Technological progresses and international trade represent a both disruptive and benefitial combination. Previously on our blog, we have discussed the applications of blockchain and its advantages over the supply chain and the internationalization of companies. In this article, you will discover how artificial intelligence and the use of Big Data can help exporting companies to expand into international markets and improve their competitiveness.
Artificial intelligence works as a business strategy in and of itself for exporting companies: it contributes to cost reduction, time savings, optimization of data analysis, data control, and improved communication, just to name a few examples. All of this translates into a greater well-being for our customers and resolving their problems in a more precise and efficient way.
How does Artificial Intelligence help exporting companies?
The World Trade Organization (WTO) declared that up to a 15% decrease in costs in foreign trade has been recorded thanks to technological advancements like AI. A practical case is that of the company eBay, which created an artificial intelligence algorithm in 2014 to automatically translate, increasing exports by 17.5%.
Another significant example is the implementation of a global positioning system (GPS) in logistics and transportation companies; thanks to AI, it is possible to predict itinerary modifications or the demand for our product in the market. Ultimately, greater control and vision on the part of the exporter (or importer) in the logistics chain. In the area of warehouse and inventory management, the company Swisslog is a clear success story, having managed to use technology to calculate a customer's order forecast, make decisions about proper packaging, or the utilization rate of machines, among other solutions.
In addition, we will highlight the automation of all types of processes. An international trade operation involves a multitude of tasks to carry out (analysis of the product and market, sales strategy, document management, not to mention a study of legal and regulatory requirements for exporting our product). Many companies, especially SMEs, do not have the resources or time necessary to carry out this activity efficiently. In recent times, much has been talked about a tool that can optimize processes, answer questions, and reduce linguistic barriers, among other functions: ChatGPT.
Benefits of ChatGPT in international trade
Created by the company OpenAI, ChatGPT works as a virtual assistant with which it is possible to have a conversation about any topic, whose answers are configured thanks to the information collected from various sources of data and that, in addition, are acquiring a greater degree of detail and logic thanks to Machine Learning.
This virtual assistant can be of great help when answering questions about trade and international business. We can ask this chat about tariff and non-tariff barriers in importing a certain product, it can talk to you in detail about its market and demand situation in a specific country, and even answer questions about customs procedures, documents required for export, and much more.
Big Data: How Mass Data Analysis Improves Our Exports
In the world of international trade, we face millions of units of data. However, most of these are not managed or their potential is not fully utilized. In the past 10 years, foreign trade has grown by around 50% according to the WTO. One of the main reasons for this has been the analysis of Big Data: the large amount of data generated and processed is subjected to a much wider and more detailed analysis, improving sales strategies for businesses and thereby increasing and consolidating their presence in foreign markets. The xNova International market intelligence software allows us, thanks to Big Data, to use importer search functions, analysis of the competition and market movements, among others.
By analyzing massive volumes of data, exporting companies can expand their range of sales possibilities and become more competitive. Thanks to Big Data, we can predict the movement of a particular market, provide information on the best logistics routes and reduce costs. From a port transportation perspective, for example, Big Data can provide us with information on weather conditions, delays or strikes in ports, tracking of goods, and even predicting the movements of docked ships.
According to a study by DHL, up to 97% of executives consider that Big Data analysis can enhance the supply chain. However, only 17% currently use this technology. The graph above indicates some of the benefits obtained from investing in Big Data, such as increased revenue, improved customer service, product quality improvement or the degree of success in product launch.
In conclusion, the use of Artificial Intelligence and Big Data is essential today to improve competitiveness and sales in a specific market. The xNova International platform uses these tools to provide exporting companies with information about their potential and current customers in international markets, understanding the demand and price trends of their product, and real-time transaction information. In addition, it allows you to analyze competitor companies, understanding when, where, and how they operate, allowing us to carry out a comprehensive prospecting, which will directly result in a much more precise decision making.
Written by Manuel Alcocer