Techsplainers by IBM

What is electronic data interchange (EDI)?


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This episode of Techsplainers explores electronic data interchange (EDI), the standardized system for computer-to-computer exchange of business documents like invoices and purchase orders. We explain how EDI works through specialized translator software and transmission protocols, and details the major standards including ANSI ASC X12, HIPAA, and EDIFACT. The discussion covers EDI's substantial benefits: time and cost savings, error reduction, and improved business analysis capabilities. The episode also examines how EDI is evolving through AI integration for fraud detection and autonomous processing, while comparing EDI with APIs to show how these technologies complement each other for different business needs. Despite being decades old, EDI continues to process trillions of dollars in commerce annually across major industries worldwide. 

 

Find more information at https://www.ibm.com/think/podcasts/techsplainers 

 

Narrated by Dan Segal 


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