How Accurate Is Our Classification?
We tested our system on 256 AI-generated business descriptions to measure how well it finds the right NACE codes.
Key Results
- 99% of the time, the correct code appears in top 5 suggestions
- 91% of the time, first suggestion is exactly right
- 94% of the time we get the first suggestion right for specific industry codes
How the System Works
When you describe your business, we compare your text against the 615 official NACE class descriptions. An AI model finds the classes that are most similar to what you wrote and ranks them by relevance.
We show you the top 5 matches with confidence scores, so you can pick the one that fits best.
Testing Methodology
We generated descriptions for 128 business activities covered by NACE codes, spanning 87 different divisions. For each activity, we created two versions: a verbose description (3-4 sentences) and a concise one (5-10 words). We used English descriptions for our tests.
We consider two metrics:
- Top-1 Accuracy: How often the correct code is our first suggestion. This is the strictest measure — did we get it exactly right?
- Top-5 Accuracy: How often the correct code appears anywhere in our top 5 suggestions. This reflects real-world usage where users review multiple options.
We also break down results by code type:
- Specific codes (108 cases): Industries with clear definitions like "Manufacture of jewellery" or "Freight rail transport." These achieve 94% top-1 and 100% top-5 accuracy with verbose descriptions.
- Generic codes (20 cases): Catch-all categories marked "n.e.c." (not elsewhere classified) or "other" like "Other business support activities n.e.c." These are inherently ambiguous and achieve 75% top-1 and 95% top-5 accuracy with verbose descriptions.
Across 256 test requests, average response time was 760ms.
Results Summary
| Verbose | Concise | |||
|---|---|---|---|---|
| Top-1 | Top-5 | Top-1 | Top-5 | |
| All codes (128) | 91% | 99% | 87% | 99% |
| Specific codes (108) | 94% | 100% | 90% | 100% |
| Generic codes (20) | 75% | 95% | 70% | 95% |
Tips for Better Results
- Write more, not less. Longer descriptions (3-4 sentences) perform better than short ones. Our tests show 91% accuracy for detailed descriptions vs 87% for brief ones.
- Be specific about your main activity. Instead of "we make things," say "we manufacture wooden furniture for offices."
- Include what you produce or who you serve. Mention your products, services, or target customers.
- Use industry terms. Words like "wholesale," "retail," "manufacturing," or "consulting" help narrow down the right category.
- Describe your primary business. If you do multiple things, focus on your main revenue source.
Example
Less effective: "We help businesses"
Better: "We provide IT consulting services, helping companies set up and manage their computer networks and servers"
Limitations
- Catch-all categories are harder. NACE has "other" and "n.e.c." (not elsewhere classified) codes for unusual activities. These are less precise by design.
- Similar activities may overlap. Some businesses fit multiple codes. Review the top 5 suggestions to find the best match.
- Always verify for official use. This tool provides suggestions. For tax, legal, or regulatory filings, confirm the code with the relevant authority.