AI Driven Customs Compliance Transforming International Logistics and Trade Facilitation in International Business

Abstract

This study provides an in-depth examination of Artificial Intelligence (AI) applications in customs compliance and their transformative impact on international logistics and trade facilitation. Leveraging the most recent empirical data from 2023 to 2025 and over 50 recent peer-reviewed sources, it explores AI-powered methodologies such as machine learning classification, anomaly detection, natural language processing (NLP), robotic process automation (RPA), and advanced predictive analytics. The paper analyzes significant reductions in customs clearance times, enhancements in risk assessment accuracy, improved fraud detection rates, and tangible administrative cost savings. It also addresses critical challenges including data privacy, cybersecurity, regulatory harmonization, system integration complexity, and workforce skill development. Practical recommendations are presented to guide policymakers, customs authorities, and multinational enterprises in optimizing AI implementations for smarter, more efficient customs and logistics operations worldwide.