The Chinese internet retailing giant Alibaba is facing exploding delivery volumes in the future, and plans to go all in on deploying artificial intelligence (AI) technology in its courier network to cope.  That means putting a million smart logistics vehicles onto the street.

The industry is bracing for a huge increase from the current 100 million deliveries per day.

"In the next 5 to 8 years, the number of parcels in China may surge to 1 billion per day," said Alibaba Group founder and executive chairman Jack Ma.  "That will bring with it huge challenges to every logistics company.  The only solution to this challenge is to invest in cutting-edge technology and cultivate young talent, and all of us need to work together collaboratively."

Chinese automakers SAIC Motor Corp and Dongfeng Motor Corp will team up on the new smart logistics vehicle for the Cainiao Network, the logistics arm of Alibaba.  Prototypes introduced in Shenzhen and Chengdu as part of a trial program have already reduced travel distance and air travel rates.  Cainiao estimates industry-wide savings of up to US$1.6 Billion annually after all of the vehicles are deployed.