The ability to efficiently manage and classify vast catalogues of products and services is paramount. This necessity brings to the forefront the UNSPSC, a taxonomy designed to serve as a global framework for efficient data management and spend analysis. 

However, the task of classifying an extensive range of items according to the UNSPSC can be both time-consuming and costly, presenting a significant challenge for businesses across industries. 

It is here that AI-driven solutions, such as those offered by AICA, are making a groundbreaking impact.

The Challenge of Traditional Classification

A leading industrial supplier found itself grappling with the daunting task of classifying its extensive catalogue of 145,000 items in alignment with the UNSPSC. Traditional manual methods estimated the process would span approximately 1209 days, assuming an 8-hour workday and an average classification time of 4 minutes per item. 

This method not only demanded an exorbitant amount of time but would also incur high costs, estimated at $0.50 per minute, resulting in a total cost of $362,500.

Introducing AICA’s AI Solution

AICA, standing at the forefront of AI-driven classification, presented an innovative solution designed to address the inefficiencies inherent in manual classification. Leveraging advanced algorithms and machine learning, our AI technology promised to significantly enhance classification efficiency while reducing operational costs.

Implementation and Impact

The implementation of our AI solution brought forth remarkable results:

  • Speed: The AI technology processed the entire catalogue in just 20 days—a fraction of the time initially projected for manual classification.
  • Accuracy: Achieving a confidence score above 90% for 78% of all items, the solution drastically reduced the volume of items needing manual review.
  • Cost Efficiency: The AI classification cost amounted to $0.45 per item, totaling $65,250 for the catalogue, with an additional $79,750 for the quality control process, summing up to a total project cost of $145,000.

The Role of UNSPSC and Benefits in Spend Analysis and Product Data Management

The UNSPSC serves as a critical tool in streamlining spend analysis and product data management. It offers a standardised framework that facilitates the organisation, management, and analysis of product and service data across different industries. 

This standardisation enables businesses to conduct thorough spend analysis, identifying potential savings opportunities and enhancing procurement efficiency. 

Additionally, UNSPSC classification simplifies the management of product data, promoting consistency and accuracy across global supply chains.

The Importance of Automating Classification with AI

The automation of the classification process using AI technologies like AICA’s offers numerous benefits. Firstly, it dramatically accelerates the classification process, enabling businesses to quickly adapt to market changes and new inventory additions. 

AI-driven classification also enhances accuracy, reducing the likelihood of human error and ensuring consistent application of the UNSPSC framework. 

Lastly, the cost savings achieved through AI automation are significant, allowing businesses to allocate resources more effectively.


We invite you to explore the full potential of AI in transforming your product and service classification processes. For more detailed insights and to discover how our solutions can be tailored to meet your specific needs, visit our website

Join us on the journey towards unlocking unparalleled efficiency and accuracy in data management and classification.

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