The World Trade Organisation (WTO), on Wednesday, said Artificial intelligence can boost the value of world trade by as much as 40 per cent by 2040, given cost reduction and productivity gains.

The global organisation in its annual World Trade Report, said AI is one of the few bright spots as the global trading system has been drastically affected by the United States tariffs on its partners.

The WTO Chief, Dr Ngozi Okonjo-Iweala, while presenting the report, said:  “AI holds major promise to boost trade by lowering trade costs and reshaping the production of goods and services.”

She said WTO simulations suggest AI could boost exports of goods and services by nearly 40 percent above current trends, noting however, that much like the technology threatens to disrupt labour markets, a lack of proper policies could see lower income countries miss out on the opportunities.

“One important question is whether AI will lift opportunities for all, or whether it will deepen existing inequalities and exclusion,” Okonjo-Iweala said.

If lower-income economies fail to bridge the digital divide, WTO economists calculate they would see only an eight percent gain in incomes by 2040, far below the 14 percent gain in higher-income economies.

However, if they narrow the digital infrastructure gap by 50 percent and adopt AI more widely they could match the gains in higher-income countries.

Okonjo Iweala noted: “With the right mix of trade, investment and complementary policies, AI can create new growth opportunities in all economies.”