October 6, 2025 | Page 30

Global Logistics Focus
Special Report

AI is watching

Automation, tariff pressures put onus on customs brokers to adapt
By Eric Johnson
The advancement of AI-based tools in global trade compliance, along with heightened demand for customs expertise due to rapid changes in US trade policy, is threatening to reshape the way shippers, customs brokers and US Customs and Border Protection( CBP) interact with one another.
It is likely the most significant shift in that set of relationships since security, rather than revenue collection, became the primary focus of US customs in the wake of the Sept. 11 terror attacks in 2001.
Essentially, CBP is using AI to target violations in such a way that it is forcing shippers and customs brokers to adopt technology that helps account for increased scrutiny, and increased accuracy of that scrutiny.
The Trump administration’ s intense focus on tariffs as a tool to reorient the US economy is translating into more investment in enforcement of country-of-origin designations and product classifications, as well as other customs violations.
“ The CBP budget was increased significantly, including for newer enforcement technology,” said Cindy Allen, CEO of consulting firm Trade Force Multiplier and a former customs executive with FedEx.
“ To remain competitive, brokers need to move past their traditional, transactional roles.”
Allen contends this will enable more targeted enforcement and investigations by CBP.
“ Customs brokers would be well-positioned to look at these same software and technology vendors and offer these services to their clients, especially the small to medium businesses who wouldn’ t necessarily invest in this technology on their own,” she said.
While AI is everywhere these days, the reality is that it is not uniformly adept at all tasks.
“ AI at this stage is very good with the black and white analytics and validations, but it is not very good at the gray, and that is where the gray matter and expertise of licensed customs brokers is essential,” said Anand Raghavendran, chief product officer at KlearNow, a technology company that supports importers who want to self-file and those who need a customs broker to do so.
30 Journal of Commerce | October 6, 2025 www. joc. com