Latest news with #tradecompliance
Associated Press
06-08-2025
- Business
- Associated Press
Descartes Helps Reduce False Positives with AI-Enabled Denied Party Screening Solution
LONDON and ATLANTA, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced the release of Descartes Visual Compliance™ AI Assist, the latest advancement in denied party screening that uses new artificial intelligence (AI) capabilities to help trade compliance teams automatically reduce the effort required to review and clear false positives. False positives are alerts that appear to match restricted, sanctioned and denied party entities but are, in fact, benign matches that lead to unnecessary reviews, wasted time and delayed shipments for import or export. 'While it makes sense to cast a wide net with screening, false positives are a costly drag on time, accuracy and compliance performance,' said Brian Hodgson, General Manager, Trade Compliance at Descartes. 'AI Assist significantly reduces low-quality false positives while managing the risk of true hits. With compliance, AI needs to be 'risk-aware,' meaning it needs to deliver the tremendous value of AI without increasing the risk of violations. With AI Assist, for some customers, the combination of automation in collaboration with human oversight has helped reduce false positives to just fractions of a percent, even with large screening volumes. This is a significant gain in productivity for compliance resources who can be overburdened with irrelevant alerts.' Descartes Visual Compliance is a cloud-based solution for export, financial and trade compliance, including restricted and denied party screening. The solution includes comprehensive watch list and regulatory content from the U.S. as well as the EU, APAC and EMEA regions. Descartes Visual Compliance helps companies of all sizes in diverse industries, such as aerospace, financial services, retail, manufacturing, education, transportation and defense, better navigate the ever-changing, complex world of foreign trade compliance by streamlining workflows, mitigating business risk and enhancing overall compliance. 'With the increase in global trade regulations and the substantial volume of information that flows through international commerce, having effective screening without overloading trade compliance resources with false positives is essential,' said Ken Wood, Executive Vice President, Product Management at Descartes. 'To help businesses with this persistent challenge, our AI innovations accelerate the review and adjudication of screening results with intelligent filtering, flexible control and human-centered quality assurance, which enhances compliance levels while reducing labor effort.' Key capabilities of Descartes Visual Compliance AI Assist include: Learn more about Descartes Visual Compliance AI Assist and Descartes' Global Trade Intelligence solutions. About Descartes Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at and connect with us on LinkedIn and Twitter. Global Media Contact Cara Strohack Tel: 226-750-8050 [email protected] Cautionary Statement Regarding Forward-Looking Statements This release contains forward-looking information within the meaning of applicable securities laws ('forward-looking statements') that relate to Descartes' global trade intelligence solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, 'Certain Factors That May Affect Future Results' in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes' most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Forbes
08-05-2025
- Automotive
- Forbes
AI Turns Tariff Chaos Into A Competitive Advantage
Since President Trump's implementation of sweeping tariffs in early 2025, global supply chains have entered unprecedented volatility. Industries with supply chain operations, from clothing to car parts, face critical daily decisions. Businesses are grappling with 125% tariffs on Chinese imports, 10% across-the-board duties on other trading partners, and the elimination of Section 321 exemptions for low-value e-commerce shipments. Amidst this chaos, artificial intelligence emerges as a crucial tool for navigating trade compliance challenges. Emil Stefanutti, CEO of Gaia Dynamics, told me in an interview how his company is innovating in trade compliance through advanced AI solutions. Founded in partnership with AI pioneer Andrew Ng, Gaia Dynamics addresses challenges in the current tariff environment through technology-based compliance solutions. According to Stefanutti, it significantly reduces compliance processing time and targets 97% accuracy rates. These metrics are essential for the supply chain compliance sector, where industry reports suggest manual errors cost U.S. businesses approximately $104 billion annually. The current tariff environment represents one of the most significant trade barriers in recent history. On April 9, 2025, President Trump announced a 90-day pause on higher targeted tariffs for most countries while simultaneously raising duties on Chinese goods to an unprecedented 125%. Despite this pause, a 10% across-the-board duty remains in place for most trading partners, creating ripple effects throughout global supply chains. These policy shifts had immediate economic consequences. The World Trade Organization significantly downgraded its outlook for global merchandise trade, forecasting a 2% contraction in 2025. The United Nations Conference on Trade and Development, projected the global economy to grow by 2.3% this year, with U.S. GDP growth potentially slowing to 1%, a drop of 1.8 percentage points from previous forecasts. Customs compliance currently consumes 10 hours per shipment in the U.S., with 56 million annual cargo movements requiring meticulous documentation. The stakes are particularly high for small businesses: only 9% engage in exports due to regulatory complexity, despite exporters being 20% more profitable than domestic-focused firms. Stefanutti underscores the urgency: 'There are 4 million e-commerce shipments per day that didn't used to be all of a sudden, [they] have to comply.' This regulatory tsunami coincides with a 700% surge in tariff-related regulation changes since 2020, overwhelming human analysts. The consequences of non-compliance are severe. U.S. Customs and Border Protection reports 30% of product classifications contain errors, risking delays, penalties, and reputational damage. For automotive manufacturers managing 30,000+ parts catalogs, a single tariff tweet from political leaders can trigger weeks of manual impact assessments. "We trained our AI to look for rumors," explains Stefanutti. "Companies can run scenarios: What if this White House statement on social media becomes policy?' That way, customs brokers and supply chain consultants can model scenarios based on social media posts by U.S. officials before it becomes a new registered policy. During a live demonstration, Stefanutti illustrated the process of reducing classification time: inputting "women's bicycle" prompted the AI to refine the description to "bicycle designed for women's use," then generated the correct harmonized code with a 181% duty rate. The system provides Customs and Border Protection Agency ruling precedents and compliance rationales. There are additional benefits to implementing AI for supply chain resilience: With thousands of trade agreements, hundreds of regulations worldwide, and over ten thousand harmonized codes governing traded products, human error is inevitable. These regulations change frequently, with 6,755 changes recorded in the last five years according to the Brookings Institute. AI systems can track these changes continuously and maintain compliance with far greater accuracy than manual processes. Currently, 76% of compliance managers rely on manual processes to track changes to complex regulations. By automating these processes, companies can substantially reduce labor costs while improving accuracy. For instance, Emil shares, 'Gaia slashes costs by reducing 80% of compliance processing from 10 hours to 2 hours per shipment.' For instance, automotive businesses classifying 30,000 parts, would mean spending $4,860 instead of $3.6 million in labor. AI can analyze historical trade data and market trends to help businesses anticipate risks, optimize supply chains, and adapt strategically to tariff changes. This capability is especially valuable when considering network relocations to mitigate tariff impacts, a strategy that 79% of Chief Supply Chain Officers surveyed by Gartner feel equipped to implement. AI is transforming compliance from a cost center to a strategic asset, enterprises now can leverage tariff volatility as a competitive differentiator. CFOs and supply chain leaders face the challenge to automate compliance or risk becoming collateral damage in the tariff wars. With emerging AI tools business leaders can transform compliance challenges into operational advantages-reducing costs, minimizing risks, and maintaining competitiveness despite tariff uncertainties. As highlighted by Gartner's Supply Chain Practice, supply chain organizations can "use tariff volatility to drive competitive advantage" by adjusting their operations rather than merely reacting to external pressures.
