How AI is set to transform commodity markets
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Artificial Intelligence (AI) is rapidly transforming various sectors, including the commodities market. The release of Ask ICIS, an AI assistant, aligns with the broader trend of integrating AI into business processes. AI can play a key role in the commodity industry, however addressing common concerns and reservations about AI is critical to creating a culture of comfort and trust in its use.
Data and AI literacy are crucial elements in fostering trust in AI. As Manca Vitorino, Director of Data at ICIS articulated,
This approach helps bridge the knowledge gap and ensures that employees are comfortable and proficient in using AI tools. In a poll conducted at the ICIS Asian Base Oils Conference, participants identified the skill gap as the second highest barrier to AI implementation, immediately behind security concerns.
When concerns are addressed and risks mitigated, it’s clear that AI has the potential to enhance market analysis. Poll participants also ranked, optimising supply chains and promoting sustainable practices, as the two biggest areas of potential for AI within the commodities industry, ultimately serving as an enabler of more meaningful work and innovation.
AI: a partner, not a competitor
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Human interaction is irreplaceable customers value the personal interaction and professional expertise that humans provide, therefore AI can enhance. It's important for businesses to have experts that customers can engage with. AI cannot replicate the nuanced understanding and rapport that human interactions offer. A GGS survey of consumers showed that 86% percent of people preferred to interact with humans over AI-based systems.
The relationship between humans and machines has evolved over time. Historically, humans operated machines, but the emerging Fifth Industrial Revolution envisions a more harmonious relationship. Terms like "collaboration" describe this new dynamic. Automating mundane tasks: AI excels at performing repetitive and mundane tasks, freeing people to engage in more high-value activities. This shift not only enhances job satisfaction but also allows companies to focus on strategic, creative and complex problem-solving tasks that AI cannot yet handle. For example, Ask ICIS enables customers to filter through 500 million data points with the click of a button, saving time spent searching through data. However, when ICIS customers have complex questions about using data to inform their business strategy, they can consult with market experts who will listen to their specific needs and make recommendations.
Reducing friction and enhancing wellbeing
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Focusing on wellbeing is also essential. AI reduces the friction associated with repetitive tasks, allowing employees to focus on value-add tasks.
AI can consolidate organisational knowledge, making it easier for employees to access necessary information quickly.
Enabling technology
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We should view technology, including AI, as an enabler that supports our work, making processes more efficient and helping deliver better services to customers.
Addressing common concerns about AI
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Is data safe with AI?
Data security is a paramount concern when integrating AI systems. Measures such as encryption, secure storage and stringent access controls are essential to mitigate risks like data breaches and misuse. Establishing clear guidelines on data usage, storage and user consent within the business strategy is crucial for responsible AI use.
AI stands poised to revolutionise the commodities market by optimising operations, enhancing market analysis, and promoting sustainable practices. However, the successful integration of AI depends on addressing concerns related to data security, literacy and the perceived threat of job displacement. Building a culture of trust and understanding around AI is critical. As AI takes over repetitive tasks, it frees human workers to engage in more strategic, creative and complex problem-solving activities, thus enhancing job satisfaction and organisational efficiency.
The relationship between humans and AI is best viewed as collaborative, where AI acts as a supportive tool rather than a competitor. Ensuring robust data governance, transparency and continued human oversight will mitigate risks and build confidence in AI systems. By enhancing data and AI literacy, organisations can bridge the knowledge gap and empower employees to utilise AI effectively. As AI technology continues to evolve, its role as an enabler of more meaningful work and innovation in the commodities market will only grow, reflecting the potential for AI to transform industries positively while preserving the irreplaceable value of human interaction and expertise.
Author:
Ropa Mugadza is a content writer at ICIS, working across energy, chemicals and sustainability to tell the story of market movements.
She has previously worked as a writer and content strategist in the fields of green infrastructure, sustainable development, and environmental technology.
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