Smarter trade: How AI turns regulatory burden into competitive edge

By Juliet Mirambo

Global trade has always been complex, but in recent years, the pace of regulatory change has accelerated. Companies now face a maze of overlapping rules that vary by country, region, and industry. A single overlooked regulation can lead to multimillion-dollar fines, blocked shipments, reputational damage, or even loss of market access. For businesses operating across borders, keeping up has become a high-stakes challenge.

Artificial Intelligence is emerging as one of the most promising tools to manage this complexity. By automating due diligence, monitoring supply chains in real time, and flagging risks before they escalate, AI is helping organizations close the compliance gap. What was once a reactive process of catching mistakes after they happened is becoming a proactive system of identifying risks in advance.

Automating the Heavy Lift of Compliance

The sheer volume of trade regulations makes manual compliance nearly impossible. Rules change constantly and can involve everything from tariffs and export controls to environmental standards and labor laws. Traditionally, compliance teams have relied on spreadsheets, manual checks, and large teams of analysts to stay on top of requirements.

AI can dramatically reduce that burden by automating the most repetitive and data-intensive tasks. For example, Thomson Reuters has developed AI-driven platforms that analyze regulatory updates across jurisdictions and automatically flag the changes that are most relevant to a company’s operations. Instead of combing through thousands of pages of legal text, compliance officers can focus on interpreting the implications and advising leadership.

I oversaw the application of an AI-centric process harmonization strategy that fundamentally modified the process by which regulatory and operational data were synchronized within the boundaries of global ERP systems. In the previous process, compliance validation across our 16 production sites required manual data review, as each system held slightly different iterations of the same material or measurement record. This fact inhibited timely shipment and caused errors in regulatory reporting. Through the workflow I designed, we were able to incorporate AI-driven rule engines and KNIME automation to normalize and validate millions of data points across regions of Europe, APAC, China, and North America. The outcome was a 98% reduction in data discrepancies involving a responsible $250 million of sales revenue that can be traced to speed to market and improved compliance accuracy. Most importantly, the success of this solution led to it becoming a model for application across multiple business units because it demonstrated that regulatory discipline can also be a driver of innovation, an experience that taught me that AI is not just a tool of efficiency but also an instrument of global competitiveness. When compliance becomes automatic, auditable, and predictive, human creativity can be reapplied towards expansion, innovation and sustainability..

Gaining Visibility into the Supply Chain

Regulatory compliance is no longer limited to a company’s own operations. Increasingly, organizations are being held accountable for their entire supply chain. Laws like the Uyghur Forced Labor Prevention Act in the United States or Germany’s Supply Chain Due Diligence Act require proof that goods are not linked to human rights violations. Environmental regulations demand transparency into sourcing and production methods.

For many companies, the supply chain extends across multiple continents and involves thousands of suppliers, making visibility extremely difficult. This is where AI-powered platforms are proving their worth.

For instance, Dun & Bradstreet utilizes AI to monitor supplier risk in real-time, scanning for financial instability, legal disputes, or connections to restricted entities. These tools allow companies to respond proactively instead of discovering issues only after regulators or journalists bring them to light.

One of the biggest challenges I’ve encountered in my career was mapping compliance and sourcing related data across a fragmented supplier data ecosystem in North America, Europe and Asia. 

Many suppliers operated under varying degrees of documentation methodology, rendering verification of compliance consistency virtually impossible across the entire procurement chain. To address this, I spearheaded an initiative to develop a data pipeline, enabled by AI, which aggregated supplier, logistics, and regulatory data into a single visibility dashboard. By utilizing risk indicators from third-party compliance databases and internal ERP systems, suppliers were automatically flagged that did not have sustainability certifications or were under restrictions on their operations.

This initiative not only resulted in an increase in the supplier vetting speed by over 70% but also in the decrease of ship holds that were compliance-related by 40%. The project was a foundational building block to global supply chain transparency, enabling leadership to make sourcing decisions based on risk intelligence and real-time reactions rather than fragmented manual reports. This concept witnessed how regulatory visibility can be applied, enhanced by AI, to deliver a transition from a reactive cost center to a proactive, resilience-driven, strategic growth engine.

Predicting and Preventing Risks Before They Escalate

Perhaps the most powerful aspect of AI in compliance is its predictive capability. By analyzing patterns in trade data, contracts, shipping routes, and even news reports, AI can identify early warning signs of risk. Instead of reacting to violations, companies can prevent them altogether.

For example, PwC has highlighted how AI can detect suspicious patterns in financial transactions that may indicate bribery or corruption before they become major scandals. In global trade, AI can flag unusual shipping activity that suggests goods are being diverted to sanctioned countries.

One real-world case involved Maersk, which uses AI tools to screen millions of daily shipping transactions against global sanctions lists. Without automation, the scale of this work would be unmanageable. With AI, Maersk can prevent restricted shipments from leaving port, avoiding regulatory violations and protecting its reputation.

These predictive tools are also valuable for internal auditing. AI can continuously scan for inconsistencies between internal policies and external regulations, reducing the need for large-scale manual audits. This not only saves money but ensures that compliance is an ongoing practice rather than a once-a-year exercise.]

In a global operational environment, I have noticed recurring problems with incorrect or incomplete data, which have caused process delays and unnecessary rework. For example, discrepancies between material records, such as non-matching unit of measure items, old lead time data or missing packaging information, produced inefficient planning, which had a direct effect on production scheduling and on-time order fulfillment. In solving this, I led the initiative to put predictive analytics and AI-based validation into our materials master data process.

 By applying historical purchase order information, supplier lead-times and consumption attributes, the system had the capability of recognizing anomalies proactively, such as unusual demand differences or obsolete supplier information, before they interrupted operations. This changed the mentality froma  reaction process correction of verification to preventive measures. Within a matter of months, the predictive validation work flow declined material master data errors by over 60% and significantly improved the accuracy of inventory planning and multiple production lines. This, in turn, permitted planners to pass orders out quickly and decreased material shortages that previously were causing delays in manufacturing runs. What started as a master data cleanup process, soon became a core competency in predictive materials management that resulted in better forecasting reliability and lessening of operational friction created by inconsistent master data. 

Closing the Gap

The compliance gap has long been one of the most pressing challenges in global trade. Companies often knew what the rules were but lacked the tools to keep up with the pace and scale of change. AI is transforming that equation. By automating compliance tasks, shining a light on complex supply chains, and predicting risks before they escalate, AI enables organizations to move from reactive to proactive.

This transformation, however, is not without challenges. AI systems are only as good as the data they are trained on, and there is a risk of overreliance on automation without human oversight. Regulators themselves are still learning how to evaluate AI-driven compliance programs. Yet the direction of travel is clear. The future of trade compliance will be defined not by manual checklists but by intelligent systems that integrate compliance into the fabric of business operations.

For companies willing to invest in these tools, the payoff is significant. They gain not only reduced risk of fines and penalties but also faster time to market, stronger supplier relationships, and greater trust with regulators and customers alike. In an era where trust is as valuable as profit, AI is not just a compliance tool but a strategic advantage.

In my work leading data-driven change projects, the advent of AI has turned compliance from an operational burden to a fundamental building block of growth. The data-driven systems I’ve built, from predictive analytics for the detection of risk in shipments to AI-supported harmonization of material data, have shown that it is not opposites, competitors, and compliance, but degrees of cooperation, which mutually enhance one another. The next frontier is autonomous compliance ecosystems—systems that address risk at the same time as they dynamically change the workflows and documents in response to new regulations. I see a future where compliance is not an afterthought, but is built into the wiring of each individual process. Powered by intelligent data orchestration. In the next five years, businesses that capitalize on this integration will not only take better care of regulation but set the new standards for the world to follow. By converting that oversight into insight and that complexity into clarity, AI empowers compliance leaders to have strategy, foresight, innovation, and the power to accelerate global progress.

About the author

Juliet Mirambois a rising leader in integrated supply chain operations with an academic background in engineering and chemistry. Currently part of MilliporeSigma’s Operations Leadership Development Program, a three-year rotational program that develops future manufacturing and supply chain leaders. As a process optimization lead she strengthens global demand planning and material flow by creating end-to-end process maps and forecasting strategies for configurable materials under a €250 million planning core model while exploring AI to improve accuracy and agility. Outside of her day-to-day role in process optimization, Juliet volunteers with MilliporeSigma’s SPARK™ program, mentoring students and leading hands-on experiments in the Curiosity Cube—a mobile lab that inspires future STEM minds.