GS1-Classification With AI: Solving The Challenges Of Product Classification.

Efficient product classification is key for companies using GS1 standards. Manual classification is slow, error-prone, and hard to scale. Especially with large product ranges. AI with LLMs offers a smart solution: faster, more accurate, and scalable. Discover how an AI agent automates your classification process!

Quick access:

• GS1 And Product Classification
• The Challenges Of GS1-Classification
• How Does AI Help With GS1-Classification?
• Tired Of Manual GS1-Classification?

GS1 And Product Classification  

Global Standards One, or GS1, helps businesses worldwide by standardizing product information, thus simplifying logistic processes. With systems like the Global Product Classification (GPC), GS1 ensures that products are categorized in a uniform way, allowing businesses to easily exchange data and ensuring that this data is organized according to the same classification structure or taxonomy.

While these standards are incredibly important, the GS1 classification process is not without challenges. It is time-consuming, error prone, and difficult to scale, especially when dealing with many products or a complex structure of your own. Managing and classifying product data is a resource-intensive process. Fortunately, there are smart ways to overcome these obstacles, such as our AI For Product Data & E-commerce solutions.

The Challenges Of GS1-Classification  

A major challenge with GS1-classification is that the process is usually performed manually, which takes a lot of time. Companies must classify products one by one according to the GS1 taxonomy, which is not only time-consuming but also error prone. This process often leads to inconsistencies in the data because different employees may classify products in different ways. This is especially problematic when dealing with large quantities of products or complex taxonomies of your own.

In addition, this manual approach comes with high costs, as it requires significant time and resources to carry out effectively. The extensive and complex GS1 taxonomy, consisting of segments, families, classes, and bricks, makes it especially difficult for untrained users to classify products correctly. This increases the likelihood of errors and makes the process anything but efficient.

Another major drawback is that the manual process is not scalable. As companies grow or expand their product range, it becomes increasingly difficult to manually keep the classification up to date. This poses a significant barrier for companies looking to optimize their processes and reduce costs.

From Manual To Automized  

An automated solution, such as an LLM-based AI agent, can significantly reduce these challenges. By leveraging smart technologies, product classification becomes not only faster and more efficient but also consistent and scalable. By harnessing the power of AI, Squadra helps companies with LLMs, GenAI & Agentic AI Solutions. A great example is helping businesses to finally move past the limitations of manual GS1 classification.

How Does AI Help With GS1-Classification?  

Squadra developed a solution to the problems posed by GS1-classification in the form of an LLM-based AI agent. By using this agent in the right way, you save a lot of time and resources.

Our LLM-based AI agent can convert your classification structure into the GS1 classification-structure through smart prompting and elimination, assigning the correct classification to your products without the need of an existing taxonomy. This innovative solution can automatically and accurately classify products according to the GS1 taxonomy, without the need for training data. This makes it not only powerful and fast but also flexible, as it can easily be adapted to specific company taxonomies.

Rather than sending the output of the Large Language Model directly back to the customer, the LLM-based AI agent makes use of a process called prompt chaining. This allows the agent to break the problem into smaller, more manageable parts. It uses intermediate outputs as inputs for further prompting, allowing it to make more accurate and reliable classifications, without manual intervention.

Why Use LLMs?  

Why did we create an LLM-based solution instead of using AI in a different way? The answer to that is simple: the advantages of Large Language Models are significant in comparison with ML-models. They offer greater flexibility and accuracy while eliminating the need for extensive training datasets. This makes them both more efficient and cost-effective compared to other Machine Learning models.

The key benefits of using an LLM-based solution are summarized below:

• No training data required: An LLM-based AI agent does not require the training data that other Machine Learning models need. This saves time and money.
• Customizable to your taxonomy: The model can be adapted to your specific product taxonomy, providing maximum flexibility and scalability.
• Accuracy: By guiding the LLM with the right prompts, you can improve the accuracy of classifications.
• Precision: The LLM-based AI agent achieves an average accuracy of 77%, mainly thanks to advanced prompt engineering. Even if a classification is not entirely correct, the answer is often remarkably close (e.g., “chair” and “garden chair”).
• Suitable for extensive taxonomies: The larger and more complex the taxonomy, the more precision is needed. Still, our LLM-based AI agent can be adapted to any classification structure with minimal effort.
• Cost-efficient: The average cost is 3.6 cents per product when using the GS1 taxonomy. Smaller, simpler taxonomies are even more affordable.

Tired Of Manual GS1-Classification?  

Is your company still doing GS1-classification manually? Discover Squadra’s AI solution that transforms your workflow. With our advanced AI agent, you can transform your long, resource-intensive GS1 classification process into a simple, effortless task. This not only saves time but also increases accuracy and reliability, all without the need for manual action.

Why wait? Switch to a more efficient process and discover how Squadra can help your business work faster and smarter. Contact us today for a free consultation and experience the power of our AI solution firsthand!