The development of AI will influence international trade in several ways. One key aspect is its macroeconomic impact, particularly concerning productivity growth. If AI boosts productivity, it can lead to economic growth and create new opportunities for international trade. Currently, global productivity growth is low due to various factors. A significant reason for this low growth, especially in relation to AI, is the time it takes for economies to effectively adopt and utilize new, complex technologies like AI. This process requires building sufficient capital and making complementary investments, such as hiring skilled personnel and improving business practices, to fully leverage AI advancements.
Simplify, The development of AI will affect international trade in a number of ways. One is the macroeconomic impacts of AI and the related trade effects. For instance, should AI increase productivity growth, then this will increase economic growth and provide new opportunities for international trade. Current rates of productivity growth globally are low and there are various suggested causes.6 One reason for low productivity growth particularly relevant for understanding the potential link with AI is that it takes time for an economy to incorporate and make effective use of new technologies, particularly complex ones with economy-wide impacts such as AI.7 This includes time to build a large enough capital stock to have an aggregate effect and for the complimentary investments needed to take full advantage of AI investments, including access to skilled people and business practices
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