Geneva: The World Trade Organization (WTO) revealed in a new report that artificial intelligence (AI) will reshape the future of the global economy and international trade, calling for targeted investments in education, skills, and retraining to boost productivity.
According to Qatar News Agency, the report states that AI could increase the value of trade in goods and services by nearly 40 percent by 2040, but it also warns that, without appropriate policies, it could exacerbate existing economic inequalities.
The annual report, which analyzes trends in the multilateral trading system, highlights that lower trade costs and improved productivity could lead to significant increases in trade volumes and GDP by 2040. Global trade is expected to rise by between 34 and 37 percent under different scenarios. Additionally, global GDP could increase by between 12 and 13 percent.
WTO Director-General Ngozi Okonjo-Iweala urged policymakers to manage the transition to AI carefully. She added that AI may revolutionize labor markets, changing some jobs and replacing others. Managing these shifts requires investment in domestic policies to enhance education, skills, retraining, and social safety nets.
WTO Deputy Director-General Johanna Hill commented on the organization’s annual report, saying that AI could be a bright spot for trade in an increasingly complex commercial environment. Hill noted that AI is reshaping the future of the global economy and international trade, with the potential to lower trade costs and enhance productivity.
The global trade rules, set by the WTO, have faced significant disruption this year following a series of tariffs imposed by the administration of former US President Donald Trump. The report highlighted how companies can reduce costs in logistics, regulatory compliance, and communications.
According to the report, AI-driven translation technologies can make communication faster and more cost-effective, benefiting small producers and retailers in particular by enabling them to expand into global markets. It also mentioned that such developments could help increase export growth in low-income countries by up to 11 percent, provided that their digital infrastructure improves.
However, the report warned that without targeted investments and inclusive policies, AI could deepen existing divides. It added that the implications of developing and deploying AI raise concerns that many workers, and even entire economies, could fall behind.
The report concluded that to ensure the benefits of AI are widely shared, stable trade flows supported by WTO rules and the reduction of tariffs on key AI technologies, such as semiconductors, are critical.