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Descartes Helps Reduce False Positives with AI-Enabled Denied Party Screening Solution

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Descartes Systems Group (Nasdaq:DSGX) has launched Descartes Visual Compliance™ AI Assist, an advanced denied party screening solution powered by artificial intelligence. The new technology helps trade compliance teams automatically reduce false positives - alerts that incorrectly match with restricted or sanctioned entities.

The cloud-based solution features three key capabilities: AI-driven compliance support for enhanced screening accuracy, configurable risk levels with adjustable AI settings, and built-in audit and reporting functionality. For some customers, the system has helped reduce false positives to minimal levels while maintaining effective compliance oversight.

Descartes Systems Group (Nasdaq:DSGX) ha lanciato Descartes Visual Compliance™ AI Assist, una soluzione avanzata per il controllo delle parti negate basata sull'intelligenza artificiale. Questa nuova tecnologia aiuta i team di conformità commerciale a ridurre automaticamente i falsi positivi, ovvero gli avvisi che erroneamente corrispondono a entità soggette a restrizioni o sanzioni.

La soluzione cloud offre tre funzionalità principali: supporto alla conformità guidato dall'IA per una maggiore precisione nello screening, livelli di rischio configurabili con impostazioni AI regolabili, e funzionalità integrate di audit e reportistica. Per alcuni clienti, il sistema ha permesso di ridurre i falsi positivi a livelli minimi, mantenendo al contempo un'efficace supervisione della conformità.

Descartes Systems Group (Nasdaq:DSGX) ha lanzado Descartes Visual Compliance™ AI Assist, una solución avanzada de detección de partes denegadas impulsada por inteligencia artificial. Esta nueva tecnología ayuda a los equipos de cumplimiento comercial a reducir automáticamente los falsos positivos, es decir, alertas que coinciden erróneamente con entidades restringidas o sancionadas.

La solución basada en la nube incluye tres capacidades clave: soporte de cumplimiento impulsado por IA para mejorar la precisión del filtrado, niveles de riesgo configurables con ajustes de IA personalizables, y funcionalidades integradas de auditoría e informes. Para algunos clientes, el sistema ha ayudado a reducir los falsos positivos a niveles mínimos, manteniendo una supervisión efectiva del cumplimiento.

Descartes Systems Group (나스닥: DSGX)는 인공지능 기반의 고급 거부 대상자 심사 솔루션인 Descartes Visual Compliance™ AI Assist를 출시했습니다. 이 새로운 기술은 무역 준수 팀이 제한되거나 제재 대상인 기관과 잘못 일치하는 오탐지를 자동으로 줄이는 데 도움을 줍니다.

클라우드 기반 솔루션은 세 가지 주요 기능을 제공합니다: 향상된 심사 정확도를 위한 AI 기반 준수 지원, 조정 가능한 AI 설정이 포함된 위험 수준 구성, 그리고 내장된 감사 및 보고 기능입니다. 일부 고객의 경우, 이 시스템은 효과적인 준수 감독을 유지하면서 오탐지를 최소 수준으로 줄이는 데 기여했습니다.

Descartes Systems Group (Nasdaq:DSGX) a lancé Descartes Visual Compliance™ AI Assist, une solution avancée de filtrage des parties interdites alimentée par l'intelligence artificielle. Cette nouvelle technologie aide les équipes de conformité commerciale à réduire automatiquement les faux positifs, c’est-à-dire les alertes correspondant à tort à des entités restreintes ou sanctionnées.

La solution cloud offre trois fonctionnalités clés : un support de conformité piloté par l'IA pour une meilleure précision du filtrage, des niveaux de risque configurables avec des paramètres IA ajustables, et des fonctionnalités intégrées d'audit et de reporting. Pour certains clients, le système a permis de réduire les faux positifs à un niveau minimal tout en maintenant une surveillance efficace de la conformité.

Descartes Systems Group (Nasdaq:DSGX) hat Descartes Visual Compliance™ AI Assist eingeführt, eine fortschrittliche Lösung zur Überprüfung gesperrter Parteien, die von künstlicher Intelligenz unterstützt wird. Die neue Technologie hilft Handelssicherheits-Teams dabei, falsch-positive Treffer – also Warnungen, die fälschlicherweise mit eingeschränkten oder sanktionierten Parteien übereinstimmen – automatisch zu reduzieren.

Die cloudbasierte Lösung bietet drei Hauptfunktionen: KI-gestützte Compliance-Unterstützung für eine verbesserte Screening-Genauigkeit, konfigurierbare Risikostufen mit anpassbaren KI-Einstellungen sowie integrierte Audit- und Berichtsfunktionen. Bei einigen Kunden konnte das System die Anzahl der falsch-positiven Treffer auf ein Minimum reduzieren und gleichzeitig eine effektive Compliance-Überwachung gewährleisten.

Positive
  • AI technology helps reduce false positives to fractions of a percent for some customers
  • Solution improves efficiency and productivity of compliance resources
  • Flexible risk configuration allows customization for specific regulatory requirements
  • Comprehensive audit trail and reporting capabilities enhance compliance documentation
Negative
  • None.

Insights

Descartes' new AI screening tool reduces false positives in trade compliance, potentially boosting operational efficiency for customers while enhancing their compliance offerings.

Descartes Systems Group has launched Visual Compliance AI Assist, a technological advancement aimed at solving a significant pain point in global trade compliance. The solution leverages artificial intelligence to automatically reduce false positives in denied party screening – a crucial process where companies must verify that they aren't doing business with restricted entities.

The innovation addresses a costly inefficiency in compliance operations. When traditional screening casts too wide a net, compliance teams waste valuable time reviewing benign matches flagged as potential risks. These false positives not only drain resources but also delay shipments, creating bottlenecks in supply chains.

What makes this development particularly noteworthy is the "risk-aware" approach to AI implementation. The system balances automation with human oversight, reportedly reducing false positives to "fractions of a percent" for some customers while maintaining vigilance for legitimate risks. This represents a significant efficiency gain in an increasingly complex regulatory environment.

The solution includes comprehensive screening capabilities against watch lists from multiple global regions (U.S., EU, APAC, EMEA), positioning it as a versatile tool for companies across diverse industries including aerospace, financial services, and manufacturing. The configurable risk levels allow organizations to tailor the system to their specific compliance needs and risk tolerance.

From a competitive standpoint, this enhancement strengthens Descartes' position in the trade compliance software market by addressing a universal pain point while maintaining the audit trail capabilities necessary in highly regulated environments. The focus on reducing manual workload while improving compliance accuracy aligns with the growing industry need for intelligent automation in regulatory processes.

LONDON and ATLANTA, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq:DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, announced the release of Descartes Visual Compliance™ AI Assist, the latest advancement in denied party screening that uses new artificial intelligence (AI) capabilities to help trade compliance teams automatically reduce the effort required to review and clear false positives. False positives are alerts that appear to match restricted, sanctioned and denied party entities but are, in fact, benign matches that lead to unnecessary reviews, wasted time and delayed shipments for import or export.

“While it makes sense to cast a wide net with screening, false positives are a costly drag on time, accuracy and compliance performance,” said Brian Hodgson, General Manager, Trade Compliance at Descartes. “AI Assist significantly reduces low-quality false positives while managing the risk of true hits. With compliance, AI needs to be “risk-aware,” meaning it needs to deliver the tremendous value of AI without increasing the risk of violations. With AI Assist, for some customers, the combination of automation in collaboration with human oversight has helped reduce false positives to just fractions of a percent, even with large screening volumes. This is a significant gain in productivity for compliance resources who can be overburdened with irrelevant alerts.”

Descartes Visual Compliance is a cloud-based solution for export, financial and trade compliance, including restricted and denied party screening. The solution includes comprehensive watch list and regulatory content from the U.S. as well as the EU, APAC and EMEA regions. Descartes Visual Compliance helps companies of all sizes in diverse industries, such as aerospace, financial services, retail, manufacturing, education, transportation and defense, better navigate the ever-changing, complex world of foreign trade compliance by streamlining workflows, mitigating business risk and enhancing overall compliance.

“With the increase in global trade regulations and the substantial volume of information that flows through international commerce, having effective screening without overloading trade compliance resources with false positives is essential,” said Ken Wood, Executive Vice President, Product Management at Descartes. “To help businesses with this persistent challenge, our AI innovations accelerate the review and adjudication of screening results with intelligent filtering, flexible control and human-centered quality assurance, which enhances compliance levels while reducing labor effort.”

Key capabilities of Descartes Visual Compliance AI Assist include:  

  • Advanced AI-Driven Compliance Support: Enhance screening accuracy by automatically identifying and filtering low-risk screening results based on statistical analysis and machine learning algorithms. Streamline risk assessment with data-driven insights to support more informed decision-making and optimize the use of compliance resources.
  • Configurable Risk Levels: Use adjustable AI settings to tailor the solution’s responsiveness to align with specific regulatory requirements, geographical or departmental needs or internal adjudication practices. This flexibility allows organizations to customize the review of results below defined thresholds and ensure full oversight of flagged entries on a continual basis as they change and grow.
  • Built-in Audit and Reporting: Demonstrate due diligence with consolidated and accessible screening results that are supported by centralized, audit-ready reports and a comprehensive audit trail. With complete visibility and traceability of screening results, companies are better able to meet both internal and external audit requirements.

Learn more about Descartes Visual Compliance AI Assist and Descartes’ Global Trade Intelligence solutions.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Media Contact
Cara Strohack
Tel: 226-750-8050
cstrohack@descartes.com

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking information within the meaning of applicable securities laws (“forward-looking statements”) that relate to Descartes’ global trade intelligence solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, “Certain Factors That May Affect Future Results” in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes’ most recently filed management’s discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management’s current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.


FAQ

What is Descartes Visual Compliance AI Assist and what does it do?

Descartes Visual Compliance AI Assist is an AI-powered denied party screening solution that helps trade compliance teams automatically reduce false positive alerts when screening for restricted, sanctioned, and denied party entities.

How does DSGX's new AI Assist technology improve compliance screening?

The technology uses advanced AI and machine learning to automatically identify and filter low-risk screening results, streamline risk assessment, and reduce false positives while maintaining compliance oversight.

What are the key features of Descartes Visual Compliance AI Assist?

The solution offers three key features: 1) AI-driven compliance support for enhanced screening accuracy, 2) configurable risk levels with adjustable AI settings, and 3) built-in audit and reporting functionality.

Which industries can benefit from Descartes DSGX's Visual Compliance solution?

The solution serves diverse industries including aerospace, financial services, retail, manufacturing, education, transportation and defense to help navigate foreign trade compliance.

How much can false positives be reduced using Descartes AI Assist?

According to Descartes, some customers have achieved reduction in false positives to just fractions of a percent, even with large screening volumes.
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