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Editor’s note: This story is the third in a three-part series about how parcel delivery providers are using AI to strengthen their operations and service performance. Read the previous installment here.

Alternative parcel carriers are embracing artificial intelligence to streamline operations, improve the customer experience and enable more service offerings to stand out in a competitive market.

AI use has been gaining momentum in the industry for years, with FedEx and UPS among the leaders in adopting the technology to improve operational execution and enhance customer visibility.

But AI-powered applications are advancing quickly and don't have a hefty price barrier for access, which is helping alternative parcel carriers in their efforts to close the gap with national carriers, Jeremy Tancredi, a partner in West Monroe's operations excellence practice, told Supply Chain Dive. These companies have grown quickly in recent years as FedEx and UPS shift away from lower-yielding delivery volume.