

Many car manufacturers have already integrated advanced driver-assistance systems (ADAS) that help with parking, ensure better control of the vehicle in adverse weather conditions, and avoid collisions. ADAS solutions rely on AI-powered cameras and sensors to identify vehicles, obstacles, pedestrians, or passengers’ facial expressions, alert drivers with sound or light signals, and trigger autonomous actions (such as braking) to prevent human errors.

Benefits

AI-based ADAS such as adaptive cruise control, forward-collision warning (FCW), automotive night vision, and traffic sign recognition systems increase safety for both drivers and pedestrians.

Personal assistants

Voice-based virtual assistants use speech recognition and synthesis technology to interact with drivers in spoken language. These tools can understand users' requests and perform a variety of tasks, such as initiating a call, switching radio stations, or providing information on vehicle conditions.

Benefits

Personal assistants help minimize distracting manual interactions with in-vehicle infotainment systems, enabling a more convenient user experience and improving driver safety.

Autonomous vehicles

Self-driving vehicles represent the most advanced form of ADAS, as they rely on AI to completely automate the driving experience. Most embodiments of this technology are still within the realm of prototyping and experimentation, or require human supervision by law in order to be operated. However, companies like Tesla have pioneered self-driving cars with promising results. Other major types of self-driving vehicles include robotaxis, autonomous trucks and truck platooning systems (the coordinated movement of multiple trucks at close range), and autonomous navigation for container vessels through video object recognition and LIDAR.

Benefits

Self-driving vehicles in transportation and logistics can help mitigate driver fatigue, operational costs, and shipping rates.

Fleet management & route optimization

AI-based solutions can help logistics companies optimize the supply chain by coordinating fleets of vehicles, ships, and planes. Their operation is based on a blend of GPS, sensors, computer vision-powered cameras, and other interconnected IoT devices deployed to gather data regarding weather, traffic, blockages, or accidents. These devices are used in combination with AI-based analytical systems to process this information, identify recurring traffic patterns via machine learning algorithms, and generate valuable route recommendations or forecast potential traffic congestion.

Furthermore, transportation companies are turning to generative AI and large language models for logistics simulation, creating virtual scenarios to assess how demand spikes, vehicle breakdowns, or other factors would impact their network and adjust their contingency plans accordingly.

Benefits

Optimized routing and fleet management ensures faster deliveries and reduces fuel consumption, resulting in cost savings and more sustainable transportation.

Public transport management

The adoption of AI in public transit opens up multiple opportunities for network optimization. For instance, service providers can analyze average travel times and the factors impacting them, such as road conditions and restrictions, to adjust routes, stops, connections and schedules and fully meet customer demand for maximum passenger convenience. AI-based analytics systems can also be combined with passenger apps to provide users with real-time recommendations on the best lines and boarding times, helping redistribute commuters to less crowded routes, especially during rush hour.

Benefits

AI-based network planning enables public transportation systems to ensure faster commuting, minimize waiting times, and therefore deliver a better customer experience.

Customer service chatbots

Powered by natural language processing and generative AI, chatbots provide customers with a convenient way to access information and receive assistance, while enabling transportation companies to automate and scale their service operations. For instance, these conversational AI solutions can answer common questions about transportation options and routes, help users schedule rides or purchase tickets, provide real-time updates on delays or arrivals, and gather valuable customer feedback.

Benefits

AI chatbots can offer customer support 24/7 and assist thousands of users simultaneously, reducing support team workload and associated costs.

Traffic management & road monitoring

AI-powered traffic management systems rely on networks of sensors and cameras to oversee road and traffic conditions, identify car crashes, and make traffic predictions. This allows authorities to intervene promptly in the event of traffic accidents, speed up road repair and maintenance operations, and optimize traffic light management based on vehicle density. Organizations can also leverage GenAI to create realistic simulations of traffic flow under various conditions, allowing transportation engineers to test the impact of new road layouts or traffic policies before implementing them.

Benefits

AI-powered solutions can help reduce traffic jams, queue waiting times, and carbon emissions while improving road safety and maintenance.

Automatic number plate recognition

ANPR solutions encompass HD cameras mounted on street poles, infrared sensors for 24/7 monitoring, and image processing software used to identify vehicle registration plates. These systems are useful for a variety of management and security tasks, including journey time analysis and road infrastructure planning, the identification of vehicles violating road rules, and electronic payments enablement for cashless tolling lanes.

Benefits

ANPR technology facilitates real-time traffic monitoring, law enforcement, and toll management, proving an essential tool for traffic police and other public authorities.

Smart parking

Artificial intelligence systems can be deployed both in indoor car parks and outdoor urban areas to facilitate parking management. These solutions can be helpful in several ways, including vehicle counting and free slot detection connected with parking availability indicators, license plate matching to detect unauthorized parking, and time tracking for easier ticket billing and payment. AI-powered cameras are also used to identify suspicious activities for parking lot security.

Benefits

Smart parking systems help streamline traffic flow in city centers, mitigate parking queues, and enhance safety in public spaces.

Predictive maintenance

This approach relies on machine learning-based anomaly detection to predict failures before they actually occur. A machine learning system can be trained to understand the normal operation of vehicles and transport infrastructures (such as railway overhead lines) by "feeding" it with sensor data relating to their standard performance. Once the system has learned to recognize the ideal operating patterns of the mechanical and electronic components powering a vehicle or an infrastructure, it can also detect any outlier that can be a sign of impending breakdown.

Benefits

Private and public transport organizations leveraging predictive maintenance can improve vehicle reliability, reduce maintenance costs, speed up repair procedures, and cut fleet reserves deployed to avoid service disruptions.

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Real-world examples of AI in transportation

Uber’s Michelangelo ML platform

Uber's range of AI initiatives, mostly based on a proprietary ML platform named Michelangelo, is broad and ever-expanding across its business functions. The company leverages AI to match riders with available drivers, adjust rates in real-time based on service demand, calculate the Estimated Time of Arrival, and identify suspicious transactions for fraud detection. Uber also implemented an AI assistant powered by Michelangelo to provide support specialists with recommendations for ticket resolution. More recent projects are focusing on generative AI in IT operations, including mobile app testing automation.

Uber’s Michelangelo ML platform

Image title: The role of AI throughout the Uber app user flow
Image source: Uber

Subaru’s driver monitoring system

Like many other automotive companies adopting AI, Subaru equips its vehicles with a driver monitoring system powered by computer vision, which provides a variety of driver support features to enhance safety and comfort. The solution can scan and recognize the driver's face and alert them when detecting signs of drowsiness or distraction. It can also adjust the seat position and interface settings autonomously based on the current driver’s preferences.

Waymo’s robotaxi

California-based development company Waymo opened its robotaxi ride-hailing service to US customers in 2019, representing the first commercial service to operate without an onboard backup driver. The self-driving system combines information from LIDAR, radar, and cameras to map the surrounding area and calculate a safe route. While driverless rides only take place in controlled geofenced environments, this service is gradually expanding to new locations. In May 2025, for instance, Waymo announced plans to further expand its robotaxi operations in the San Francisco Bay Area.

Heathrow Airport’s monitoring solution

To improve air traffic control and deal with the infamous London weather, Heathrow Airport has implemented Aimee, an AI solution powered by neural networks. This system designed for the air transport industry can process data collected via high-definition cameras and help controllers supervise arrivals and departures in low visibility scenarios. It also facilitates controller-pilot communication by handling departure clearance requests via natural language processing. Once deployed at full capacity, this tool should enhance the airport's landing capacity by 20%, reducing the risk of flight delays.

Heathrow Airport’s monitoring solution

Image title: Aimee’s advanced object detection
Image source: Searidge Technologies

Surtrac traffic management system

An AI-based monitoring system Surtrac, developed by Rapid Flow Technologies, has been deployed in Pittsburgh, US, to collect data with smart cameras, adjust traffic lights in real time, and thus facilitate traffic flow. The monitoring devices in each intersection operate independently, handling their own local traffic and replanning second by second. The solution has led to a 25% reduction in travel times, a 30% reduction in the number of stops, and a 20% cut in emissions.

SNCF’s predictive maintenance system

France's national railway company SNCF adopted a predictive analytics solution to spot potential asset malfunctions (including pantographs at risk of wear), anticipate maintenance needs, and thus ensure power supply to its trains across 32,000 km of network. According to the company, predictive maintenance can also help reduce accidents related to train switches, ensuring superior economic performance, service reliability, and passenger safety.

Challenges & tips for adopting AI in transportation

Issue

Recommendation

System & data integration complexities
The multi-layered, interconnected architecture of a typical AI solution for transportation implies that its components, including IoT devices and data analytics software, should be able to exchange data. However, such elements can use different communication protocols or technologies and handle multiple data formats, including streams of real-time data. So when poorly integrated, AI systems will base their analyses on fragmented sources and inconsistent or outdated data, delivering inaccurate predictions.
  • Ensure communication between the components of your AI solution by configuring application programming interfaces (APIs). You can leverage tools from major cloud providers, such as Amazon API Gateway or Azure API Management, to streamline this task. In some situations, however, a middleware architecture is required, such as an ESB, to convert different protocols.
  • Integrate heterogeneous data from multiple sources via ETL processes and consolidate it into a unified data storage, such as a time-series database, a NoSQL database, or a data lake. Services and tools for cloud data integration, including AWS Glue or Azure Data Factory, can facilitate ETL setup.
AI solution reliability issues
The AI model powering your solution must be trained on massive data sets to deliver accurate analyses and forecasts. Even after training, however, the model can be less reliable than expected. This can happen due to overfitting, if the model was overtrained on a certain data set and performed poorly with other data, or due to a model drift when its predictive power degrades because of progressive changes in input variables and their relationships.
  • You can rely on ML services from top cloud providers, including Amazon SageMaker and Azure Machine Learning, to access built-in AI algorithms, pre-trained ML models, and scalable processing power, speeding up your solution’s deployment and complementing your in-house computing resources.
  • To maximize model reliability and mitigate overfitting, train the solution on large and diverse data sets, including data points gathered from different types of vehicles, road networks, and public transit routes. Furthermore, it is essential to split your data into distinct training, validation, and test sets. Testing data must be excluded from the training process to avoid bias and skewed performance metrics.
  • As for model drift, you can keep track of it by regularly monitoring metrics like the Population Stability Index and perform multiple retraining iterations to fine-tune the model with new data. Machine learning dashboards can help in this regard, offering an intuitive visual representation of such metrics.
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Reimagine transportation with AI

Reimagine transportation with AI

In recent years, transportation has ranked among the industries benefiting from the highest adoption rate of AI technology. This should come as no surprise, as advancements in AI have proved capable of making us travel and move goods faster, safer, and cleaner than ever before.

However, implementation efforts should always be carried out with the complex and sometimes inscrutable nature of artificial intelligence in mind, especially when it’s deployed in wide, sprawling ecosystems such as transport networks. To streamline the adoption of AI while overcoming its potential challenges, consider relying on Itransition’s team of experienced developers and consultants.

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FAQs

One of the most significant technologies in the transportation industry and many other sectors is machine learning, a branch of AI focusing on self-learning algorithms that can improve their performance through experience (i.e. by processing more and more data). Applications of ML include:

  • Computer vision to acquire visual inputs, identify people or objects, and alert the driver or trigger appropriate actions, commonly used in ADAS.

  • Natural language processing to replicate human communication and thus unlock realistic driver-machine interactions, for instance via voice-based driving assistants.
  • Data mining to investigate big data, identify patterns or outliers, and extract valuable insights, such as the presence of anomalies to predict engine failures.
  • Generative AI, while included in the other AI technologies, is now being developed as a distinct technological domain to collect and summarize transport-related data, simulate realistic traffic and operational scenarios and provide context-aware responses in fleet and driver support systems.

Another key technology, technically outside the realm of AI but serving as a key enabler for AI systems, is the Internet of Things. IoT solutions comprise extensive networks of devices (cameras, infrared sensors, etc.) that gather information from vehicles and infrastructures through the internet, Bluetooth, or other communications technologies and feed it into AI software. A common use case is traffic data collection to optimize routes.

In the near future, we can expect transportation companies to significantly deepen their investments in AI-powered predictive analytics to enhance decision-making, for instance by forecasting traffic patterns and passenger demand to optimize traffic management and urban mobility. At the same time, adoption of critical GenAI capabilities will continue to rise, reinforcing its role as a natural interface between complex systems and decision-makers. Autonomous vehicles will also remain a key area of research, with the ultimate goal of shifting from experimental implementations in controlled environments to large-scale deployment.

In common case scenarios, the implementation budget ranges from $5,000 to $10,000 for a PoC. Costs can increase up to $50,000 for integrating, refining, and enhancing the PoC into a basic production system. For more complex implementations, such as those requiring multiple integrations and extended PoC functionality, implementation budgets start from $50,000 and scale based on scope. Major cost factors include:

  • The type of solution, from cheaper traffic monitoring software to pricier autonomous driving systems
  • The choice between custom and pre-trained AI models
  • AI model accuracy and performance requirements
  • Data management costs for setting up ETL pipelines, data repositories, etc.
  • The hosting infrastructure selected (on-premises, cloud, or hybrid environments)
  • Functional and non-functional requirements complexity

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