Only 8% of companies worldwide consider their corporate data fully ready for the large-scale use of artificial intelligence, although 65% of businesses plan to increase spending on the relevant technologies over the next 12 months. This is evidenced by the results of an international study by Dun & Bradstreet (D&B).
The AI Momentum study covered 10,000 companies from 32 countries worldwide. According to its results, only 28% of surveyed businesses reported significant or substantial returns from implementing artificial intelligence. At the same time, among organizations whose corporate data is fully ready for AI use, this figure stands at 81%, while among companies with partially prepared data it is only 12%.
According to D&B, one of the main obstacles to improving the effectiveness of artificial intelligence lies not in the insufficient capabilities of the technologies themselves, but in the quality of the information they use.
For businesses, this issue is particularly important in the automated verification of counterparties, assessment of credit risks, analysis of suppliers and identification of corporate relationships between legal entities.
“Artificial intelligence can analyze thousands of companies in seconds, but the economic value of such analysis directly depends on the reliability of the underlying data. If the system incorrectly identifies a legal entity, its owners or its financial condition, automation may only accelerate the making of an erroneous decision. That is why it is important for Ukrainian businesses to combine new technologies with verified international sources of corporate information,” said Maksym Urakin, Director of Development and Marketing at the Interfax-Ukraine news agency, Head of the D&B-Interfax-Ukraine Business Unit, and PhD in Economics.
One of the tools for organizing verified corporate data is D&B Commercial Graph, which makes it possible to identify companies, establish relationships between them and use structured information to analyze commercial risks.
According to Urakin, such tools are of particular importance for Ukrainian enterprises that are expanding their international operations, working with new suppliers or planning to automate financial control.
“The question is no longer only whether a company uses artificial intelligence. What is much more important is whether it has a reliable information foundation for its operation. International counterparty verification is becoming part of this foundation,” he added.
Dun & Bradstreet is an international company specializing in business data and analytics, founded in 1841. Its solutions are used to identify businesses, assess credit and commercial risks, verify counterparties and analyze corporate relationships.
The official representative of D&B in Ukraine is the Interfax-Ukraine news agency. Information about international company verification and other services is available on the specialized website dnb.ua.
Original source: Dun & Bradstreet, AI Momentum Survey.
ANALYTICS, artificial intelligence, COUNTERPARTY, D&B, URAKIN
A one-time check of a counterparty before concluding a contract does not make it possible to fully control commercial risks: a company’s financial condition, its owners, management and payment discipline may change already in the course of cooperation. Therefore, Ukrainian businesses should move from one-time checks to continuous monitoring of key partners.
International business information systems, including Dun & Bradstreet (D&B), make it possible not only to obtain information about a company before starting cooperation, but also to track changes in its profile.
According to Maksym Urakin, Director of Development and Marketing at Interfax-Ukraine and head of the D&B-Interfax-Ukraine business unit, monitoring is particularly important for companies to which a Ukrainian supplier regularly provides deferred payment terms or with which a significant volume of turnover is associated.
“A counterparty may have looked absolutely reliable at the time the contract was signed, but six months later the situation may be different. The company’s debt burden may increase, its owner or management may change, or its payment discipline may deteriorate. If the supplier learns about this only after an overdue payment, managing the risk becomes significantly more difficult,” Urakin noted.
International D&B databases are used to track changes in corporate data and assess business risks. Depending on the information available for a particular jurisdiction, a user can analyze changes in an enterprise’s financial condition, its corporate structure and other characteristics.
This approach is particularly relevant for companies with a large number of customers and suppliers. With hundreds or thousands of counterparties, regularly checking each of them manually is practically impossible.
“Businesses need to identify critically important partners. The greater a counterparty’s debt to the company, or the more strongly the supply chain depends on it, the higher the frequency and depth of monitoring should be,” Urakin believes.
A change in risk indicators does not necessarily require the immediate termination of cooperation. It may serve as a signal to revise the credit limit, shorten the payment deferral period, request additional collateral or conduct a more in-depth check.
A separate area is supplier monitoring. Financial problems at a raw-material producer, carrier or another critically important partner can lead to a halt in supplies even when the Ukrainian company’s own financial position remains stable.
According to Experts Club, Ukrainian enterprises should divide counterparties at least according to their level of financial significance and the potential damage from default or termination of supplies, while the most critical partners should be monitored continuously.
“In a modern risk management system, the question should be not only ‘whom did we check before concluding the contract,’ but also ‘what has changed with our largest counterparties since the check.’ It is monitoring that makes it possible to identify a problem before it turns into a direct financial loss,” Urakin emphasized.
Dun & Bradstreet is an international provider of business data and analytical solutions whose history began in 1841. The company provides tools for business identification, counterparty checks, assessment of credit and commercial risks, compliance, supply chain management and work with corporate data.
The official representative of Dun & Bradstreet in Ukraine is the Interfax-Ukraine news agency. The specialized D&B-Interfax-Ukraine unit helps Ukrainian companies work with international business data, check foreign partners and obtain a D-U-N-S Number.
The expansion of Ukrainian companies into foreign markets increases the importance of conducting preliminary checks on potential buyers and distributors. The risks are particularly high when working with a new counterparty on deferred payment terms, Dun & Bradstreet analysts note.
One of the tools for such checks is Dun & Bradstreet’s (D&B) international business information databases, which make it possible to identify a company, verify its registration data, ownership structure, financial indicators, operating history and associated risks.
When entering a new market, Ukrainian companies often focus primarily on finding a buyer and agreeing on commercial terms, while checking the buyer’s solvency remains a secondary task.
“Receiving an order does not yet mean receiving the money. For an exporter, a situation is particularly dangerous when the first large shipment is made to a new partner with deferred payment. Before signing such a contract, it is necessary to understand whether the company actually exists, how long it has been operating, what its financial indicators are, who its owner is and how high the credit risk associated with this counterparty is,” said Maksym Urakin, Director of Development and Marketing at Interfax-Ukraine, Head of the D&B-Interfax-Ukraine business unit, PhD in Economics.
Dun & Bradstreet has a global database containing information on hundreds of millions of companies. A unique nine-digit D-U-N-S Number is used to identify businesses, making it possible to distinguish between legal entities with similar names and link companies within corporate groups.
For a Ukrainian exporter, such a check is particularly relevant when working with companies that are offering a large contract for the first time, requesting a significant payment deferral or acting as intermediaries between the manufacturer and the end buyer.
Depending on the country and the availability of information, a D&B business report may contain registration details, information about executives and owners, financial statements, information on corporate relationships, credit ratings and other indicators used for risk assessment.
“The cost of a check is almost always incomparable with the potential loss from a single unpaid export shipment. International business information should be viewed not as an additional reference, but as one of the elements of the decision-making procedure regarding the credit limit, the amount of prepayment and the terms of the contract,” Maksym Urakin believes.
At the same time, negative information about a potential partner does not necessarily mean that the transaction should be rejected. It may serve as a basis for changing its terms — increasing the prepayment, reducing the size of the first shipment, using a bank guarantee, trade credit insurance or shortening the deferred payment period.
Dun & Bradstreet is an international provider of business data and analytical solutions whose history began in 1841. The company provides tools for business identification, counterparty verification, assessment of credit and commercial risks, compliance, supply chain management and work with corporate data.
The official representative of Dun & Bradstreet in Ukraine is the Interfax-Ukraine news agency. The specialized D&B-Interfax-Ukraine unit helps Ukrainian companies work with international business data, verify foreign partners and obtain a D-U-N-S Number.
Questions can be submitted through the specialized D&B resource — dnb.ua, by email at Urakin@interfax.kyiv.ua or by phone at +38 (044) 270-65-74.
COUNTERPARTY, D&B, DUN & BRADSTREET, EXPORT, UKRAINE, URAKIN
