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Pallet C e nt ral • Janu a r y -Fe b r u a r y 2 0 25 23 our businesses, customers, and employees. By stepping back to evaluate how we use AI and other technologies, we can develop strategies that promote adoption while mitigating the ever-evolving risks in this space. The Use Of AI In Pallet Manufacturing In 2025 Depending on where your business is in its technology journey, the way your company utilizes AI may not be exactly the same as other manufacturers. Keeping that in mind, there are a few key applications that we're seeing across the board as we head into 2025. Generative AI: Anticipating Demand And Customer Needs Demand forecasting is one of the most complex parts of any production process, and for pallet manufacturers, demand can change on a dime. With generative AI—AI that can teach itself and continuously improve its own algorithms—demand forecasting is reaching new levels of accuracy. At rates that humans can barely comprehend, AI can incorporate weather events, geopolitical challenges, and market trends into the forecast. "Companies will have to get better at knowing their numbers. is data will drive decision making and control around costs associated with the pallet business," Mohammed Alakoli, PALLETCO. "Being resourceful and sourcing are key." Beyond demand forecasting, AI is helping manufacturers understand and serve their customers better. Knowing how each customer uses pallets and understanding the parameters required by different use cases will make it easier to get the right pallets to customers in as little time as possible. Advanced Automation Automation isn't a new concept, but it's getting better as the years go by. Instead of only automating repetitive tasks, manufacturers can now automate more complex, multi-step tasks. With AI, teaching an automation tool the intricacies of unique production requirements or even back-office accounting tasks is easier than ever. Automation is one of the best ways to achieve productivity gains, and with AI on board, efficiencies will only expand. "Automation and AI have advanced to the point where previously unsolved challenges can now be addressed with precision. For pallet repair companies, the ability to presort good pallets from those needing repair will dramatically lower costs," said Clay Wells, Universal Logic. "Our industry is doing some automation already. A great impact for the pallet recycling sector was the development "Even the most well- meaning employees can accidentally put confiden al informa on into AI tools, exposing that informa on to hackers and poten ally pu ng sensi ve informa on in the wrong hands."

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