AI Reduces Risks, Boosts Efficiency in International Trade

Q: How does Thomson Reuters use AI to streamline international trade, and what are the key benefits associated with this integration?

A: One of the primary challenges in international trade is accurately forecasting timelines and costs. The pandemic exacerbated difficulties in maritime transport, resulting in more unpredictability. In this context, AI has proven instrumental in analyzing historical patterns to forecast delivery times and assess potential risks, enhancing insights into international transport processes. 

AI can also mitigate risks associated with tariff classification. Manual classification can take anywhere from 30 minutes to two hours, depending on the product's complexity and the classifier's familiarity with it. AI can reduce this time frame to seconds or minutes, providing benefits for both importers and exporters.

Q: How do Thomson Reuters’ AI solutions benefit end users?

A: We integrate cutting-edge platforms and tools that enhance operational efficiency. Our initiatives are concentrated in three core areas: international trade, taxation, and legal compliance. By integrating AI into these areas, we optimize processes and provide superior value to clients.

An example of our AI solutions is ONESOURCE Smart HS, which improves the tariff classification process by enabling users to input product descriptions of varying complexity. The platform employs intelligent algorithms to prompt users for additional information as needed, ultimately delivering harmonized tariff classifications with minimal error margins. It also enhances compliance by implementing an automated double-check mechanism to validate classifications. 

Q: What common errors are associated with the application of AI in international trade?

A: With over 5,000 global codes and 19,000-20,000 unique tariff nomenclature codes for each country, the potential for error in international trade is significant. Our approach integrates three critical elements: industry context, specific product data, and insights from previous imports. This methodology allows us to justify classifications more effectively and provide clients with well-supported alternatives.

Our method has achieved an accuracy rate of up to 95% in tariff classifications, along with a 13% improvement in overall process efficiency. In the automotive sector, for example, we have enhanced efficiency by up to 24%.

Q: How has the Mexican trade landscape and market adopted AI, and what potential does it have beyond trade?

A: Companies in Mexico often adopt a cautious approach to technology investments, reflecting a reactive mindset. The international trade framework in Mexico typically prioritizes post-declaration controls, which can impede the integration of new technologies. As the importance of compliance becomes increasingly recognized, companies are likely to show greater willingness to explore and adopt new solutions.

Beyond international trade, there is potential for AI in taxation. Companies are increasingly looking for AI solutions to help with tax forecasting and planning, making it easier to comply with regulations and improve their financial strategies.

Q: What actions are necessary to effectively establish AI within international trade, and what should be the key priorities moving forward?

A: One of the foremost challenges is establishing trust in the information patterns generated by AI. The dynamic nature of global trade, compounded by geopolitical tensions, demands adaptability. It is crucial for AI systems to accurately forecast trends and outcomes, enabling companies to confidently rely on their insights.

The legal framework governing AI is also crucial. Establishing comprehensive regulations that evolve alongside AI development is essential to mitigate risks, especially in scenarios where the implications may impact legal and economic domains.

When it comes to AI investment, Thomson Reuters will spend more than US$100 million every year developing its own artificial intelligence technology to serve clients in sectors such as legal, fiscal and foreign trade. In addition, Thomson Reuters has a US$8 billion fund to spend on acquisitions and investments in artificial intelligence, and Mexico is one of the main countries that will receive this ambitious investment.