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Rack-Inspector: AI Pallet-Rack Safety Inspection with Human-in-the-Loop Grading

Executive Summary

GenAI Protos built Rack-Inspector, a working end-to-end MVP that turns a single warehouse rack photo into defect boxes, a GREEN / AMBER / RED safety grade, and an audit-ready inspection record. It supports three regional standards (SEMA / EN 15635, ANSI MH16.1, AS 4084), catches 87% of critical RED cases, costs under $0.01 per photo, and returns results in about 3 seconds. Qualified inspectors stay in control of every decision that carries safety or legal weight.

01Client Requirement

Every pallet rack is a load-bearing steel structure, and a single forklift strike, missing locking pin, detached brace, or missing anchor can turn a safe bay into a collapse risk. Manual inspection is slow, subjective, and inconsistent: two inspectors can grade the same bay differently, and the paper trail is often thin when an incident is investigated. The requirement was an AI-assisted inspection workflow that would: Flag visible rack damage from a field photo and point inspectors directly to defects Apply the correct traffic-light grade for each region's safety standard Never auto-clear a hazard, and keep humans on millimetre-level and legally meaningful calls Produce a defensible, audit-ready record for every inspection

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02Our Approach

We started with the data. Analysis of 200 real inspection photos plus a blind feasibility test (which reached 87%) confirmed the approach was viable and shaped two key decisions: millimetre boundaries stay with humans and gauges, and inspector annotations drawn on photos are excluded from training so the model learns rack condition, not markup. We then built a layered detect, grade, apply-rules, and route-to-human pipeline: Capture and triage: A fine-tuned CNN ensemble (two EfficientNetV2-S variants plus ConvNeXt-Tiny) returns a fast GREEN / AMBER / RED guess, used only as a weak prior. VLM defect grading: Gemini (via OpenRouter) localises defects, draws boxes, estimates region-neutral severity, and explains its reasoning as validated JSON. Region rule layer: The only layer that assigns colour. It maps neutral severity to each region's thresholds, action wording, and cited clause, with categorical RED rules for missing pins, anchors, or bracing. Human-in-the-loop gate: RED, AMBER, low-confidence, poor-photo, and millimetre-borderline cases are routed to a qualified inspector. Audit report and feedback loop: Every output stores defect boxes, grade, clause, and raw evidence, and every confirmed human decision feeds back as clean training data. Deployment was split across tiers: a lean FastAPI app on Railway, the classifier on an on-prem GPU service, and the VLM as a managed API. If the classifier fails or slows down, the system degrades gracefully to "no hint" rather than blocking or silently clearing a hazard.

03Outcome

Next phases cover a live warehouse pilot with guided capture and photo-quality gating (with zero missed REDs as the bar), followed by on-device grading, offline sync, and multi-site rollout.

  • 87% of critical RED cases caught, graded serious, or flagged for sign-off
  • ~92% recall on the critical RED class from the classifier ensemble
  • Under $0.01 cost per photo graded
  • ~3 seconds mean latency per photo
  • 3 regional standards supported (UK/EU, US, AU) from a single core model
  • A defensible audit trail with defect boxes, cited clauses, raw evidence, and human confirmations
  • A safety-first design that never silently clears a hazard

Frequently asked questions

Rack-Inspector is an AI-assisted pallet-rack safety inspection system built by GenAI Protos. It converts a single warehouse rack photo into defect boxes, a GREEN / AMBER / RED safety grade, and an audit-ready inspection record.

No. The AI flags and localises damage, but every RED, AMBER, low-confidence, poor-photo, and millimetre-borderline case is routed to a qualified human inspector. The system is designed for accuracy and efficiency, not autonomy.

It supports SEMA / EN 15635 (UK/EU), ANSI MH16.1 (US), and AS 4084 (Australia). A region rule layer maps the same detected defect to the correct grade, action wording, and cited clause for each standard.

In testing, the system caught 87% of critical RED cases, and the classifier ensemble achieved about 92% recall on the critical RED class. Accuracy improves further as confirmed field inspections feed into the active-learning loop.

Yes. The same pattern (AI detection, a transparent rules layer, a human review gate, an audit record, and active learning) applies to industrial inspection, facility safety, asset condition review, maintenance triage, and compliance workflows.

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