AI vs Hiring in Commodity Trading Operations: An Honest Comparison

"You're offering a change in the way we work. We might just hire someone instead of using software."

This is one of the most honest objections we hear from trading operations managers. And it deserves an honest answer.

When document volumes increase or error rates become unacceptable, there are two paths: add headcount or adopt technology. Both have costs, risks, and limitations. Neither is universally right.

The Case for Hiring

Hiring operations staff has genuine advantages. An experienced operations professional knows how to process trade documents—there's no implementation period, no learning curve for the technology, no integration risk. People can handle the unexpected in ways that rigid systems can't. There's no technology dependency, and a good hire becomes part of the team.

For small operations with low document volumes and complex, variable trades, hiring might genuinely be the better choice.

The Case for AI

AI-powered document processing has different advantages. It scales without linear cost—processing 500 documents costs roughly the same as processing 100. Performance is consistent, with no bad days or Friday afternoon fatigue. Documents that arrive overnight get processed overnight. And there's a complete audit trail of what happened and when.

For operations with high volumes and time-sensitive processing, AI often makes economic sense.

The Honest Cost Comparison

Every situation is different, but roughly:

Hiring costs:

• Salary: $60-120K annually depending on market
• Benefits: 25-35% on top
• Recruiting: 20-25% of first-year salary
• Training: 3-6 months to full productivity
• Turnover risk and replacement costs

Fully-loaded cost for one hire: $80-160K annually.

AI costs:

• Software subscription: $20-60K annually
• Implementation effort
• Human oversight (doesn't eliminate headcount entirely)

The real comparison isn't "AI versus hire." It's "AI plus existing team versus additional hire."

When Hiring Makes More Sense

Consider hiring when:

• Document volumes are low (fewer than 200 per month)
• Document types are highly variable
• You need someone physically present
• The role requires relationship management

When AI Makes More Sense

Consider AI when:

• Document volumes are high or growing
• Document types are predictable
• Timing matters (overnight processing, LC deadlines)
• You're having trouble hiring experienced ops professionals
• You want to redeploy existing staff to higher-value work

The Hybrid Approach

The choice doesn't have to be binary. Many operations find that the optimal approach is AI plus human oversight: AI handles the volume processing while humans handle exceptions and make final decisions. The existing team becomes more effective rather than being replaced.

This hybrid approach often delivers better results than either approach alone.

How Mercora Addresses This

Mercora is designed to complement your team, not replace it. Our AI handles the volume processing—classification, extraction, matching, discrepancy detection—while your experienced operators handle the judgment calls.

We don't promise to eliminate headcount. We promise to make your existing team more effective.

Sometimes the right answer is still to hire. But if you're considering AI, we're happy to help you think through whether it makes sense for your situation.

Get in touch to discuss your operations and whether Mercora would add value.