How SteerAI is Reshaping Logistics with AI and Automation

By Ryan Harmon

The logistics industry is on the brink of a technological revolution, with automation and artificial intelligence (AI) reshaping how goods move across the supply chain. At the forefront of this innovation in the UAE is SteerAI, a company that is planning to leverage cutting-edge AI solutions to enhance efficiency, scalability, and cost-effectiveness in logistics operations.

Leading this charge is Michael Sonderby, CEO of SteerAI, who brings a wealth of experience from his tenure at Boston Consulting Group (BCG), where he spearheaded digital ventures and logistics innovations. His journey from launching digital businesses, including a virtual freight forwarder for Maersk, to working on AI-driven autonomous systems at the Technology Innovation Institute (TII) is laying the foundation for what SteerAI wants to evolve into.

In an exclusive interview with Logistics Middle East, Sonderby delves into the commercialisation of AI-powered autonomy, the advantages of launching in the Middle East, and how SteerAI’s innovations are set to redefine the logistics landscape.

The road to commercialisation

Bringing autonomous logistics solutions to market is a long-term endeavour, requiring extensive research, development, and testing. While the vision for SteerAI is ambitious, Sonderby acknowledges that commercialisation will take time. “This is along-term project,” he states.

Despite the lengthy development cycle, SteerAI has been steadily advancing its technology, running multiple proof-of-concept (POC) trials with customers to refine its product. Sonderby highlights that these ongoing POCs are providing invaluable feedback, helping the company fine-tune its AI-powered solutions before large-scale deployment.

“We have spent quite a bit of time developing this. It is not just something we’re coming up with now. We’ve had several years to build it,” he says. “We have several ongoing POCs, which are live with customers and giving us, of course, the feedback developing n the products, and putting us in a good position to industrialise it and launch it in the near future.”

However, he makes it clear that while the technology is advancing, bringing fully autonomous logistics solutions to market is not a quick process. “This is not a two, three months endeavour. This takes quite a bit of time to get to the market,” he explains.

Why autonomy in logistics?

For Sonderby, the case for automation is clear: logistics is a scale-driven industry, and autonomy is a powerful tool to enhance operational efficiency.

“Look, there’s lots of reasons for it. I think the main one is the growth of the logistics sector, which is still growing by double-digit numbers,” he explains. “And the foundation of all big logistics players is scale. So, the more scale you have, the lower the unit cost, and, of course, the more financially viable the whole system then works, and the more profitable it becomes.”

Sonderby highlights that autonomous solutions are not just about vehicles—they also encompass intelligent warehousing systems, automation software, and AI-driven decision-making, all of which contribute to greater efficiency and profitability.

“Autonomy, be it for vehicles, warehousing systems, or whatever it might be, is essentially a means to do exactly that,” he says. “I think one of the best examples is Amazon and the way that they have been able to drive scaling and lower costs. Autonomous warehouses are a key part of this. Autonomous vehicles are also key.”

The push toward autonomous logistics solutions is particularly relevant for the Middle East as the region continues to expand its logistics infrastructure and position itself as a global trade hub. By integrating AI-driven automation, companies operating in ports, warehouses, and supply chain hubs can significantly enhance productivity and reduce operational bottlenecks.

“That’s why this is a key technology that enables the ecosystem to thrive and become more viable, which becomes a competitive advantage,” Sonderby explains. “Because, of course, it’s expensive to acquire. This means that the big players with the means to invest in this type of technology can continuously scale, making it harder for others to come in and be competitive at the price point.”

Regulatory landscape and geo-fenced operations

One of the biggest concerns surrounding autonomous logistics is regulatory compliance—particularly for autonomous vehicles operating in public spaces. However, SteerAI has strategically positioned itself to avoid many of these challenges by focusing on geo-fenced environments, where autonomy can be deployed with fewer legal barriers.

“We operate in geo-fenced spaces, which means that we are not privy to all the challenges of road vehicles,” Sonderby explains. “So, there are some areas within autonomous vehicles; if you’re looking at point-to-point transportation with a truck, there would be some regulations included. This is not currently something we’re focusing on.”

By targeting controlled environments such as ports, warehouses, and logistics hubs, SteerAI sidesteps many of the complex regulatory hurdles associated with deploying fully autonomous vehicles on public roads. Sonderby emphasises that by limiting operations to confined spaces, SteerAI can ensure a safer, more predictable environment for its AI-driven systems to function optimally. “For logistics, we’re very much in the confined space where the variables are a lot more controllable, and we can build a system which is, of course, safe,” he adds. “For defense we operate in open terrain that is both mapped and unmapped.”

The data factor

Data plays a crucial role in optimising autonomous logistics solutions, and SteerAI is leveraging vast amounts of operational data to enhance the performance and reliability of its systems. However, unlike some AI-driven companies that aim to build standalone data businesses, SteerAI’s focus is on improving operational efficiency for its clients rather than monetising data directly.

By continuously collecting and analysing data, SteerAI enhances automation, improves decision-making processes, and refines the functionality of its AI-powered solutions. However, Sonderby points out that the clients ultimately own much of this data, as SteerAI’s technology integrates with existing operating systems such as terminal operating systems (TOS) and warehouse management systems (WMS).

“That means that we begin to collect a lot of data on the operations of the business. That data can, over time, be transferred back to the client,” he says. “Very often, you’ll find that we integrate into an operating system, terminal operating system, or warehouse operating system, so they will be collecting that almost automatically.”

Rather than trying to build a separate data business, SteerAI sees its role as an enabler of efficiency, using AI-driven insights to help logistics companies optimise vehicle usage, improve warehouse workflows, and enhance predictive decision-making.

“What we can, of course, do is we can improve the operations,” Sonderby explains. “We can improve how you utilise your vehicles, when you utilise them, and all the other elements that make our business more efficient.”

Cost and market viability

One of the biggest barriers to adopting autonomous logistics solutions is cost. Many companies hesitate to invest in cutting-edge AI and automation technologies due to concerns about upfront expenses and return on investment. However, SteerAI is focused on ensuring that its solutions are not just technologically advanced but also cost-effective for businesses looking to optimise their operations.

“We’re building a company that’s going to be competitive globally, and any company that wants to then buy this needs to look at this from a cost-benefit perspective,” Sonderby states.

While automation can reduce long-term labour costs in some regions, the Middle East presents a unique challenge, as labour costs are relatively lower than in Western markets. Sonderby highlights an example from port operations, where automated cleaning systems can significantly improve overall efficiency by reducing operational disruptions.

“What we can see is that if you improve the quality of certain operations, say cleaning, you can actually improve the overall efficiency of, for example, a port,” he explains. “So, if I make yard sweepers autonomous, we clean the yards a lot better, and there’s a much more efficient operation that’s running as a result.”

This indirect benefit—enhancing overall operational efficiency rather than replacing human labour—is a key value proposition for SteerAI’s technology.

“There is a direct benefit. If you do it at the right scale, over enough time, in higher-cost labour regions, you can start to do something useful with autonomy,” Sonderby adds.

Hardware vs software

The debate between hardware and software dominance in autonomous logistics is ongoing, with many companies attempting to manufacture both. However, SteerAI has strategically chosen to focus on AI software and hardware integration rather than vehicle production. Sonderby emphasises that producing vehicles in-house would not be viable for scaling the business.

“It is adding a completely new business to the business,” he states. “By producing vehicles and then adding autonomy as part of that potential solution. Firstly, it’s very expensive to do that. Secondly, it’s already a very competitive space. And finally, I just don’t see it as being a viable way to scale the business.”

Instead of manufacturing vehicles, SteerAI collaborates with OEMs(original equipment manufacturers) to integrate its AI-powered autonomy solutions into existing logistics infrastructure. Sonderby believes this approach is not only more cost-efficient but also ensures compatibility with industry leaders who are already investing in logistics hardware.

“We prefer to work with partners who benefit from our technologies, because our solutions are very specialised,” he explains. “I think we’re very complementary to a lot of OEMs, and fortunately, they see things in the same light.”

By partnering with industry leaders, SteerAI can focus on its core strength—developing AI-driven automation technologies—while leveraging established manufacturers for vehicle production. This approach allows the company to rapidly scale its solutions across different logistics operations without the significant capital investment required for manufacturing.

Middle East as a launchpad

While autonomous logistics solutions have global applications, SteerAI has chosen the Middle East as its core market for initial deployment. The region’s rapidly growing logistics sector, commitment to digital transformation, and investment in smart infrastructure make it the ideal environment for AI-driven automation.

“No is the simple answer. We need to focus on the Middle East as our core market,” Sonderby states when asked whether SteerAI would expand globally before establishing itself in the region. “We’re doing that for several reasons. First of all, I think the core part of our proposition to our customers is that we are a local player, which means that we can support them more effectively in the short term.”

A major advantage for SteerAI is its proximity to key logistics hubs and clients in the Middle East. Sonderby highlights that businesses value having a local partner who can provide real-time support and ensure the smooth implementation of autonomous solutions.

“This is one of the reasons why they’re working with us on the POC, is because we have a team which is, if not around the corner, then around the block, at least helping them in solving some of the challenges that we need to figure out in order to make sure that we have the right solution that they can deploy at scale,” he explains.

“A lot of the customers we’re working with now have global operations, and if they don’t have them, they want them,” Sonderby says. “So, for us to be able to start here and get that right, I think it allows us for much more focus, and it also provides a competitive advantage that we are a local player, that we can then basically deploy with them and then scale globally.”

While SteerAI is not aggressively pursuing international markets in the immediate term, global expansion is firmly on the roadmap. Sonderby envisions a phased approach—solidifying the company’s presence in the Middle East, then scaling operations internationally in the mid-to-long term.

“If your question is short-term, I’d say no. In the mid-term, probably, and then longer term, yes,” he concludes.

Key challenges ahead

While autonomous logistics technology is advancing rapidly, the journey toward widespread adoption is not without challenges. For SteerAI, staying ahead requires continuous technological evolution, cost optimisation, and ensuring seamless integration with existing logistics infrastructure.

“I think the key challenge for us, like the problem that I’d really like to solve, is not staying on top of technology development,” Sonderby explains. “Because I think that is advancing, AI is the biggest part of that.”

AI is the driving force behind SteerAI’s automation solutions, but Sonderby highlights that AI is evolving at an unprecedented pace, making it crucial to keep up with developments in machine learning, predictive analytics, and sensor technology.

Beyond AI advancements, cost remains a critical factor in accelerating adoption. Sonderby identifies reducing AI kit development costs and improving deployment timelines as the two biggest commercial challenges facing SteerAI today.

“What we really want to solve very quickly is the development times and then the overall cost of the AI kit itself,” he states. “Those are the two elements that are going to give us the biggest commercial impact in the short term.”

The logistics industry operates on tight margins, and businesses considering autonomous solutions need clear cost-benefit justifications before making large-scale investments. By reducing costs and streamlining implementation, SteerAI aims to make its AI-driven technology more accessible and appealing to logistics operators.

Despite these challenges, Sonderby remains optimistic that advancements in AI, cost reductions, and strategic partnerships will enable SteerAI to scale efficiently. The company is actively working on enhancing its product offerings, refining its AI models, and engaging with key logistics players to ensure long-term success.

This story originally appeared in Logistics Middle East.

Read it here: www.logisticsmiddleeast.com/interviews/how-steerai-is-reshaping-logistics-with-ai-and-automation