Artificial intelligence (AI) can spur innovation, help firms create new value from data, and reduce trade costs. Growing interest in the economic and societal impacts of AI has prompted interest in the trade implications of this new technology, especially with generative AI becoming increasingly more competent. While AI technologies have the potential to fundamentally change trade and international business models, trade itself is also an important mechanism by which countries and firms can access the inputs needed to build AI systems, whether goods, services, people or data. Trade will also allow firms to deploy AI solutions globally.
New technologies and trade
The rapid development, deployment and adoption of new technologies, including Artificial Intelligence, 3D printing, Blockchain, Virtual/Enhanced Reality, and the Internet of Things, are having profound effects on how and what we trade. Understanding the potential implications of these changes is key to deploying trade policy that ensures we make the most of new opportunities, while tackling forthcoming challenges and disruptions.
Key messages
3D printing technologies have attracted the attention of the trade policy community for their potential to disrupt international trade. It is argued that greater cross-border exchange in design files for local printing may lead to less trade in physical goods. However, evidence suggests the opposite, showing that the adoption of 3D printing technologies is complementary to goods trade.
The use of new technologies lies behind the digital exchange of documents and the digitalisation of trade processes. This includes technologies such as Optical Character Recognition, Distributed Ledger Technologies (including Blockchain), Application Programming Interface, machine learning, AI, or the Internet of Things. Online platforms also facilitate cross-border transactions, simplifying the process of buying and selling internationally, including for small and medium-sized enterprises (SMEs) and individual consumers. Enabling the benefits of new technologies to streamline trade processes touches on a wide range of policy areas, from trade facilitation at the border, services, digital infrastructure, and cross-border data flows.
Context
AI innovation is most widespread in sectors that are highly traded
There is a strong positive correlation between measures of AI innovation and trade exposure. While most AI innovation takes place in sectors such as computer and electronics, there is significant innovation across a range of other highly traded sectors, including transport, machinery, and chemical industries.
Trade in 3D printable goods has kept pace with total trade with little evidence of substitution to date
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