The interos.ai Vision: The System of Record for Supply Chain Risk Intelligence

Our inaugural Risk Intelligence Summit 2024: “Supply Chain is Risky Business” brought together thought leaders, innovators, and industry pioneers for an exclusive 1-day event discuss the evolving challenges and opportunities in supply chain management including executives from Nvidia, JPMorgan Chase, NASA, Bechtel, the US Navy, Accenture and more. 

This event highlighted the critical importance of supply chain risk intelligence and showcased transformative technologies to transform how enterprises mitigate, and even predict, risk in 2025 and beyond. 

interos.ai CEO, Ted Krantz, Delivers Keynote on Building the System of Record for Risk Intelligence 

interos.ai CEO Ted Krantz opened the summit with the gravity of risk management today: “Supply chains belong at the top of a CEO’s agenda. 

Supply chains pose a $3 trillion risk to the global economy with risks across the spectrum: cyber, ESG, catastrophic, financial, geopolitical and restrictions. 

Our mission is to be the system of record for supply chain risk intelligence.

Watch the full keynote here and learn about the next chapter of innovation at interos.ai:  

 

Our CEO’s keynote outlines where we are today and how we are building off our Resilience SaaS platform comprised of i-Score as the gold standard for quantifying risk, Watchtower for real-time alerts and continuous mapping and monitoring across the industry’s largest knowledge graph mapping 230+ million suppliers and 11+ billion relationships.  

interos.ai is revolutionizing the supply chain risk management lifecycle with AI and predictive analytics to help organizations mitigate rising risk. The next evolution of interos.ai will bring AI-powered predictive analytics to SCRM.  

Missed the summit in-person? Or need a replay of the expert panelists featuring NASA, Nvidia, Mastercard, Baker Hughes, Delta Airlines, TD Bank and more?  

Stream sessions from the 2024 Risk Intelligence Summit on-demand today:  

Stream Sessions Now 

Live in the SAP Store: Interos and SAP Ariba Partner to Transform Procurement with Real-Time Risk Intelligence

Supply chain disruptions cost the global economy $3 trillion annually. As procurement teams navigate through sanctions, reshoring mandates, and escalating cyber threats, the need for real-time supplier intelligence has never been more critical. Yet the reality is stark: fewer than 5% of leaders continuously monitor their supply chain networks. 

From geopolitical tensions to financial crises, natural disasters to cyberattacks, organizations must now contend with a myriad of risks that threaten to disrupt procurement and supplier relationships.  

And the complexity of managing these risks has only intensified as businesses expand their supplier networks exponentially. The average S&P 500 organization manages relationships with 1,700 direct suppliers and 1.5 million suppliers through their first three tiers, and often lacks full visibility beyond the first tier of their supply chain. 

Enter risk-resilient procurement: an approach that integrates dynamic risk insights into every stage of the procurement process down to the nth tier. The goal is not just to mitigate risks, but to create a procurement system that can thrive despite uncertainties.  

We’re excited to announce the Interos + SAP Ariba Supplier Risk partnership, a game-changing collaboration that empowers organizations to proactively manage risks, streamline their procurement workflows, and strengthen the resilience of their supply chains. 

The New Era of Global Supply Chain Management 

Recent global events have exposed the vulnerabilities lurking within traditional supply chain models.  

Companies that built their supplier networks around just-in-time delivery and lowest-cost sourcing are now scrambling to address concentrated supplier risk, particularly in regions affected by trade restrictions and geopolitical tensions. These risks are no longer hypothetical—they’re here, happening in real-time, and affecting businesses at every level. 

Consider the ripple effects of a single supplier’s bankruptcy or a sudden geopolitical conflict.  

Without real-time data and multi-tier visibility, organizations find themselves blindsided by disruptions, struggling to react in time to avoid costly consequences. This year alone, the Interos platform has tracked over 8,400 catastrophic events affecting 82 million distinct companies.  

Procurement teams need more than just basic supplier information. They need actionable insights that allow them to identify risks, mitigate disruptions, and make informed decisions before problems arise. 

This is where Interos and SAP Ariba Supplier Risk come in. 

Solving Procurement’s Most Pressing Challenges 

Procurement teams face complex challenges when it comes to managing supplier risk. With 90% of organizations lacking awareness of sub-tier supplier disruptions and less than 56% of critical suppliers being assessed for vulnerabilities, traditional quarterly assessments, point-in-time surveys, and fragmented data collection leave dangerous blind spots. 

With minimal visibility into the lower tiers of their supply chain, they often miss critical risk indicators until it’s too late. 

The Interos + SAP Ariba integration offers a revolutionary solution to these challenges. By embedding Interos’ deep supplier-buyer relationship connections and comprehensive risk insights directly into SAP Ariba Supplier Risk’s procurement workflows, procurement teams can access real-time risk intelligence that spans financial, geopolitical, cyber, catastrophic, restrictions and ESG risks.  

This partnership transforms risk management from a reactive process into a strategic, proactive approach. 

“With our new partnership with SAP Ariba, we are stepping up innovation to arm organizations with ground-breaking capabilities to navigate continued macroeconomic volatility.” – Yardley Pohl, Chief Product and Technology Officer, interos.ai  

With Interos integrated into SAP Ariba Supplier Risk, procurement professionals can now: 

  • See the full risk landscape: Access detailed, real-time insights on supplier risk across six key factors—financial, cyber, ESG, geopolitical, catastrophic, and regulatory risks—giving a holistic view of supplier vulnerabilities. 
  • Act on Day Zero alerts: Stay ahead of potential disruptions with actionable risk data delivered right when you need it. No more reacting to risks when it’s already too late—our data allows you to address issues before they impact your supply chain. 
  • Transform procurement strategies: Interos and SAP Ariba together offer a powerful toolkit for making smarter, risk-aware procurement decisions, whether it’s choosing suppliers, managing onboarding, or overseeing purchasing activities. 

“With the integration of Interos’ risk intelligence into SAP Ariba Supplier Risk, customers can get even deeper in the risk of the supplier and supply chain, significantly enhancing the capability to navigate risks in real-time across multiple dimensions. This partnership delivers a strategic advantage for our customers, empowering them to make confident, risk-aware decisions throughout the source to pay lifecycle.” – Matt Montgomery, Senior Director – Product Marketing – SAP Intelligent Spend & Business Network 

How It Works: Building Resilience Across the Procurement Lifecycle 

The power of this partnership lies in its seamless integration across the entire procurement lifecycle:

  • Sourcing: Procurement teams can now pre-screen suppliers based on multi-tier risk scores, ensuring that risky suppliers are flagged early in the process. This accelerates supplier evaluation, making it easier to shortlist reliable candidates while avoiding those that pose a threat. 
  • Onboarding: As new suppliers are onboarded, risk intelligence is integrated into the due diligence process, enabling companies to vet suppliers thoroughly. Teams can now assess sub-tier risks, ensuring a more comprehensive view of potential vulnerabilities. 
  • Purchasing: Real-time risk data is embedded into purchase orders, empowering procurement teams to make faster, more informed decisions. Whether evaluating a supplier’s ESG score or identifying geopolitical risks, purchasing decisions are now backed by deep insights. 
  • Supplier Management: Continuous monitoring means that procurement teams no longer rely on periodic reviews. Instead, they receive Day Zero alerts that notify them of critical changes in supplier risk, enabling swift action to mitigate disruptions. 

This integration ensures procurement teams are not only faster in their decision-making but also more strategic, reducing the likelihood of disruptions, cost overruns, and compliance challenges. 

Future-Proof Your Procurement Strategy 

Risk-resilient procurement is no longer a luxury—it’s a necessity. This partnership is not just about technology, it’s about empowering procurement teams to stay ahead of potential disruptions, reduce costs associated with unexpected events, and maintain compliance with regulatory standards, all where you are already managing your suppliers. 

Learn more about how this partnership can help your organization move forward with confidence.  

Together, Interos and SAP Ariba are redefining procurement, making it more resilient, agile, and future proof. Welcome to the next era of risk-resilient procurement. 

Schedule a demo today and experience the power of proactive risk management for your procurement operations. 

New Product Alert – Introducing Industry Benchmarking and Risk Trends

Point-in-time supply chain risk assessments paint an incomplete picture.  

Organizations need more than isolated snapshots-they need historical context, industry benchmarks, and the ability to spot emerging patterns before they become critical issues. 

Today, interos.ai is proud to announce two new solutions, Industry Benchmarking and Risk Trends, designed to provide the context you need to not just react but lead in your due diligence and risk management.   

These innovations transform how you will analyze, assess, monitor, and mitigate supply chain risks by providing the crucial context needed for strategic decision-making.  

Together, they represent the first industry-wide solution that delivers advanced insights tailored to your supply chain’s unique story because making the right decisions requires more than just data. It requires seeing the story behind it. 

The Power of Context in Risk Management 

Traditional risk assessment methods leave critical questions unanswered. The truth is data without context leads to more questions than answers.  

You might know a supplier’s risk score dropped last quarter, but what does that mean compared to others in your industry? Did all suppliers drop, or did you do (or do business with) something risky? Did you let in a trojan horse?   

A supplier might be flagged for financial instability: 

  • But how critical is their risk compared to the market at large?  
  • Should you find an alternative supplier?  
  • Or is it a contained risk and you should prioritize your attention on higher risk suppliers?  

A supplier’s ‘high risk’ status alone doesn’t tell you if they’re underperforming compared to industry peers or simply operating within expected parameters for their sector.  

Without proper context, organizations struggle to prioritize their response and allocate resources effectively.  

This inability to properly prioritize and allocate resources can lead to costly overreactions to routine industry fluctuations while truly critical vulnerabilities go unaddressed, potentially resulting in severe supply chain disruptions, compliance violations, and lasting damage to stakeholder confidence. 

Without context, you’re stuck reacting to noise instead of solving real problems. 

Industry Benchmarking and Risk Trends: Turn Risk into your Competitive Advantage  

Our new solutions don’t just provide data they provide the context needed to make strategic decisions, differentiate between routine fluctuations and emerging threats, and demonstrate supply chain resilience to stakeholders with confidence. 

By leveraging our proprietary AI, Industry Benchmarking and Risk Trends offer insights that help you understand where you stand, what’s shifting, and where to act. 

Industry Benchmarking: Built on our revolutionary Industry Categories system – an AI-powered classification that simplifies NAICS and SIC codes into plain-language and intuitive categories – Industry Benchmarking delivers unprecedented comparative insights: 

  • Compare your supplier risks scores against industry peers across Cyber, ESG, and Finance dimensions 
  • Focus on the biggest risks, save time and resources by identifying which suppliers need attention first 
  • Hold suppliers accountable and drive meaningful improvements: 
  • highlight where suppliers are lagging  
  • provide insights for negotiations 
  • Demonstrate supply chain resilience to stakeholders with concrete evidence of performance compared against your industry 

Industsry Benchmarking

Risk Trends: See what’s changing. Risk Trends provides the historical context needed to understand how risks evolve over time. 

  • Uncover patterns and predict vulnerabilities with 12 months of historical data on Cyber, Catastrophic, and ESG risks 
  • Pinpoint critical risks faster with daily, monthly or quarterly trends with customizable time frames and the ability to spot critical patterns with 90-day comparative analytics 
  • Act with confidence with real-time insights ensuring you are not just reacting to disruptions but anticipating them 

AI-Driven Insights: Both solutions use our proprietary AI models to deliver clarity at scale, analyzing over 230 million global entities and 11+ billion supplier relationships we process more than 125 billion data points monthly to uncover patterns and benchmarks that were previously impossible to access.  

This vast coverage provides forward looking analysis to stay ahead of complex supply chain disruptions. 

Together, these solutions address critical challenges that have long plagued procurement and supply chain risk management teams: 

  • Early Warning Detection: Previously, gradual risk increases could go unnoticed until they reached critical levels. Now, Risk Trends helps you identify concerning patterns months before they escalate into crises. 
  • Strategic Resource Allocation: Instead of reacting to every risk spike, you can now differentiate between temporary anomalies and systemic issues, industry norms and suppliers below industry standards – ensuring resources are directed where they matter most. 
  • Stakeholder Confidence: When board members or regulators request risk analyses, you no longer need weeks to compile manual reports. Both solutions provide instant, comprehensive insights that demonstrate your proactive approach to risk management. 

Real-World Impact: Transforming Risk Management Through Intelligence 

Consider these scenarios where Industry Benchmarking and Risk Trends makes all the difference: 

  • A procurement manager spots a steady twelve-month decline in a supplier’s compliance scores, enabling preventive action before regulatory issues arise 
  • A risk analyst identifies an emerging pattern of cyber vulnerabilities across specific industry segments, allowing for targeted intervention 
  • A supply chain director uses benchmark data to optimize risk mitigation investments across their supplier portfolio 

With this foundation, interos.ai is helping supply chain leaders move from reactive crisis management to proactive, strategic decision-making. 

  • You can pinpoint how your supply chain risk stacks up against the industry standards in seconds 
  • You will spot vulnerabilities in ESG compliance months before they impact your brand reputation 
  • You have the confidence to brief your leadership team with insights grounded in data and context 

That’s the world we’re building with Industry Benchmarking and Risk Trends. 

The Next Evolution in Supply Chain Risk Management 

At interos.ai, we believe the future of supply chain management lies in clarity and understanding.  

Effective risk management requires both breadth and depth of insight. Industry Benchmarking and Risk Trends deliver this by combining comprehensive historical analysis with precise industry comparisons. 

Industry Benchmarking and Risk Trends are more than tools — they’re the cutting-edge foundation to remove risk from your supply chain, at scale 

By delivering the context behind your data, these solutions help you uncover vulnerabilities, anticipate challenges, and stay ahead in an increasingly complex world. 

Are You Ready to Turn Risk Into Your Competitive Advantage?  

Learn more about Industry Benchmarking and Risk Trends at interos.ai:  

Blue Yonder Outage Could Impact 3.5 Million Companies though Extended Supply Chain

Authors: Andrea Little Limbago, PhD, SVP, Applied AI and Mackenzie Clark, Senior Computational Social Scientist 

For over a decade, cybersecurity experts have designated each year ‘the year of ransomware’.  

Although by some accounts the first ransomware attack dates back to 1989, the steady increase in ransomware attacks – and their financial impact – has been most prominent since 2013 with the CryptoLocker attack and the millions of dollars extorted from victims.  

Yesterday’s news of the ransomware attack targeting software company Blue Yonder is just the latest widespread ransomware attack. 

It also follows closely on the heels of the Finastra breach, which they were quick to point out was not a ransomware attack but rather a more isolated incident in terms of exposure.  

A review of the companies impacted reveals the potential widespread risks despite a more isolated breach. 

Blue Yonder Ransomware Attack: Isolated Incident or Sprawling Global Impact? 

Supply chain software company Blue Yonder was hit hard by a ransomware attack beginning November 21, 2024, disrupting a private cloud computing service. Interos data shows thousands of direct customers could have been impacted. 

Of the direct customers, the hardest hit industries were:  

  1. Supermarkets, department stores and other retailers 
  2. Software and IT Services 
  3. Food Service 
  4. Apparel Retailers 

70% of the companies directly supplied by Blue Yonder are located in the United States.  

“The ransomware attack on Blue Yonder highlights the heightened seasonality of cyber attacks during the holiday season. Lurking beneath the surface of even isolated attacks like Finastra, there is hidden, expansive risk exposure across the extended supply chain. Over 3.5 million businesses are at risk from this one attack: beyond thousands of direct customers of Blue Yonder, 800,000 suppliers to these companies and an additional 2.7 million that supply those suppliers are all within the blast radius of the attack.

Without visibility and monitoring, the supply chain is the snake in the grass for exposing your business to serious risk.”   

 – Ted Krantz, CEO of interos.ai, the AI-powered supply chain risk intelligence company   

According to Interos data, of these 3.5 million companies across Tier 1, Tier 2, and Tier 3, over 36% of them are in the United States, but potential disruptions could reach much farther than that.  

These 3.5 million distinct companies represent over 40 million customer relationships between buyers and suppliers.

Almost 9% of the companies are located in India, 8% in the United Kingdom, and 4% in Germany.  

The top five potentially exposed industries among these companies include:   

  1. Business Management Services  
  2. Software and IT Services  
  3. Consumer Goods  
  4. Architectural, Engineering, and Design Services  
  5. Building and Civil Engineering Construction 

Finastra Breach: Could Impact Up to 3.4 Million Companies  

Interos tracked the Finastra breach and identified that over 25% of the world’s 100 largest banks are directly supplied by the compromised company.  

This analysis surfaced hundreds of banking and financial services companies that could be directly impacted by the Finastra breach, including private banks, national banks, and even international development banks. 

When analyzing the extended impact, the number of potentially disrupted companies skyrockets.  

Across Tier 1, Tier 2, and Tier 3 of Finastra’s downstream supply chain, Interos identified over 3.4 million distinct companies that could be impacted directly or indirectly by the Finastra breach through supplier-customer relationships. 

Interos also identified over 778,000 companies that are supplied by one of Finastra’s direct customers (Tier 2), and over 2.6 million companies supplied by those companies (Tier 3). 

Cyber Seasonality: End-Of-Year Holidays Spike in Cyber Attacks 

Unfortunately, there is traditionally an end-of-year holidays’ spike across a wide range of malicious cyber activity.  

The Cybersecurity and Infrastructure Agency (CISA) recently released tips exactly for this reason and to help individuals and companies stay safe online during the holiday season.  

From email scams to social media supply chain attacks, it’s important to understand the threat landscape and be cyber secure and aware of the risks. 

For businesses, these attacks could be devasting and far-reaching – to the tune of $100 million.  

Interos’ data shows ongoing supply chain disruptions cost enterprises $100 million in annual losses on average. 

Before disaster hits, Interos’s critical risk intelligence platform helps companies mitigate the financial impacts of multi-tier risks like cyber attacks by continuously mapping and monitoring extended supply chains at speed and scale. 

Learn how you defend against digital threats. 

 

 

It’s That Time of Year Again: US Government Releases New Restrictions List

Authors: Andrea Little Limbago, PhD, SVP, Applied AI and Mackenzie Clark, Senior Computational Social Scientist 

Annual Tradition: End of Year Sanctions and Restrictions

Last week’s release of UFLPA and OFAC restrictions follows a recent trend where widespread export controls are released en masse prior to the new year.  

For instance, in December 2023, the Departments of Treasury and State issued sweeping sanctions targeting Russia’s energy production and export capacity. This was followed a few weeks later by an Executive Order (E.O. 14114) that issued another round of sanctions against financial institutions supporting Russia’s military-industrial base. It was also preceded by two different rounds of Russia-related sanctions on December 1 and November 16. 

Similarly, in December 2022, Treasury issued several sanctions targeting Russia’s financial sector, very much in alignment with those issued last Thursday. This continued the trend from December 2021, when Treasury issued distinct sanctions targeting Belarus and entities associated with human rights abuses.  

The UFLPA also made some end of year additions in 2023, although those were much fewer than the 29 companies added last week, which increased the overall entity list to over 100 Chinese companies connected to forced labor.  

We recently covered two of the latest additions and the potential impact it could reap on global steel and aspartame (a sugar substitute) supply chains (spoiler: tens of millions of companies could be impacted).  

If the past week is any indication of what is to come, organizations should expect more restrictions to follow the path of the recent updates focused on Russian financial institutions and human rights abuses.  

 

The following analysis will answer:  

  • How far do the OFAC and UFLPA-sanctioned companies reach globally?  
  • Which industries are most at risk for potential future sanctions?  
  • How do you react to these and prepare for future sanctions?  

The Latest Round of OFAC Restrictions on Banks and Financial Services in Russia: Who is Impacted?

The latest sanctions announcements from the United States Department of the Treasury and Department of Homeland Security target a wide array of companies in Russia and China. The extended impact of these restrictions, however, have the potential to cascade to companies across the globe. 

On November 21, the addition of Gazprombank — and almost 100 other international subsidiaries and affiliates — to OFAC’s Specially Designated Nationals (SDN) List marked the designation of “Russia’s largest remaining non-designated bank.”  

With Russia’s largest financial institutions sanctioned by not only the United States, but other major countries such as Canada and the United Kingdom, it is important to understand where the risk of exposure to these sanctioned banks may still exist. 

Using Interos data, we analyzed the extended supply chains of Gazprombank, VTB Bank, and Sberbank and identified over 7,500 companies across three tiers of supplier relationships that are either directly or indirectly supplied by one of the banks.  

These numbers are relatively low compared to other supply chain propagation, likely due to decreasing integration of Russian banks with the Western economies since the invasion of Ukraine.  

Nevertheless, the scale is by no means trivial and indicates the stickiness of these relationships. 

Of the potentially exposed companies with supplier-buyer relationships linked to the new sanctioned entities, almost 60% of them are located either in the United States or the United Kingdom.  

When leveraging Interos’ Industry Categories designations, we identified the top three sectors represented across the sanctioned companies as Software and IT Services, Banking and Financial Services, and Business Management Services.  

29 Million Companies Could Face Fines from UFLPA Entity List Additions: Agricultural Products, Metals, and Polysilicon in China

Just one day after the new restrictions targeting the Russian banking industry, 29 new companies were added to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, bringing the total number of companies on the list to over 100.  

This action primarily targeted companies that produce agricultural goods, specifically tomato paste and tomato products, walnuts, red dates and raisins. Other newly restricted companies include exporters of materials and products derived from aluminum, nonferrous metals, and polysilicon. 

Interos conducted an analysis on the extended supply chain of these companies and identified over 29 million companies across three tiers of supplier relationships that are either directly or indirectly supplied by one of the newly restricted UFLPA entities.  

These companies could be subject to UFLPA fines.  

Again, most of the companies that could be impacted — over 34% of them — are located in the United States, followed by the United Kingdom (9%), India (8%), Germany (4%), and Italy (3%) – and thus could be subject to UFLPA fines. 

Leveraging Interos’s Industry Categories reveal the top three sectors among this group of exposed companies include Business Management Services, Software and IT Services, and Consumer Goods.  

These two scenarios, while distinct, highlight the importance of continuously monitoring suppliers of both services and physical goods to avoid potential fines, seizure of imports and reputational damage.  

Which Industries are Most at Risk Looking Ahead?

Given the ongoing implementation of export controls and industrial policy, organizations should plan for future additions to these and dozens of other restrictions lists. Fortunately, there are a few insights to help look ahead and begin de-risking from future regulatory risks. 

For instance, in September, the Department of Commerce’s Bureau of Industry and Security (BIS) introduced worldwide export controls on critical technologies.  

These include: additive manufacturing items, advanced semiconductor manufacturing equipment, quantum computing items, and gate all-around field-effect transistor (GAAFET) technology.  

A presumption of denial affects countries deemed a national security concern, including Armenia, Belarus, Cuba, Iraq, North Korea and Russia.  

Companies in these industries, as well as other critical and emerging technology industries, and from those countries are at immediate regulatory risk.

Similarly, BIS also has a high priority list focused on Russian products believed to fuel Russia’s military-industrial complex.  

Companies associated with these products, as well as those across a wide range of critical technologies, are much more likely to appear on a restrictions list in the future than those in other product or industry categories. 

Monitoring Risk Exposure with Risk Intelligence Data

Geography is another means for assessing future restrictions risk.  

In addition to companies in those countries, the BIS Country Groups D and E, companies located in – or have a supply chain connection to – the XUAR are also at significantly greater risk of future restrictions inclusion.  

Using Interos data, we identified over 231,000 other companies located in XUAR that may pose future compliance risks in global supply chains.  

When analyzing three tiers of supplier relationships for these companies, Interos data shows the following industries at the highest risk for potential disruptions if restrictions on XUAR companies continue to expand.  

These are the industries with the greatest frequency across companies in XUAR:  

  1. Business Management Services  
  2. Software and IT Services 
  3. Consumer Goods 
  4. Architectural, Engineering, and Design Services 
  5. Building and Civil Engineering Construction  

In short, last week’s additions to the OFAC and UFLPA restrictions lists are consistent with regulatory updates from the past few years.  

Moreover, by leveraging industry, product, and geographic risk management information, organizations can be more proactive in preparing for export controls against companies that meet those criteria listed above.  

Product and industry categories not only provide value for proactively addressing restrictions risk, but also have several other benefits, such as benchmarking and product tracing throughout supply chains.  

Keep an eye out for a forthcoming blog that will detail these new features and how they impact the full lifecycle of supply chain intelligence. 

Have questions today?

The Race Is on to Shape AI Governance and Security

Author: Andrea Little Limbago, PhD, SVP, Applied AI  

The Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (EO 14110) was released one year ago. The recent Memorandum on AI builds upon the executive order and focuses on the national security implications of AI, including innovation and leadership within a secure AI framework. At Interos, we take AI very seriously, from building a secure AI framework to launching new AI products, AI is the center point in everything we do. 

Artificial Intelligence: The Stakes Could Not be Higher 

As the Memorandum details, the timing is critical, as the world undergoes a massive paradigm shift with technological transitions accompanied by global geopolitical shifts.   

In the big race to integrate AI, organizations must understand that along with the enormous innovation potential, security and geopolitical considerations cannot be an afterthought 

This Memorandum aims to catalyze change toward a Secure AI framework that supports innovation and leadership, while protecting against adversarial misuse and harm. The stakes could not be higher. 

What’s at Stake: Innovation, Economic Growth and Democracy or Authoritarianism and Suppression 

Amidst the ongoing AI hype cycle and trillions in investments, it may be easy to forget that AI – like most technologies – is dual-use in nature.  

That is, AI can foster innovations and significant breakthroughs, while also enabling more nefarious intentions. As the Memorandum articulates, AI is powering authoritarianism, including malicious cyber behavior, censorship and human rights violations. China is emerging as an ‘AI-tocracy’, using the technology to suppress dissent and entrench regime power. Russia’s notorious bot farms are powered by AI to spread disinformation globally. Iran is similarly deploying AI for influence operations, as well as domestic surveillance and human rights violations. 

But AI is also a tool to counter digital authoritarianism. Across the globe, AI is used to pursue democratic values, including empowering political communication, circumventing authoritarian regimes, and heightening defenses against malicious cyber activity. These are just a few examples to underscore the national security imperative detailed in the Memorandum.  

The global leader in AI governance will play a critical role in tilting the balance of AI applications toward innovation, economic growth, and democracy, or toward authoritarianism and suppression. 

The AI First-Mover Advantage 

Strategic competition is front and center throughout the recent Memorandum 

Technology does not exist in a vacuum; the current geopolitical shifts and spread of digital authoritarianism elevate the necessity for the United States to expand its technological edge in this era-defining technology 

Implicit within the Memorandum is that the international order is at an inflection point; the future will not look like the past.  

In these situations, first-mover advantage is critical as countries that have garnered the power of breakthrough general purpose technologies gain hegemonic influence in shaping the global order to their advantage. 

While the AI technological edge is critical to this, AI governance leadership too often takes a backseat to it. Leadership in AI governance is critical to gaining the first-mover advantage.  

Currently, the European Union (EU)’s AI Act is the first major imitative to introduce AI regulations and guardrails. China has also introduced several rules targeting AI, such as the use of generative AI quickly following the release of ChatGPT, but it has yet to formulate a comprehensive AI regulation.  

While the US has non-binding AI governance guidelines, such as EO 14110, a comprehensive federal AI regulation does not yet exist. To fill this void, in the 2024 legislative session, 45 states introduced AI legislation, and 31 adopted resolutions or passed legislation.  

Last week’s Memorandum clearly identifies the stakes at play, and continues the drumbeat of AI guidance, including the 2022 Blueprint for an AI Bill of Rights 

The US private sector is moving ahead absent a federal framework, introducing AI governance policies at a faster pace than the public sector. The race is on to shape AI governance, and the Memorandum outlines the national security implications for the US to lead this effort, and a partnership across the public and private sectors is critical to solidifying this edge. 

Partnership and Collaboration: Protecting the AI Supply Chain 

The Memorandum details a whole-of-society approach toward AI. Specifically, the Memorandum contends, “If the United States Government does not act with responsible speed and in partnership with industry, civil society, and academia to make use of AI capabilities in service of the national security mission — and to ensure the safety, security, and trustworthiness of American AI innovation writ large — it risks losing ground to strategic competitors.” 

This partnership is critical. While the Memorandum aims to ‘catalyze change’ in how the US government addresses AI national security policy, a similar revolution is necessary in how industry, civil society, and academia approach AI.

Several critical components of the Memorandum directly impact the private sector, such as building and retaining top AI workforce talent, defending against foreign interference and cyber threats, and integrating secure AI in critical infrastructure. 

Interos similarly advocates for a Secure AI framework; supply chains and national security are intricately intertwined. This has been made very clear with the Hezbollah device attacks, which marked an inflection point in modern warfare. 

According to Interos data, the average enterprise in the S&P 500 has 1,700 direct suppliers and 1.5 million relationships through its first 3 tiers of suppliers. 99% of those companies have ties with at-risk or restricted entities. While the Hezbollah device attacks were not via a restricted company, those technology companies on restricted lists represent a more probable pathway to hardware infiltration and warrant heightened alert – illustrating the widespread vulnerabilities that could be within an organization’s supply chain.  

Interos works closely with our customers, supporting their AI governance frameworks and serving as strategic partners to guide AI governance decisions. Secure AI is front in center of our development decisions as well, understanding that different forms of AI introduce different risks, and taking those into account to optimize the implementation of AI coupled with security. 

From jailbreaking to data poisoning to algorithmic manipulation, just as supply chains must be secured, so too must the AI supply chain be protected across inputs to algorithms to outputs 

Innovation and security must go hand in hand to truly leverage the vast potential of AI, while protecting ourselves and our supply chains from the growing range of national security risks. 

Toward a Secure AI Framework 

AI is an era-defining technology. Authoritarian regimes and adversaries are adopting AI at a rapid pace, introducing significant national security threats, including military advantage, global influence, and technological advantage. US leadership is necessary to tip the AI balance toward scientific breakthroughs that support humanity, protect democracy, and empower innovation.  

In the race toward AI adoption, security must be at the forefront, not an afterthought.  

The world is changing fast; previous paradigms are ill-prepared for ensuring the safety, security, and trustworthiness of our organizations, and our supply chains. AI is both the means toward achieving greater national security, but also poses a great threat if we fail to prepare for its malicious use.  

Even without malicious intent, AI systems require greater protection. The latest Memorandum is another critical step toward advancing US leadership in AI, but more is needed.  

The public and private sectors alike must internalize the national security imperative at stake or risk ceding this once-in-a-generation technology to the competition.  

AI-Powered Supply Chain Risk Management  

At Interos, we take AI very seriously. As a global leader in AI-powered supply chain risk intelligence, we are leveraging the power of AI to revolutionize supply chain resilience at a time when global disruptions are at an all-time high.  

We recently launched our latest AI innovation, “Ask Interos” that enables organizations to identify supplier threats in real time.  It is our first step towards contextual AI. The launch comes at a crucial time when organizations are inundated with data yet struggle to separate complex supply chain noise from actionable insights. 

See how we are using AI to secure supply chains in real time. 

Introducing Ask Interos: The AI Assistant Your Supply Chain Has Been Waiting For

Author: Emily Cid 

Let’s face it, managing a supply chain can sometimes feel like trying to solve a Rubik’s cube… while it’s on fire… during a hurricane. Between geopolitical tensions, natural disasters, cybersecurity threats, and a global pandemic that seemed to change the game overnight, the world’s supply chains are ever evolving. On top of that, there is more data to review than ever before. 

But what if you could cut through the noise and just ask for the answers? What if you had an AI-powered assistant who could find the risks, alert you to recent events, and help you make informed decisions faster?  

Meet Ask Interos, Your New Favorite Supply Chain Assistant 

We’re excited to introduce Ask Interos, the new AI-driven interface designed to make managing your supply chain as easy as… well, asking a question! Instead of combing through endless reports and dashboards, now you can just ask a question, and the answers are delivered instantly.

Imagine this: You open Ask Interos, and ask, “Show me all the companies in my ecosystem that are in a specific country.” Within seconds, you get a map, supplier details, risk factors, and even a heads-up on recent events. No more endless manual searches. No more guesswork-just quick, clear insights. 

What Can Ask Interos Do for You? 

For leaders and analysts struggling to assess and monitor their supply chain, Ask Interos is your strategic co-pilot empowering you to stay one step ahead of risk. Answer critical supply chain questions in real-time, cut through the noise and transform hidden risks into manageable opportunities.

Here are just a few things Ask Interos can help you with: 

  1. Identify Risks by Location
    Find out which suppliers are based in a specific country and assess their risks, whether it’s natural disasters or political unrest. 
  2. Track Your Restricted Lists
    Keep tabs on suppliers and check if any are on restricted lists such as UFLPA, the Uyghur Forced Labor Prevention Act, and pose compliance risks. Ask Interos can also clarify regulatory definitions so you can always be up-to-date on the most recent restrictions lists. 
  3. Real-Time Event Monitoring
    Stay updated on events like cyberattacks or natural disasters affecting your suppliers, so you can respond before disruptions escalate. 
  4. Supplier Connections and Dependencies
    Discover how your suppliers are interconnected and identify potential ripple effects in your extended supply chain. 
  5. Historic Natural Hazard Risks
    Get insight into whether your suppliers have been impacted by natural disasters in the past, so you can assess their resilience for the future. 

Why Ask Interos?  

At Interos, we know how hard it can be to keep up with all the moving parts of your supply chain—especially when those “parts” could be halfway around the world. That’s why we built Ask Interos, to give you a tool that’s both smart, easy to use and designed to help you act quickly.  

With real-time insights, multi-tier visibility, and easy-to-understand data visualizations, Ask Interos empowers you to stay one step ahead of risk and make decisions with confidence. 

Ready to Ask? 

If you’re ready to take control of your supply chain and start getting faster, clearer insights, Ask Interos is here to help. It’s time to stop reacting and start asking.

Try Ask Interos today and discover a better way to manage your supply chain.

Request a Demo

Hurricane Milton Poised for Massive Disruption as “Once in a Century” Storm Approaches Florida

Author: Julia Hazel, PhD  

Weeks after Hurricane Helene’s Devasting Wake, Hurricane Milton Bears Down on Florida 

Hurricane Milton is poised to slam into Florida’s west-central coast only a few short weeks after Hurricane Helene came ashore and left a trail of damage and destruction across the Southeast U.S. The storm is being called the strongest storm in a century.  As of early Wednesday afternoon, the outer bands of Milton have already started slamming the Florida peninsula, leading to over 60 tornado warnings.   

The rapid intensification of Milton has been unusual, morphing from a tropical storm last Sunday to a Category 5 hurricane with maximum sustained wind gusts of 160 mph Monday morning.  

Although Milton is expected to encounter strong vertical wind shear, causing it to weaken prior to landfall overnight Wednesday into Thursday morning, it is still projected to reach Florida’s coast as a major Category 3 or 4 strength hurricane at landfall.  Milton will maintain hurricane strength as it crosses central Florida, and expected impacts of powerful wind gusts and extended power outages across the region are being compared to Hurricane Charley in 2004 and Hurricane Irma in 2017.  According to the National Hurricane Center, “Milton has the potential to be one of the most destructive hurricanes on record for west-central Florida.”  

In addition, although the maximum sustained winds of Milton have decreased and will continue to weaken through Wednesday evening, the nature of this weakening will not reduce impacts from threats such as storm surge.  Weakening will also lead the storm to grow, expanding the radius of impact.   

Aside from winds, storm surge is of major concern, as storm surge leads to half of all hurricane-related deaths.  Storm surge impacts are highly dependent on the angle and precise location of a hurricane’s eyewall.  Forecasts currently call for 10-15 ft of surge just south of where the eye of the storm makes landfall, which would be the worst levels seen in a century.  To put it in perspective, this forecasted urge is double that of Helene’s storm surge a few weeks ago that led to major devastation in the Tampa Bay region. 

Airlines and Ports Begin Closures 

 Hurricane Milton will no doubt lead to massive disruption this week and in the weeks ahead.  Tampa Bay International, St Pete-Clearwater International, and Orlando International airports have already begun closures that will remain in place until it is safe and any potential damage is assessed.   

Even though most oil and gas refineries in the Gulf are out of the path of Milton, restrictions to port and vessel navigation at most of Florida’s ports could lead to disruption of exports and imports.   

Nearly 2 Million Businesses In the Path of Hurricane Milton: Aerospace Technology, Automotive Manufacturing and Medical Device Sectors Brace for Impact 

Using Interos data, over 1.9 million businesses are identified that could potentially experience sustained winds of over 60 mph from Milton.   

These companies represent over 1,000 unique industries, underscoring the widespread impact that will be felt by this storm.   

Milton is forecast to take a similar track to Hurricane Ian, whipping across central and the east coast of Florida while remaining hurricane strength.  Like Ian, impacts to aerospace technology, automotive manufacturing,  chemicals and plastic, as well as the producers in the pharmaceutical and medical device industries can be expected.    

   

Using Interos data, over 200 companies in the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing industry are identified to be in the moderate to high wind-impact zones from Ian as well as several dozen companies in the Aircraft Engine and Engine Parts Manufacturing industries.   

The wide array of industry impacts from Milton will also be felt at the product level. Interos data identifies 385 product categories that may be affected based on businesses in path of Milton.  These product categories are comprised of numerous specific products that reflect those industries most likely to have the greatest impacts from Milton.  The most prevalent product categories are articles of plastic and electric control and distribution apparatuses. 

Get In Front of Supply Chain Disruptions with Alerts

As extreme weather events like hurricane Helene and Milton become increasingly commonplace, embracing global, real-time hazard monitoring solutions like Interos’ catastrophic risk technology are crucial for proactively deterring and mitigating supply chain disruptions.   

Dr Thomas Runkle, VP, Supply Chain at Cooper University Health Care used Interos to avoid disruptions to their medical supply chain prior to a devastating hurricane in 2023. “Reacting just doesn’t work anymore.” You have to be proactive and get ahead of an event.   

Interos risk alerts provided both the speed and the alerts needed to get in front of costly disruptions.  

Take control of supply chain disruptions before they escalate.

Midnight Deadline Approaches for ILA Labor Negotiations

The International Longshoremen’s Association (ILA) negotiations loom large as the countdown to midnight marches on. In 2023, the US imported $3.83 Trillion of products. This is more than 25x the size of imports ($151 billion) in 1977 – the last time we saw a full ILA strike commenced.   

Interos data showed direct impacts at top ports could be far-reaching with over 200,000 domestic companies at risk from direct missed imports.  

However, additional analysis from Interos indicates the scale dramatically increases when you look at the extended supply chain outside of top ports. 

ILA Strike: Devastating Consequences Beyond Direct Radius of Impact  

Additional analysis highlights the staggering impact of a strike across extended supply chains. Over 2.2 million companies are supplied by at least one of the companies that import commodities directly from any port facility heading for a strike.  

When extending our analysis to encompass the potential ripple effects of the strike, Interos data reveals over 3.7 million companies that, in turn, have trade relationships with those companies, and an additional 4 million companies one more tier out.

When looking at these three tiers in addition to the direct importers, over 11 million companies will be impacted, representing over 152 million unique relationships, and all their suppliers across the globe. 

In fact, globally, the countries with the most companies impacted by a strike will be the United States, India, United Kingdom, Germany, and Italy.  

Real-Time Monitoring of Extended Supply Chain Impacts 

These insights have been added in real time, and Interos will continue to closely watch these and all supply chain events as they unfold. 

Interos has created the world’s largest supply chain database, dynamically powered by AI, with over 11 billion relationships of more than 400 million businesses – to help companies manage supply chain risk in real time.  

To keep on top of potential supply chain disruptions, especially those from your indirect, extended supply chain relationships, speak to an expert today.  

Impending ILA Strike Threatens Economic Normalization

Author: Corey Ray, Senior Manager, Operational Resilience 

 

This summer, Interos alerted customers to the threat of labor strikes by various global unions that posed risk to the international movement of goods. These risks included actions by Canada’s freight rail workers, Canadian border services officers, and Indian port workers. Although more minor in scale, as of publication grain terminal workers at the Port of Vancouver are currently striking in an action that hinders agricultural exports while Boeing workers at U.S. West Coast factories remain on strike. 

We are now less than two days away from a far more significant disruption to the flow of global trade as reports suggest negotiations to prevent a strike on October 1st by the International Longshoremen’s Association (ILA) at East and Gulf Coast ports are unlikely to break the impasse.

Adding to the poor outlook for averting a shutdown of ports, Biden administration officials have yet to employ powers under the 1947 Taft-Harley Act to force workers to remain on the job during arbitration despite growing calls to exercise executive authority.  

The disruption would be far-reaching in scope as the ILA represents workers at major ports including the Ports of New York, New Jersey, Savannah, Houston, Charleston and Miami that combined account for 40% of goods shipped to and from the U.S.  

ILA Strike: A Magnitude Unknown 

There is little precedent for an ILA action of this magnitude. The last full strike by the union was in 1977, before the era of globalization when the U.S. imported only $151 billion in goods annually. That figure pales in comparison to the $345.4 billion imported in July of this year alone. Despite an 11-day port lockout in 2002 and ILA strike threats more recently, the impact of a shutdown of East and Gulf coast ports does not have a complete historical analogue that can guide businesses, especially if the strike persists for weeks.   

Global Implications of the ILA Strike 

According to Interos data, there are over 67 million trade records at the top ports alone, impacting more than 200,000 domestic companies that would be at risk of disruption from missed imports. These, in turn, are sourcing from approximately 74,000 foreign suppliers providing more than 5,684 different product types. The scope of impact is broad and would leave very few sectors of the economy untouched. 

Interos data further identifies more than 1,300 industries at risk of disruption due to sourcing goods through potentially impacted ports. The top 10 industries are highlighted below.  

The manufacturing sector would be disproportionately affected and at risk of cost pressures, just as prices for domestic producers have finally cooled from inflationary pressures.  


Consumer Retail Goods to Be at Risk Ahead of Holiday Shopping Surge

Leveraging proprietary Interos product category data, the table below highlights the top 10 most common product categories received by US entities specifically through the impacted ports on the U.S. East and Gulf Coast in the last five years. This data is also specific to goods imported in the month of October to reflect potential seasonality in impacted goods during an October 2024 ILA Strike. October also often sees a surge of imports ahead of the holiday shopping season. 

Overall impact is concentrated on consumer retail, medical supplies, automotive, and unfinished manufacturing goods. 

Note “NOS” stands for Not Otherwise Specified and is used across product category taxonomies. 

Threat to Economic Normalization: 

Global trade, and the post-Covid economic recovery, are already under threat from both trade wars and kinetic wars on multiple continents.  Additional threats to global trade range from Houthi attacks on shipping in the Red Sea to drought-induced reductions on Panama Canal shipping traffic.  

Within that context, the potential strike comes at a time in which global trade is under strain and thus puts a brief period of economic normalization at risk as U.S. inflation cools 

Port shutdowns would represent a classic supply-side shock to the economy, raising costs as the Federal Reserve is actively shifting away from its anti-inflation fight.  

Businesses should expect price increases on impacted goods and extended lead times.  

Meanwhile, congestion and cost increases should be expected on alternate shipping methods such as air freight and West Coast ports.  

If the strike persists for days or weeks, upstream supply chains will come under strain including Chinese exports, which already face additional catastrophic risk from Typhoon Bebinca 

The impact of the ILA strikes will be far-reaching. It is vital businesses have a plan in place and the ability to monitor if any of their direct or indirect suppliers stand to be affected. Anticipation and speed are the key to averting a costly disruption.  

Get Ahead of Future Labor Strikes with Interos: 

Interos’ continuous monitoring alerts quickly identify the potential impact of disruptions across their extended supply chain. This visibility empowers companies to get ahead of potential disruptions both upstream and downstream in their supply chain.  

For example, Interos users were alerted to previous trade disruptions such as the recent Red Sea attacks as well as cascading global factory disruptions impacting everything from German chemical facilities to European automotive plants at Tesla, Suzuki and Volvo. 

For a more detailed analysis of the potential impact of recent labor strikes, such as those in Canada and India, download our report below, or speak to an expert today.