AI Tools for Trade

How can AI tools help my business trade?

AI tools can significantly improve the efficiency, accuracy, and profitability of trade operations by automating processes, providing deeper insights, and enabling smarter decision-making. Here are some of the aspects AI can help and improve in international trade.

• Logistics: AI systems can help you optimise your warehouse and shipping by predicting demand, tracking shipments, and improving efficiency across your supply chains.

• Inventory Management: AI tools can monitor and predict your inventory needs based on real-time data, helping to avoid overstocking or stockouts.

• Trade Finance: AI applications can improve credit scoring processes and analyze alternative business data, such as transaction or payment history, moving away from traditional credit scoring systems.

• Customs: AI can be used to read and understand descriptions of commercial goods and help you classify these against customs codes in the Harmonised System. AI is also increasingly used to identify counterfeit products.

• Supply Chains: Combining AI with blockchain technology can improve supply chain transparency and security. Blockchain provides secure, transparent, and tamper-proof data for AI algorithms. Meanwhile, AI can analyze this data in real-time, offering predictive insights into potential disruptions or inefficiencies. This combination ensures that you can monitor your inventory, verify supplier actions, and optimize your operations while building trust with international partners.

• Tariff Benefits: AI can be used to explore RTAs and your potential tariff benefit eligibility, including the required documentation.

• Workflow efficiency: AI can help to review your business’ workflow and identify areas for improvement. If appropriate monitoring systems are in place, it can also help to identify inconsistencies or outliers that may need human review.

• Market Analysis and Forecasting: AI can analyze historical purchase patterns, economic indicators, and market sentiment, to predict future trends and opportunities for more informed decision making.

• E-Commerce and Digital Trade: AI can boost your cross-border e-commerce by customizing customer experiences and enabling precise marketing.

• Language Translation: AI-powered translation tools can facilitate communication between international trade partners through translations and generation of documents, emails, and negotiations in multiple languages, reducing misunderstandings and errors.

What should I consider before getting started? 

• Skills and knowledge: Artificial intelligence systems are relatively new and not many professionals have the skills to successfully implement these systems in complex domains (such as cross-border trade).

• Software and infrastructure: Given how much AI solutions rely on data, organizations that lack the proper infrastructure for extensive data modelling and visualization will have trouble integrating AI systems into their workflow.

• Investment Costs: Implementing AI systems may require investment in learning, software, hardware, and infrastructure.

• Regulatory Compliance: Different regions have varying regulations regarding AI usage, data privacy, and consumer protection. Businesses must navigate these regulations carefully to avoid legal pitfalls. AI regulations are still evolving, so ensure that you stay up to date on evolving requirements in the economies that your business operates in.

How can I get started with AI and trade?

Articles and resources to educate users about new and changing AI tools for trade are being issued regularly. Some of these include:

• Chapter 5 of the UNIDO, ITU, ITC report Empowering SMEs through 4IR Technologies titled “Pathway to the Adoption of AI” that lays out five phases from digital transformation to piloting your first project. Chapter 6 also describes potential applications of AI in agriculture, automotive and creative industries.
• The U.S. Chamber of Congress has developed information on:
  • best practices for small business AI content creation
  • what AI can’t do for your small business

Links to Supporting Information 

eTrade for All – AI’s transformative role in small business trade | eTrade for all partner news

ITC – Living with the Genie – Artificial Intelligence in Content Creation for Small Businesses in Trade

IFC – Artificial Intelligence Innovation in Financial Services

OECD – Artificial Intelligence and international trade

UNECE – White Paper on the use of Artificial Intelligence in Trade Facilitation

WEF – Digitalization is disrupting global trade – here’s how AI can help customs and businesses to respond

Trade Finance Global  Artificial Intelligence – Tradetech Research | Trade Finance Global