The World Trade Organization (WTO) released a report on Thursday titled "Trading with Intelligence: How AI Shapes and is Shaped by International Trade," exploring the potential impact of artificial intelligence (AI) on global trade.

The report highlights AI's potential to reduce trade costs, reshape trade in services, boost trade in AI-related goods and services, and redefine economies' comparative advantages. It underscores AI's role in overcoming trade barriers by automating logistics, streamlining customs processes, navigating regulatory compliance, and predicting risks. These advancements could level the playing field for developing economies and small businesses, enabling them to participate more effectively in international trade.

However, the report also warns of challenges, including the risk of a growing "AI divide" between high- and low-income economies, disparities between large and small firms, data governance issues, and the need to ensure AI's trustworthiness. High-income economies are projected to see the greatest productivity gains with widespread AI adoption, while lower-income economies could experience significant cost reductions, though the gap between them may widen without coordinated action.

The report draws attention to the fragmented approaches to AI regulation globally, which could hinder trade opportunities, especially for micro, small, and medium-sized enterprises. It calls for global coordination to address regulatory fragmentation and ensure equitable distribution of AI's benefits.

WTO Director-General Ngozi Okonjo-Iweala emphasized the report's dual focus: ensuring the benefits of AI are broadly shared and addressing its challenges in a globally coordinated manner. The WTO's role as a platform for negotiation and rule-making is vital in promoting AI's opportunities while mitigating risks such as regulatory fragmentation and intellectual property concerns, the report said.

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