Name: How FedEx Uses AI to Drive Efficiency and Revenue
Uploaded: 2026-09-23T13:00:00Z
Duration: 2 min 17 s
Description: FedEx CIO and FedEx Dataworks President Vishal Talwar explains how the company uses artificial intelligence to drive operational efficiency and create new business models. He details specific AI applications that are streamlining air fleet operations, recovering lost revenue and providing customers with delivery certainty.

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FedEx CIO and FedEx Dataworks President Vishal Talwar explains how the company uses artificial intelligence to drive operational efficiency and create new business models. He details specific AI applications that are streamlining air fleet operations, recovering lost revenue and providing customers with delivery certainty. Photo: Andrew Kelly for The WSJ Leadership Institute

https://m.wsj.net/video/20260918/ae004bf1-f260-4382-b44d-15068930086a/1/hls/manifest-hd-wifi.m3u8

FedEx CIO and FedEx Dataworks President Vishal Talwar explains how the company uses artificial intelligence to drive operational efficiency and create new business models. He details specific AI applications that are streamlining air fleet operations, recovering lost revenue and providing customers with delivery certainty.

How FedEx Uses AI to Drive Efficiency and Revenue

We think of FedEx as, you know, the truck drives up and it puts a box on our doorstep and then it drives away. And what does AI have to do with any of that? So give us a couple of examples where you see transformational capability at FedEx out of this data.

Sure. And Rod spoke about two things, Alan. So he spoke about two pillars where we are operating. He spoke about efficiency, which everyone's going after, differentiation and how we serve our customers. The true transformative is the third pillar, which is how do we start to create new business models for FedEx through this process? And there's enough points on the board that we've put in the efficiency layer. So as an example, our most valuable asset is our air fleet. And we've cut down air fleet maintenance research time from 30 minutes to three minutes, and that's a 90% improvement. That just allows me to put an aircraft back in service that much faster. We've taken our, the parcel volume and package, which if you don't ship a standard package and there's a surcharge associated with that. We were leaking surcharge through our business every year because we couldn't keep up with tracking all the packages that were non-standard size if the information was not corrected. We've recovered about tens of millions of dollars of annual revenue as a result of that because now we are using AI to identify what those abnormal packages are that should ideally have had a surcharge. Raj started to speak about this differentiation that we are giving to our customers. The one thing our customers care most about is don't surprise us. They want certainty. And when you think in terms of what that means for operating a network our size, when something leaves 8,000 miles away and needs to be in another destination 48 hours or 36 hours from that, for us to be able to give you certainty in saying within two hours of window, we can put anything that you can pick up from China or Singapore or Asia or from US to put there, we can give you the certainty of within two hour window of when that thing will be.

The WSJ Leadership Institute Presents: Leaders. A new podcast series bringing you revealing conversations with top executives shaping business today. Hosted by Alan Murray, president of the WSJ Leadership Institute, the series goes beyond headlines to explore how leadership really works in times of upheaval, transformation, and uncertainty. Our first episode was released Monday, Sept. 22, at 5:00 a.m. ET, with new episodes every other Monday.