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

1. Descartes launched Visual Compliance™ AI Assist for trade compliance. 2. AI Assist reduces false positives, enhancing productivity for compliance teams. 3. The solution aids diverse industries in navigating trade compliance complexities. 4. Customers benefit from better screening accuracy and reduced labor effort. 5. Cloud-based system includes global regulatory compliance content.

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Why Bullish?

The introduction of AI Assist can lead to greater customer acquisition and retention, enhancing revenue streams for DSGX by addressing a significant pain point in trade compliance. Historical data shows that companies improving operational efficiency tend to see stock price appreciation.

How important is it?

The introduction of a significant AI-driven solution directly aligns with DSGX’s core business, indicating its importance for long-term growth and market positioning.

Why Long Term?

The effects of AI Assist will likely be realized over time as companies adopt the technology and experience enhanced compliance efficiency, paralleling successes seen with similar SaaS solutions in the past that have gained customer loyalty.

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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 StrohackTel: 226-750-8050cstrohack@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.

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