
Episode details
Join us on this week's episode of the Slice of Technology AI podcast, hosted by Jared S. Taylor!
Our Guest: Emil Stefanutti, Co-Founder & CEO at Gaia Dynamics.
What you’ll get out of this episode:
- AI achieves near-perfect accuracy in customs broker exams, reshaping the industry
- Gaia Dynamics reduces classification time from 30 minutes to 8 seconds per product
- Companies face increased scrutiny and complexity in global trade regulations
- Small businesses stand to benefit most from lowered compliance barriers
- Adopting technology is the top recommendation for staying ahead in trade compliance
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Emil Stefanutti’s Unconventional Path to AI Innovation
Emil Stefanutti, Co-Founder & CEO of Gaia Dynamics, didn’t start out in computer science or engineering. With a background in design and a history of successful startups—including two exits and another thriving company—Emil’s journey took a pivotal turn when he began collaborating with Andrew Ng’s AI Fund. Their mission: leverage AI to tackle big problems, specifically in the complex world of cross-border regulation compliance—a topic that has quickly moved from niche to mainstream as global trade has grown more intricate.
The Challenge: Navigating a Sea of Regulations
Every product imported into a country must be classified using a detailed coding system. In the US, for example, there are over 22,000 codes, and getting the classification wrong can have costly consequences—from paying too much in tariffs to facing penalties for underpayment. The pace of regulatory change and heightened scrutiny from authorities like US Customs and Border Protection have made the process more chaotic than ever. For companies, especially those handling thousands of products, speed and accuracy are now essential.
Gaia Dynamics’ Breakthrough: From Days to Seconds
Traditionally, a seasoned customs broker might take 30 minutes to classify a single product. For large manufacturers, this quickly becomes a logistical nightmare. Emil shared a striking example: a client with 30,000 parts faced 180 business days of classification work—until Gaia Dynamics’ AI cut that down to just one day. The AI’s ability to pass the notoriously tough customs broker exam with perfect accuracy (a feat accomplished by only 30% of human test-takers) highlights how far the technology has come.
Real-World Impact: Smarter, Faster, More Inclusive Trade
AI is helping companies not only keep pace with regulatory changes but also identify ways to optimize their operations—like sourcing from countries with lower tariffs or adjusting product materials. While brokers can now focus more on strategic advising rather than repetitive research, perhaps the biggest impact is on small businesses. Only 9% of US small businesses export today, often because compliance is too daunting. Lowering these barriers could unleash new waves of growth and global participation.
The Future of Trade Compliance
Looking ahead, Emil envisions customs operations that are faster, more streamlined, and less friction-filled—especially at the border. The next five years could see small businesses thriving globally, thanks to reduced compliance hurdles. His advice for companies overwhelmed by today’s environment: embrace technology. Whether it’s Gaia Dynamics or another provider, AI is the “biggest differentiator” for efficiency, profitability, and peace of mind in trade compliance.