Author: Moumita Pal
DOI Link: https://doi.org/10.70798/Bijmrd/03030002
Abstract: Artificial Intelligence (AI) is transforming international trade and economic policies by enhancing efficiency, decision-making, and market competitiveness. AI-driven technologies, such as machine learning, big data analytics, and automation, are reshaping global trade by optimizing supply chains, improving risk assessment, and streamlining regulatory compliance. These innovations enable businesses to predict market trends, enhance trade negotiations, and minimize transaction costs, leading to more seamless cross-border trade.AI also plays a critical role in economic policy formulation by providing governments with data-driven insights for trade agreements, tariff regulations, and economic forecasting. Predictive analytics help policymakers anticipate economic shifts, assess the impact of trade policies, and mitigate risks associated with financial crises. Additionally, AI enhances customs procedures through automated inspections and fraud detection, reducing trade barriers and improving global commerce. Despite these advantages, AI in international trade poses challenges, including ethical concerns, data privacy issues, and potential job displacement. The reliance on AI for economic decisions raises questions about bias in algorithms and the digital divide between developed and developing economies. Moreover, the integration of AI into trade policies necessitates global cooperation to establish regulatory frameworks that ensure fair competition and security. AI is revolutionizing international trade and economic policies by improving efficiency, reducing costs, and enhancing decision-making. However, addressing challenges related to ethics, regulation, and economic disparity is essential to maximize AI’s benefits while mitigating its risks. As AI continues to evolve, its role in shaping global trade and economic strategies will become increasingly significant, necessitating balanced policies that promote innovation while ensuring inclusivity and fairness in international commerce.
Keywords: AI, Economy, International Trade, policy
Page No: 10-17