The World Trade Organisation (WTO) has projected that Artificial Intelligent (AI) technology have the potential of boosting global trade by up to 40% from year 2040 by lowering costs of goods distribution across the global space.
The organization, in its just published annual World Trade Report, identified AI as a big changer in the face of worrisome global trade disruptions associated with the current high tariffs imposed by the United States on its trading partners.
The WTO Director-General, Dr. Ngozi Okonjo-Iweala, while presenting the latest report, said: “AI holds major promise to boost trade by lowering trade costs and reshaping the production of goods and services.”
According to her, simulations by the WTO suggest that AI could push exports of goods and services nearly 40 percent above current trends.
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However, the report also warned that without appropriate policies, lower-income countries might miss out on the benefits.
The Director-General said: “One important question is whether AI will lift opportunities for all, or whether it will deepen existing inequalities and exclusion.
“With the right mix of trade, investment and complementary policies, AI can create new growth opportunities in all economies,” Okonjo-Iweala added.
According to WTO economists, lower-income economies may record only 8 percent rise in incomes by 2040 if the digital divide persists, compared to a 14 percent increase in higher-income countries.
They maintained that narrowing the digital infrastructure gap by 50 percent and adopting AI more broadly could enable these nations to achieve similar gains.
The report also highlighted a growing trend of countries imposing restrictions on AI-related trade with nearly 500 of such restrictions already being implemented last year, mostly from high and medium-income economies, compared with just 130 in 2012.
The WTO annual World Trade Report’s findings underscored the transformative potential of AI in global trade while also highlighting the urgent need for inclusive policies and infrastructure development.
What this implies is that countries that invest in digital capacity and equitable AI adoption could experience unprecedented economic growth, while those that lag in technologies could be widening the global inequality gap.
