UPS Tackles Package Theft with AI Technology

UPS, the shipping giant, is leveraging artificial intelligence (AI) to combat package theft by “porch pirates” and ensure consumers receive their orders.

The company employs a program developed by UPS Capital named DeliveryDefense. This program harnesses AI and machine learning to generate a delivery risk assessment based on two years of UPS delivery data, historical loss patterns, and address characteristics. It then produces a score that retailers can utilize to suggest the optimal delivery option, ensuring the package arrives at its intended destination.

“By proactively identifying and addressing potential shipping issues, DeliveryDefense data increases the confidence in a successful delivery,” Mark Robinson, president of UPS Capital, conveyed to FOX Business.

“Retailers can recommend alternative delivery options, such as UPS Store locations or other convenient Access Points, to optimize delivery outcomes.”

UPS Deploys AI to Thwart “Porch Pirates”

Package theft has become an escalating concern for consumers. A study by revealed that 49 million Americans experienced at least one package theft in the 12 months leading up to 2022.

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The median value of stolen items stood at $50, which, when considering incident rates and average losses, equated to $2.4 billion in stolen goods last year.

DeliveryDefense processes billions of data points from UPS’ historical delivery records to generate a “Delivery Confidence Score” on a scale from 1 to 1,000, indicating the likelihood of a successful delivery.

For addresses with low scores, merchants can advise consumers to either pick up the product in-store or have it delivered to a UPS Access Point, which might be situated in retail outlets or UPS Stores.

The tool is accessible to businesses of all sizes. It can be seamlessly integrated into a merchant’s order fulfillment system via an API. Alternatively, smaller customers have the option to use a web version of the tool.

Through the UPS My Choice program, consumers can receive text or email notifications regarding their package deliveries.

This tool empowers consumers to specify where they’d like their package delivered, be it their residence, an alternate location such as their workplace, a neighbor’s house, or a UPS Access Point. The company reports that over 100 million consumers utilize the UPS My Choice program.

With information from Fox Bussiness

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