AI expected to boost global trade by 37%

Artificial Intelligence (AI) has the potential to significantly boost trade in goods and services, according to the World Trade Organization (WTO).

The use of these technologies could increase global exports and imports by an additional 37% by 2040 if poorer countries catch up technologically, according to the WTO's latest World Trade Report, released in Geneva on Wednesday.

AI programmes are already contributing to efficiency improvements by providing more transparency in supply chains, automating customs procedures and making it easier for companies to comply with complex regulations, it said.

The potential AI boost is the largest when it comes to the trade in digital services, the report said. The WTO's model indicates additional growth of up to nearly 42% in this area.

For processed goods, the maximum projected AI increase is about 24% while for raw material trade, it is only about 10%.

WTO Director General Ngozi Okonjo-Iweala also warned of a growing gap between rich and poor, both internationally and within countries.

"Without proactive political measures and stronger international cooperation, AI could deepen inequalities rather than reduce them," she wrote in the report.

The WTO noted that digital infrastructure and technology as well as skilled personnel are currently concentrated in a few higher-income countries.

The report advocated for targeted educational programmes and other strategies to avoid inequalities.