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Digital transformation has touched every corner of international trade, and customs agencies are no exception. The use of Artificial Intelligence (AI) tools is beginning to revolutionize the sector, bringing improvements in efficiency, accuracy, and operational capacity.
This 2024, Prodensa CEO, Emilio Cadena, was a featured speaker in the TradeHub Customs & Trade Innovation Summit, where a panel of experts discussed how AI is shaping the future of customs agencies and operations, paving the way for exponential competitiveness.
The AI Revolution in Foreign Trade
Implementing AI in customs agencies represents one of the most significant innovations in the sector in decades. As Raúl Terroba from Deep Cognition explained, AI has evolved from a descriptive analytics tool to one that enables futuristic predictions through machine learning and deep learning. Customs agencies are no longer limited to analyzing what happened; they can now foresee trends and transform complex issues into data-based, innovative solutions.
This predictive capability is essential in the dynamic environment of foreign trade, where multiple global players interact under various rules and regulations. AI's ability to analyze data from different sources and extract relevant information in real-time allows customs agencies to respond faster to disruptions, increasing their visibility and responsiveness.
Automated Tariff Classification
One of the biggest challenges in customs operations is tariff classification, a fundamental process for goods clearance. According to Daniel Peimbert, founder of Camtom IA, AI applied to this field can drastically speed up processing times.
His company, Camtom IA, specializes in developing AI for tariff classification, using a virtual assistant that interacts with users to gather necessary information and produce an accurate classification down to the NICO level.
This automation is essential not only for reducing operational time but also for minimizing human errors that can lead to penalties and delays in customs. AI's ability to interpret product descriptions, even from simple images or PDFs, marks a before-and-after moment in the efficiency of customs processes.
The Role of AI in Regulatory Compliance
Regulatory compliance is another key area where AI is transforming customs operations. As Raúl Terroba explained, government databases contain the rules needed to ensure operations meet current regulations. However, manually reviewing all necessary documents can be tedious and error-prone.
AI enables these reviews to be automated, ensuring that all documents are consistent and compliant before submission. This not only saves time but also minimizes the risk of sanctions due to non-compliance.
The Evolution of Customs Agents
Far from replacing human professionals, AI is helping customs agents focus on higher-value tasks. As Jessica Isselin, co-creator of Experta IA, noted, the AI tool developed by her team is not intended to displace human classifiers but to enhance their capabilities.
Instead of spending hours entering data, customs agents can now serve as validators and analysts, leveraging their expert knowledge to make strategic decisions.
This transformation does come with challenges, as many in the sector are still reluctant to adopt the technology out of fear of job loss. However, as Isselin noted, history shows that those who do not adapt to change risk being left behind. Similar to the 1990s, when the automation of the customs declaration system met with resistance, AI now faces a cultural barrier that must be overcome.
According to a study conducted by the World Trade Organization in collaboration with the World Customs Organization, big data, data analysis, artificial intelligence, and machine learning are expected to have the greatest future impact on customs operations. Of the 89 respondents, 36 gave it the highest rating (10).
Cybersecurity in the Age of AI
Undoubtedly, AI adoption brings new security concerns. Fernando Thompson of Soldig and TBSek, a cybersecurity expert, emphasized that most companies in Mexico are not prepared to face a cyberattack. The vulnerability of internet-connected systems is a reality that customs agencies must urgently address.
With a new malicious component being created approximately every two seconds worldwide, it is essential to have robust security systems and contingency plans in place.
Implementing regular testing and assessments is crucial to identifying vulnerabilities in customs agency systems. By prioritizing sensitive areas, such as client data management and the protection of the operation itself, companies can minimize the risk of catastrophic operational disruptions.
Successful AI Implementation Cases
Throughout the panel, experts shared various success stories demonstrating AI's power in customs operations. Raúl Terroba mentioned how his system has helped multiple agencies increase efficiency by enabling them to process thousands of documents quickly and accurately. His platform's ability to standardize data from multiple formats has allowed customs agents to significantly reduce errors and accelerate clearance times.
For his part, Daniel Peimbert shared how his tariff classification tool has enabled agencies to handle shipments with thousands of items automatically, without needing an army of human classifiers. This has not only improved processing speed but also reduced operational costs.
The Future of AI in Customs
As technology advances, AI’s role in customs agencies will continue to grow. Generative AI tools, capable of executing tasks autonomously, are just around the corner. As Terroba highlighted, AI will not only generate data but will also be able to make decisions based on that data, completely transforming how customs agencies operate.
However, the success of this transition depends on the adoption of these technologies by professionals in the sector. As Isselin pointed out, artificial intelligence is no longer optional; it is a necessary tool to remain competitive in an increasingly demanding global environment.
The impact of artificial intelligence (AI) on global trade extends far beyond technology, transforming every industry and aspect of trade. AI is projected to add $15 trillion to the global economy by 2030 and is revolutionizing sectors such as supply chain management, market analysis, and customer interaction.
Key Points:
- Efficient Automation: AI in customs agencies enables faster, more accurate tariff classification, reducing processing times and human errors.
- Guaranteed Compliance: AI tools ensure that operations comply with current regulations, minimizing penalties and risks for companies.
- Enhanced Human Role: Instead of replacing customs agents, AI frees them from repetitive tasks, allowing them to focus on strategic analysis and validation.
- Data Security: Cybersecurity is critical when implementing AI, as internet-connected systems are vulnerable; agencies must adopt proactive measures to protect their information.
- Exponential Competitiveness: AI offers a competitive advantage in foreign trade, allowing customs agencies to quickly adapt to disruptions and improve the customer experience.