Verified
FedEx
Scaling- Logistics
- 450,000+ employees
- Atlas data platform, built in-house
- 200+ AI use cases (Feb 2026)
- Fortune AIQ 50 (2025)
FedEx deploys AI through Atlas, an enterprise data platform it built that supported more than 200 AI use cases in Feb 2026, under Chief Digital and Information Officer Vishal Talwar, who also runs the FedEx Dataworks data business. FedEx builds its own models for forecasting, routing, delivery dates and predictive maintenance, is moving robotic trailer loading and unloading from pilots into hubs with Dexterity and Berkshire Grey, and targets AI in more than half of its core operational workflows by 2028.
fedex.comTheir approach to AI
- The platform
- Atlas, the enterprise data platform FedEx built, held a substantial portion of company data and supported more than 200 AI use cases in Feb 2026, and FedEx plans to move all of its data onto Atlas by the end of 2027.
- The models
- FedEx builds its own predictive models for forecasting, delivery dates and maintenance, uses generative AI in its Customs AI chatbot, and buys physical AI for trailers from Dexterity and Berkshire Grey; FedEx has not named a large language model provider.
- The reach
- FedEx built a persona-based AI fluency program for about 300,000 employees, with advanced training for all technology specialists (Feb 2026); FedEx has published no count of weekly AI users.
- The catch
- FedEx has put figures on two AI returns, $10 million or more a year from predictive maintenance and tens of millions of dollars of recovered surcharge revenue, while then-CFO John Dietrich said in Feb 2026 that the 2029 targets assume no material gains from robotic automation.
Snapshot
- Employees
- 450,000+
- Federal Express had about 452,000 at May 31, 2026; FedEx Freight was spun off on Jun 1, 2026
- Technology budget
- Not disclosed
- Capital spending of about $3.9B planned for calendar 2026, $0.4B more than 2025, driven mainly by Network 2.0 and facilities
- AI/ML headcount
- Not disclosed
- FedEx Dataworks, the data and AI products unit, had about 200 employees (May 2026)
- Who owns AI
- Vishal Talwar, CDIO
- Also president of FedEx Dataworks since Aug 2025; member of the eight-person Executive Committee
- Platform
- Atlas, built in-house
- Enterprise data platform; all FedEx data to move onto it by the end of 2027
- Models
- Proprietary ML, generative AI
- Generative AI in Customs AI since Aug 2025; model provider not named
- Reach
- AI fluency program for ~300,000
- Feb 2026; the AI Education and Literacy program began in Dec 2025 with Accenture
- Use cases
- 200+
- Supported by Atlas (Feb 2026); target of AI in 50%+ of core workflows by 2028
Key findings
FedEx said at its Feb 12, 2026 Investor Day that Atlas, its enterprise data platform, supports more than 200 AI use cases and will hold all FedEx data by the end of 2027, and that AI will be built into more than 50% of core operational workflows by 2028.
Vishal Talwar, who joined FedEx from Accenture on Aug 15, 2025 as Chief Digital and Information Officer and president of FedEx Dataworks, owns FedEx's data, technology, cybersecurity and AI strategy and sits on the eight-person Executive Committee.
FedEx has put figures on two AI returns: predictive maintenance on its MOBIUS platform, which monitors 18,000 assets across 41 surface facilities, saves $10 million or more a year (Feb 2026), and Vishal Talwar said in Sep 2026 that AI recovers tens of millions of dollars of annual revenue by catching non-standard packages that should have carried a surcharge.
FedEx is moving robotic trailer handling from pilots into hubs: Dexterity's Mech loaders reached production scale at the Hagerstown, Maryland hub in Jul 2026, Berkshire Grey's Scoop unloaders were due in operation later in 2026, and Kawal Preet said in Feb 2026 that FedEx will deploy the technology across thousands of dock doors in more than 20 U.S. hubs over the next few years.
FedEx Dataworks sells FedEx network data through partners, including a Retail Momentum Index with Dun & Bradstreet (Feb 2026), supplier intelligence inside ServiceNow procurement workflows (May 2026) and financing signals for Stripe Capital planned for early 2027, though Raj Subramaniam said in Feb 2026 that the 2029 targets include minimal Dataworks revenue.
Where FedEx sits
- Stage
- Scaling
FedEx sits at Scaling: its Atlas enterprise data platform supported more than 200 AI use cases in Feb 2026, Executive Committee member Vishal Talwar owns AI as Chief Digital and Information Officer and reports returns such as the $10 million or more a year saved by predictive maintenance, and an AI literacy program covers all team members. FedEx has disclosed no generative AI assistant open to most employees, the weakest part of its Scaling case, and falls short of Embedded because it publishes no figure on weekly AI use, AI in more than half of core operational workflows is a 2028 target, robotic trailer loading reached its first production hub only in Jul 2026, and the 2029 financial targets assume no material automation gains.
How the stages are defined - Ownership
- Vishal Talwar, EVP and Chief Digital and Information Officer, on the Executive Committee
- Platform
- Hybrid: Atlas data platform built in-house; robotics and SaaS bought
- Models
- Proprietary predictive models; generative AI provider not named
- Hosting
- Cloud-first, mainframes largely retired; Azure behind Surround at its 2020 launch; Google Cloud for the Army project (2026); Atlas cloud not named
- Reach
- AI fluency program for about 300,000 employees (Feb 2026)
How they deploy
Simplify, digitize, then embed AI
Vishal Talwar told investors in Feb 2026 that FedEx accumulated about 7,500 applications under its former operate-independently model and that AI cannot be scaled on fragmented processes. FedEx's sequence is to standardize the work under One FedEx, digitize the workflow, and then embed AI in the decision loop; FedEx has cut its application footprint by 30% and targets a 50% cut by 2029, and has merged nine sort processes into one.
Efficiency, differentiation and new revenue
FedEx groups its AI work into three areas, Vishal Talwar said in Feb 2026: taking structural cost out of enterprise and operational workflows, improving service and recovery in the core network, and creating new digital revenue through FedEx Dataworks. Raj Subramaniam called digital intelligence a force multiplier at the same Investor Day and said AI and data analytics already inform network planning, forecasting, routing and customer visibility.
Data first
Raj Subramaniam said in Nov 2025 that FedEx began organizing its data on a platform in 2020 and that AI is nothing without data. FedEx's network generates about 2 petabytes of data a day, and FedEx plans to consolidate all of it onto Atlas, its enterprise data platform, by the end of 2027, then build a single AI foundation that combines trusted data and governed models with autonomous agents under a responsible AI framework (Feb 2026).
Physical AI in the hubs
Raj Subramaniam said in Nov 2025 that FedEx's newer U.S. ground hubs are fully automated except for truck unloading and loading, which he called the hardest physical AI problems. Kawal Preet said in Feb 2026 that FedEx will deploy automated trailer loading and unloading across thousands of dock doors in more than 20 U.S. hubs over the next few years and is testing autonomous trucks in the middle mile, while CFO John Dietrich said the 2029 targets assume no material numbers from that automation.
Selling the data
FedEx Dataworks has three planned lines of business, Vishal Talwar said in Feb 2026: subscription insights such as the Dun & Bradstreet Retail Momentum Index, which carries a revenue share; software products built from internal tools such as RouteSmart route planning and the MOBIUS predictive maintenance system; and supply chain orchestration for customers, with pricing still undecided. Raj Subramaniam said the 2029 targets include minimal Dataworks revenue.
- Deployment model
- FedEx runs AI from a central data and technology organization with delivery through its operating and commercial groups. Senior leaders of the Data and Technology and FedEx Dataworks organizations report to Chief Digital and Information Officer Vishal Talwar, as does Chief Information Security Officer Gene Sun's security organization of more than 400 professionals. Kawal Preet, who reports to CEO Raj Subramaniam, runs DRIVE, network design and the physical AI rollout in the hubs; Brie Carere's commercial organization owns customer-facing digital products such as Tracking+, Returns+ and Global Trade Navigator; and operations under Scott Ray and Richard Smith use AI planning and routing tools in the U.S., Canada and international network. FedEx said in Feb 2026 that it would reclassify about $200 million of data and technology costs from FedEx Dataworks into the U.S. Domestic segment.
- Model providers
- FedEx builds most of its AI in-house: machine learning volume forecasts in its network operating plan, a delivery-date prediction model on fedex.com, machine learning tools in dimensional pricing, forecasting models for demand and capacity management, and the AI models behind MOBIUS predictive maintenance. Customs AI, launched in six Asia-Pacific markets in Aug 2025, uses generative AI to help customers classify goods, and FedEx added an AI assistant to its Developer Portal in May 2026; FedEx has not named the large language model provider behind either. FedEx buys physical AI from Dexterity, whose Foresight world model drives its Mech trailer loaders, and Berkshire Grey, whose Scoop unloader recognizes mixed packages. Tracking+ and Returns+ are delivered with parcelLab, and ServiceNow's AI Platform carries the joint procurement workflows.
- Data and infrastructure
- FedEx's network generates about 2 petabytes of data a day, and Atlas, the enterprise data platform, held a substantial portion of it in Feb 2026, with full consolidation planned by the end of 2027. FedEx's Jul 2026 annual report says the company has substantially advanced its move from mainframe computing to cloud-based systems, and Vishal Talwar described a cloud-first platform replacing hundreds of legacy systems in Feb 2026; FedEx has not named the cloud that hosts Atlas or its models. FedEx Surround launched in May 2020 on Microsoft Azure and Dynamics 365, MOBIUS sends work orders to IBM Maximo, and the FedEx capabilities for the U.S. Army's logistics project will run in Google Cloud's Impact Level 5 environment (Aug 2026). FedEx joined the Hedera Council in Feb 2026 to help govern a distributed ledger for verified supply chain data.
Platforms and internal tools
AtlasBy Feb 2026
Atlas is FedEx's enterprise data platform, home to a substantial portion of FedEx data and the base for more than 200 AI use cases in Feb 2026. FedEx plans to consolidate all of its data onto Atlas by the end of 2027 and to build a unified AI foundation with governed models and autonomous agents on top of it.
MOBIUS
MOBIUS (Maintenance Optimization by IoT Unified Systems) is FedEx's enterprise predictive maintenance platform, which combines IoT sensor, PLC, ultrasound and imaging data to anticipate equipment failures and open work orders automatically in IBM Maximo. MOBIUS monitored 18,000 mechanical assets, ran in 41 surface operations facilities and had prevented 17,000 hours of potential downtime by Mar 2026, when it won a CIO 100 award.
FedEx SurroundMay 2020
FedEx Surround is a monitoring and intervention service that gives businesses near-real-time shipment analytics; FedEx launched it with Microsoft on Azure and Dynamics 365 in 2020, and Brie Carere described it in Feb 2026 as an AI-powered platform that anticipates reroutes for weather, hub congestion and traffic for healthcare customers.
FedEx Route Optimization (RouteSmart)
FedEx Route Optimization (FRO) is the route planning tool FedEx built on RouteSmart's Routing as a Service product; FedEx bought RouteSmart Technologies in Feb 2025, rolled FRO across its U.S. and Canada surface network and began deploying it in Europe, starting in France, by Feb 2026. Bala Vaidyanathan said in Apr 2026 that FedEx plans and optimizes about 100,000 first- and last-mile routes a day with AI.
Customs AI and the clearance platformAug 2025
Customs AI is a generative AI chatbot inside FedEx Ship Manager that prompts customers for item descriptions and suggests Harmonized Tariff Schedule codes, launched in Australia, Guam, Malaysia, New Zealand, Singapore and the Philippines in Aug 2025. Behind it, FedEx is replacing more than 470 clearance applications with a clearance platform that uses AI at intake and in tariff classification, alongside EXPRESSCLEAR, Broker Butler and the FedEx Import Tool (Feb 2026).
Global Trade Navigator and FedEx Trade PlannerSep 2026
Global Trade Navigator is a suite of international shipping tools FedEx introduced on Sep 9, 2026, covering planning, shipment data, checkout duties, trade APIs and clearance reporting. Its FedEx Trade Planner uses AI-driven search or a photo upload to generate an item description, Harmonized System code help and required documents before a label is created, according to FedEx's product page.
FedEx Tracking+ and Returns+Feb 2026
FedEx Tracking+ and Returns+ are white-labeled post-purchase tools built with parcelLab that merchants embed in their own channels, with automated answers to order and refund questions, anomaly detection and rule-based returns policies; Brie Carere said in Mar 2026 that the U.S. launch would extend to Europe that April.
Robotic trailer loading and unloadingPilots by Feb 2026
FedEx uses Dexterity's Mech robots, driven by the Foresight world model, to load trailers and Berkshire Grey's Scoop system to unload them. The Dexterity program moved beyond its pilot site to production scale at the Hagerstown, Maryland hub in Jul 2026, and FedEx said in Oct 2026 it was deploying the loaders there for Peak; the Scoop pilot was underway in Feb 2026, with the first systems due in operation later in calendar 2026.
FedEx Dataworks products2026
FedEx Dataworks turns FedEx network data into products sold through partners: the Retail Momentum Index with Dun & Bradstreet (announced Feb 2026); supplier insights, supplier visibility and success indicators inside ServiceNow Source-to-Pay (May 2026); and shipment-based signals for Stripe Capital financing, with the first joint Stripe solution planned for early 2027. A FedEx Dataworks-led team is also working with the U.S. Army on a predictive logistics network for materiel management and demand forecasting, with an implementation plan due by Nov 2026.
FedEx Virtual Assistant and Developer Portal assistant
FedEx Virtual Assistant is an AI-enabled service on fedex.com that answers customer shipping questions, and in May 2026 FedEx added an AI-driven assistant to the FedEx Developer Portal that answers documentation and integration questions, according to the Jul 2026 annual report.
Vendors and partners
MicrosoftMay 2020
Azure and Dynamics 365 at the launch of FedEx Surround · FedEx and Microsoft announced a multiyear collaboration in May 2020 combining FedEx's network data with Azure, Dynamics 365 and their AI capabilities; FedEx Surround was the first product.
AccentureDec 2025
AI training through its LearnVantage platform · Accenture provides customized, role-based AI education for FedEx staff; Vishal Talwar came to FedEx from Accenture Technology, where he had worked on FedEx's digital transformation for nearly two years.
ServiceNow
Joint AI procurement and supply chain workflows with FedEx Dataworks · ServiceNow and FedEx Dataworks announced an expanded collaboration with joint innovation hubs and shared engineering in Oct 2025 and extended it to Source-to-Pay and supply chain management workflows in May 2026.
Dexterity
Physical AI for autonomous trailer loading · FedEx and Dexterity expanded their multi-year program to production scale at the Hagerstown hub in Jul 2026.
Berkshire GreyAug 2021
Robotic sortation and the Scoop trailer unloader · FedEx Ground installed Berkshire Grey robotic sortation in Queens, NY in 2021, and the two companies developed the Scoop unloader, in pilot by Feb 2026.
AuroraSep 2021
Autonomous trucking on middle-mile highway routes · FedEx, Aurora and PACCAR began an autonomous linehaul pilot on FedEx's Dallas to Houston lanes in Sep 2021, and Raj Subramaniam named Aurora as FedEx's middle-mile autonomous trucking partner in Sep 2026.
OneRailMar 2026
AI dispatch behind FedEx SameDay Local
parcelLabFeb 2026
Delivery partner for FedEx Tracking+ and Returns+
Dun & BradstreetFeb 2026
Retail Momentum Index with FedEx Dataworks, under a revenue share
Google CloudAug 2026
Hosts FedEx capabilities for the U.S. Army logistics project
StripeOct 2026
Financing signals from FedEx Dataworks for Stripe Capital; payment processing
IBM
Maximo receives the work orders MOBIUS generates
Leadership
AI, data and platform leaders
Executives
Board
AI org map
Central CDIO organization over Data and Technology and FedEx Dataworks; delivery through planning, commercial and operations groups
FedEx combined its data, technology and Dataworks organizations under one executive in Jul 2024, when Sriram Krishnasamy became Chief Digital and Information Officer while remaining Chief Transformation Officer. Vishal Talwar replaced Krishnasamy in Aug 2025 with the senior leaders of Data and Technology and FedEx Dataworks reporting directly to him, and Talwar sits on FedEx's eight-person Executive Committee. Kawal Preet has led the planning, engineering and transformation organization, which runs DRIVE and the physical AI rollout, since Oct 2025, reporting to the CEO, and a cross-functional AI Council supports the governance of AI across the company (Jul 2026).
FedEx has not disclosed the size of its data and AI workforce. FedEx's AI work sits in the Data and Technology organization and FedEx Dataworks, which had about 200 employees in May 2026, both under Chief Digital and Information Officer Vishal Talwar, where Bala Vaidyanathan and Arvind Rajagopalan lead data and AI; in Kawal Preet's planning and engineering organization, which runs physical AI and network design; and in the commercial digital portfolio under Brie Carere. FedEx's information security organization of more than 400 professionals also reports to Talwar, and FedEx said in Feb 2026 that all of its technology specialists take advanced AI training.
Reporting lines
President and CEO
Chief Digital and Information Office
Vishal Talwar, EVP and CDIO
Executive Committee member; the line to the CEO is inferred from that membership, not published
Data and Technology
Senior leaders report directly to Vishal Talwar (Aug 2025); data and AI leaders named in 2026 include Bala Vaidyanathan and Arvind Rajagopalan, whose exact reporting lines are not published
FedEx Dataworks
Vishal Talwar, President
About 200 employees (May 2026); Tony Kreager was chief engineering and commercial officer in Feb 2026
Information Security
Gene Sun, CVP and Chief Information Security Officer
The CISO reports to the CDIO and sponsors the Data and Technology Risk Council (Jul 2026 annual report)
Planning, Engineering and Transformation
Kawal Preet, EVP
DRIVE, network design and physical AI; Executive Committee member
Chief Customer Office
Brie Carere, EVP
Digital Portfolio
Jason Brenner, SVP
Reporting line inferred from Brie Carere's remit over digital products, not published
U.S. and Canada Operations
Scott Ray, COO
International and Airline
Richard Smith, COO and CEO, Airline
AI Council
Cross-functional group of employees supporting the evaluation, governance and use of AI (Jul 2026 annual report); chair and reporting line not published
FedEx's leadership page, checked Nov 1, 2026, lists Kawal Preet as EVP and Chief Planning and Engineering Officer, while the Jul 2026 annual report gives her title as EVP, Planning, Engineering, and Transformation. Bala Vaidyanathan's title appears as SVP in a Conference Board biography and as VP in Supply Chain Dive's Apr 2026 report. FedEx has not published the reporting lines below the Executive Committee beyond Vishal Talwar's Aug 2025 announcement, Kawal Preet's Oct 2025 appointment and the CISO's line to the CDIO.
Where the AI workforce sits
Data and Technology and FedEx Dataworks, under the CDIO
FedEx Dataworks had about 200 employees in May 2026; FedEx has not published the size of the Data and Technology organization or its data scientists.
Not disclosedPlanning, engineering and transformation
Kawal Preet's organization brings together engineers, planners and technologists and runs the physical AI rollout in the hubs.
Not disclosedCommercial digital products
Brie Carere's digital portfolio team builds customer tools such as Tracking+, Returns+ and Global Trade Navigator.
Not disclosed
Named people
Use cases
FedEx said in Feb 2026 that Atlas supports more than 200 AI use cases, spanning network forecasting and planning, routing, customs clearance, predictive maintenance, pricing and surcharges, customer tracking and returns, and robotic trailer handling. FedEx has published business returns for two of them: predictive maintenance saves $10 million or more a year (Feb 2026), and AI that catches non-standard packages missing a surcharge recovers tens of millions of dollars of revenue a year (Sep 2026). At the firm level, FedEx reports $4 billion of DRIVE structural savings from fiscal 2023 through fiscal 2025 and targets $2 billion more from Network 2.0 by the end of 2027 without saying how much comes from AI.
| Use case | Area | Status | ROI |
|---|---|---|---|
| Predictive maintenance (MOBIUS) MOBIUS combines sensor and imaging data with proprietary AI models to anticipate failures in sorting equipment, monitors 18,000 assets in 41 surface facilities and had prevented 17,000 hours of potential downtime by Mar 2026. | Network operations | In production | Maintenance savings of $10 million or more a year, credited to proprietary AI models (Feb 2026)Source |
| Surcharge capture on non-standard packages FedEx uses AI to catch mis-tracked, non-standard packages that should have carried a surcharge, Vishal Talwar told the WSJ Leadership Institute in Sep 2026. | Pricing | In production | Tens of millions of dollars a year in recovered surcharge revenue, credited to AI (Sep 2026) |
| Dimensional pricing FedEx enhanced its dimensional pricing models for packages and express freight with machine learning tools that improve accuracy (Mar 2026). | Pricing | In production | |
| Volume forecasting for surface facilities FedEx's dock modernization includes a network operating plan that uses machine learning and algorithms to forecast volume in more detail, which FedEx says is raising productivity at its surface facilities (Jul 2026). | Network operations | In production | |
| Demand and capacity management FedEx is moving demand and capacity planning from static workflows to connected ones fed by real-time market data, with forecasting AI models, and Richard Smith said an AI-enabled planning layer lets FedEx shift air capacity between trade lanes. | Network planning | In production | |
| Route optimization FedEx Route Optimization, built on RouteSmart technology, plans pickup and delivery routes across the U.S. and Canada surface network and is rolling out in Europe, part of what Kawal Preet called an ecosystem of route, sort and linehaul tools powered by AI. | Network operations | In production | |
| Customs clearance platform FedEx is replacing more than 470 clearance applications with a clearance platform that uses AI at intake and in tariff classification to get cleaner data into the process, which Vishal Talwar credited with keeping clearance running through the surge in brokerage filings after the U.S. de minimis exemption ended. | International | In production | |
| Customs AI chatbot and HTS code lookup Customs AI is a generative AI chatbot in FedEx Ship Manager, available in six Asia-Pacific markets since Aug 2025, that prompts customers for item descriptions and suggests Harmonized Tariff Schedule codes; a separate HTS Code Lookup feature suggests codes for U.S.-bound shipments. | International | In production | |
| Estimated delivery dates A machine learning and AI model developed by FedEx sets estimated delivery dates on fedex.com, including updates for early or delayed shipments. | Customer experience | In production | |
| FedEx Virtual Assistant and Developer Portal assistant FedEx Virtual Assistant answers customer shipping questions on fedex.com so service and sales staff can focus on higher-value work, and an AI-driven assistant added to the FedEx Developer Portal in May 2026 answers integration questions. | Customer experience | In production | |
| FedEx Tracking+ and Returns+ Tracking+ and Returns+ give merchants an AI layer, delivered with parcelLab, that answers order and refund questions, detects anomalies and adjusts returns policies inside the merchant's own channels. | Customer experience | In production | |
| FedEx Surround for healthcare Brie Carere described Surround as an AI-powered platform that anticipates when a healthcare shipment needs rerouting for weather, hub congestion or traffic. | Customer experience | In production | |
| Robotic trailer loading (Dexterity) Dexterity's Mech robots load trailers at the Hagerstown, Maryland hub, the program's first site beyond the pilot, and FedEx said in Oct 2026 it was deploying them there for Peak and post-Peak operations. | Hub operations | In production | |
| Robotic trailer unloading (Berkshire Grey Scoop) Berkshire Grey's Scoop unloads trailers of mixed packages autonomously, with human help for exceptions; the pilot was underway in Feb 2026, and FedEx expected the first systems in operation later in calendar 2026. | Hub operations | Pilot | |
| AI sorting robot in Cologne An AI-powered robotic arm sorts documents and small parcels at FedEx's Cologne air network location, handling up to 1,000 pieces an hour across about 90 destinations (Jun 2025). | Hub operations | In production | |
| AI in the DRIVE process Raj Subramaniam said in Jun 2026 that FedEx has embedded AI into DRIVE, the planning, decision-making and performance cadence that runs its transformation programs. | Enterprise | In production | |
| Retail Momentum Index with Dun & Bradstreet The Retail Momentum Index combines FedEx Dataworks surface and air shipping data with Dun & Bradstreet maritime and business data to give a near-real-time view of U.S. retail supply and demand, sold on subscription with the revenue shared between the two companies. | FedEx Dataworks | Announced | |
| Supplier intelligence in ServiceNow FedEx Dataworks supplies shipment delays, route performance and benchmarks to ServiceNow Source-to-Pay workflows for supplier insights, onboarding assessments and supplier monitoring. | FedEx Dataworks | Announced | |
| Financing signals for Stripe Capital FedEx Dataworks will share shipment and fulfillment signals so Stripe Capital can assess financing for FedEx's small and medium business customers, with the first joint solution planned for early 2027. | FedEx Dataworks | Announced |
Adoption
FedEx spread AI in layers: predictive analytics, robotics and automated sortation in its operations for years, FedEx Dataworks and a data platform from 2020, generative AI tools for customers from Aug 2025, Atlas and more than 200 AI use cases by Feb 2026, and physical AI for trailer loading and unloading in 2026. FedEx measures workforce adoption by training: the AI Education and Literacy program began in Dec 2025 for all team members, FedEx had built a persona-based AI fluency program for about 300,000 employees and advanced training for all technology specialists by Feb 2026, and Vishal Talwar's biography describes the program as designed for more than 450,000 team members. FedEx tracks AI adoption, performance impact and risk controls on scorecards but has published no count of employees who use AI tools each week.
By the numbers
Rollout, first pilot to today
2020
FedEx began moving its package data onto a single platform, Raj Subramaniam said in Nov 2025.
May 2020
FedEx and Microsoft announced a multiyear collaboration on Azure and Dynamics 365, with FedEx Surround as the first product.
Aug 2021
FedEx Ground installed Berkshire Grey robotic small-package sortation at its Queens, NY station.
Jan 2024
FedEx announced fdx, a data-driven commerce platform for merchants, at the National Retail Federation's show.
Jul 2024
Sriram Krishnasamy became Chief Digital and Information Officer, combining FedEx IT and FedEx Dataworks under one executive.
Feb 2025
FedEx acquired RouteSmart Technologies, whose software underpins FedEx Route Optimization.
Aug 2025
FedEx launched the generative AI Customs AI chatbot in six Asia-Pacific markets.
Aug 2025
FedEx named Vishal Talwar Chief Digital and Information Officer and president of FedEx Dataworks.
Oct 2025
FedEx Dataworks and ServiceNow announced an expanded collaboration on AI supply chain workflows.
Dec 2025
FedEx launched an enterprise-wide AI Education and Literacy program with Accenture's LearnVantage platform.
Feb 2026
FedEx told investors that Atlas supports more than 200 AI use cases and that it built an AI fluency program for about 300,000 employees; a pilot of Berkshire Grey's Scoop trailer unloader was underway.
Mar 2026
FedEx executives described plans for teams of AI agents across more than half of core operational workflows by 2028.
Jul 2026
FedEx expanded Dexterity's autonomous trailer loading to production scale at its Hagerstown, Maryland hub.
Oct 2026
FedEx deployed Dexterity robotic loaders at Hagerstown to support Peak and post-Peak operations.
Economics & controls
Spend and ROI
Technology budget
FedEx does not disclose a technology or AI budget. FedEx expects capital spending of about $3.9 billion in calendar 2026, $0.4 billion more than in 2025, with the increase driven mainly by Network 2.0 and facility modernization, and targets capital spending of about 4% of revenue by 2029. FedEx said in Feb 2026 that it would reclassify about $200 million of data and technology costs from FedEx Dataworks into the U.S. Domestic segment.
What AI itself costs
FedEx has not published what it spends on AI models, compute or tools. The known costs include the Accenture LearnVantage training program (Dec 2025), FedEx Dataworks, which had about 200 employees in May 2026, and the purchase of RouteSmart Technologies in Feb 2025 for an undisclosed price.
Reported ROI
FedEx has published two AI returns: predictive maintenance saves $10 million or more a year (Feb 2026), and Vishal Talwar said in Sep 2026 that AI recovers tens of millions of dollars of annual revenue by catching non-standard packages that should have carried a surcharge. Talwar also cited tens of millions in savings from FedEx's digital execution in Feb 2026 without separating AI's part, and Raj Subramaniam said FedEx sees a strong return on its AI and data analytics investments without giving a figure. Raj Subramaniam said the 2029 targets include minimal FedEx Dataworks revenue, and CFO John Dietrich said they assume no material gains from robotic automation.
Productivity and savings
FedEx delivered $4 billion of structural savings across air, surface and overhead from fiscal 2023 through fiscal 2025 under DRIVE, expects about $1 billion of Network 2.0 and related One FedEx savings by the end of 2026 and $2 billion by the end of 2027, and targets an 8% operating margin and $98 billion of revenue in 2029. FedEx credits these savings to network redesign and process change and has not said what share comes from AI.
Headcount
Federal Express had about 452,000 employees at May 31, 2026, about 233,000 full-time and 219,000 part-time, and FedEx Office about 12,000; FedEx Freight left with its spin-off on Jun 1, 2026 and FedEx Supply Chain was sold to CMA CGM on Oct 1, 2026. FedEx has made no statement tying job reductions to AI; Scott Ray said in Feb 2026 that automation and physical AI will over time reduce the most repetitive, physically demanding tasks.
Governance and risk
AI policy and AI Council
FedEx has an AI policy covering the ethical, legal, cybersecurity and data privacy risks of AI and a cross-functional AI Council that supports the evaluation, governance and use of AI across the company, according to the Jul 2026 annual report. FedEx also evaluates the AI used by its vendors and service providers and folds AI security and governance risks into its cybersecurity and enterprise risk processes.
Board oversight
FedEx's Cyber and Technology Oversight Committee, chaired by Nancy Norton, oversees risks from emerging technologies including artificial intelligence and machine learning, reviews major technology projects and architecture decisions, and assesses whether FedEx's AI programs support its strategy; the committee met seven times in fiscal 2026 and advises the senior Data and Technology team.
Responsible AI framework and scorecards
Vishal Talwar said in Feb 2026 that FedEx's unified AI foundation combines trusted data and governed models with autonomous agents under a responsible AI framework, and that FedEx tracks AI adoption, performance impact and risk controls through scorecards and governance. FedEx joined the Hedera Council in Feb 2026 to help govern a distributed ledger for verified supply chain data.
Security reporting line
FedEx's chief information security officer, Gene Sun, reports to the Chief Digital and Information Officer and sponsors the Data and Technology Risk Council, which receives quarterly IT risk reports; the CDIO sits on the Executive Committee, where cybersecurity is a regular topic (Jul 2026 annual report).
Disclosed risks and regulation
FedEx's Jul 2026 annual report warns that AI may produce inaccurate or unintended outputs, add cybersecurity, privacy, intellectual property and compliance risk, and fail to improve efficiency as expected, and that AI-generated media lets bad actors pose as FedEx couriers and service agents. FedEx cites the EU AI Act and the Colorado AI Act among the rules that could add compliance costs and limit FedEx Dataworks' use of personal data.
Robots with human backup
FedEx's Berkshire Grey Scoop unloader is built on safety-first principles and supports human assistance for exceptions, and FedEx frames its trailer robotics around team member safety in the most physically demanding hub jobs (Feb 2026).
Recent signals
Oct 28, 2026
FedEx reported Q3 calendar 2026 results and said it is advancing physical AI by deploying Dexterity robotic loaders at its Hagerstown, Maryland hub for Peak and post-Peak operations.
Sep 14, 2026
Raj Subramaniam told the WSJ Leadership Institute Technology Council that AI must be CEO-led, and Vishal Talwar said AI recovers tens of millions of dollars of surcharge revenue a year and cut aircraft maintenance research from 30 minutes to three.
Sep 9, 2026
FedEx introduced Global Trade Navigator, a suite of international shipping tools that includes FedEx Trade Planner, which FedEx's product page says uses AI-driven search or photo upload to suggest item descriptions and Harmonized System codes.
Jul 30, 2026
FedEx and Dexterity expanded autonomous trailer loading beyond the pilot site to production scale at the Hagerstown hub.
Jul 20, 2026
FedEx's annual report disclosed an AI policy, a cross-functional AI Council, an enterprise-wide AI Literacy Program for all team members and an AI-driven assistant added to the FedEx Developer Portal in May 2026.
Jun 23, 2026
Raj Subramaniam said FedEx has embedded AI into its DRIVE process and that its use of data earned a place on Fast Company's 2026 Most Innovative Companies list.
May 5, 2026
FedEx and ServiceNow expanded their collaboration at ServiceNow's Knowledge 2026 conference, putting FedEx Dataworks intelligence into Source-to-Pay procurement workflows.
Apr 1, 2026
Bala Vaidyanathan, who leads data and AI at FedEx, said AI plans and optimizes about 100,000 first- and last-mile routes a day and that FedEx is testing RFID sensors on select customers' packages.
Mar 30, 2026
FedEx won a CIO 100 award for MOBIUS, its predictive maintenance platform, which monitors 18,000 assets and runs in 41 surface facilities.
Mar 19, 2026
Raj Subramaniam said FedEx's Dexterity loading and Berkshire Grey unloading robots were in pilot and due for wider deployment later in 2026, and Brie Carere said machine learning tools now improve FedEx's dimensional pricing.
Mar 13, 2026
PYMNTS reported, citing the Wall Street Journal, that FedEx plans teams of manager, worker and audit AI agents in more than half of its operational workflows by 2028, and that Vishal Talwar said every FedEx employee and task will be adapted to AI.
Feb 12, 2026
FedEx's Investor Day set out its AI strategy: more than 200 AI use cases on Atlas, $10 million or more a year saved by predictive maintenance, an AI fluency program for about 300,000 employees, and AI in more than half of core operational workflows by 2028.
Feb 3, 2026
FedEx announced Berkshire Grey's Scoop, an autonomous physical AI trailer unloader, with a pilot underway and the first systems due in operation later in 2026.
Feb 2, 2026
FedEx launched Tracking+ and Returns+, AI-powered post-purchase tools for merchants delivered with parcelLab.
Dec 2, 2025
FedEx launched an enterprise-wide AI Education and Literacy program, with Accenture providing role-based training through its LearnVantage platform.
Quick answers
- How does FedEx deploy AI?
- FedEx deploys AI through Atlas, an enterprise data platform it built that supported more than 200 AI use cases in Feb 2026, under Chief Digital and Information Officer Vishal Talwar, who also runs the FedEx Dataworks data business. FedEx builds its own models for forecasting, routing, delivery dates and predictive maintenance, is moving robotic trailer loading and unloading from pilots into hubs with Dexterity and Berkshire Grey, and targets AI in more than half of its core operational workflows by 2028.
- What does FedEx use AI for?
- FedEx said in Feb 2026 that Atlas supports more than 200 AI use cases, spanning network forecasting and planning, routing, customs clearance, predictive maintenance, pricing and surcharges, customer tracking and returns, and robotic trailer handling. FedEx has published business returns for two of them: predictive maintenance saves $10 million or more a year (Feb 2026), and AI that catches non-standard packages missing a surcharge recovers tens of millions of dollars of revenue a year (Sep 2026). At the firm level, FedEx reports $4 billion of DRIVE structural savings from fiscal 2023 through fiscal 2025 and targets $2 billion more from Network 2.0 by the end of 2027 without saying how much comes from AI.
- Who leads AI at FedEx?
- AI at FedEx is led by Vishal Talwar (EVP, Chief Digital and Information Officer; President, FedEx Dataworks); Kawal Preet (EVP, Chief Planning and Engineering Officer); Bala Vaidyanathan (Senior Vice President, Data and AI). Ownership of AI on the org chart: Vishal Talwar, EVP and Chief Digital and Information Officer, on the Executive Committee.
- What AI platform does FedEx use?
- Atlas, the enterprise data platform FedEx built, held a substantial portion of company data and supported more than 200 AI use cases in Feb 2026, and FedEx plans to move all of its data onto Atlas by the end of 2027.
- Which AI models does FedEx use?
- FedEx builds its own predictive models for forecasting, delivery dates and maintenance, uses generative AI in its Customs AI chatbot, and buys physical AI for trailers from Dexterity and Berkshire Grey; FedEx has not named a large language model provider.
- How many FedEx employees use AI?
- FedEx built a persona-based AI fluency program for about 300,000 employees, with advanced training for all technology specialists (Feb 2026); FedEx has published no count of weekly AI users.
- How far has AI spread at FedEx?
- FedEx sits at Scaling: its Atlas enterprise data platform supported more than 200 AI use cases in Feb 2026, Executive Committee member Vishal Talwar owns AI as Chief Digital and Information Officer and reports returns such as the $10 million or more a year saved by predictive maintenance, and an AI literacy program covers all team members. FedEx has disclosed no generative AI assistant open to most employees, the weakest part of its Scaling case, and falls short of Embedded because it publishes no figure on weekly AI use, AI in more than half of core operational workflows is a 2028 target, robotic trailer loading reached its first production hub only in Jul 2026, and the 2029 financial targets assume no material automation gains.
Open questions
- Which cloud providers and data centers host Atlas and FedEx's AI models, and does Microsoft Azure still run FedEx Surround?
- Which large language model providers power Customs AI, the Developer Portal assistant and FedEx's planned AI agents?
- Does FedEx give most employees a generative AI assistant, and how many use AI tools each week?
- How many of the more than 200 AI use cases on Atlas are in production, and how many are pilots?
- What business return do FedEx's deployed AI tools without published figures deliver, such as route optimization, the clearance platform, Customs AI, dimensional pricing, Tracking+ and Surround?
- How much of FedEx's $4 billion in DRIVE savings and its $2 billion Network 2.0 target comes from AI?
- How many FedEx employees have completed AI training, given the figures of about 300,000 in the fluency program (Feb 2026) and more than 450,000 team members the program is designed for?
- How large is FedEx's Data and Technology organization, and how many data scientists and AI engineers does FedEx employ?
- How fast will FedEx take trailer robotics to thousands of dock doors in more than 20 U.S. hubs, and what will that do to hub staffing?
- How much revenue will FedEx Dataworks earn from Dun & Bradstreet, ServiceNow and Stripe products, given that the 2029 targets include minimal Dataworks revenue?
- Who chairs FedEx's AI Council, and to whom does it report?
Sources
FedEx
- FedEx leadership
- Vishal Talwar, EVP and Chief Digital and Information Officer, biography
- Kawal Preet, EVP and Chief Planning and Engineering Officer, biography
- FedEx appoints Vishal Talwar as CDIO and president of FedEx Dataworks (Aug 12, 2025)
- FedEx appoints Kawal Preet as EVP, Planning, Engineering, and Transformation (Oct 1, 2025)
- FedEx announces CIO retirement; Sriram Krishnasamy to become CDIO (Mar 11, 2024)
- FedEx names Jamere Jackson as EVP and CFO (Oct 26, 2026)
- FedEx CFO John Dietrich to step down Jun 1 (Apr 13, 2026)
- FedEx AI Education and Literacy program (Dec 2, 2025)
- FedEx recognized in Fortune AIQ 50 (Dec 2, 2025)
- FedEx named CIO 100 honoree for FedEx MOBIUS (Mar 30, 2026)
- FedEx launches AI-powered customs solutions in Asia-Pacific (Aug 14, 2025)
- FedEx AI-powered post-purchase solutions, Tracking+ and Returns+ (Feb 2, 2026)
- FedEx introduces Global Trade Navigator (Sep 9, 2026)
- FedEx Global Trade Navigator and Trade Planner product page
FedEx operations and robotics
- FedEx and Dexterity expand physical AI trailer loading at Hagerstown (Jul 30, 2026)
- FedEx launches Berkshire Grey's autonomous trailer unloader (Feb 3, 2026)
- FedEx Ground and Berkshire Grey robotic sortation (Aug 12, 2021)
- FedEx AI-powered sorting robot in Cologne (Jun 13, 2025)
- FedEx acquires RouteSmart Technologies (Feb 5, 2025)
- FedEx announces the fdx commerce platform (Jan 14, 2024)
Filings and investor materials
- FedEx Form 10-K for the fiscal year ended May 31, 2026 (filed Jul 20, 2026)
- FedEx Form 10-Q for the quarter ended Sep 30, 2026 (filed Oct 28, 2026)
- FedEx 2026 proxy statement (filed Aug 17, 2026)
- FedEx 2026 Investor Day, full transcript (Feb 12, 2026)
- FedEx 2026 Investor Day, presentation (Feb 12, 2026)
- FedEx Corporation hosts 2026 Investor Day, press release (Feb 12, 2026)
- FedEx 2026 Investor Day, executive biographies (Feb 2026)
- FedEx Q3 CY26 earnings presentation (Oct 28, 2026)
- FedEx reports Q3 CY26 results (Oct 28, 2026)
- FedEx Q4 FY26 earnings call transcript (Jun 23, 2026)
- FedEx Q3 FY26 earnings call transcript (Mar 19, 2026)
- Baird Global Industrial Conference transcript, Raj Subramaniam (Nov 11, 2025)
Partners
- FedEx and Microsoft join forces; FedEx Surround (May 18, 2020)
- FedEx Dataworks and ServiceNow unite AI, data and workflows (Oct 29, 2025)
- FedEx and ServiceNow expand collaboration with AI supply chain solution (May 5, 2026)
- Dun & Bradstreet and FedEx Dataworks Retail Momentum Index (Feb 5, 2026)
- FedEx Dataworks and Stripe collaboration (Oct 6, 2026)
- FedEx joins the Hedera Council (Feb 13, 2026)
- U.S. Army launches Strategic Capital Initiative with FedEx Dataworks (Aug 21, 2026)
- The Robot Report: FedEx, Aurora and PACCAR to test autonomous trucks (Sep 22, 2021)
News and conferences
- STAT Times: FedEx chiefs on AI at the WSJ Leadership Institute (Sep 2026)
- Supply Chain Dive: FedEx's next AI leap to feature RFID, robotics (Apr 1, 2026)
- Supply Chain Dive: FedEx launches SameDay Local with OneRail (Mar 24, 2026)
- PYMNTS: FedEx plans agent workforce in over 50% of workflows by 2028 (Mar 13, 2026)
- ONUG AI Networking Summit: AI at global scale at FedEx, keynote listing (Oct 28, 2026)
- The Conference Board: Bala Vaidyanathan, speaker biography
Data confidence
- Confirmed
- Stated in a primary or reputable public source.
- Estimated
- Derived or approximated from public reporting.
- Unconfirmed
- Reported, but not yet corroborated.
FedEx profile · Enterprise AI diffusion report by Imagine · facts checked against their sources on Nov 1, 2026