Artificial Intelligence in Logistics: How to Ensure Legal Compliance When Implementing AI Solutions

Artificial intelligence (AI) is rapidly transforming the logistics sector—from warehouse automation to supply chain optimization. Companies that adopt AI technologies can reduce costs and increase efficiency, but they also face a range of legal, regulatory, and reputational risks.

To scale sustainably, logistics businesses must assess not only the technological benefits of AI but also the associated risks related to data protection, employee rights, and EU regulatory compliance—particularly following the 2024 enforcement of the EU Artificial Intelligence Act (AI Act).

AI is already being applied in logistics for:

• sorting and warehouse management,
• transportation planning and optimization,
• supply chain coordination.

According to “Top AI Trends for the Logistics Industry 2025” (API4AI), these technologies help automate operations and reduce human error. However, increased reliance on AI introduces new challenges:

• risks of systemic technological disruptions,
• employment law implications (changing job roles, responsibilities, training needs),
• internal communication gaps.

📌 It is essential to develop internal policies that address changes in the workplace, inform employees, and provide for upskilling. Businesses should also assess potential social impact and engage relevant stakeholders early on.

As outlined in “8 Ways Artificial Intelligence Is Impacting Logistics in 2025” (Atech Logistics), AI helps companies:

• forecast demand more accurately,
• optimize routes,
• reduce CO2 emissions,
• allocate resources more effectively.

However, such models rely on processing large amounts of data—some of it sensitive, such as behavioral or personal information. This raises key legal risks.

Key data protection requirements under the GDPR:

✅ Lawfulness – Are data collected on a valid legal basis (consent, contract, legitimate interest)?
✅ Transparency – Are data subjects (employees, clients, partners) properly informed?
✅ Purpose limitation – Are data used only for clearly defined and lawful purposes?
✅ DPIA (Data Protection Impact Assessment) – Mandatory if AI handles large-scale or sensitive data.

📈 A DPIA is not just a formal requirement. It is a practical tool to proactively identify legal risks and avoid compliance failures and reputational damage.

Since 2024, the EU Artificial Intelligence Act applies to systems used in:

• autonomous transport,
• employee monitoring or evaluation,
• high-impact logistics decision-making.

Obligations include:

• ✩ identifying the AI system’s risk category,
• ✩ conducting pre-implementation conformity assessments (ex ante),
• ✩ registering certain systems in the EU AI database,
• ✩ ensuring decision-making transparency,
• ✩ establishing human oversight mechanisms.

📆 Source: EU Law Department of the Lithuanian Parliament, 2024

✅ Appoint responsible personnel or units for AI compliance with expertise in law, technology, and risk management.
✅ Conduct AI audits – map system purposes, data use, and alignment with GDPR and AI Act.
✅ Update contracts with AI vendors – include data ownership, liability, and incident response.
✅ Implement monitoring systems – regularly assess AI performance and adapt to regulatory updates.

Leading logistics firms such as Girteka have implemented AI for supply chain planning and route optimization. However, many companies still face:

• fragmented implementation strategies,
• shortage of qualified tech/legal professionals,
• lack of organization-wide alignment.

📉 Without clear strategy and governance, risks emerge:

• GDPR violations,
• unlawful automated decision-making (e.g., GDPR Art. 22),
• weak contract safeguards with third-party providers.

AI can offer logistics companies a real competitive edge—but only if implemented responsibly. A clear legal foundation is essential.

📩 Want to assess your compliance with the GDPR and AI Act? Contact our legal team: info@prevence.legal
+370 664 42822