Logistics growth driven by smart systems

As artificial intelligence moves from being an experimental tool to an essential component of everyday infrastructure across much of the global economy, in 2025, China's parcel delivery industry offered one of the clearest examples of how profoundly the technology can reshape a mature, labor-intensive sector.

The shift has been most visible in the physical architecture of logistics. Large sorting centers have become largely automated, unmanned warehouses have expanded steadily, and pilot programs involving driverless vehicles and drones have moved into regular operation in parts of the country. Cloud computing and large AI models have been embedded in demand forecasting, warehouse management, dispatching and route planning — changes that, taken together, have pushed delivery efficiency and reliability to levels rarely matched.

"The postal and parcel delivery sector has become increasingly technology-intensive during the 14th Five-Year Plan period (2021-2025)," said Zhao Chongjiu, head of the State Post Bureau of China. Electronic waybills and recyclable transit packaging are now standard, he noted, while the industry's combined transport efficiency, digital coordination and service coverage rank among the world's most advanced.

Last year, China processed nearly 199 billion parcels, a 13.7 percent increase from the year before, generating 1.5 trillion yuan ($216 billion) in revenue. On the peak day, more than 777 million packages moved through the network — more than 6,000 every second — placing extraordinary demands on a system that has increasingly turned to algorithms to keep pace.

These numbers have been enabled through the use of artificial intelligence, which has moved from pilot projects to the operational core of China's logistics network, influencing how parcels are sorted, routed, transported and delivered — and, increasingly, how human labor is deployed.

That shift was symbolized in December in Shenzhen, Guangdong province, when a local resident, Li Xiaojun, received an online order — an AI-enabled learning device — delivered to his neighborhood by an unmanned vehicle before being handed to a courier for the final steps. The package was China's 180 billionth parcel of the year. Its journey, largely invisible to its recipient, traced the contours of a system being steadily rewired by algorithms.