Tech Firms Turn to AI for Tariff Insights

Tech Firms Turn to AI for Tariff Insights

As the global economy continues to grapple with the impact of US President Donald Trump’s reciprocal tariffs, businesses are facing a daunting task: adjusting their supply chains in real-time. To stay ahead of the changes, tech firms are turning to artificial intelligence (AI) to analyze the impact of these tariffs and provide critical insights that can help companies navigate this complex landscape.

AI Solutions for Tariff Management

  • Salesforce’s AI Tariff Agent:

    • Developed an AI tariff agent that can instantly process changes for all 20,000 product categories in the US customs system.
    • Utilizes data from the Harmonized Tariff Schedule, a 4,400-page document outlining tariffs on goods imported to the US.
    • Eric Loeb, executive vice president of government affairs at Salesforce, states, "The sheer pace and complexity of global tariff changes make it nearly impossible for most businesses to keep up manually."
  • Kinaxis’ Machine Learning Technology:

    • Manufacturers and distributors are leveraging this technology to assess products and materials, along with external signals such as news articles and macroeconomic data.
    • Runs simulations to show potential outcomes if companies switch suppliers or source different components to mitigate higher costs associated with new duties.
    • Andrew Bell, Chief Product Officer at Kinaxis, explains, "With that information we can start doing some simulations saying here is a particular part that is in your build material that has a significant tariff if you switched instead using this other part instead what would be overall impact?"

The Role of AI in Business Adaptation

The use of AI presents an alternative for companies struggling with manual adjustments. Zack Kassell, a futurist and former head of OpenAI’s go-to-market strategy, notes, "If you wonder how hard things could get without AI vis-a-vis automation & what would happen in a world where you can’t just employ a bunch of people overnight, AI presents an alternative proposal."

Conclusion

As businesses continue to grapple with the complexities of global trade policies under Mr. Trump’s administration, AI-powered tools like Salesforce’s tariff agent and Kinaxis’ machine learning technology offer critical insights into potential impacts on supply chains, allowing companies to adapt quickly to changing circumstances.

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