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Automating product classification with AI

Product classification sits at the centre of product discovery, yet it is often treated as a minor operational task. Someone decides where a SKU belongs, someone else disagrees, and eventually it gets fixed when search results or navigation start to look wrong.

This works when catalogues are small. It breaks down fast when ranges grow, suppliers multiply, and products need to appear consistently across ecommerce, marketplaces, print, and sales tools.

AI can help solve this problem, but only when it is applied in the right place. The biggest gains come from fixing classification before product data reaches PIM, not after.

Why manual classification quietly damages performance

Classification rarely fails in obvious ways. It fails in small, compounding ones.

A product is placed under a category customers never browse. Filters exclude valid items because attributes were interpreted differently. Internal search feels unreliable, even though nothing is technically “broken”.

Over time, these small errors compound into real commercial issues:

  • Slower product launches as categories are debated and reworked
  • Products missing from navigation or filters
  • Marketplace listings rejected or down-ranked
  • Higher returns and avoidable customer queries
  • Ongoing internal disagreements about where products should live

The root cause is not poor intent or lack of effort. It is scale. Manual classification does not stretch far enough to support modern product ranges and channel demands.

The misunderstanding around AI and PIM

When teams hear “AI-powered PIM”, it is easy to assume that classification problems will be solved automatically once data is centralised.

In reality, most classification errors are already baked in by the time data reaches PIM. Supplier information typically arrives as:

  • Inconsistent spreadsheets with partial attributes
  • PDFs hiding key specifications in tables or images
  • Descriptions written for marketing, not structure
  • Images and attributes that do not fully align

If this data is pushed straight into PIM, automation does not correct the problem. It simply makes the mistakes permanent and harder to unwind.

This is why classification needs to be treated as an upstream data capability, not a downstream tidy-up.

Where SKU Launch fits and why it matters

SKULaunch sits between suppliers and your core systems.

It exists to handle the messy reality of incoming product data and apply consistent classification logic before products are committed to PIM, ecommerce platforms, or marketplaces.

This placement is deliberate. At this stage, data is still flexible. Categories can be adjusted, logic refined, and errors corrected without disrupting live channels.

How AI-assisted classification works in practice

SKU Launch combines AI-assisted extraction with explicit, rules-based classification that your team controls.

In practice, this breaks down into three stages:

  • Signal extraction
    Product titles, descriptions, attributes, technical terminology, and in some cases images are parsed so meaningful information can be worked with, even when supplier data is inconsistent or poorly structured.
  • Rules-based classification
    Those signals are applied against your taxonomy using defined rules, mappings, industry codes, or marketplace category trees. The logic is visible and explainable, not probabilistic or hidden.
  • Controlled exceptions
    Clear classifications flow through automatically. Where signals conflict or confidence drops, products are flagged for review with context explaining why.

Images can act as a secondary validation step, helping to catch obvious mismatches early without overriding classification rules on their own.

The result is not autonomous behaviour, but repeatable and controlled consistency at scale.

Why explainability beats black box automation

Classification decisions have commercial consequences. They affect:

  • Product discoverability
  • Marketplace compliance
  • Customer trust
  • Internal confidence in the data

That is why explainability matters more than speed alone.

Teams need to understand why a product was placed where it was and be able to correct it intentionally. SKU Launch is designed around this principle. Classification logic is explicit. Overrides are deliberate. Changes to taxonomy take effect immediately. Errors are fixed at source, not patched downstream.

Over time, this reduces debate, rework, and the quiet data decay that happens when no one is quite sure how decisions are being made.

Confused by PIM Vendors?

With 100s of PIM software vendors worldwide, choosing the right PIM solution can be a daunting & confusing task.

Use our guide to assess PIM solutions against the right capabilities to make an objective and informed choice.

The role of PIM once classification is correct

Once products are classified properly upstream, PIM becomes the system of record. This is where:

  • Category permissions and workflows are enforced
  • Consistency is maintained across every channel
  • Internal categories are mapped to marketplaces and industry standards
  • Clean, structured data is distributed to ecommerce, print, and sales tools

In short, SKU Launch prepares and classifies. PIM governs and distributes.

What this means for commercial and operational teams

For non-technical leaders, the impact shows up quickly:

  • Faster supplier onboarding
  • Shorter time to launch for new ranges
  • Fewer marketplace errors and rejections
  • Improved navigation, search, and filtering
  • Less time spent debating categories

Most importantly, teams stop fighting data and start trusting the structure that supports their digital channels.

Getting the foundations right

AI-assisted classification only delivers value when the basics are taken seriously.

Your taxonomy must reflect how customers browse and buy, not how legacy systems were organised. Category ownership needs to be clear so logic does not drift. Rules must be explicit so decisions can be explained and defended. And there must be sensible thresholds that determine when automation proceeds and when human review is required.

Classification is not something you “finish”. It is a capability that evolves as product ranges, suppliers, and channels change.

Final thoughts

If product classification is slowing you down, adding more rules inside PIM is rarely the answer.

The real opportunity lies upstream, fixing how products are classified as supplier data enters the business. SKU Launch allows teams to apply AI-assisted extraction and rules-based classification where it has the most impact, before data becomes locked into core systems.

PIM then does what it does best: govern, validate, and scale clean, consistent product data across every channel.

If discoverability, speed to market, or confidence in your product data are holding you back, start with classification at the point of entry, not after the damage is done.