Navigating to the future: Microsoft on the digital horizon of the shipping industry

The shipping industry is at a crossroads of technological innovation and strategic realignment. In this process, Microsoft identifies a key role for AI, data and automation to make shipping companies more agile, sustainable and customer-focused. 

During the Sailing into the Future event in Athens, Simon Waelchli, Industry Advisor at Microsoft, took the audience on a journey into the future of the shipping industry. His session offered a realistic yet inspiring view of how technology, especially AI, will fundamentally change the industry: it will not only optimize operational processes, but also enable new business models and customer value. Whereas Harry Kambanis emphasized the role of AI within ERP, Simon focused on the broader strategic and operational impact of digitalization.

Dream to reality: the future of the shipping industry 

Simon started his session with a nod to science fiction, but quickly brought the audience back to a realistic picture of the future. He outlined a world in which: 

• Autonomous ships sail in green corridors, 

• Smart ports operate with drones and robotic cranes, 

• Digital twins provide real-time insight into the status of ships, 

• And AI-systems help avoid icebergs in the Arctic Sea. 

He also mentions specific technologies such as autonomous partnerships, where ships and ports work together seamlessly, and smart ports with robotic cranes and drones that increase efficiency and safety. While some of these applications are still futuristic, Simon emphasized that many technologies are already under development or even in use; just not yet at scale.

Trends that are shaping the industry 

Simon named five key trends that shipping companies cannot ignore: 

1. Performance management: Fuel costs account for about 45% of operating costs. AI-driven optimizations of routes and maintenance offers direct savings.
   
   
2. Green shipping: Sustainability is no longer a choice but an obligation. New regulations (such as CSRD and IMO) force companies to be transparent and reduce emissions.
   
   
3. Remote & autonomous operations: The road to autonomous ships has begun. Many companies are now in the phase of digital assistance or remote control.
   
   
4. Value chain visibility: Customers are demanding real-time visibility into the location and status of their cargo. Standards such as eBL (electronic Bill of Lading) are crucial in this regard.
   
   
5. Fleet & commercial optimization: Think smart deployment of containers, predictive maintenance and dynamic pricing models.

In addition to the trends mentioned, Simon also highlights the challenges companies face in complying with new regulations. The importance of data for reporting and compliance with these regulations cannot be understated. Companies must prepare for stricter requirements and the need to be transparent in their operations.

AI as a horizontal force 

Simon emphasized that AI is not a niche technology, but a horizontal force that touches every aspect of the organization: from customer service to maintenance, from compliance to strategic planning. 

"AI is not a one-size-fits-all solution. It is a catalyst for change, provided you have the right processes, data and mindset." 

Microsoft invests $80 billion annually in AI, highlighting the exponential nature of AI development. Simon emphasizes the need for companies to step in now and take advantage of these investments: “It is crucial to understand that AI is not just a technological advancement, but a strategic imperative for future success.” 

Where do you start? 

Of course, if you want to opt in now, you also need to know how. That's why Simon offered practical tools for shipping companies looking to get started with AI: 

• Start with the value chain: Where are the biggest costs or wasted time? 

• Look at customer impact: How can you improve the customer experience with AI? 

• Think strategically: What new services or revenue models can you develop? 

He recommends clustering AI use cases according to the 3-horizon model. This model helps companies organize and prioritize their AI initiatives to create both short-term and long-term value: 

• Horizon 1: Integrate AI into existing processes (e.g., route optimization). 

• Horizon 2: Operationalize AI into products and services (e.g., predictive maintenance services).
  
  
• Horizon 3: AI as a basis for new business models (e.g. autonomous logistics networks).

Implementing AI successfully: 6 lessons 

Lastly, Simon shared six success factors for AI implementation: 

1. Be bold -> Think outside the box. 
2. Provide actionable data -> Don't wait for perfection, start with what you have. 
3. Create a business case -> Involve the business from the beginning. 
4. Start small, scale up quickly -> Prove value with a pilot, then expand. 
5. Improve processes -> Don't automate what doesn't work. 
6. Empower your organization -> Educate people, remove fear and create ownership. 
   

Conclusion

Simon Waelchli's session made it clear that the future of the maritime sector is not just about technology, but about vision, collaboration and action. AI offers huge opportunities; provided companies are willing to invest in data, people and change. 

Want to know how your organization can get started with AI in shipping? Get in contact with us and let's talk about the possibilities!