Wolfgang Lehmacher and Mikael Lind write for Splash today sharing some of their input to the recently released World Economic Forum AI TradeTech report.
Artificial intelligence (AI) is poised to change international trade. AI will improve efficiency, costs, and decision-making. McKinsey reports that AI implementation can reduce forecast errors by 50% and logistics costs by 15%, while companies leveraging AI have seen inventory levels decrease by 35% and service levels improve by 65%. This article highlights seven areas where AI may transform trade, the benefits ahead, and the barriers to overcome.
The impact of AI varies across developed and developing markets, public and private sectors, and businesses of different sizes. As we navigate this AI revolution, a human-centric approach that fosters collaboration between human experts and AI systems will be crucial. Trust is essential in trade, and users are more likely to embrace AI-powered solutions when complemented by human oversight and expertise.
Challenges such as data privacy, cybersecurity, regulatory complexity, and ethical concerns must and will be addressed to fully realise AI’s potential in trade. Businesses, governments, and other stakeholders in the global trade ecosystem are well advised to prepare for the AI revolution, as those who embrace this technology early and thoughtfully stand to gain a significant competitive advantage in the rapidly evolving, currently volatile, and uncertain world of international commerce and trade.
