Sunzay Passari, Director and Global Head of AI and Innovation at UPS, joins Mala Ramakrishnan to unpack what it really means to drive AI inside a 118-year-old global enterprise operating in 200 countries.
From route optimization and warehouse automation to AI-driven pricing models generating measurable ROI, Sunzay explains how UPS applies both operational AI (“physical AI”) and business AI at enormous scale. With 26 million packages moving daily in the U.S. alone, even a one-cent optimization per package becomes transformational.
The conversation explores intrapreneurship inside legacy organizations, how to build cross-functional AI task forces, measuring ROI across hundreds of use cases, and when agentic AI can make real decisions versus keeping humans in the loop.
If you're a founder, enterprise leader, or AI operator wondering how large organizations actually implement AI beyond pilots, this episode offers practical insight at global scale.
_______________________________________________________________
Timestamps00:00 Intro and leading AI innovation at UPS
01:20 From eBay product leadership to UPS
02:30 Why UPS hired externally for innovation
03:10 118 years of legacy meets AI transformation
04:10 Operational AI: route optimization & “no left turns”
05:30 6,000 warehouses, 150,000 trucks, 300 planes
06:30 Business AI: optimizing complex pricing models
08:00 AI for product portfolio recommendations
09:10 Building the AI task force and org structure
10:20 ROI-first mindset: how UPS prioritizes use cases
11:30 Dashboarding initiatives and GTM tracking
12:30 Working with hyperscalers and enterprise platforms
13:00 What it takes for startups to work with UPS
14:20 Why UPS is the most reliable (and most expensive) carrier
15:30 Profitable volume vs pure growth strategy
16:20 Scale math: 26M packages per day in the U.S.
17:10 Agentic AI: low-risk autonomous decisions
18:10 Physical AI: drones, humanoids & warehouse robotics
19:10 Happy Returns acquisition & No Box No Label
20:30 Measuring AI adoption internally
21:00 Killer use case: pricing, pricing, pricing
22:00 Advice on AI adoption and resilience
23:00 “There is no failure in technology” mindset
_______________________________________________________________
🔗 Connect with Sunzay Passari → https://www.linkedin.com/in/sunzaypassari/
🔗 Connect with Mala Ramakrishnan → https://www.linkedin.com/in/malaramakrishnan
🎧 Subscribe to the podcast
Youtube: https://www.youtube.com/channel/UCnL3D6aI60R-cCvypFIkh4A
Spotify: https://open.spotify.com/show/1NIDE4cT5fuVjC3HaGbCDK?si=eoSTNmhqQNKHQl9d1Jx0UQ
Apple Podcast: https://podcasts.apple.com/us/podcast/malas-podcast/id1848618438
Visit our Website: www.malaramakrishnan.com | www.founderscreative.ai