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

Abstract

The complexity and volume of international trade have dramatically increased the need for smarter, faster, and more transparent customs procedures. This research explores how Artificial Intelligence (AI)-driven systems are transforming customs compliance and trade facilitation in emerging economies. Drawing upon a simulated primary survey (n=250) across customs authorities and logistics firms in India, Kenya, and Brazil, alongside secondary multinational case studies, this study uncovers the effectiveness, challenges, and strategic value of AI technologies in customs automation. Through regression modeling, thematic analysis, and AI-readiness scoring, this paper reveals a statistically significant correlation between AI-enabled compliance systems and improved trade facilitation efficiency. The study further highlights regional readiness disparities and outlines policy recommendations for a harmonized, data-driven customs landscape. The paper provides actionable insights for governments, logistics leaders, and trade policy architects toward enhancing transparency, agility, and resilience in global value chains.