Embracing the future of e-commerce and AI now (WEF)

Arguments

Interest in adopting more AI in the customs department

Supporting facts:

• Sokka is from Cambodia and a part of the delegation attending the event

• Sokka leads a global infrastructure facilitation project

• He has been working closely with customs for the last four or five years

Topics: AI adoption, Customs Department, Cross-border e-commerce

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AI will become the new trend and it will change the business environment

Supporting facts:

• Small and medium-sized enterprises (SMEs) need to adapt to this new environment in order to be competitive

Topics: AI, Business, Trends

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There’s a need for examples of effective AI tool utilization that have minimal cost implications for SMEs

Supporting facts:

• Cost is a critical factor for SMEs in adopting AI

• Existing tools can introduce SMEs to AI, increasing their competitiveness

Topics: SMEs, Cost-effective AI tools, Business competitiveness

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Report

During the analysis, several related topics in the context of AI adoption and its impact on various sectors were discussed. The first speaker, Sokka from Cambodia, expressed a strong interest in adopting more AI in the customs department. He has been working closely with customs for the past four or five years and leads a global infrastructure facilitation project.

This indicates that Sokka has substantial knowledge and experience in the field, making his opinion valuable. The second speaker highlighted the importance of public sectors being mindful whilst adopting AI. Sokka sought advice for public sectors in Cambodia regarding AI adoption and inquired about the precautions they should take.

This suggests that Sokka recognises the potential risks and challenges associated with AI implementation in the public sector and wishes to ensure a smooth and successful adoption process. Moving on to the third speaker, they focused on how AI will become a new trend and transform the business environment.

It was emphasised that small and medium-sized enterprises (SMEs) need to adapt in order to remain competitive. This implies that the speaker believes AI adoption to be a critical factor for SMEs in maintaining their relevance in the evolving business landscape.

The fourth speaker provided a practical approach for SMEs to get started with AI. They suggested that SMEs should consider using existing tools, as developing their own AI systems can be costly. This implies that the adoption of AI is not limited to large corporations and that even smaller businesses can take advantage of AI technologies through accessible and cost-effective options.

Finally, there was a discussion about the need for examples of effective and cost-effective AI tool utilisation specifically for SMEs. It was emphasised that cost is a critical factor for SMEs in adopting AI, and utilising existing tools can increase their competitiveness.

This indicates that a practical and financially viable approach to AI adoption is crucial for SMEs to fully embrace this transformative technology. In conclusion, the analysis highlighted the interest in adopting more AI in the customs department, the precautions public sectors should take while implementing AI, the importance of SMEs adapting to the new AI trend, the use of existing tools for SMEs to begin their AI journey, and the significance of cost-effective AI tool utilisation for SMEs.

It is evident that AI adoption is becoming increasingly crucial across sectors and that careful planning and consideration are necessary to ensure successful and beneficial implementation.

Arguments

AI should adapt to locals rather than locals learning to adapt to AI technologies

Supporting facts:

• In African nations like Senegal, most applications are in French or English, not in local languages like Wolof

• Education levels might not be enough to grasp AI and technology so the technology should be made accessible for local users

Topics: Artificial Intelligence, localization, language barrier

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Access to data is crucial for successful AI implementation

Supporting facts:

• The challenge of AI implementations is lack of data

• The public sector has abundant data that can be used for AI

Topics: Artificial Intelligence, data accessibility, public sector

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E-commerce requires a broader definition than currently used

Supporting facts:

• Standard e-commerce models include website-based shopping

• E-commerce varies based on B2B or B2C clientele

• E-commerce includes technology and associated services, including logistics and payments

• E-commerce can also include mechanisms such as seeing a product on social media platforms like TikTok, communicating via WhatsApp, and purchasing using mobile money

Topics: E-commerce, Technological Advances, Business Models

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Future of e-commerce involves integrated use of various technologies and services

Supporting facts:

• Consumers discover, purchase, pay for and receive products using different technologies

• Example of e-commerce via various platforms, including TikTok, WhatsApp, and mobile money usage

Topics: E-commerce, Future Trends, Technological Integration

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MSMEs do not necessarily need to comprehend artificial intelligence or technology

Supporting facts:

• Birame Sock believes MSMEs do not need to know AI in the same way they don’t need to know Java or C++

• AI is viewed as a tool technology providers are supposed to implement to find better solutions

Topics: Artificial Intelligence, E-commerce, MSME

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Challenges with data relevancy on existing e-commerce platforms

Supporting facts:

• Data doesn’t reflect local needs or addresses

• African manufacturing countries are not listed on dropdown lists on some platforms

• Worked directly with Ministry of Commerce during COVID to build local e-commerce platform

Topics: E-commerce, Data Relevancy, African Market

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AI implementation in e-commerce should be characterized by digital and discovery, efficiency, affordability and accessibility, and rewarding

Supporting facts:

• Birame Sock discussed the concept of DEAR AI

Topics: Artificial Intelligence, E-commerce

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Impressed with integration work being done in Cambodia, observes work still needs to be done in Senegal and Africa

Topics: Integration work, Cambodia, Senegal, Africa

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AI could leverage advancing development

Topics: AI, Development

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Building closer relationships with successful models could be beneficial

Topics: Partnership, Exchange, Industrial models

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Retail companies’ need for packaging and other goods from foreign countries highlights the importance of global trade

Topics: E-commerce, Global business, Packaging trade

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Increasing data accessibility could improve operations

Topics: Data Accessibility

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Public sector or government might undervalue certain data that private sector finds valuable

Topics: Public sector, Private sector, Data exchange

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AI’s utility in image recognition for store inventory purposes and business mapping

Supporting facts:

• Use of AI data analytics by Lengo in Senegal to do inventory of small shops

• Use of image recognition to localize stores on Google Maps

Topics: AI, Image Recognition, Business Mapping, Inventory Management

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Report

The speakers engaged in a comprehensive discussion on the intersection of artificial intelligence (AI) and e-commerce, with a particular focus on the need for AI to adapt to local languages and the importance of data accessibility in the public sector.

They argued that for AI to be truly inclusive and accessible to all users, it should support local languages rather than expecting local users to learn new languages or adapt to AI technologies designed for other regions. As an example, it was observed that in African nations like Senegal, most applications are in French or English, rather than in local languages like Wolof.

This presents a major barrier for citizens who do not understand or have access to AI technologies due to the language barrier. Therefore, the consensus was that AI technology should be more inclusive of local languages, facilitating greater accessibility and adoption among local users.

The discussion also underscored the critical role of data accessibility for successful AI implementation, with the public sector identified as a key source of valuable data. Lack of data was acknowledged as a major challenge in AI implementations, and it was argued that the public sector possesses abundant data that can be effectively harnessed for AI.

Thus, it was posited that the public sector should make their data available for AI purposes, as access to relevant and diverse data sets is crucial for AI systems to deliver accurate and insightful outcomes. Furthermore, the speakers emphasized the responsibility of both technology providers and the public sector in using AI responsibly.

Technology providers were viewed as having the responsibility to implement AI in ways that are relevant, sensible, and beneficial to e-commerce environments. Meanwhile, the public sector was tasked with ensuring that the use of AI in e-commerce has a broad reach, providing accessibility to previously underserved stakeholders such as MSMEs (micro, small, and medium-sized enterprises).

It was argued that MSMEs do not necessarily need to comprehend artificial intelligence or technology intricacies, as AI is seen as a tool that technology providers can leverage to find better solutions for these businesses. Regarding e-commerce, it was noted that the traditional definition needs to be broadened beyond website-based shopping.

E-commerce was described as encompassing various technologies and associated services, including logistics, payments, and mechanisms such as product discovery on platforms like TikTok, communication via WhatsApp, and payments through mobile money. It was suggested that the future of e-commerce would involve the integrated use of multiple technologies and services to enhance consumer experiences and meet evolving demands.

The importance of the DEAR concept (Digital, Efficiency, Affordability & Accessibility, and Rewarding) in AI implementation for e-commerce was emphasized. This concept seeks to ensure that AI technologies used in e-commerce are characterized by digital and discovery, efficiency, affordability, and rewarding outcomes for both businesses and consumers.

By adhering to the DEAR principles, AI can help drive hyper-personalization of the shopping experience, tailoring it to individual consumers’ preferences and needs. Furthermore, the discussion highlighted challenges with data relevancy on existing e-commerce platforms, as data often fails to reflect local needs or addresses.

It was revealed that African manufacturing countries were not listed in drop-down menus on certain platforms, which limited their ability to engage in global e-commerce. To address this issue, collaborative efforts with government entities, such as working directly with the Ministry of Commerce during the COVID-19 pandemic, were presented as a strategy to build local e-commerce platforms that cater to local demands and preferences.

Additionally, the speakers acknowledged the need to facilitate the development of text-to-speech and speech-to-text solutions, particularly within local languages and dialects. Currently, there exists a gap in the development of dictionaries within these solutions, hindering technology accessibility for individuals who do not speak widely used languages.

By investing in the development of these solutions, technology can become more accessible to a broader population, thereby reducing inequalities and promoting inclusivity. In conclusion, the discussion highlighted the importance of adapting AI to local languages to ensure accessibility for all users.

It stressed the significance of data accessibility in the public sector and called for a responsible approach to AI implementation by technology providers and government entities. Furthermore, the need to redefine e-commerce beyond traditional models and embrace the integrated use of various technologies and services was emphasized.

The DEAR concept was presented as a framework for guiding AI implementation in e-commerce, focusing on digitalization, efficiency, affordability, accessibility, and rewarding outcomes. Challenges with data relevancy on existing e-commerce platforms were identified, underscoring the need for tailored solutions that address local needs and preferences.

Ultimately, the speakers emphasized the importance of inclusivity, accessibility, and responsible use of AI in shaping the future of e-commerce.

Arguments

Emerging technologies such as blockchain, artificial intelligence, 3D printing and the Internet of Things are poised to bring significant disruption in global trade

Supporting facts:

• Fourth Industrial Revolution is here

• Emerging technologies are reshaping the flow of global trade at an unmatched pace

Topics: Global Trade, Blockchain, AI, 3D printing, IoT

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International trade should be more efficient, inclusive, and equal, benefiting not only multinational companies but also small and medium-sized enterprises and developing countries

Supporting facts:

• Innovations should empower micro, small and medium-sized enterprises

• Developing countries should access the opportunity presented by emerging technologies

Topics: International Trade, Inclusion, Equality, SMEs, Developing Countries

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Public-private collaboration is crucial to prepare for a future dominated by technology in trade

Topics: Public-private collaboration, Trade, Technology

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Report

The analysis highlights the transformative impact of emerging technologies on global trade. Specifically, blockchain, artificial intelligence, 3D printing, and the Internet of Things are identified as key drivers of significant disruption in the industry. These technologies are reshaping the flow of trade at an unprecedented pace.

The speakers argue that international trade needs to become more efficient, inclusive, and equal in order to benefit all stakeholders. While multinational companies have traditionally dominated global trade, the speakers advocate for empowering micro, small, and medium-sized enterprises (SMEs). They believe that innovations should enable SMEs to harness the potential of emerging technologies and compete on a level playing field with larger companies.

Furthermore, it is emphasised that developing countries should have access to the opportunities presented by these technologies, ensuring that they are not left behind. The integration of AI-based business models is viewed as vital for SMEs’ integration into the global digital economy.

AI is seen as playing a significant role in advancing e-commerce, from chatbots and customer relations to smart logistics. Highlighting the potential of AI to streamline operations and enhance productivity, the speakers emphasise the need for SMEs to adapt and adopt AI-driven strategies to remain competitive in the global marketplace.

Public-private collaboration is recognised as crucial in preparing for a future dominated by technology in trade. The speakers argue that close cooperation between the public and private sectors is necessary to navigate the challenges and leverage the opportunities presented by emerging technologies.

By working together, governments and businesses can create an enabling environment and establish policies that foster innovation, encourage investment, and support the adoption of emerging technologies in trade. In conclusion, the analysis emphasises the transformative power of emerging technologies in shaping global trade.

The speakers call for international trade to become more efficient, inclusive, and equal, benefiting both multinational companies and SMEs in developing countries. The integration of AI-based business models into the global digital economy is seen as crucial for SMEs’ integration and competitiveness.

Additionally, public-private collaboration is recognised as vital in preparing for a technology-dominated future in trade. Through collaboration and strategic planning, stakeholders can navigate the challenges and seize the opportunities presented by emerging technologies in the realm of global trade.

Arguments

The integration of artificial intelligence (AI) and e-commerce provides a level playing field for local sellers and big players.

Supporting facts:

• AI can assist in logistical support, customer reviews management, pricing models, and inventory management.

• Through AI, e-commerce platform allows selling products to different parts of the country, breaking language barriers with translation services.

• AI-integrated e-commerce platform suggests smart attributes to include in product description.

Topics: Artificial Intelligence, E-commerce, Small entrepreneurs, Rural India

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AI can optimize the utilization of SMEs in several ways

Supporting facts:

• AI can provide personalized product recommendations

• AI can assist in order processing, fulfillment and inventory management

• AI can be used for supply chain optimization and demand forecasting

• AI can be used to analyze and predict returns in businesses

Topics: E-commerce, AI, MSMEs

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Trends of AI application in e-commerce

Supporting facts:

• Use of social media in e-commerce

• Virtually try-on products

• AI-powered marketing and advertising

• Use of voice search and virtual assistants

• Chatbots are of big benefit in reducing costs for MSMEs

Topics: AI, E-commerce, Trends

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Indian government has initiatives to empower digital society and support young entrepreneurs

Supporting facts:

• Digital India Initiative is a flagship program to ensure a digitally empowered society and knowledge economy

• Startup India Project focuses on providing an ecosystem for young entrepreneurs to establish a business and gain resources

• Open Network for Digital Commerce (ONDC) provides a level playing field for both small and large businesses

• ONDC will soon be infused with Google Cloud’s generative AI to simplify the interface

Topics: Digital India Initiative, Startup India Project, Indian Government

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MSMEs face several challenges in fully harnessing the potential of e-commerce and AI

Supporting facts:

• Data-related challenges: Due to lack of large amount of data for training AI algorithms

• Skill-related challenges: Lack of technical expertise and resources for training

• Cost-related challenges: high implementation and maintenance costs, cost of acquiring AI tools, training and hiring AI experts

• Company-related challenges: data security, privacy concerns, and regulatory compliance

Topics: E-commerce, Artificial Intelligence, MSMEs

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Artificial Intelligence has significant applications in custom space and logistics space.

Supporting facts:

• Artificial intelligence is being implemented in the custom space and logistic space.

Topics: Artificial Intelligence, Custom Space, Logistics

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Artificial Intelligence has risks and challenges.

Supporting facts:

• Artificial intelligence brings along challenges and risks while being exponentially adopted.

Topics: Artificial Intelligence, Risks, Challenges

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Understanding and usage of existing AI tools is important for MSMEs

Supporting facts:

• Artificial intelligence is not just about getting new software, but also about automating current processes

Topics: Artificial Intelligence, MSMEs

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Report

The integration of artificial intelligence (AI) into the field of e-commerce has created opportunities for both local sellers and big players in the market. AI can assist in logistical support, customer reviews management, pricing models, and inventory management, streamlining operations and improving customer experience.

The use of translation services breaks language barriers, enabling businesses to sell products to different parts of the country and tap into new markets. AI provides personalised product recommendations, optimises order processing and fulfillment, and assists in supply chain optimisation and demand forecasting.

However, MSMEs face challenges in fully harnessing the potential of e-commerce and AI implementation. These challenges include data-related issues, a scarcity of technical expertise, high implementation and maintenance costs, and data security and compliance concerns. For effective AI implementation, MSMEs need to address the challenges they face.

This involves improving data quality, upskilling and training in AI, finding ways to make AI more affordable, and ensuring data security and compliance. Embracing AI and adapting to its emergence is necessary for businesses to remain competitive. Overall, the integration of AI and e-commerce offers promising opportunities for businesses.

AI can enhance various aspects of e-commerce, expand market reach, improve customer experience, and increase operational efficiency. Overcoming challenges, embracing AI, and adapting to its emergence is crucial for businesses to thrive in the digital era.

Arguments

Luca Graf believes logistics is a crucial success factor for e-commerce, and AI is a powerful technology that can enhance logistics.

Supporting facts:

• They implemented an application that translates HS codes from one country to another using an AI model.

• 95% of the articles are automatically translated by the system, only 5% is done manually.

• The system improves productivity and speed.

Topics: AI, E-Commerce, Logistics

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Luca Graf’s company attempted to leverage AI for return logistics, but without success.

Supporting facts:

• They tried to use AI to automate the process of checking returned items.

• The AI was supposed to categorize items based on their condition (A for resale, B for refurbishment).

• The project was not successful and they learned that AI should handle the normal decisions while humans handle the edge cases.

Topics: AI, Return Logistics

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Product market fit, reaching the market, and fulfilling delivery are key success factors for e-commerce.

Supporting facts:

• You need to have the right product available

• You need to find the right fit with the market and connect with your consumers through proper marketing

• You need to fulfill the promised delivery

Topics: E-commerce, Success factors, Logistics

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Small and medium-sized enterprises should look for available AI solutions on the market, as developing the technology independently is expensive and knowledge-intensive

Supporting facts:

• Building technology independently requires a lot of money and knowledge

• There are a lot of SaaS applications and open source applications available on the market

Topics: AI technology, small and medium-sized enterprises, market solutions

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Technology players should make their solutions available in diverse markets to cater to merchants looking for these solutions

Supporting facts:

• There are many products not available in certain markets where merchants are looking for solutions

Topics: Technology players, diverse markets, merchants

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The big opportunity in logistics lies in the cross-border e-commerce, requiring a fulfillment network for warehousing and distribution

Supporting facts:

• Businesses need to be able to deliver and send goods within a fair amount of time and at a fair amount of cost

Topics: logistics, cross-border e-commerce, fulfillment network

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Different sectors may need different types of AI to enhance their operations

Supporting facts:

• SME may need to see what AI is suitable for them

• Logistics can benefit from AI systems in their operations

• Marketplaces can use AI for product recommendations

Topics: AI, SME, Logistics, E-commerce

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AI is more suited than humans for certain tasks

Supporting facts:

• AI can work in repetitive tasks much faster than humans

• AI is more reliable and efficient than humans

• AI can perform tasks that are almost impossible for humans such as complex calculations or working in extreme temperatures

Topics: AI, Work efficiency

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AI is a disruptive technology which offers opportunities in efficiencies, better customer experience and sustainability

Topics: AI, disruptive technology, opportunities, efficiencies, customer experience, sustainability

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AI should be made accessible to users

Topics: AI, accessibility

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Logistics and supply chain management is a key element and AI can support these processes

Topics: logistics, supply chain management, AI

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Logistics perspective on customs

Supporting facts:

• Luca Graf mentions his preference for not having customs borders

Topics: Customs, Borders, Trade

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The importance of harmonization in customs work

Supporting facts:

• Luca Graf proposes harmonizing the way customs work in order to enhance global trade

Topics: Customs, Harmonization

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Reducing complexity in customs codes

Supporting facts:

• Luca Graf suggests reducing the number of custom codes to make processes simpler

Topics: Customs, Complexity

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Employing technology in customs

Supporting facts:

• Luca Graf notes the potential for technology to simplify tariff understanding for consumers

Topics: Customs, Technology

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AI technology can facilitate marketing, customer service and product planning

Supporting facts:

• Content can be easily created with GPT and open AI approaches

• There are translation tools based on AI

• There are many AI based services available optionally on technology platforms

• Shopify and other distributors provide AI based services in their app shop

Topics: Artificial Intelligence, Marketing, Customer Service, Product Planning

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Report

This analysis covers a range of topics related to AI, logistics, and e-commerce. Luca Graf, a key figure in the discussion, believes that AI has the potential to enhance logistics in the e-commerce industry, leading to improvements in productivity and speed.

One of the notable achievements mentioned is the implementation of an application that translates HS codes from one country to another using an AI model. This application has proven effective, with 95% of articles automatically translated by the system, while only 5% require manual intervention.

The successful implementation of the application demonstrates the practicality and benefits of incorporating AI into logistics processes. However, not all attempts to use AI in logistics have been successful. Graf’s company attempted to leverage AI for return logistics, with the aim of automating the process of checking returned items.

The AI was intended to categorise items based on their condition (A for resale, B for refurbishment). However, this initiative did not yield the desired results, leading to the realisation that AI should handle normal decisions while humans handle the edge cases.

This experience highlights the need for careful consideration and evaluation when implementing AI in specific logistical tasks. The analysis also emphasizes the crucial success factors for e-commerce, namely product market fit, reaching the market, and fulfilling delivery. Graf highlights the importance of having the right product available and connecting with consumers through proper marketing.

Additionally, fulfilling promised delivery plays a significant role in ensuring customer satisfaction. These factors collectively contribute to the overall success and growth of an e-commerce venture. Regarding the adoption of AI in logistics and e-commerce, it is suggested that small and medium-sized enterprises look for available AI solutions on the market rather than attempting to develop the technology independently.

It is noted that building technology independently requires substantial financial investment and specialised knowledge. Instead, SMEs can benefit from the wide array of Software-as-a-Service (SaaS) and open-source applications already available. The importance of logistics in e-commerce is underscored, with successful e-commerce players heavily investing in this aspect of their operations.

Delays in delivery are highlighted as potential deterrents to customer satisfaction and retention. In the context of cross-border e-commerce, the analysis suggests that the big opportunity lies in developing a robust fulfilment network for warehousing and distribution. This concept aligns with the need to deliver goods in a timely manner and at a reasonable cost, thereby enhancing the overall customer experience.

Various sectors within e-commerce and logistics can benefit from AI systems, as demonstrated by the examples provided. Marketplaces can leverage AI for product recommendations, while logistics companies can utilise AI for planning, forecasting, optimising loads, and implementing steered robots, among other applications.

The ability of AI to enhance work efficiency and perform tasks that are challenging or impossible for humans, such as complex calculations or working in extreme temperatures, further underscores its value in these sectors. This analysis suggests that AI is a more suitable solution than humans for certain tasks, particularly those that are repetitive and require speed, reliability, and efficiency.

The adoption of AI is also seen as a means to improve processes, increase service productivity, and expedite decision-making. AI can aid in automation and enable better decision-making, resulting in increased efficiency and streamlined operations. It is important to assess different AI applications to ensure their suitability and effectiveness in addressing specific needs and challenges.

Testing should be conducted to evaluate the potential of AI to improve existing situations. AI is regarded as a disruptive technology that offers opportunities for efficiencies, better customer experiences, and sustainability. It is emphasised that AI should be made accessible to users, enabling them to benefit from its capabilities and potential.

The analysis further mentions the importance of incorporating AI into different aspects of business operations, such as marketing, customer service, and product planning. AI technology can facilitate content creation, translation, and numerous other services, with platforms like Shopify providing AI-based solutions through their app shops.

In addition to the main points discussed, some notable observations and insights can be gleaned from the analysis. For instance, the potential of AI in supporting customs processes is mentioned, with suggestions to reduce complexity in customs codes and employ technology to simplify tariff understanding for consumers.

Harmonising customs practices globally is also proposed as a strategy to enhance global trade. These insights shed light on the broader implications and opportunities associated with integrating AI into various sectors and industries. In conclusion, this analysis highlights the significant role that AI can play in enhancing logistics, e-commerce, and related processes.

The potential benefits include improvements in productivity, speed, and customer satisfaction. However, successful AI implementation requires careful consideration, evaluation, and alignment with specific needs and challenges. Overall, AI is viewed as a transformative technology that can drive efficiencies, improve customer experiences, and support sustainable growth in the logistics and e-commerce industries.

Arguments

The implementation of advanced technology, like AI, in Cambodia’s customs system

Supporting facts:

• Customs and Post have an MOU for electronic data exchange

• The system allows for advanced processing and release of goods

• AI will predict potential HS codes for declared items

• AI will assist in detecting fraud

Topics: Technology, Customs, Artificial Intelligence

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Sopheakdey Moeun advocates use of artificial intelligence(AI) to facilitate and simplify customs clearance process for cross-border e-commerce transaction.

Supporting facts:

• AI can predict HS codes for products, reducing complexity and time taken for clearance.

• AI could analyze captured images of products and provide clarity on formalities and preparations needed beforehand.

• Luke mentioned that AI might not handle 100% of the job but will reduce workload significantly and remaining jobs can be done manually by customs officer.

• AI powered software solutions are prioritized over hardware infrastructure due to budget limitations, existing infrastructure is considered for future investment only when current AI solution works properly.

Topics: Artificial Intelligence, E-commerce, Customs Clearance, Cross-border E-commerce transactions

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AI has several disadvantages including its accuracy and cost

Supporting facts:

• Lucas says we can’t 100% rely on AI

• Some AI may cost more and its return on investment should be considered

Topics: AI’s accuracy, AI’s cost

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AI is still developing and requires human supervision

Supporting facts:

• Human supervision is necessary to improve the process and accuracy of AI

Topics: AI development, human supervision

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Report

The implementation of advanced technology, specifically Artificial Intelligence (AI), in Cambodia’s customs system is highly beneficial. AI has the capability to predict potential Harmonised System (HS) codes for declared items, making the processing and release of goods more efficient. Additionally, AI can assist in detecting fraudulent activities, which is essential for maintaining the integrity of customs operations.

To ensure seamless system integration, strong collaboration and cooperation between the customs and postal units are crucial. This collaboration is achieved through the creation of a Memorandum of Understanding (MOU) between customs and post for electronic data exchange. This electronic data exchange enables efficient information sharing, leading to faster and more accurate customs procedures.

In the context of cross-border e-commerce transactions, AI proves to be invaluable. It can significantly simplify the customs clearance process by predicting HS codes for products, reducing complexity and the time taken for clearance. Furthermore, AI can analyse captured images of products, providing clarity on formalities and preparations needed before clearance.

Sopheakdey Moeun, an advocate of AI implementation, highlights the importance of using AI to facilitate and simplify customs processes for cross-border e-commerce transactions. This benefits businesses and contributes to achieving Sustainable Development Goals (SDGs) such as Industry, Innovation and Infrastructure (SDG 9) and Decent Work and Economic Growth (SDG 8).

Another key argument is the need for fair competition in the market and the importance of keeping administrative costs for customs clearance reasonable. Logistic costs sometimes surpass product costs, posing challenges for market competition. Hiring third-party individuals for customs clearance adds to the total cost, making it difficult for businesses to compete.

By utilising AI in customs procedures, administrative costs can be reduced, promoting fair competition and reducing inequalities (SDG 10) while facilitating economic growth (SDG 8). However, it is important to consider the limitations of AI. Concerns arise regarding the accuracy and cost of implementing AI systems.

Lucas mentions that it is not possible to rely entirely on AI, highlighting the need for human supervision to improve the process and accuracy of AI. Some AI solutions may also be costly, and the return on investment must be carefully evaluated.

In conclusion, the implementation of advanced technology, particularly AI, in Cambodia’s customs system brings numerous benefits. It simplifies customs procedures, improves efficiency, detects fraud, reduces administrative costs, promotes fair competition, and contributes to achieving SDGs. However, concerns regarding the accuracy and cost of AI should be addressed, recognizing the need for ongoing development and human supervision to ensure optimal results.