Geneva: Artificial intelligence (AI) is expected to increase the value of global trade and services up to 37 percent by 2040, as poor countries close the technological gap with rapid advancements, according to a World Trade Organization (WTO) report.

According to Philippines News Agency, the report, titled "World Trade Report 2025: Making Trade and AI Work Together to the Benefit of All," stated that AI applications contribute to productivity in economies, enabling more companies to comply with complex regulations. The report highlighted that AI's most significant impact will be seen in the digital services industry.

The report emphasized the role of 'AI-enabling goods, such as semiconductors and intermediate inputs' in global trade, noting that these products' trade volume reached USD2.3 trillion in 2023. However, the WTO warned that without targeted investments and inclusive policies, AI could deepen existing divisions, and the anticipated growth in global trade might not be achieved by 2040.

WTO Director-General Ngozi Okonjo-Iweala expressed concerns in the report that many workers and entire economies could be left behind due to the development and deployment of AI. The report mentioned that digital infrastructure, technology, and skilled workforce are currently concentrated in a few high-income countries, while investments in education are necessary to prevent inequalities.

She further stated that AI has the potential to lower trade costs, boost productivity, and create new avenues for services production and exports. However, access to AI technologies and the capacity to participate in digital trade remain highly uneven, particularly for many low-income economies. Without proactive policy responses and greater international cooperation, AI could deepen inequalities rather than reduce them.