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1 8 Pallet C e nt ral • July -Aug u st 2 0 26 AI Smarter Risk How AI Is Changing The Pallet Industry BY BRINT WALKER, COMMERCIAL INSURANCE ADVISOR I n the pallet industry, risk doesn't wait—and it rarely announces itself. A single forklift incident, fire event, or equipment failure can disrupt operations and impact profitability within minutes. For executives, the challenge isn't just managing risk. It's staying ahead of it. at's where artificial intelligence (AI) is beginning to change the equation. e question is no longer whether AI can help in risk analysis. It's how much of an advantage it can provide. Seeing Risk More Clearly At its core, AI in risk analysis means using technology to review large amounts of data and uncover patterns that are easy to miss. In a pallet operation, that data might include safety reports, maintenance records, production output, and claims history. According to industry data, workplace injuries and fire-related losses remain among the most costly claims in wood product manufacturing, making early risk detection critical. Instead of relying only on past experience or basic reports, AI looks across all of it, quickly and continuously. is allows companies to shift from reacting to problems to preventing them. "Most companies aren't short on data; they're short on insight," a senior risk advisor in the wood products sector noted. "AI helps turn years of information into clear, actionable decisions." Identifying Problems Before They Happen One of AI's biggest strengths is pattern recognition. It can spot trends that signal risk long before a major issue occurs. In pallet operations, that might look like this: • Injuries happening more often during certain shifts • Equipment failures tied to specific usage levels • Fire risks linked to dust buildup or storage conditions • Delivery issues connected to certain routes or schedules How beer data is helping pallet companies prevent losses, improve outcomes, and turn risk into a competitive advantage

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