Packsize International is attempting to make the case for AI use in packaging on environmental grounds.
European and state regulations are pushing the environmental costs of shipping onto producers. This is sorely needed, as shipping accounts for 10% of global pollution — and it's rising. The scope of legislation should cause packaging to shrink in volume so vehicles aren't burning fuel to move empty space. These regulations also push for packaging materials to be more recyclable.
This trend, called extended producer responsibility, also has the benefit of reducing shipping costs by being more efficient with space. Packsize cited a McKinsey study that found one company was able to reduce emissions from packaging by almost half and reduce costs just by swapping a return package for a collapsible one. Such improvements require companies to rethink the way they box their products.
Packsize's key offering is on-demand, automated packaging for manufacturers. With its system, boxes are cut to the specific product as it's coming off the assembly line. Packsize says its Packnet Cube cloud-based software reduces package sizes by 40%, uses 26% less cardboard, and lowers associated transportation costs. In this mission, Packsize suggests artificial intelligence can be useful in "providing deep insights into packaging design and identifying opportunities to reduce shipping inefficiencies."
Large language models driving the AI trend are eating up a lot of energy. That energy production produces emissions that can pollute the atmosphere and exacerbate extreme weather patterns. If products such as the Packnet Cube are the AI Packsize is talking about, there will be a need to balance the environmental costs of running them with the benefits of reducing packaging for clients. At the very least, clients will need to know that computing footprint to factor it into their own sustainability goals.
As for consumers, the monetary costs are largely hidden. If a company saves money on its shipping, it's a coin toss whether those savings are passed on or pocketed. However, consumers already feel some of the effects of the shifting climate from wasteful AI use and wasteful packaging. Keeping both low should be a priority.
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