AI's role in saving time and money for businesses during tariff chaos

US companies have experienced a turbulent journey with tariffs over the past year. Extensive tariffs were introduced at various levels across countries. 

While some were later reversed by the Supreme Court, there’s now added complexity as companies pursue potential refunds. Some are seeking AI's assistance for this.

Organisations like EQI and advisory companies like KPMG are employing generative AI to “manage all this chaos,” remarked Brendan Connallon, EQI's Vice President of Finance. EQI specialises in providing metal components and advises manufacturers on supply chain matters. 

This technology swiftly organises and interprets vast datasets, monitors tariff shifts, simulates possible supply chain scenarios, and classifies goods by their specific government tariff codes—a complex system housing over 17,000 codes.

Emil Stefanutti, Gaia Dynamics' CEO, a software firm that offers AI-driven trade compliance tools, noted AI's significance in this fast-paced context, as it can minimize compliance mistakes and conserve businesses’ time. 

With the Supreme Court ruling in mind, Stefanutti highlighted how importers could use AI to evaluate data regarding tariff payments, calculate potential excess payments, and identify areas needing adjustments.

AI “operates at a scale beyond human capability to monitor and adjust to new regulations,” explained Stefanutti.

Consulting giant KPMG has long counseled on trade compliance, yet last year's “rapid tariff changes were unparalleled,” stated Andrew Siciliano, head of KPMG's Global and US Trade and Customs departments.

In response to company leaders’ need for immediate data-driven decisions, KPMG introduced an AI-powered tariff modeler.

KPMG’s clientele includes numerous large enterprises that import items like car parts, retail merchandise, and pharmaceuticals through various entry points and customs brokers. 

KPMG extracts and integrates decentralised customs and supplier data into the tariff modeler, as described by Siciliano.

This tactic has enabled KPMG’s clients to adeptly apply for refunds due to overpaid tariffs caused by policy amendments post-Supreme Court decision. 

Given that many trade regulations have intricate exemptions, some companies have been subject to multiple tariffs instead of just one. 

Siciliano explained that AI helps the firm interact with a client’s data to identify which products were sourced from certain factories, then ascertain eligibility for refunds.

Despite the progress, Connallon warned about possible confusion and ambiguity. He mentioned to Business Insider their expectations for the process to be “bureaucratically challenging.”

Before the advent of AI, manually combing through extensive custom entry data to detect overpayments could span weeks or even months, or remain overlooked due to its intricacy, Siciliano pointed out. Today, stimulating AI yields swift information delivery.

Nearly eliminating weeks of downtime, AI expedites scenario planning. An importer might consider how expenses would shift by relocating sourcing from China to Vietnam, for instance. 

Instead of updating multiple spreadsheets over several weeks, AI drafts these scenarios in just moments with simple keystrokes, anticipated Siciliano.

Connallon shared that EQI employs AI comparably to project alternative sourcing scenarios. 

They utilise Altana's AI platform, which concentrates on supply chain and trade compliance management.