AI Risk Indicator
This page describes the Beta Artificial Intelligence (AI) Risk Indicator that Tradecloud is running with selected customers.
The AI Risk Indicator is only available on Tradecloud One. To participate in the Beta programme, you can submit your request to support@tradecloud1.com.
What is the AI Risk Indicator?
The AI Risk Indicator calculates the probability of an exception occurring for a new order line, issued to the supplier. An exception is defined as:
- A supplier proposes changes for an issued line
- A supplier rejects an issued line
The outcome of the calculation is presented as a percentage that indicates the probability of an exception.
A 90% probability indicates that our AI Risk Indicator expects that there is 90% chance that the supplier will either reject the issued line, or propose changes.
How is this risk calculated?
Using the latest Machine Learning (ML) and AI algorithms, we train our indicator based on the information that is available in Tradecloud One. We leverage state-of-the-art Machine Learning, that will automatically choose the best fit between traditional Machine Learning models and Artificial Intelligence.
Our “ML model” is optimized to get the best possible predictions. This results in a model that contains the best “rules” or “formulas” to calculate the risk of an exception happening. Any sensitive or personal data is obfuscated and cannot be exploited.
What are the benefits for your company?
Tradecloud is exploring the benefits that can be brought to our customers with the help of AI.
The idea is that AI provides our customers with tools to pro-actively handle specific order lines even before an exception happens. This will allow our customers to address disruptions in the supply chain as early as possible, when the impact of such a disruption is still low.
What next?
User data and actual feedback from interviews will be collected to evaluate the usage and benefits of the AI Risk Indicator. Based on the evaluation, next steps can be determined according to the needs of the customers.