Adnoc Distribution developing more than 20 AI tools to optimise operations, CEO says

Adnoc Distribution is developing more than 20 tools powered by artificial intelligence to further optimise operations, its chief executive has said, as it continues to tap into new technologies to enhance operational efficiencies.

The UAE’s largest fuel and convenience retailer is also using data analytics to design new stations, Bader Al Lamki told The National on the sidelines of the Gitex Global technology conference in Dubai this week.

“AI is at the heart of what we do. It's very important, has value for us and we have more than 20 new [use] cases under development. And as they mature, we will also start to roll them out to the market,” Mr Al Lamki said.

Adnoc Distribution is using AI and analytics to learn the geography and location to build new stations “in the most efficient way right from inception”, which includes considering the traffic conditions and demographics in those areas, as well as handling about 200 million transactions per year, according to Mr Al Lamki.

“This is about moving products from our depots to service stations. [With our predictive model] today, we can anticipate where the level of fuel is in the stations and plan journeys in the most efficient way,” he said.

The Adnoc subsidiary's Smart Fuel Demand Prediction Model is one of those use cases, which forecasts the daily needs of customers, combining historical and real-time data with deep learning neural networks, and forecasting techniques to predict and meet future fuel demand with 95 per cent accuracy.

Over the next five years, this will help Adnoc Distribution save “up to $34 million by optimising the fleet [route] generation and understanding when products are needed”, he said.

“And we are then able to ... devise the right format, entry and exit in our different facilities so that we have the most seamless experience into the station, while also reducing queues. This allows for more footfall, reduced waiting time and, of course, an easier experience.”

These tools are also being used to optimise stock movement at Adnoc's convenience stores: using insights, the company is able to determine the products that are “most needed and asked for” by customers, allowing the company to tailor them and respond to trends, and ultimately, contributes to the overall bottom line, Mr Al Lamki said.

The company also plans to roll out a new generation of AI-powered self-service checkout kiosks at its convenience stores, he added. The kiosk's computer vision can recognise products within 200 milliseconds, which, in turn, can complete transactions in less than 30 seconds, the company said.

AI tools have also helped Adnoc reduce carbon dioxide emissions by a million tonnes in 2023 alone; the demand model contributes by cutting total fuel lorry emissions by 10 per cent, “moving us closer to our net zero goal by 2045", he said.

Also at Gitex, Adnoc Distribution demonstrated its concept robotic arm for electric vehicle charging. However, there are no plans to deploy the technology in the near future and the concept is meant at future-proofing the company, Mr Al Lamki said.

“We understand autonomous driving is coming in the future. We understand that mobility forms and norms are going to evolve … and when the need for this would arise, we will definitely be ahead of the competition, picking it up and developing it further,” he said.

The company had previously said that it plans to more than double its network of EV charging points by the end of 2024, expecting 150 to 200 stations, compared with 89 in the first quarter.

Adnoc Distribution has pledged to expand further, supported by continued growth in the UAE's economy, Mr Al Lamki had previously told The National.

A growing economy typically leads to increased demand for transportation services, resulting in the establishment of more fuel stations to meet growing consumption. The Emirates' economy grew by 3.4 per cent in the first quarter of the year, the Ministry of Economy said last month.

UAE gross domestic product is expected to grow by 3.9 per cent this year, according to the UAE Central Bank. This week, the World Bank predicted that the country's GDP would grow 4.1 per cent in 2025.

Adnoc has 857 service stations and 366 Oasis convenience stores across the UAE, Saudi Arabia and Egypt. Mr Al Lamki said the company continues to “screen for [overseas] opportunities”, particularly in Africa, and South-East Asia, without elaborating.

“We'll look at the right opportunities for us, but it has to be value creative, commercially sound and demonstrate that return on investment allows us to further reward our shareholders,” he said.