Navigating tariffs with tech and data: How companies are staying ahead
As US tariffs loom, companies focus on generative AI (GenAI), data confidence, and predictive analytics to transform trade strategies.
New sweeping US tariffs—announced by the Trump administration in April 2025 and now going into effect following rounds of negotiations—are demanding a response from companies across industries.1 In just one example, a recently negotiated trade agreement with the European Union will impose a 15 percent tariff on most imported goods.2
Companies are turning to technology and data strategies to navigate the increasingly complex trade landscape. Specifically, they are focusing on GenAI, product and sales data, and advanced analytics to better plan for new and changing tariffs.
KPMG LLP surveyed senior executives to explore the effects of these proposed tariffs and how companies across industries are adapting their tech and data functions to respond.3
GenAI: A key player in the automotive sector
In light of tariff challenges, survey respondents underscored the strategic significance of generative AI (GenAI). This was especially pronounced in the automotive industry, with 67 percent of sector executives deeming GenAI will be an integral part of the success of their tariff response or trade strategy. This figure is markedly above the average of 37 percent across all sectors.
In contrast, ENRC (energy, natural resources, and chemicals) sector respondents indicated they are more likely to use GenAI to maintain current operations, with 67 percent of respondents expecting to continue its usage as is. Only 30 percent of automotive respondents agreed with that sentiment, suggesting a difference in AI application philosophy—ENRC is more maintenance-oriented, while automotive is forward focused.
Confidence in price data and forecasting analytics
Tariff impacts are also prompting closer scrutiny of product sales data, especially at the SKU level, where granular insights can inform pricing and inventory decisions. Confidence in the reliability of this data to evaluate tariff effects varies widely across industries. Among ENRC respondents, 76 percent exhibited only slight confidence in this data, compared to the overall survey average of 52 percent. In contrast, 41 percent of automotive respondents indicated having high confidence, compared to only 3 percent of ENRC respondents.
The automotive industry leads in the adoption of automated customs analytics to address tariffs, with 48 percent of respondents using the technology, compared to 14 percent in industrial manufacturing. This discrepancy reflects varying levels of sector preparedness and strategic focus.
Analytics and demand forecasting
The study found that predictive analytics is widely used for demand forecasting in the industrial manufacturing and automotive sectors, with 79 percent and 78 percent of respondents, respectively, reporting adoption. This is higher than the overall survey rate of 68 percent, showing a proactive approach to managing supply chain disruptions caused by tariff changes.
Predictive analytics is widely used for demand forecasting in the industrial manufacturing and automotive sectors, with 79 percent and 78 percent of respondents, respectively, reporting adoption.
Life Sciences: Lagging in AI-driven inventory optimization
Life sciences companies are notably behind in integrating AI-driven inventory optimization strategies. Only 19 percent of respondents are using AI to minimize capital tied up in tariffed components, well below the overall survey average of 30 percent. This result suggests resource constraints, strategic reluctance, or lesser tariff impact within their scope. The disparity points to potential inefficiencies or missed opportunities in handling tariff challenges, which other sectors are addressing more aggressively.
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Industries are adopting various technology and data-driven strategies to respond to proposed US tariffs. GenAI stands out, especially in the automotive sector, as both a transformative and stabilizing force. Variability in confidence over accurate cost data and disparate adoption of predictive analytics, AI-powered optimization, and automation in response to tariffs indicate room for growth and harmonized strategies across industries. As companies continue to adapt, leveraging technology will likely define competitive advantages and resilience in a tariff-influenced market.
Footnotes
2 EU and United States reach agreement on tariffs and trade (July 28, 2025)
3 In May 2025, KPMG surveyed 300 US senior executives in various functions about their views on the US proposed tariffs and their effect on their company and industry.
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