C.H. Robinson CFO reveals how artificial intelligence is transforming profitability strategy

In an exclusive interview with FreightWaves, Damon Lee, CFO of C.H. Robinson, shared deep insights into how artificial intelligence has become the core driver of business transformation. The CFO emphasized that the company has not only adopted AI tools but has built an integrated ecosystem of proprietary solutions designed to address specific logistics challenges.

The numbers speak for themselves: C.H. Robinson’s stock rose 55.3% during 2025, an unprecedented performance in the logistics sector, with analysts widely recognizing the decisive role of AI initiatives. Currently, the company operates with 30 AI agent tools in its daily operations, each calibrated to generate tangible business results. However, the most revealing aspect is not the number of tools but how the leadership team, led by the CFO, has strategically leveraged these solutions to seize opportunities that once seemed out of reach.

A team of 450 engineers behind the AI strategy

To overcome typical industry challenges, C.H. Robinson assembled a dedicated team of 450 engineers to develop fully customized AI applications. This investment in internal talent reflects the CFO’s conviction in a fundamental principle: relying on generic, commercial AI tools often increases costs without delivering truly substantial productivity gains.

Lee acknowledges that many organizations in the logistics industry have experienced disillusionment with standard AI solutions. During the annual meeting of the Transportation Intermediaries Association held in April, numerous companies showcased their innovations, though much of the discussion was limited to conventional applications like invoice processing or call-to-data conversion. Recent industry research confirms that most companies have yet to realize significant benefits from AI, a trend not surprising to the CFO given the high operational costs of consumption-based AI models.

Transforming quote management: from 17 minutes to 32 seconds

One of the most revolutionary applications developed by C.H. Robinson focuses on automatic response to rate quote requests within its North American Surface Transport (NAST) division. This unit handles approximately 600,000 quote requests annually, a volume that previously posed a critical operational limitation.

Before implementing the AI agent tool, C.H. Robinson could only handle about 60% to 65% of these inquiries, leaving business opportunities unclaimed and customers dissatisfied with slow responses. The situation changed dramatically with AI integration: now the company responds to every request, completely transforming its customer interactions.

The speed change is remarkable: response times dropped from 17-20 minutes to just 32 seconds. Beyond speed, accuracy has exponentially improved. While a human analyst might base a quote on 5 to 10 data points, the AI system processes tens of thousands, if not hundreds of thousands, of variables, resulting in significantly more precise and competitive pricing.

Dynamic margins: real-time price optimization

Another key milestone highlighted by the CFO concerns the company’s revenue management strategy. Historically, pricing approaches were relatively rigid: a margin or volume target was set, and results were only reviewed at the end of a month or quarter. Adjusting strategies mid-cycle was nearly impossible.

With AI driving pricing, C.H. Robinson now executes hundreds of micro-adjustments daily. The CFO describes this as a process of “real-time margin optimization”: a pricing strategy set on Monday morning can be evaluated and refined within minutes, not weeks. The system constantly analyzes market data, demand, and supply, allowing the company to prioritize margins when volume is high or be more aggressive on prices during load shortages.

While all brokers seek to balance these factors, the speed and precision with which C.H. Robinson now makes these adjustments give it a substantial competitive advantage that others have yet to replicate.

Market validation: financial results and CFO’s outlook

In the quarter ending September 2025, adjusted gross profit in truck brokerage services decreased by 2% year-over-year, a modest decline considering the challenging freight market conditions that year. Meanwhile, Less-than-Truckload (LTL) operations saw a 10.5% increase in adjusted gross profit, with cumulative annual figures showing slight contraction in full truckload services and a 6.7% growth in LTL.

These results, along with stock performance, have fostered investor confidence, though some skepticism remains about whether the stock growth is due to traditional brokerage performance or primarily driven by AI initiatives. The CFO recognizes both contributions but emphasizes that some investors see C.H. Robinson as a uniquely operational company that successfully leverages AI at the application level—something rare in the ecosystem.

While many AI companies (chip manufacturers, data centers) are considered “pure AI investments,” finding operational companies translating AI into tangible value remains exceptional. Under the strategic vision of its CFO, C.H. Robinson stands out as a clear leader in this category, positioning itself not just as a technology user but as an innovator redefining operational standards within the logistics industry.