XPO has leveraged technology, and specifically AI (Artificial Intelligence), to improve almost every aspect of its business, from operations to sales.
The LTL freight market has faced a prolonged recession. A combination of weak demand, low rates, and increasing operating costs led to many carriers going out of business in 2025. Many of the key drivers of operational costs are factors beyond the direct control of carriers. Last fall, the American Transportation Research Institute (ATRI) reported that carrier executives are concerned about the rising cost of fuel, labor, and insurance. Regulatory requirements can also be a drain on carrier profitability. While most carriers openly support the reduction of greenhouse gas emissions, meeting the strict deadline set by the Environmental Protection Agency (EPA) is costly, if not impossible, in some cases.
Several LTL carriers have stated that they are prioritizing operational efficiency, rigorous cost management, and disciplined pricing strategies. However, XPO has taken a strategic approach to achieving these and other business goals. The company has leveraged technology, and specifically AI (Artificial Intelligence), to improve almost every aspect of its business, from operations to sales. With a proprietary tech stack, XPO is achieving quantifiable improvements as the company continues to explore new uses for AI.
Smarter Decisions Improve Asset Utilization and Reduce Empty Miles
Ultimately, XPO is striving to build denser, longer-haul loads that can move farther through the network without being broken down and rebuilt to improve labor productivity and service quality. Late in 2025, XPO launched an in-house P & D route optimization solution.
“Our focus is on providing better route and stop sequencing to reduce wasted time for our local drivers,” said Goheen. “Early results are encouraging and have shown improvements in stops per hour and a reduction in total miles driven. We plan to expand this solution to more locations and ultimately free up capacity to support growth when overall market conditions improve.”
Using Technology to Benefit, Not Replace, Employees
The company is using its AI technology to match labor as accurately as possible to demand, using an in-house labor planning and productivity platform, XPO Smart. Goheen said that the system is powered by several AI and optimization models that forecast demand for both the short and long-term and is used to make staffing decisions at the service center and shift level down to the hour.
“By matching labor to demand on a daily and hourly basis, we can maintain our high service standards while remaining fully prepared for the upcycle,” she said. “This is reflected in our most recent earnings call, where we shared that AI initiatives contributed to a year-over-year productivity improvement of 2.5 points, even as shipments declined.”
XPO is exploring ways that AI technology can support, rather than replace, its employees. The technology team works directly with human resources to find opportunities. “One way to visualize this is on the dock. Imagine dockworkers receiving AI-assisted, step-by-step instructions directly on their handheld devices,” said Goheen. “They know which freight to handle next and the exact location to stage or load it based on AI-powered load plans.”
Building on that foundation, XPO developed a proprietary Generative AI model trained on an existing operations process. “The model can scan a trailer load photo, perform a real-time quality check, and deliver direct coaching to employees on their handheld with specific instructions on which, if any, steps were missed,” said Goheen.
Ultimately, she explained, employees perform optimal next best action in a fast-moving environment.
Sellers Spend More Time with Customers and Less Time Chasing Leads
With demand still less than robust, the sales and marketing teams must make the best decisions to drive profitable growth. XPO is assisting its sales force with AI to focus on the highest impact work. That includes ensuring they are contacting the right accounts, having the right conversations, and selling the right solutions. She explained, “We are actively building and embedding AI seller assistants directly within our Salesforce CRM platform, removing the need for sellers to navigate multiple systems and equipping them with the critical information and insights they need to be successful.”
XPO uses an in-house pricing software to streamline and automate the pricing workflow, starting with the Request for Proposal (RFP) process. “This allows our teams to run intelligent ‘what if’ scenarios, often across large volumes of shipment history, to evaluate how rates and accessorial charges across lanes will impact profitability,” she said. “A key capability embedded in this application is the AI-empowered proprietary cost model that gives us highly accurate predictions for future costs to operate.”
Because the pricing environment in the LTL industry changes rapidly, XPO also uses a dynamic pricing platform. “This gives us the ability to match pricing to capacity and demand in a way that benefits both the customer and our overall profitability.”
While much of its technology has happened behind the scenes, over the past year, XPO has accelerated its digital transformation. “We are investing heavily in customer-facing capabilities.” According to Goheen, “We want to make XPO easier to do business with.”
While customers have historically been able to self-service many core LTL shipping tasks, including getting rate quotes, scheduling a shipment, creating Bills of Lading, tracking shipments, as well as viewing and paying invoices, XPO is now testing a system that will give customers their own operational performance.
“We have been piloting this with several major customers who have historically relied almost exclusively on their TMS platforms,” said Goheen.
A Digital Transformation Delivers Results
XPO’s advanced technology infrastructure is intended to help the company innovate and iterate quickly. “While some transportation providers rely on legacy mainframe systems, our operations are powered by a fully cloud-based technology stack.” This allows the company to integrate new technologies quickly, including proprietary AI solutions.
“Importantly, the vast majority of this work is done in-house by our technology team, which includes more than two dozen AI and data science professionals,” said Goheen. “This homegrown technology enhances and optimizes our existing workflows, helping us operate more efficiently while delivering exceptional service for our customers.”
