Accurate product and service classification is a critical component of procurement, spend analysis, and regulatory compliance. However, many organisations still rely on slow, manual classification methods that introduce errors, create inconsistencies, and delay decision-making.
Others attempt to use generic AI models that require extensive training, fail to understand industry-specific nuances, and often produce unreliable classifications.
At AICA, we have developed a specialised AI-driven UNSPSC classification service that is faster, more accurate, and more cost-effective than any other solution on the market.
Our Agentic AI is trained on high-quality MRO data, delivering structured, standardised classifications with over 90% accuracy, enabling businesses to optimise procurement and improve operational efficiency.
The Challenges of Traditional UNSPSC Classification
Many organisations struggle with UNSPSC classification due to outdated processes that are inefficient, inconsistent, and difficult to scale.
1. Manual Classification is Slow and Costly
- Traditional classification methods require manual data entry, taking minutes per item—an impossible task when dealing with large datasets containing thousands or millions of records.
- Human errors and inconsistencies in product descriptions lead to misclassification, impacting procurement decisions.
- Operational bottlenecks occur when teams must review and classify data manually, delaying strategic initiatives.
2. Generic AI Models Fall Short
- Many businesses attempt to use general AI models, but these models often struggle with product-specific classifications and industry terminology.
- Low accuracy and hallucinations result in unreliable classifications, requiring significant human intervention to correct errors.
- These AI models lack the domain expertise required for MRO, procurement, and supply chain classification, leading to poor data integrity.
3. Poor Classification Creates Business Risks
- Miscalculated spending – Duplicate or incorrect classifications distort procurement and spend analysis, making cost optimisation difficult.
- Compliance issues – Regulatory reporting depends on consistent and accurate product classification. Errors in UNSPSC classification can lead to non-compliance with procurement standards.
- Supplier mismanagement – Without accurate categorisation, businesses struggle with vendor consolidation, contract negotiation, and spend visibility.
How AICA’s UNSPSC Classification Service Solves These Issues
AICA’s AI-driven UNSPSC classification solution eliminates the inefficiencies of manual and generic AI classification by offering speed, accuracy, and seamless integration.
1. Unmatched Speed
- Our AI-powered classification engine can process large datasets in a fraction of the time it takes manual teams, reducing classification efforts by up to 90%.
- Whether classifying 1,000 or 1,000,000+ items, our solution operates at unprecedented speed, allowing procurement teams to access structured, accurate data instantly.
2. Superior Accuracy
- AICA’s Agentic AI model is trained on high-quality MRO data, achieving an accuracy rate of over 90%, surpassing generic AI solutions.
- Unlike hallucination-prone GenAI models, our system delivers real, verifiable classifications, ensuring your data is reliable and actionable.
- Manual QA/QC is still available, allowing businesses to review flagged classifications for added quality assurance.
3. Scalable & Customisable
- Whether you need a one-time bulk classification or continuous data enrichment, our solution is designed to scale effortlessly.
- The system adapts to different classification taxonomies, making it easy to map UNSPSC codes to internal or industry-specific structures.
4. Seamless API Integration
- AICA’s UNSPSC classification tool integrates directly with PIM, MDM, ERP, and MDM, allowing for real-time classification without workflow disruption.
- Organisations can automate classification as new data enters the system, ensuring ongoing accuracy and data governance.
Business Benefits of AICA’s UNSPSC Classification Solution
1. Optimised Procurement Efficiency
- With clean, structured classification, procurement teams can quickly source the right products, eliminate duplicate purchases, and improve supplier negotiations.
- Spend analysis is more accurate, allowing businesses to identify cost-saving opportunities and procurement trends.
2. Improved Compliance & Audit Readiness
- Regulatory reporting becomes easier with structured UNSPSC classification, ensuring alignment with industry and government procurement standards.
- Organisations can avoid compliance penalties associated with poor data governance.
3. Cost Savings & Reduced Operational Overhead
- Minimises manual effort and reduces classification-related labor costs.
- Prevents financial losses due to incorrect spend categorisation, duplicate purchases, and inventory mismanagement.
4. Increased Data Quality & Governance
- Structured classification improves data integrity, making product records more accurate, complete, and searchable.
- Better classification means better data-driven decisions across procurement, supply chain, and inventory teams.
Why AICA is the Market Leader in UNSPSC Classification
AICA is redefining UNSPSC classification with an AI-powered approach that prioritizes speed, accuracy, and scalability—delivering a cost-effective, fully automated solution that is unmatched in the industry.
– Fastest UNSPSC classification on the market – Process large datasets in record time.
– Over 90% classification accuracy – Far superior to general AI models.
– Seamless ERP & procurement system integration – Fully automated via API.
– Scalable and adaptable – From small datasets to millions of records.
– Cost-effective – Eliminates the inefficiencies of manual classification and low-quality AI outputs.
Conclusion
Accurate product classification is no longer optional—it’s essential for procurement efficiency, spend analysis, and compliance. Businesses that rely on manual classification or outdated AI solutions risk costly errors, inefficiencies, and compliance failures.
Ready to revolutionise your product classification process? Contact AICA today to learn how our AI-powered UNSPSC classification can help you reduce costs, improve compliance, and streamline procurement operations.
Copyright Reserved © AICA Data International Ltd 2025