The global commodity trading sector is experiencing a profound transformation, with artificial intelligence (AI) playing a crucial role in shifting traders from traditional reactive decision-making to a more predictive intelligence approach. Philippe Pagnotta, Senior Product Manager at Veson Nautical, emphasized this change during the panel discussion “Innovation and AI – How Do You Manage to Go Beyond the Buzzword?” at the Commodity Trading Week Europe conference in London. He noted that AI is becoming a vital driver in creating a decision advantage in the fast-evolving landscape of commodity trading, a trend expected to accelerate in the future.
“We’re entering a new era where technology is no longer experimental in commodity trading—it’s essential,” Pagnotta explained. He highlighted that AI is empowering trading firms to move beyond reactive decision-making to making informed predictions based on high-quality AI modeling. He stated that existing solutions must evolve past mere automation to fundamentally change how traders, charterers, and analysts operate in real-time.
According to Pagnotta, today’s commodity and energy trading firms mirror the quantitative hedge funds of a decade ago, where machine learning, big data, and AI have become critical for gaining a competitive edge. “The precision in forecasting, risk modeling, and market responsiveness achieved through AI surpasses anything human intuition or traditional spreadsheets have ever managed,” he remarked. Furthermore, Pagnotta indicated that maritime data is increasingly leveraged to train advanced trading algorithms, offering trading desks a competitive advantage in markets where timing and accuracy are crucial.
He cited Veson’s AI-driven solutions, such as Shipfix, which utilize validated contextual data to anticipate commodity flows, freight availability, and price volatility by processing vast amounts of unstructured communications. This capability not only automates workflows but also accelerates decision-making. In conclusion, Pagnotta asserted, “AI is not just transforming our market analysis; it’s fundamentally reshaping how organizations make decisions and seize opportunities.” He stressed that firms that view AI as a core capability—rather than merely a tool—will emerge as leaders in the next decade of global trade.