UPS Expands AI Across Logistics Network With Digital Twin and Agentic Control Tower

UPS has expanded its use of artificial intelligence across customer service, logistics operations, and international shipping, introducing a suite of new capabilities that include a digital twin of its global network, agentic control tower functions, and AI-powered customs services.

The company announced the initiatives on June 18, positioning them as part of a broader effort to simplify operations and improve visibility across its logistics network. UPS said it has spent more than three years deploying AI technologies across its business and is now scaling those efforts to support customers and internal operations.

"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," Carol B. Tomé, CEO of UPS, said in a statement.

UPS said AI and human support systems will handle more than 98% of customer service requests by the end of 2026 across digital and voice channels in more than 20 countries. The company is also introducing AI-powered shipment insights for customer support teams and a conversational AI experience through Happy Returns to simplify returns processing and reduce fraud.

The announcement builds on UPS's broader effort to embed AI into core logistics operations. Earlier this year, the company highlighted how AI and automation were helping improve network efficiency and reduce costs as part of its ongoing transformation strategy.

Digital Twin Expands Across Global Operations

A central element of the announcement is the expansion of UPS's digital twin, a virtual representation of its logistics network that now includes facilities, air operations, ground transportation, and package flows.

According to UPS, the digital twin updates every 10 minutes, allowing the company to monitor network performance and adjust operations in response to changing conditions. The company is also scaling proprietary planning tools that model potential disruptions using real-time inputs such as weather conditions, transportation delays, and volume forecasts.

UPS said these systems are designed to generate execution-ready plans before disruptions affect service.

The company is also deploying what it describes as agentic control tower capabilities that combine predictive models, operational data, and connected services to help customers identify and respond to disruptions across multi-carrier networks. The move reflects a broader trend toward agentic AI systems in supply chain operations, where software agents are increasingly being used to coordinate workflows and decision-making processes.

The focus on predictive visibility comes as logistics providers increasingly look beyond traditional shipment tracking toward systems that can anticipate operational issues and recommend actions before delays occur. Similar efforts are reshaping how transportation companies use operational data across their networks.

AI Targets Customs and Cross-Border Trade

UPS also announced several AI-powered tools aimed at simplifying international shipping and customs compliance.

These include AI-assisted brokerage services designed to help customers interpret customs requirements, enhanced product classification through UPS Export Assure, digital trade documentation through UPS Paperless Invoice, and more accurate landed-cost calculations at checkout.

The company said AI has also been integrated into its brokerage operations to accelerate customs clearance. UPS reported that 97% of its shipments clear customs on the first day of entry.

Michael Garcia, Vice President of Operations at Audien, said the company's logistics support helped it respond to changing trade requirements without disrupting operations.

"When trade rules changed, we needed to adjust fast without disrupting our customers," Garcia said. "UPS helped us take a realistic, end-to-end look at how our products move so we could stay compliant and protect service."

UPS generated $88.7 billion in revenue in 2025 and operates in more than 200 countries and territories. The company said AI, automation, and advanced analytics will continue to play a larger role in its Network of the Future initiative, with systems increasingly embedded across planning, routing, and execution functions.