AI in shipping – how new technology is creating a paradigm shift
The maritime and trade ecosystem is experiencing a paradigm shift brought about by the adoption of innovative AI-driven technologies. As a result of the integration of AI, every business and organization that is part of the wider ecosystem will drastically change in the upcoming years. This exciting and fundamental shift in approach is the result of the development of advanced AI-driven solutions that meet the ever-changing and increasing needs of every player within the industry.
The advisories recently published by the U.K. Office of Financial Sanctions Implementation (OFSI) and U.S. Office of Foreign Assets Control (OFAC) accelerated the need for businesses and organizations from across the wider maritime ecosystem to seek innovative technologies that will optimize transparency and best business practices.
This, alongside the recognition that traditional approaches are no longer viable for the evolving industry, has led to widespread adoption of technological and AI-driven solutions. Beyond facilitating adherence to compliance and regulatory advisories, AI enables scalability, ensuring smarter decisions can be made faster and with more accuracy.
Companies that recognize the shift the industry is undergoing are integrating such solutions into their workflow processes, minimizing risk and financial loss, and improving compliance adherence, ensuring they become leaders in the next era of digitalization in maritime.
Why the maritime industry is adopting AI now
As an essential part of the broader supply chain, shipping and maritime was deeply affected by the global pandemic. The closure of the skies alongside the increased number of vessels roaming the ocean meant the introduction of new behavioral patterns and the need to understand the new risks and business patterns that entails.
The increased maritime trade alongside closed borders has impacted ship maintenance, crew management, and more. For businesses looking to engage in routine operations and maximize the efficiency of their operations in a dynamic environment, traditional methodologies have to be disregarded, and new solutions must be put into place.
This had led to the level of responsibility on businesses growing, setting a new bar of standards for the maritime industry. To meet these standards, businesses must perform in-depth due-diligence on each vessel they engage with directly and indirectly.
As a result of the changing global and trade environments, businesses, and organizations that are part of the maritime industry have increased digital needs. The entire know your vessel (KYV™) process needs to be digitalized. To achieve this, AI must be integrated to understand information and derive accurate decision-ready insights from that information in real-time, as well as shorten the business process from days to hours, if not minutes.
What this means for the entire ecosystem
The accelerated pace of technological adoption seen across maritime and trade signals the fundamental shift that the ecosystem as a whole is experiencing. Today, businesses understand that digitalization can, and will, transform the entire ecosystem. Recognizing this early on can give companies a competitive advantage over others that do not integrate technologies into their workflow.
By digitizing tasks that previously took up valuable human resources, such as due-diligence and vessel clearance, and providing decision-ready insights based on evolving data, human resources are supercharged.
In addition to signaling the shift to digitalization, the rapid adoption of AI-backed technologies currently seen in the industry showcases that the entire ecosystem embraces a forward-thinking approach.
Companies want to enhance their overall awareness, gain foresight into emerging risk, and recognize potential threats, trends, and developments instantly and on a large scale.
Integration of AI today for whatever tomorrow will bring
The broad nature of the ocean, the vast distances, the multiple parties involved, and the sea of data that yields, all make the domain increasingly complex. The only way to sort through the noise of data, understand what information is meaningful, maximize operational effectiveness, and minimize risk is through the integration of digital solutions.
AI enables businesses and organizations to effectively manage risk and optimize efficiency by providing real-time insights that consider dynamic data and multiple sources of information.
What companies do today will shape the way the entire industry behaves tomorrow. By adopting new technologies and AI-driven technologies as the standard, the industry will be propelled into the future, and the whole ecosystem will witness a new era of growth.
Businesses and organizations that recognize the change as an opportunity will reap the rewards now and for years to come.