Shipping giant UPS is using artificial intelligence (AI) to crack down on package theft by “porch pirates” and help consumers get what they order.
The company uses a program developed by UPS Capital called Delivery Defense. This program uses AI and machine learning to generate a delivery risk rating based on two years of his UPS UPS.
Shipping information, past loss patterns, and address characteristics.
It then generates a score that retailers can use to recommend the best shipping option to ensure the package reaches its intended destination.
“Delivery Defense data increases our confidence in delivery success by proactively identifying and addressing potential delivery issues,” Mark Robinson, president of UPS Capital, told FOX Business in a statement. he said.
“Retailers can recommend alternative delivery options, such as UPS store locations or other convenient access points, to optimize delivery outcomes.”
Package theft is a serious problem for consumers, according to one study. security.org As of 2022, 49 million Americans had at least one package stolen in the past 12 months.
The median value of stolen merchandise is $50, and based on incident rates and average losses, stolen merchandise totaled $2.4 billion last year.
Delivery Defense uses billions of data points from UPS’s historical delivery data to generate a “Delivery Confidence Score” on a scale of 1 to 1,000 that indicates the likelihood of a successful delivery.
If a particular address has a low score, the merchant can recommend that the consumer pick up the item in-store or have the item delivered to a UPS access point located at a retail store or UPS Store.
The tool is available to businesses of all sizes and can be integrated into a merchant’s order processing system using an API, or a web version of the tool is available for smaller customers.
Consumers can receive text or email alerts about package deliveries through the UPS My Choice program.
This tool allows consumers to provide instructions about where they would like their package delivered: at home or at another location, such as an office, a neighbor’s or relative’s home, or a UPS access point.
The company says more than 100 million consumers use the UPS My Choice program.