Green Trade Advocacy: WTO Identifies Opportunities - Issues Alert on Digital Inequality - World Trade Enhancement via AI: WTO Recognizes Opportunities amid Digital Divide Caution
World Trade Organization Highlights Potential of AI in Boosting Global Economy
The World Trade Organization (WTO) has released its annual report, this time focusing on the potential of artificial intelligence (AI) to drive economic growth and international trade. According to WTO Director-General Ngozi Okonjo-Iweala, AI has the potential to reduce trade costs and enhance productivity, predicting a 12 to 13 percent boost in global GDP by 2040.
The report also suggests that AI could lead to a 34 to 37 percent increase in the value of international trade by 2040. However, the predicted impacts are dependent on the scenario.
Director-General Okonjo-Iweala expressed concern about the unequal access to AI technologies and digital trade in many low-income economies. She stated that we cannot afford to repeat the experience of unequal benefits with the AI revolution. As a result, narrowing the "digital divide" is another political measure suggested by the WTO.
The report also cautions that political measures are necessary to ensure AI contributes to "inclusive growth." Investing in workers' skills is one of the political measures suggested by the WTO. Maintaining an open and predictable trading environment is another measure proposed.
Without political action and stronger international cooperation, AI could exacerbate inequalities, Director-General Okonjo-Iweala warned. She emphasised that the globalization of recent decades, while bringing great benefits, has left many people and regions behind, which is related to current tensions surrounding international trade.
The WTO, located in Geneva, also suggested that political measures are crucial to ensure AI contributes to inclusive growth, and that narrowing the digital divide is a key step in this process. The report underscores the need for concerted efforts to ensure that the benefits of AI are shared equitably across all nations and economies.
Director-General Okonjo-Iweala also highlighted that many workers or entire economies may be left behind by AI. She emphasised the importance of addressing this issue to prevent a repeat of the unequal benefits experienced in previous technological revolutions.
In conclusion, the WTO's annual report underscores the potential of AI to drive economic growth and international trade, but also highlights the need for political action and international cooperation to ensure that these benefits are shared equitably. The report serves as a call to action for governments and international organisations to invest in the skills of their workforce and create a more inclusive digital economy.
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