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Businesses turning to AI to tackle US tariff challenges
Businesses are increasingly turning to AI tools to handle challenges from US tariffs. These measures have led companies to rethink their global supply chains and pricing strategies.
Salesforce developed an AI-based import specialist that processes changes across 20,000 product categories using the Harmonized Tariff Schedule. It helps businesses adapt to new regulations.
Kinaxis, a supply chain software provider, uses machine learning to analyze product materials and external data.
This allows companies to evaluate alternative sourcing options and reduce tariff impacts.
Wipro reported that its AI tools help clients, including manufacturers and exporters, adjust supplier strategies and manage duties.
Zack Kass, a former OpenAI executive, said the current climate is a major opportunity for AI. He noted AI can provide solutions beyond manual capabilities.
A Capgemini report showed nearly 75% of business leaders see AI as a top tech investment for 2025.
🔗 Source: CNBC
🧠 Food for thought
1️⃣ Supply chain disruptions, not direct costs, drive tariff impact
Economic research reveals that the greatest challenges from tariffs come not from the immediate price increases but from the cascading disruptions throughout supply chains.
Studies from the American Economic Review indicate that supply chain disruptions can account for up to 80% of the total economic impact of tariffs, far outweighing the direct costs 1.
This explains why companies are investing heavily in AI visualization tools, as they need to map complex supplier relationships that might span dozens of countries and thousands of parts.
Morgan Stanley economists estimate that in a broad-based 25% tariff scenario, only 23% of growth impact comes from direct effects, while 35% stems from domestic supply chain effects and 42% from international supply chain effects 2.
This ripple effect explains why even companies without direct international exposure are concerned, as domestic suppliers often raise prices to offset their own increased costs from imported components.
