VAKT Uses AI to eliminate manual gaps in its automated trade reconciliation process
In a recent catch up with VAKT CEO, Tasja Botha, she talked a little bit about VAKT’s use of AI. As, VAKT’s Dale Becker told me recently as I asked him for more details on this initiative, “AI is a hot topic now and is mentioned everywhere.” Indeed, it is but where are the use cases? It gets hyped up a lot but it’s important to find real world meaningful examples in commodities. So, I listened with interest as Dale walked me through what VAKT is working on in terms of deploying AI on its platform.
“AI is being applied to improve the user experience on vSure and supplement the existing core features” he told me. VAKT’s vSure platform automates the detection of trade entry errors for all waterborne oil trades highlighting any discrepancies between counterparty trade records immediately after they occur when API connected. In vSure, AI is being used where there are manual steps in the business process to further streamline the user experience using the platform when some clients are not API connected and still send paper documents (e.g. PDF, email, Word). “We are applying the use of AI where it makes sense and there is an identifiable use case.” The first phase of this is now in development.
In the first phase of the project, AI is used to parse inbound contracts and digitise them with good accuracy into the standard VAKT Trade API. They can then be compared to the trade record from the ETRM system (that is already API connected to VAKT). So, for example, in the case where one user is a VAKT user and the counterparty isn’t, the counterparty can send the long form contract where it is parsed by AI and creates a trade record in vSure (stamped as AI parsed). The core vSure discrepency engine can then be used automatically to identify any discrepancies and save time and effort on the part of the users. Any error can then be quickly communicated and corrected.
“Later, we intend to look at recaps, there is use case for Broker recaps and further automation” Dale said. Currently, if a discrepancy is found between the two trade records held by the counterparties, they still have to go back manually and check it in the recap. In the future, that recap will appear in the platform showing the records side-by-side again making it easier, more automated and saving time and effort. “We are using AI to fill gaps in the business process and to streamline that business process still further,” Dale explained. “It helps speed everything up.”
Dale also sees its AI initiative as offering yet another benefit. “We know many of these companies have their own AI initiatives in place,” he said. “But we will make this available to all on our network meaning that all of our users will have access to it and this will help improve everyone’s trade capture – something the industry has been trying to achieve for years.” Essentially, VAKT is helping to digitise and standardise the market.
“The work is being done using Azure AI and it is deployed in an environment only used by VAKT’s clients so that is completely secure and private,” Dale added.
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