How AI is helping businesses save time and money amid tariff chaos

The landscape of U.S. tariffs has been tumultuous over the past year, with sweeping changes affecting various industries. With some tariffs recently overturned by the Supreme Court, businesses now face a complex maze of bureaucracy as they pursue potential refunds. In this environment, many are turning to artificial intelligence for assistance. Companies like EQI, alongside customs advisory firms such as KPMG, are leveraging generative AI to navigate through this chaotic situation. Brendan Connallon, EQI's VP of finance, highlights how AI can significantly accelerate the process of identifying tariff refunds, reducing what used to be weeks of meticulous work into mere hours. AI's capability to rapidly analyze vast datasets allows it to track tariff fluctuations, model potential supply chain scenarios, and accurately categorize goods under a complex system with over 17,000 tariff codes. Emil Stefanutti, CEO of Gaia Dynamics, underscores the vital role of AI in minimizing compliance errors and saving precious time amidst these swift regulatory changes. Following the Supreme Court's decision, importers can utilize AI to scrutinize their tariff payment histories, identify possible overpayments, and highlight areas requiring rectification. Stefanutti emphasizes that AI can continuously monitor and adapt to evolving rules at a scale that is simply unattainable for human analysts. KPMG, which has been providing trade compliance guidance for decades, has particularly felt the pressure of rapid changes in tariff regulations. Andrew Siciliano, head of KPMG's Global and US Trade and Customs practices, notes that last year brought unprecedented shifts that required companies to access real-time data quickly. In response, KPMG developed an AI-driven tariff modeler to assist their clients, which include major businesses importing a range of products from automotive parts to pharmaceuticals. This innovative approach enables KPMG to consolidate decentralized customs entries and product data from suppliers and freight forwarders, facilitating a more streamlined process for applying for refunds related to overpayments driven by recent policy changes. The complexity of trade regulations often leads businesses to pay multiple tariffs when they should only incur one, but AI helps clarify which products are eligible for refunds by analyzing data more effectively. Despite the promise of AI, challenges remain. Connallon warns that the refund process could still be fraught with confusion and red tape, potentially becoming an “administrative nightmare.” However, the shift to AI has transformed the tedious task of manually sifting through thousands of customs data points into an efficient operation. Importers can now query AI for immediate insights, drastically cutting down the time spent on scenario planning. For instance, if a company considers shifting sourcing from China to Vietnam, AI can quickly model various cost implications, a process that would have previously taken weeks. EQI employs the AI platform Altana to assess potential sourcing scenarios, calculating total costs while factoring in tariffs and other logistics. The intricate nature of global manufacturing, which often involves numerous products from diverse locations, necessitates this technological support. By simplifying complex data, EQI can provide actionable insights to its trade attorneys within hours. While AI streamlines many processes, Connallon emphasizes that human judgment remains crucial for strategic sourcing decisions. For example, although AI might indicate that sourcing entirely from one country yields the best cost savings, executives must consider broader risks, including supply chain vulnerabilities posed by geopolitical or economic issues. As the industry continues to grapple with these complexities, the integration of AI is poised to reshape how businesses manage tariffs and trade compliance in the future.