The World Trade Organization's "Trading with Intelligence" report, issued in October 2024, explores the impact of artificial intelligence (AI) on international trade dynamics and how trade regulations affect AI development.
The report highlights AI’s role as a general-purpose technology that is fundamentally transforming global trade by reducing trade costs, streamlining supply chains, and reshaping the comparative advantages of economies. AI enhances trade logistics, regulatory compliance, and service delivery, making international commerce more efficient and accessible.
The report underscores the potential benefits and risks of AI in trade. On the positive side, AI can lower trade barriers, improve customs efficiency, and facilitate trade finance through automation and predictive analytics. It is expected to boost global GDP and trade growth, particularly in digitally delivered services. However, the risk of an AI divide is significant, with developed economies leading AI innovation while developing countries struggle with adoption due to regulatory and infrastructure gaps. The concentration of AI capabilities in a few large economies and corporations raises concerns about competition, trade imbalances, and market monopolization.
The study also examines the role of policy and regulation, emphasizing the need for global cooperation to avoid regulatory fragmentation. Countries are adopting diverse AI-related regulations, but without harmonization, trade conflicts may arise. Issues such as data governance, intellectual property protection, and ethical AI use need coordinated international frameworks to ensure fair trade practices.
The WTO’s role is crucial in facilitating AI-driven trade while ensuring fair market access and reducing regulatory inconsistencies. The report suggests that WTO agreements on trade in goods, services, and intellectual property can provide a framework for AI governance, promoting inclusivity and reducing potential AI-induced inequalities.