Washington DC was abuzz with excitement and activity recently as more than 150 import and export compliance practitioners gathered at the 2025 Descartes Innovation Forum for Global Trade Intelligence, a Descartes customer event in which participants explored ways of successfully navigating ever-evolving trade policies and compliance challenges, including with the help of AI.
The Forum was an incredible opportunity to engage with industry leaders, government officials, Descartes product management team, and compliance practitioners who are on the front lines of tackling today’s increasingly complex regulatory environment. Attendees didn’t just sit through presentations—they participated in meaningful discussions, asked insightful questions, and shared their own experiences managing evolving export controls and enforcement trends.
One of the most impactful moments came from Dan Clutch, Deputy Director of the Office of Export Enforcement at the Bureau of Industry and Security (BIS). With stepped up enforcement and the complexity of regulatory requirements showing no indications of easing any time soon, he said that companies needed to make international trade compliance an integral part of their corporate culture if they wanted their business to operate successfully on the global stage. That would mean broadening responsibility beyond the export compliance team. More on this later in the article.
There were also speakers from Kharon, the Forum’s main sponsor and Descartes partner providing risk data that customers can use in conjunction with Descartes Visual Compliance, Descartes MK, and Descartes OCR Global EASE to comply with sanctioned ownership, Military End User (MEU), Uyghur Forced Labor Prevention Act (UFLPA) and other regulations where official screening lists do not exist. . Other sponsors / partners included Content Enablers, Envoy, Export Compliance Training Institute, GlobalEyes and NMB Solutions. Their support reinforced a core theme: trade compliance isn’t just about checking boxes—it’s about resilience, risk mitigation, and business continuity.
In this article, I’ll share highlights from the Forum and what they mean for companies striving to stay ahead in an unpredictable regulatory landscape. While this post focuses on export compliance, the Innovation Forum also discussed import compliance, but this is the subject of a separate article.
Key Takeaways
- The 2025 Descartes Innovation Forum provided a unique opportunity for compliance practitioners to connect, learn from expert speakers and explore solutions that enhance trade compliance strategies.
- In his keynote speech, the BIS Deputy Director of the Office of Export Enforcement emphasized that companies must embed export compliance into their corporate culture.
- He also warned against the risks of reactive compliance, particularly as stricter export controls and increased enforcement efforts respond to the growing threats posed by emerging technologies.
- Organizations were urged to take advantage of BIS’ self-disclosure tools to report potential export violations, as doing so offers significant regulatory benefits.
- There was consensus at the Innovation Forum that automated export compliance solutions supported by AI capabilities are key to staying ahead and effectively preventing export violations.
- Descartes product management team also discussed ways in which AI is revolutionizing global trade compliance, enhancing efficiency, reducing risks, and streamlining operations.
Innovation Forum: Addressing Global Trade Challenges and Creating Value for Customers
Brian Hodgson, General Manager of the Descartes Global Trade Intelligence (GTI) business unit, opened the Innovation Forum with a warm welcome. Against the historic backdrop of the Omni Shoreham Hotel – a frequent destination of government officials such as Franklin Delano Roosevelt and Harry Truman, as well as business leaders – he set the tone for the event.
Hodgson said that the business environment is getting more challenging. Geopolitical tensions are escalating, tariff volatility is becoming more unpredictable, and the regulatory landscape is much more difficult to manage.
Given these conditions, he emphasized that the Forum’s purpose was threefold: to learn and exchange fresh ideas that attendees can apply upon returning to their workplaces, to explore solution roadmaps, and to build stronger relationships among participants and with Descartes product and partner teams. By working together, he noted, businesses can tackle challenges more effectively and drive timely solutions.
GTI General Manager, Brian Hodgson, welcomes attendees at the Innovation Forum
Major Highlights from BIS on Strengthening Export Compliance
During the Innovation Forum, BIS’ Clutch provided a comprehensive overview of the critical areas organizations needed to prioritize in 2025 to maintain effective export compliance. One of the major concerns is the expanding threat posed by emerging technologies such as AI, advanced semiconductors, and quantum computing. As these technologies become more powerful and widely accessible, the risk of unintended misuse grows. The discussion also highlighted the challenge of uncontrolled proliferation—where innovations designed for commercial progress can be rapidly adapted for military, surveillance, or cyber warfare by adversarial nations or rogue entities.
Beyond the risks posed by emerging technologies, Clutch emphasized that security gaps can occur anywhere within an organization, making a companywide approach to compliance essential. While this point has been raised many times before, it remains a critical issue that organizations must continually address. Ensuring that export compliance is not siloed within specific departments but embedded across all business functions is vital to mitigating risks effectively. Let’s dive deeper into areas of focus Clutch spoke about.
1. Export Compliance as Part of the Corporate Culture
In his speech, the BIS Deputy Director noted that no single entity can effectively manage export control risks alone. Trade compliance should not be the sole responsibility of the export compliance team. Other departments need to be involved too: supply chain, logistics, finance, IT, sales, procurement, R&D, human resources, visitor management, among others. Only with multi-functional teams working together can security gaps be sealed.
Figure 1: Export Compliance is a Companywide Effort
With record-high penalties and increasing global trade restrictions, businesses failing to integrate export compliance at every level risk financial losses, reputational damage, and legal penalties. The question is—how prepared is your company?
Here are a few steps to help you achieve companywide culture of export compliance:
- Lead by Example: Senior leadership must prioritize compliance, embedding it into daily decision-making and corporate values.
- Implement Internal Compliance Programs: develop and maintain strong internal export compliance programs that include risk assessments, employee training, and continuous monitoring to ensure adherence to export regulations.
- Ensure Awareness of Applicable Export Regulations: Understanding export controls is crucial for compliance. All relevant teams understand and comply with evolving export controls.
- Adopt User-friendly Export Compliance Software: Choose technology that simplifies export compliance processes, enabling employees to integrate them seamlessly into their daily workflows.
- Foster Collaboration: Technology alone isn’t enough. Collaboration between businesses, government agencies, industry leaders, and export compliance professionals ensures you leverage best practices and the right solutions.
See also Top Five Best Practices to Integrated Denied Party Screening, which details how and why compliance should be seen as a companywide initiative.
2. Proactive Export Compliance and Risk Prevention
Clutch also emphasized the critical need for proactive compliance to mitigate export control risks, stressing that prevention is always preferable to penalty. The most effective way to avoid regulatory consequences is to identify and address potential violations before they occur. To aid in this effort, BIS provides red flag indicators to help companies detect suspicious transactions and prevent unlawful transactions.
However, simply having guidelines is not enough, organizations must ensure employees at all levels are well-trained to recognize and respond to potential export compliance risks. Manual compliance processes create further risk, relying on spreadsheets and manual workflows is inefficient and error prone. Without proper vigilance, inadvertent violations can lead to severe consequences.
Regulatory agencies favor businesses that take preventative measures rather than relying on reactive enforcement to address compliance failures. A shift toward automated export compliance solutions is necessary to minimize risk.
BIS’ Dan Clutch addressing the Innovation Forum
3. The Importance of Voluntary Self-Disclosure in the Export Compliance Process
Clutch went on to highlight the importance of voluntary self-disclosure (VSD) and thorough documentation in export compliance, urging participants to view the process much like solving a math problem—where showing your work is just as important as arriving at the correct answer. Even if a mistake is made, demonstrating the due diligence steps taken can earn companies’ leniency. In past enforcement cases, companies that demonstrated clear compliance efforts were treated more favorably than those that attempted to conceal violations.
Rather than being a sign of weakness, he said, self-disclosing potential export violations is a reflection of a strong corporate compliance culture. In fact, 98% of all voluntary self-disclosures result in a warning letter rather than criminal prosecution or heavy fines. Beyond regulatory benefits, fostering a culture where employees feel empowered to report potential compliance issues —without fear of retaliation —is essential for maintaining ethical and transparent business operations.
Organizations with robust export compliance systems combined with comprehensive audit trail and history are better positioned to prevent violations and, in the event of an error, find it easier to prove their compliance effort. For more insights into strengthening your internal VSD processes, read this article covering recent updates to BIS’ Voluntary Self-Disclosure Policies and Penalty Guidelines.
The Business Case for Export Compliance Software
Speakers at the GTI Innovation Forum were unanimous in their stance: effective export compliance requires proven software solutions. The margin for error, they said, has never been slimmer, with violations carrying increasingly severe consequences. Trade compliance is no longer just about avoiding transactions with entities on denied, restricted, blocked and debarred lists —it’s also about safeguarding a company’s reputation and value.
As one speaker noted, the sight of a company’s brand in the background of a terrorist video could spark serious management questions: How did it get there? Did we inadvertently sell to them? Do we need to do a deeper dive audit?
With regulatory authorities tightening restrictions, issuing harsher penalties, and escalating enforcement actions—including substantial fines and criminal prosecutions—businesses cannot afford to rely on outdated, manual compliance methods. Investing in export compliance technology is not just a regulatory necessity but a critical safeguard against financial, legal, and reputational risks.
An aerospace and defense company using our integrated export compliance solution has reduced the risk of export violations and expects to realize an annual ROI of more than US$300,000. Read the case study
The Competitive Advantage of AI in Global Trade Compliance
During the Descartes GTI Innovation Forum, Kenneth Wood, EVP of Product Management, highlighted how AI is fundamentally reshaping global trade compliance. One of the biggest takeaways was how AI-driven automation is streamlining customer and vendor screening through tailored search tuning and adaptable adjudication rules, strengthening due diligence processes, and ensuring compliance with ever-evolving regulations. He described how Descartes has leveraged this capability in its AI Assist solution which has proven to reduce false positives in denied party screening by up to 30%.
Wood also emphasized AI’s growing role in risk analysis, where it enhances fraud detection and supply chain monitoring, helping businesses stay ahead of potential vulnerabilities. Another key area is regulatory paperwork, where AI automates document processing—especially for export license acquisition—reducing errors, and accelerating approvals.
He made it clear that AI isn’t just a passing trend—it’s a transformative force that is redefining compliance roles rather than replacing them. As AI-powered simulations help companies prepare for disruptions and improve supply chain resilience, businesses that embrace AI strategically will gain a competitive edge. However, with regulatory landscapes constantly shifting, he stressed the importance of staying informed on AI policies to balance innovation with responsible adoption. The message was clear: AI is already making a significant impact, and companies that leverage it effectively will be better positioned to navigate the complexities of global trade compliance.
Confidently Meet Your BIS Export Compliance Obligations with Descartes
There’s no question that export compliance requirements are much more challenging to address than ever before. In parallel to that, regulatory scrutiny has intensified, and enforcement actions have significantly increased, making the cost of non-compliance far too great to ignore.
To stay ahead of these regulatory headwinds, organizations need to rely on robust software solutions such as Denied Party Screening, Export Classification, Export Documentation, Export License, and AI Assist for export compliance. These tools don’t just help companies meet regulatory requirements—they enable a proactive approach to reducing risk, ensuring compliance, and maintaining operational efficiency.
At Descartes, we help businesses integrate export compliance into their operations. Our solutions provide real-time regulatory updates, seamless integration with business systems, and audit ready reports to demonstrate your due diligence efforts. We also offer enhanced forced labor risk mitigation capabilities to prevent trade violations.
Ready to strengthen your export compliance program and protect your business? Request a Demo today and take a closer look at our compliance technology.
Find out what our customers are saying about Descartes Denied Party Screening on G2 – an online third-party business software review platform. Additionally, you can read this essential buyer’s guide to denied party screening to help you select a solution that fits your needs.
