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WTO’s 2025 World Trade Report Highlights AI’s Potential
The World Trade Organization (WTO) has revealed in its 2025 World Trade Report that artificial intelligence (AI) could increase the value of global trade by up to 40% by 2040.
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This surge will be driven by AI’s ability to reduce trade costs, enhance productivity, and expand global economic output. But it also warned that without adequate safeguards, AI risks deepening inequality
Key Findings: AI as a Driver of Trade Growth
- Growth Potential: AI could boost global trade by 34–37%, with some scenarios nearing 40% by 2040.
- Cost Reduction & Productivity: AI can lower barriers in supply chains, cut costs, and improve efficiency across industries.
- Inequality Risk: Without action, AI could widen the digital divide, leaving lower-income economies behind.
- Inclusive Growth: Trade in AI-enabling goods such as semiconductors can foster global participation in the AI-driven economy.
Challenges: Risk of Deepening Global Inequality
WTO Director-General Ngozi Okonjo-Iweala warned that without deliberate safeguards, AI could deepen inequality between advanced and developing economies. Many lower-income nations risk being excluded from the AI-powered trade revolution due to limited access to digital infrastructure and AI technologies.
Actions Needed to Unlock AI’s Full Trade Potential
- Bridge the Digital Divide: Governments must invest in digital infrastructure to allow developing nations to benefit from AI.
- Complementary Policies: A balanced mix of trade, investment, and regulatory policies is critical to creating equitable growth.
- Address Trade Restrictions: The report highlights the rise of trade barriers on AI-related goods, which could limit innovation and market access.
