The jewelry and diamond industries are vast yet hugely complicated. It may produce the most exquisite art pieces humans have ever seen. Still, it is sadly also frequently linked to unethical practices, including unfair labor abuses and the use of conflict diamonds.
However, technology has massively contributed to advancing ethics and transparency in the diamond and jewelry industries in recent years. As a result, you can have the technology utilized to determine whether a diamond is conflict-free, which would mean it is sourced legally through honest and open procedures. It has also played significant in the growth of lab-grown diamonds.
We look at how technology is used to increase transparency in the jewelry and diamond industries and the difficulties that arise. We also discuss the tactics employed to encourage moral behaviors in the trade.
How technology is transforming the diamond trade
Technology is used worldwide to enhance transparency; the diamond and jewelry sectors are no exception. It has promoted using blockchain technology and artificial intelligence (AI) to monitor diamonds from the mine to the final consumer and guarantee they are conflict-free. Apart from other techniques to increase process accuracy and efficiency, it also incorporates 3D printing.
Technology also has a significant say in the commercial aspect of the diamond trade. It enables corporations to use AI to trace the origins of diamonds and jewelry goods to ensure they do not entail immoral or violent practices.
Similarly, blockchain technology can protect the diamond business from fraud and unethical behavior. De Beers utilizes this system to trace the origin of every diamond they put on their shelves and ensure it is conflict-free. It can also make jewelry cheaply and quickly with 3D printing, lowering costs and boosting productivity. Similarly, modern technology has made cutting diamonds much more efficient and accurate.
Radio-frequency identification (RFID) tags are also widely used to make tracking more precise and stop counterfeiting. The renowned Signet Jewelers have implemented this system to ascertain maximum knowledge of their products.
Challenges and solutions
Admittedly, allowing technology to monitor every aspect of the supply chain and business can involve a great deal of coercion.
The price of deploying the technology can be monumental, especially given the rising costs and the ongoing competition that has put businesses out of their comfort zones. This would require a serious on the part of AI and tech companies to become more accommodating to cater to the needs of as many businesses as possible.
Another major concern relates to data security. Since information needs to be shared, companies may be apprehensive; data breaches and misuse make the process harder. But if data is managed responsibly and stored safely, more companies should decide to take the step.
Adapting to new technologies may be challenging for some businesses since most were founded decades ago and rely on human structures and models. However, with the right approach and guidance, they can begin relying more on technology and AI to make the jewelry and diamond industry more reliable and transparent.
The global diamond business has survived despite being in the face of tough competition. Diamonds are among the most valuable jewels in the world and are still in high demand.
While technological advancements, including blockchain, may not have addressed all the issues facing the diamond industry, they are extremely helpful in addressing some substantial challenges. We can now say that transparency lies at the center of the industry for the most part, which translates into the widespread emphasis on tracking the origin of every diamond.
The primary goal of the debate is to ensure the most fundamental thing: stopping the sale of conflict diamonds. Industry experts highlight the potential of blockchain in the sector for enhanced precision, trust, and transparency in pinpointing a diamond’s origin. This helps the trade remain more trustworthy and ethical and increases sales. Consumers who are conscious of the environment feel more confident in their purchases, knowing they did not involve unfair practices.