AI may boost global trade by nearly 40 per cent in 15 yrs: Report

NEW DELHI: Artificial Intelligence (AI) could lead to significant increases in trade and GDP by 2040, with global trade projected to rise by 34-37% across different scenarios, a report released by the World Trade Organisation said on Wednesday. The report said that the largest growth occurs in trade of digitally deliverable services (42%), including AI services.

“This trade increase reflects (i) reduced operational trade costs, (ii) strong projected growth of AI services combined with high tradability of AI services, related to its geographic concentration of production in a few regions, and (iii) the above average productivity growth in more tradable sectors, in particular digitally deliverable services,” according to the WTO’s World Trade report.

“The development and deployment of AI are also projected to generate substantial global GDP increases, ranging from 12 to 13% across scenarios,” said the report.

It said that AI tools are already enhancing trade efficiency by improving visibility within supply chains, automating customs clearance, reducing language barriers, strengthening market intelligence, improving contract enforcement and helping firms, including micro, small and medium-sized enterprises (MSMEs), to navigate complex regulations.

“AI has vast potential to lower trade costs and boost productivity, as well as to create new avenues for services production and exports,” said WTO director-general Ngozi Okonjo-Iweala.

WTO research showed that among firms currently using AI, nearly 90% reported tangible benefits in trade related activities, and 56% said that it had enhanced their ability to manage trade risks.
But the report also cautioned about the risks of a widening digital divide.