The World Trade Organization (WTO) has released a landmark report, “Trading with Intelligence: How AI Shapes and is Shaped by International Trade,” detailing the transformative effects of artificial intelligence (AI) on global trade. The report examines AI’s potential to revolutionise trade dynamics while addressing the challenges it poses to equitable growth and international cooperation.
AI’s integration into global trade could significantly reduce costs, reshape service-based trade, and boost the exchange of AI-related goods and services. The technology also has the potential to redefine economies’ comparative advantages. Through automated logistics, streamlined customs processes, enhanced regulatory compliance, and risk prediction, AI can help eliminate traditional trade barriers.
For developing economies and small businesses, these advancements present a unique opportunity to access global markets more effectively, levelling the playing field with larger and more developed competitors. However, the report cautions that without coordinated global action, AI could exacerbate inequalities, creating a widening ‘AI divide’ between high- and low-income economies and disparities between large and small firms.
High-income nations are expected to benefit the most, with significant productivity boosts, while lower-income countries could see cost reductions. Yet, without proper intervention, the economic gap between these groups may continue to grow.
The report also addresses the fragmented nature of AI regulations worldwide, which could pose barriers to trade, particularly for micro, small, and medium-sized enterprises. It calls for greater global collaboration to harmonise regulations and ensure the inclusive distribution of AI’s benefits.
WTO Director-General Ngozi Okonjo-Iweala highlighted the organisation’s critical role in addressing these issues. She said that, the report underscores the importance of ensuring AI’s benefits are shared broadly while tackling its challenges through coordinated global efforts. The WTO’s platform for negotiation and rule-making will be instrumental in leveraging AI’s potential to enhance trade while addressing concerns over regulatory fragmentation and intellectual property rights.
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