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

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