{"id":595,"date":"2021-02-04T22:24:43","date_gmt":"2021-02-04T22:24:43","guid":{"rendered":"https:\/\/www.gcalusa.com\/blog\/?p=595"},"modified":"2022-02-23T23:58:31","modified_gmt":"2022-02-23T23:58:31","slug":"gcal-gia-execs-talk-automated-grading-and-more","status":"publish","type":"post","link":"https:\/\/www.gcalusa.com\/blog\/gcal-gia-execs-talk-automated-grading-and-more\/","title":{"rendered":"GCAL & GIA Execs Talk Automated Grading and More"},"content":{"rendered":"\n

RAPAPORT Podcast: The Transformation of Diamond Grading<\/strong> The third installment of their series, Technology and the Diamond Trade Feb 1, 2021<\/p>\n\n\n\n

Listen Here <\/a><\/p>\n\n\n\n

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Don Palmieri<\/strong>, President and founder of Gem Certification & Assurance Lab (GCAL), and Pritesh Patel<\/strong>, COO of Gemological Institute of America (GIA) were interviewed as part of a panel on a podcast hosted by Avi Krawitz, Rapaport Senior Analyst. The podcast is part of Rapaport’s continuing series titled “Technology and the Diamond Trade.”<\/figcaption><\/figure>\n\n\n\n

Rapaport’s own press release pointed to how “grading laboratories are widely viewed as the guardians of trust in the diamond industry, and have a long history of using technology to authenticate the product. Labs have always played an important role in improving consumer confidence.”<\/strong> But with the relatively recent introduction of artificial intelligence (AI) and machine learning intended to enhance grading capabilities, the industry is witnessing potential disruption instead. <\/p>\n\n\n\n

Among other topics, Palmieri and Patel explored the affects that AI and other digital initiatives will have on the grading environment. They debated the extent to with AI can resolve continuing disputes about grading inconsistencies, and how automation of grading processes might impact the trade, either negatively or positively.<\/p>\n\n\n\n

\u201cWe applaud all efforts to improve accuracy and consistency in diamond grading,\u201d began Don Palmieri. However, Don admitted while he has read and heard a lot about AI, he has yet to actually see it in action. \u201cI opened GCAL 20 years ago to increase consumer confidence,\u201d continued Palmieri, \u201cbut in the last 15 years the grading accuracy we\u2019re witnessing industry-wide, has gotten worse, not better.\u201d When asked by Krawitz what he will do to meet these challenges, Don added that \u201ctechnology alone cannot solve the problem. It\u2019s still a people business, and every employee in the GCAL lab knows that any mistake, large or small, can cost the company money and prestige.\u201d With this in mind, and still one of the most important features of the GCAL grading system, was initiating a consumer guarantee right from the beginning. The guarantee was intended in large part to increase consumer confidence. In 2005, GCAL strengthened that guarantee. And according to Don, that guarantee has absolutely reaped benefits for GCAL. \u201cSadly, no other lab stepped in to guarantee their work, and now diamond grading is like the wild west.\u201d <\/p>\n\n\n\n

Questioned about GIA\u2019s use of technology, Patel concurred that like GCAL, GIA\u2019s mission is to protect the consumer. He also agreed the human element will not go away from grading. Even IBM agreed, at some point, humans are needed. Both Palmieri and Patel pointed to how there will always be consumers who want a personal, expert opinion of their diamond\u2019s grade, especially important stones. GIA\u2019s objective however, was determining how to use technology to accomplish this. So GIA partnered with IBM to bring AI to the diamond industry. When asked to respond to Palmieri\u2019s comments about the continuing over-grading issue in the industry, Patel said everyone has to follow the same standard. Unfortunately, to Don Palmieri\u2019s earlier point, that doesn\u2019t seem to be the case today.   <\/p>\n\n\n\n

“We applaud all efforts to improve accuracy and consistency in diamond grading.” <\/strong> – Don Palmieri <\/strong> President and Founder of Gem Certification & Assurance Lab (GCAL)<\/p>\n\n\n\n

The discussion also focused on the impact on lab personnel. What\u2019s going to happen to all the graders? Will people simply be replaced by machines? The answer is apparently no. \u201cAny time we\u2019ve added technology in the GCAL lab,\u201d offered Palmieri, \u201cwe had to hire new people. AI could replace some processes, so some people may need to be reassigned. But significant training will always be available. We can\u2019t rely on technology alone.\u201d <\/p>\n\n\n\n

When asked if the industry is going to get lazy, Don took issue. “Everyone likes to see there’s a mystique in diamonds. Machines will never replace the human element and human appreciation. I still get excited when I see masterfully cut diamonds.” Even Patel admitted people are looking for an unbiased, independent opinion of the standard. So diamonds are sent to a human they can trust. “That trust can only come from that human side.”<\/p>\n\n\n\n

When questioned whether GCAL is looking to shift to digital, Don responded that GCAL already has. \u201cWe have a number of customers who only get digital reports from us at this time. We have an arrangement where their end consumer can request at the point-of-purchase a printed certificate, and we\u2019ll send it to them. Stores are notoriously guilty of losing paper reports\/certs, and this way it has helped them manage things a lot easier. 15% of GCAL customers receive digital-only certs. <\/p>\n\n\n\n

Pritesh talked about the large investment of time and resources that went into this new technology (AI). Palmieri responded with a challenge: \u201cWe hope that with all this new technology, GIA and other labs will guarantee their work.\u201d The problem for other labs, however, seems to be maintaining a single standard within their multiple lab locations in many countries. \u201cWe had every opportunity to open labs overseas \u2013 at literally zero cost,\u201d explained Don. \u201cWe were offered the real estate, the capital, even a steady flow of certification business. But we have always refused. At GCAL, we have always placed a higher value on consistent and accurate certification, than increased business and inconsistent grading, as a result of a global footprint.” <\/p>\n\n\n\n

Don then took this issue one step further. \u201cWe\u2019re more about producing an accurate product for the consumer. I think of every consumer that I\u2019ll never meet. I\u2019ll never know their name \u2013 but I have to think about them as a family member. And the work that I\u2019m producing for them is the same work I would produce for my own family member. Every one of our employees has to buy into that philosophy.\u201d <\/p>\n\n\n\n

“Will all other labs adjust their grading accuracy to meet the results of technology… or will the technology be ‘adjusted’ to be consistent with the over-grading of many labs” <\/strong> – Don Palmieri <\/strong> President and Founder of Gem Certification & Assurance Lab (GCAL)<\/p>\n\n\n\n

Don\u2019s passion and respect for this business becomes quite apparent when he is asked why he\u2019s in the laboratory business. \u201cA lab is the last step of confidence that can be bestowed on a customer. Too many in our industry are not demanding accuracy and consistency in diamond grading. They pay lip service to it.  But diamonds are the lifeblood of our industry. If someone doesn\u2019t believe that, I don\u2019t know what they\u2019re selling.\u201d Don\u2019s comments make it more apparent why GCAL stands behind their grading with a guarantee. When asked if GIA will guarantee their grading, that decision was placed on their legal department.
<\/p>\n\n\n\n

ACCURACY vs CONSISTENCY<\/strong><\/p>\n\n\n\n

In a post-podcast discussion, both Don and Angelo (GCAL COO) expressed concern over the general public\u2019s possible acceptance of AI\u2019s grading results as the gospel. \u201cToday, a lab\u2019s grading can certainly be consistent, but that in no way equates to the accuracy of those grades,\u201d explained Angelo. \u201cWill all other labs adjust their grading accuracy to meet the results of technology\u2026 or will the technology be \u2018adjusted\u2019 to be consistent with the over-grading of many labs?\u201d Don continued that same point: \u201cWe expect our grading to always be both accurate AND consistent. GCAL has always followed the standards taught by the GIA, as should all labs that use the GIA nomenclature. And the resulting grades of all labs must reflect or mirror the standards set by GIA.\u201d <\/p>\n\n\n\n

Only time will tell which path technology in the diamond industry goes down. “All we can do at GCAL is to continue to be true to our mission, and hope that the industry follows,” continued Don. For more information, or to speak with Don or Angelo Palmieri directly, feel free to call GCAL at 212-869-8985.<\/p>\n\n\n\n

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