Two top dogs in the heavy-equipment industry have zeroed in on AI-driven tech companies, further solidifying the AI revolution’s arrival.
Volvo Group Venture Capital, the investment arm of commercial truck manufacturer Volvo Group, invested an undisclosed amount in Austin, Texas-based trucking company aifleet, according to a Sept. 10 Volvo release.
Founded in 2020, aifleet uses AI-powered algorithms to optimize route planning and scheduling, increasing truck utilization and driver satisfaction.
“Aifleet is addressing inefficiencies in the trucking industry in a differentiated manner, building technology and proving out its capabilities through their own fleet operations,” Joe Darcy, investment manager at Volvo Group Venture Capital, stated in the release.
Truck utilization, which measures the effectiveness of a fleet by tracking freight movement, mileage and use of a vehicle’s capacity relative to revenue generated, has been declining since 2018, aifleet Chief Executive Marc El Khoury stated in the release. With its technology, aifleet’s driver utilization rate is 40% higher than the industry average, according to the release.
AI could benefit the trucking industry in various ways beyond utilization, including enhanced safety, maintenance practices and fuel efficiency, according to a report by Noregon, a commercial vehicle data and solutions provider. AI could also help trucking companies make smarter purchases, Chris Grivas, president of Chadds Ford, Pa.-based CAG Truck Capital, told Equipment Finance News.
“Imagine if companies could leverage AI to make a decision on what truck to buy, which one is best for their application and their region,” he said.
Grivas recalled how faulty engines made by Navistar in the early 2010s created a slew of challenges, saying AI could have saved companies and lenders money and grief through data processing and risk assessment.
Kubota buys Bloomfield Robotics
Agriculture and construction equipment manufacturer Kubota acquired Pittsburgh-based Bloomfield Robotics, a tech startup that uses AI and advanced imaging to track the health and performance of crops, according to a Sept. 11 release. Terms of the deal were not disclosed.
“The vision for Bloomfield from founding was to provide continuous plant-level knowledge to every specialty crop farmer around the world, and this acquisition brings that vision forward at a scale and speed we could not have imagined,” Bloomfield Robotics Chief Executive Mark DeSantis stated in the release.
Bloomfield’s advanced camera and data processing systems allow farmers to assess crops in real time and make more accurate projections and yield estimates, according to the release.
In 2023, Kubota unveiled its integrated agricultural AI system, which uses computer vision to assess crops and support sprayer adjustments.
The market for AI in industrial machinery is expected to grow 31.4% to nearly $2 billion in 2024 from $1.5 billion in 2023, according to the Business Research Company, a market research firm. It could grow 28.7% annually to $5.5 billion by 2028.
