{"id":44337,"date":"2021-03-19T17:26:20","date_gmt":"2021-03-19T17:26:20","guid":{"rendered":"https:\/\/www.tradefinanceglobal.com\/?page_id=44337"},"modified":"2024-07-28T10:51:53","modified_gmt":"2024-07-28T10:51:53","slug":"artificial-intelligence-ai","status":"publish","type":"page","link":"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/","title":{"rendered":"Artificial Intelligence"},"content":{"rendered":"\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-header-without-image d-flex flex-direction-column justify-content-center\">\n    <h2 class=\"fs-32 fw-700 fs-xs-28 not-for-table-content\" id=\"heading-artificial-intelligence\">\n        Artificial Intelligence    <\/h2>\n    <div class=\"d-grid grid-col-2 grid-col-xs-1\">\n                            <div class=\"\">\n                <div>Last updated on 28 Jul 2024<\/div>\n                <div>19 Mar 2021 . 5 min read<\/div>\n            <\/div>\n            <\/div>\n    <\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><figure class=\"wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"869\" height=\"352\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence.jpg 869w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-300x122.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-768x311.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-320x130.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-370x150.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-414x168.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-600x243.jpg 600w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-372x151.jpg 372w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-450x182.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-380x154.jpg 380w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/05\/Artificial-Intelligence-285x115.jpg 285w\" sizes=\"auto, (max-width: 869px) 100vw, 869px\" \/><\/figure><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #f2f5f7 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-tradetech-overview\">TradeTech Overview<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/\">\n        Introduction to TradeTech      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/introduction-to-trade-digitalisation-tradetech\/\">\n        Technology in Trade      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/blockchain\/\">\n        Introduction to Blockchain      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-columns container w-auto country-quick-link h-100 mb-0 is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #ebf5f4 !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-technologies\">Technologies<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/cloud-computing\/\">\n        Cloud Computing      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/optical-character-recognition-ocr\/\">\n        Optical Character Recognition (OCR)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/application-programming-interfaces-api\/\">\n        Application Programming Interfaces (API)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\">\n        Big Data Analytics      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #e5f5ff !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-developing-technologies\">Developing Technologies<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/internet-of-things-iot\/\">\n        Internet of Things (IoT)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\">\n        Artificial Intelligence (AI)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/distributed-ledger-technology-dlt\/\">\n        Distributed Ledger Technology (DLT)      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/quantum-computing\/\">\n        Quantum Computing      <\/a>\n      <\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33%\"><div class=\"block-buttons bg-anti-flash-white rounded p-24 h-100 xs-h-auto\" style=\"background-color: #E6FAFE !important;\">\n  <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-12\">\n    <h4 class=\"not-for-table-content fs-24 fw-700\" id=\"heading-resources-guides\">Resources &#038; Guides<\/h4>\n  <\/div>\n  <div>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/research\/\">\n        TradeTech Research      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/itc-ai-guide\/\">\n        ITC AI Guide 2024      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/tradetech-whitepaper-2021\/\">\n        TradeTech Whitepaper 2021      <\/a>\n          <a class=\"d-inline-block mr-10 mb-10 py-8 px-16 rounded bordered border-light text-black bg-white fs-14 fw-700\" href=\"https:\/\/www.tradefinanceglobal.com\/editions\/blockchain-dlt-trade-guide-2020\/\">\n        WTO DLT Guide 2020      <\/a>\n      <\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns container w-auto is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"bg-light-blue d-flex gap-16 h-auto p-16 rounded xs-flex-direction-column\">\n    <div class=\"\">\n    <img decoding=\"async\" style=\"min-width:100px;max-width: 150px\" src=\"https:\/\/secure.gravatar.com\/avatar\/c5c7f46c74d085beb1f2c4863fc91b31?s=160&#038;d=mm&#038;r=g\" class=\"w-100 rounded\">\n  <\/div>\n  <div class=\"col-span-2 col-span-xs-1\">\n    <div class=\"d-flex flex-direction-column gap-16 fs-16 justify-content-between\">\n      <div class=\"fs-16 fw-700\">Deepesh Patel<\/div>\n      <div class=\"fs-14 fw-400 elipsise-2-line\" title=\"Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.\">\n        Deepesh Patel is Editorial Director at Trade Finance Global (TFG) and host of Trade Finance Talks. Deepesh regularly chairs and speaks at international industry events held by the IFC, EBRD, IMN, WTO, Financial Times and Economist Impact, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.      <\/div>\n      <div>\n        <a class=\"text-black fs-12 small-link-arrow-right\" href=\"https:\/\/www.tradefinanceglobal.com\/posts\/?author=57\">\n          <span>\n            Latest Post          <\/span>\n        <\/a>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n<div style=\"min-height:100px!important;\" class=\"block-cta max-w-100 p-32 h-auto rounded sm-w-60 dark-mode bg-black align wp-block-acf-block-cta\">\n  <h4 id=\"heading-access-trade-receivables-and-supply-chain-finance\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Access trade, receivables and supply chain finance  <\/h4>\n  <p class=\"block-subtitle dark:color-white\">We assist companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.<\/p>\n  <a href=\"https:\/\/www.tradefinanceglobal.com\/get-trade-finance\/\" class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n    <span>Get Started<\/span>\n  <\/a>\n<\/div>\n\n\n<p><\/p>\n\n\n<div class=\"block-cta p-24 h-auto rounded\">\n    <h4 id=\"heading-want-to-learn-more\" class=\"fs-24 fw-700 elipsise-2-line dark:color-white not-for-table-content\">\n    Want to learn more?  <\/h4>\n  <p class=\"fs-16 fw-400 dark:color-white\">Download our free Trade Finance Guides<\/p>\n  <div class=\"mb-20\">\n    <img loading='lazy' alt='ITFA-TFG-Guide' style='width:auto; height:200px'  width='auto' height='auto' src='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-150x150.jpg' srcset='https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-300x200.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-768x512.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-285x190.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-320x213.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-370x247.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-414x276.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-450x300.jpg 450w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-375x250.jpg 375w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-243x162.jpg 243w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-238x159.jpg 238w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide-184x123.jpg 184w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2024\/07\/ITFA-TFG-Guide.jpg 1000w' \/>  <\/div>\n      <a href=\"https:\/\/www.tradefinanceglobal.com\/login\/?redirect_url=https%3A%2F%2Fwww.tradefinanceglobal.com%2Fwp-json%2Fwp%2Fv2%2Fpages%2F44337\"  class=\"dark:text-black px-16 py-8 rounded bg-black text-white fs-14 fw-700 dark:bg-tale\">\n      <span>Download<\/span>\n    <\/a>\n    <\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-content\">Content<\/h3>\n\n\n<div class=\"block-table-content h-auto bg-white auto\">\n    <ul class=\"table-content\"><\/ul><\/div><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<h1 class=\"wp-block-heading\" id=\"h-artificial-intelligence\">Artificial Intelligence<\/h1>\n\n\n<div class=\"block-content align wp-block-acf-block-content\"style=\"background-color: #FFFFFF;color: #002F4D;\"\n>\n    <div class=\"modules block-paragraph\">\n<div class=\"googlefont\">\n<p>While\u00a0<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\" data-wpel-link=\"internal\">big data analytics<\/a>\u00a0compile useful data\u00a0for humans to use in decision-making, artificial intelligence (AI) is able to further process that data and produce an actual decision. According to the Encyclopedia Britannica, AI is:<\/p>\n<\/div>\n<\/div>\n<div class=\"modules paragraph White \">\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-group\" style=\"font-size:16px\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:16px\">\u201cthe ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from past experience.\u201d&nbsp;<\/p>\n<\/blockquote>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">AI is a broad term that is used to describe a series of subfields, such as machine learning, neural networks, deep learning and natural language processing (see&nbsp;Box 1).<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\"><a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/big-data-analytics\/\">Big data analytics<\/a>&nbsp;and AI are closely linked. The development of big data analytics involves many AI theories and methods and therefore depends on AI, and the development of AI relies on big data analytics because it requires lots of data for the process of \u201clearning\u201d. As a result, many of the benefits and challenges for micro, small, and medium enterprises (MSMEs) that big data analytics represent will also be represented by AI. The following sections will focus exclusively on the benefits and challenges that are unique to AI.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Box 1<\/strong><strong>:<\/strong>&nbsp;Sub-categories of AI<\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Machine learning (ML)<\/strong>: A subset of AI techniques that uses experience to improve performance.<\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Neural networks<\/strong>: Virtual network structures that are designed, in their topology and behaviour, to resemble neuron cells and the connections of the latter within the biological brain.<\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Deep learning<\/strong>: A subset of ML that uses multi-layered neural networks to solve complex problems.<\/p>\n\n\n\n<p style=\"font-size:16px\"><strong>Natural language processing (NLP)<\/strong>: A branch of AI that deals with the interaction between computers and humans using natural language, i.e. naturally evolved human language, as opposed to binary computer language.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"610\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-1024x610.jpg\" alt=\"layer\" class=\"wp-image-44333\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-1024x610.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-300x179.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-768x458.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-1536x916.jpg 1536w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-2048x1221.jpg 2048w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-320x191.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-370x221.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-414x247.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-503x300.jpg 503w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-335x200.jpg 335w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-419x250.jpg 419w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-272x162.jpg 272w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-267x159.jpg 267w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-206x123.jpg 206w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-285x170.jpg 285w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Big-Data-artificial-intelligence-and-quantum-computing-in-trade-analytical-layer-1-scaled.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Potential benefits for MSMEs<\/h2>\n\n\n\n<p style=\"font-size:16px\">AI brings the power of data to the next stage compared to big data analytics. The ability of AI-powered programmes to parse and understand data has vast implications for financing processes. In addition, it has the capability to facilitate the creation of new processes that were simply too complicated to be done with the human brain itself, including predictive insights across trade functions. The development of predictive insight capabilities has interesting applications, such as credit scoring. A better outcome for credit scoring could help&nbsp;shift the focus towards good risk, potentially increasing MSME access to trade finance (which is low-risk by nature). At its core, AI has the power to go beyond the limited capabilities of human intelligence.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"767\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-1024x767.jpg\" alt=\"Figure 3b\" class=\"wp-image-44339\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-1024x767.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-300x225.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-768x576.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-1536x1151.jpg 1536w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-320x240.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-370x277.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-414x310.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-400x300.jpg 400w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-267x200.jpg 267w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-334x250.jpg 334w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-216x162.jpg 216w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-212x159.jpg 212w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-164x123.jpg 164w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing-254x190.jpg 254w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-industry-impact-of-AI-and-machine-learning-in-international-trade-and-msme-financing.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Use cases of AI<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"font-size:16px\">There are multiple examples of companies using AI and ML to improve their financing solutions to the benefit of all, in particular MSMEs.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">For example, Efcom, a factoring software firm based in Germany, uses AI as a risk monitoring tool to determine if an&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/invoice-finance\/\">invoice<\/a>&nbsp;is fraudulent.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">QuantaVerse, for its part, uses AI for entity resolution and relationship-mapping and to monitor transactions for suspicious activity, which are all-important for the onboarding of new customers and financial crime compliance.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">Another firm that leverages AI to assist with client onboarding is Temenos. Temenos also uses AI to help banks conduct eligibility checks and process loan applications.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">RHB Banking Group has an AI-powered mobile app to help with compliance checking and personalized offerings.<\/li>\n\n\n\n<li style=\"font-size:16px\">Other companies, such as Flowcast, a US-based AI firm, leverage machine learning methodologies to create predictive models that assess risk. Flowcast\u2019s models render explainable a business\u2019 creditworthiness, its risk of delinquency, its timeliness in making repayments, and the likelihood of dilution of its transactions.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">Ant Group, a member of the Alibaba Group, uses AI and data from mobile payment platform Alipay to run an extraordinary variety of businesses, including consumer lending, money market funds, and wealth management, health insurance and credit rating services. AI supplements Ant Group\u2019s business functions on many fronts, including fraud prevention and risk profiling.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">Tradeteq is another fintech company that uses big data analytics and AI for credit scoring to help MSMEs which are often deemed \u201ctoo risky\u201d by current credit rating models to access finance. Tradeteq provides AI-powered predictive credit analytics to assess the riskiness of clients, vendors and individual transactions, and to assess the potential for defaults in trade finance liabilities of private and unrated companies.&nbsp;<\/li>\n\n\n\n<li style=\"font-size:16px\">Finally, AI is also being used by companies for dynamic discounting and&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/supply-chain-finance\/\">supply-chain financing<\/a>.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-1024x1024.jpg\" alt=\"Difficulty Adopting\" class=\"wp-image-44301\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-1024x1024.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-768x768.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-1536x1536.jpg 1536w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-2048x2048.jpg 2048w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Industry-impact-versus-implementation-difficulty-for-technologies-in-international-trade-and-MSME-financing-scaled.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p>For more information about this diagram,&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/research\/\">visit our research methodology page<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Addressing AI challenges<\/h2>\n\n\n\n<p style=\"font-size:16px\">While the road ahead for AI is promising, it is not without its challenges. The efficiencies of AI are maximized when applied to digitally native documents. Unfortunately, we are still facing regulatory challenges on the acceptance of digitally native documents. In most instances, trade transactions necessitate the use of paper documents, which AI tools in isolation are unable to access. If AI is to realize its full potential, outdated regulatory requirements will need to be updated and advancements will need to be made in other supporting technologies, namely&nbsp;<a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/optical-character-recognition-ocr\/\">optical character recognition<\/a>&nbsp;(OCR).&nbsp;Unfortunately, OCR currently requires human intervention to ensure accuracy. The key in this instance is to bypass the error-prone middleman, OCR, entirely. Updating regulations to accept the use of digital original trade documents would facilitate an environment in which the entire trade cycle is paperless and can benefit from the power of digitalization.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-1024x1024.jpg\" alt=\"Figure 3d\" class=\"wp-image-44340\" srcset=\"https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-1024x1024.jpg 1024w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-300x300.jpg 300w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-150x150.jpg 150w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-768x768.jpg 768w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-1536x1536.jpg 1536w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-320x320.jpg 320w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-370x370.jpg 370w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-414x414.jpg 414w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-200x200.jpg 200w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-250x250.jpg 250w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-162x162.jpg 162w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-159x159.jpg 159w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-123x123.jpg 123w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance-190x190.jpg 190w, https:\/\/www.tradefinanceglobal.com\/wp-content\/uploads\/2021\/03\/Average-perceived-difficulty-to-implement-ai-and-ml-in-international-trade-and-msme-finance.jpg 1300w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Most current national regulations do not allow most AI solutions to be widely adopted. This stems from legal concerns, such as the ambiguity of Uniform Customs and Practice for Documentary Credits (<a href=\"https:\/\/www.tradefinanceglobal.com\/letters-of-credit\/ucp-600-ultimate-guide\/\">UCP<\/a>) rules, which do not specify whether AI can be used in lieu of humans. As policymakers work to bring these regulations into the digital age, however, they must not do so using clauses that limit AI\u2019s usefulness. It will be key that regulators do not require from machines too much compared to what they require from human beings, such as the explainability of underwriting decisions. Overburdening of this nature would set AI adoption back considerably.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Likewise, too much regulatory change poses a particular challenge for AI and ML. Machine learning is only as good as the input and supervision which can also be complicated by changing requirements and regulations. Changes to regulations, such as those used in compliance, will effectively require the algorithm to learn a whole new set of rules \u2013 a time-consuming and costly process.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Another major step forward for AI in trade finance will be the further standardization of trade documents and data formats. While AI models are able to decipher unstandardized forms better than previous computing technologies, standardized forms would lead to a higher recognition ratio and subsequently more accurate prediction models. Prediction model accuracy is a direct driver of the appetite for AI adoption.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Progress in education will help firms to make the decision to implement AI. Education on the usefulness of AI will allow banks to fully understand the benefits that using it to help small businesses will have for the sector.&nbsp;<a href=\"https:\/\/cloud.google.com\/explainable-ai\">Explainable artificial&nbsp;intelligence&nbsp;(\u201cXAI\u201d)<\/a>, whereby the results of AI algorithms can be conveyed to and understood by humans, will provide further transparency.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:16px\">Another crucial challenge to be addressed is that of the lack of trust of the human teams within financial institutions with regard to algorithms. Many employees feel threatened by algorithmic tools and fear that by assisting the machine, they will train themselves out of a job. To overcome this, firms seeking to implement the technology need to educate their employees both on its benefits and its limitations. Document checkers need to be trained to understand where the technology assists them, but also where it does not assist them, to prevent a mismatch of expectations. There is still a human checker involved, and this person needs to know what the machine is not able to pick up. It is the people that will give AI its power and they need to be prepared. This will prevent a mismatch of expectations and help employees to understand that these algorithms exist to enable, not to replace.<\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n<\/div>\n<\/div>\n\n\n\n\n<div class=\"modules w-100 partners-sponsor container py-10\">\n  <div class=\"d-grid grid-col-8 grid-col-xs-1 grid-col-sm-4 gap-1 max-w-100 py-50\">\n    <div class=\"col-span-2 col-span-xs-1 col-span-sm-1\">\n      <div class=\"d-grid grid-col-1 grid-col-xs-1 mb-sm-15\">\n        <h4 id=\"heading-publishing-partners\" class=\"not-for-table-content fw-700 dark:color-white\">Publishing Partners<\/h4>\n              <\/div>\n    <\/div>\n    <div class=\"col-span-6 col-span-xs-1 col-span-sm-3 overflow-hidden\">\n      <div class=\"swiper-container\" data-slides-desktop=\"5\" data-slides-table=\"3\" data-slides-mobile=\"2.5\" data-space-between=\"16\">\n        <div class=\"swiper-wrapper\">  \n                      <div class=\"swiper-slide\">\n              <a 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<\/div>\n  <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>Content Artificial Intelligence \u201cthe ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing\u2026 <a href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\" class=\"read-more-link\">read more &rarr;<\/a><\/p>\n","protected":false},"author":57,"featured_media":110559,"parent":44077,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false,"footnotes":""},"categories":[2711],"class_list":["post-44337","page","type-page","status-publish","has-post-thumbnail","hentry","category-tradetech"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v24.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Artificial Intelligence - Tradetech Research | Trade Finance Global<\/title>\n<meta name=\"description\" content=\"[UPDATED 2023] While big data analytics compile useful data for humans to use in decision-making, artificial intelligence (AI) is able to further process that data and produce an actual decision. According to the Encyclopedia Britannica, AI is:\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.tradefinanceglobal.com\/tradetech\/artificial-intelligence-ai\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Artificial Intelligence\" \/>\n<meta property=\"og:description\" content=\"[UPDATED 2023] While big data analytics compile useful data for humans to use in decision-making, artificial intelligence (AI) is able to further process that data and produce an actual decision. 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