AI To Drive 40% Jump In Global Trade by 2040: WTO Report

New Delhi, Sep 18 (KNN) The World Trade Report 2025 highlights that artificial intelligence (AI) has the potential to transform global trade, offering unprecedented opportunities for MSMEs in emerging economies like India.

WTO simulations suggest that AI could boost global trade by nearly 40 percent by 2040.

The report released during the annual WTO Public Forum being held in Geneva from 17~18 Sept 2025,  showed that if low-income economies could close just half of their digital infrastructure gap, their income growth could rise to 15 percent, a significant leap from the 8 percent growth expected if no catch-up occurs.

The report proclaims that AI is not just for large corporations; it can be a powerful enabler for small companies looking to participate in global markets.

According to the report, AI tools can enhance trade efficiency by: Improving supply chain visibility and managing trade risks; Automating customs clearance and navigating complex regulations; Reducing language barriers and strengthening market intelligence; and, Lowering the cost of contract enforcement through automated drafting and review.

While the potential is vast, the report cautions that AI could deepen existing divides if not handled correctly.

Currently, access to digital infrastructure, computing capacity, and skilled workers is highly uneven across the world. In fact, the report notes that fewer than one-third of firms in low-income and lower middle-income economies are currently using AI.

The WTO report underscores that the impact of AI on inclusive growth will depend on the policies implemented to close the digital divide and promote technology adoption. 

Complementary policies related to infrastructure, education, and government support are critical for ensuring that AI-driven trade benefits are widely shared.

Initiatives like the WTO's "Digital Trade for Africa" and the "Women Exporters in the Digital Economy (WEIDE) Fund" demonstrate the importance of targeted efforts to build the necessary infrastructure, regulatory capacity, and skills in developing economies.

Reacting to the report, Federation of Indian Micro and Small & Medium Enterprises (FISME) has suggested that these models can serve as a blueprint for India also to support its MSME sector in adopting AI, enabling them to trade more and trade better.

“By fostering international cooperation, dialogue, and capacity-building, organisations like the WTO can ensure a more stable and predictable environment for AI-related innovation and investment, helping Indian MSMEs to participate more fully in the global digital economy”, added FISME communique.

(KNN Bureau)