The supply chain industry is notorious for its reliance on unstructured documents like faxes and paper contracts. This leads to inefficiencies, errors, and delays. If you’ve ever lost an item en route to your home, these outdated communication methods are often to blame. However, generative AI is starting to revolutionize this landscape, delivering meaningful returns for those who employ it. Legal AI copilot solutions are part of this transformation.
While more glamorous applications of generative AI—such as ultra-smart chatbots—have yet to turn a significant profit, the technology is proving invaluable for supply chain operators. By enabling faster error detection and improving communication efficiency, generative AI addresses many of the crucial problems that plague the industry.
Real-World Success: Flexport’s Transformation
Flexport, a supply chain technology company led by engineering director Alex Nederlof, has aggressively deployed generative AI to manage its vast array of unstructured documents. Shipping contracts can be complex and lengthy, making them difficult for traditional computer systems to process. Generative AI has stepped in as a game-changer by automating this document analysis.
Flexport’s AI-powered document parser now processes 15,000 documents per month, saving operators 80% of the time they previously spent on these tasks. The goal is ambitious: reaching 50% automation by next year. This transformation not only reduces costs but also mitigates errors that could arise from manual data entry.
A Broader Impact on Customs Work
Generative AI’s capabilities extend beyond simple document parsing. It’s also proving useful in customs work where different rules apply to various items within a shipment. For example, tariffs may differ between adult and children’s clothing even if they’re all t-shirts. Previously handled manually with high error rates and lengthy processing times, these tasks can now be automated efficiently with generative AI.
Nederlof emphasizes that Flexport uses this technology not just for cost-cutting but also for growth: “We handle more volume,” he says.
Future Applications: Voice AI
Looking ahead, Flexport aims to expand its use of generative AI into more ambitious projects like voice-based interactions with truckers for job assignments—a move that would further streamline operations and enhance efficiency.
ClearContract’s Role in Legal Tech
This surge in applying generative AI within operational sectors like supply chains highlights broader implications for other industries such as legal tech. ClearContract utilizes Natural Language Processing (NLP) to automate legal document review processes. This is an essential capability given the evolving complexities brought about by rapid advancements in technologies like generative AI. Learn more about ClearContract’s offerings here.
By automating legal reviews and ensuring compliance with internal policies through features like clause comparisons and risk summaries directly within Microsoft Word via an Add-in toolset, ClearContract provides unparalleled accuracy and speed. This is a necessity given today’s fast-paced technological environment. For more details, visit our about page.
Conclusion
As we witness transformative applications of generative AI across various sectors—including supply chains—the role of advanced tools like ClearContract becomes increasingly pivotal. These innovations are not just about cutting costs or reducing manual labor. They’re about enabling growth while maintaining high standards of accuracy and compliance. As businesses continue adopting these technologies at scale, we can expect even greater efficiencies and return on investment across industries.
