Welcome to our new series on AI, where we'll explore the key challenges and opportunities within this rapidly evolving landscape. Today, we focus on AI in international trade, particularly in Singapore and the region. As a technology, AI promises to transform international trade by optimizing supply chains, enhancing logistics, and improving market analytics. Understanding AI's impact on trade policies, market dynamics, and ethical considerations is crucial in an increasingly interconnected world.

For an open economy like Singapore's, AI's potential to revolutionize international trade is significant. It can predict demand trends, streamline customs processes, and automate various tasks, leading to cost reductions and increased efficiency. However, the integration of AI also poses challenges, such as data privacy concerns, ethical considerations, regulatory discrepancies, and the risk of widening the digital divide. These issues call for standardization and best practices.

Singapore, alongside Chile and New Zealand, has entered into the Digital Economy Partnership Agreement (DEPA), which sets out governing principles for AI use. The DEPA promotes ethical and governance frameworks that ensure the trusted, safe, and responsible use of AI technology, considering principles like explainability, transparency, fairness, and human-centric values. The agreement is open for adoption by other WTO members, with countries like South Korea, China, and Canada showing interest. There will be more to come.

AI can also play a crucial role in trade negotiations, leveling the playing field between developed and developing countries. Tools like the United Nations' Trade Intelligence and Negotiation Advisor (Athena) help negotiators analyze and anticipate the effects of trade agreement clauses. While AI offers immense potential for enhancing international trade, addressing challenges like data privacy, ethical issues, and regulatory discrepancies is essential. By fostering international collaboration, improving data governance, and supporting developing economies, the global community can ensure the benefits of AI in trade are widely shared. You can watch the video in its entirety at Reed Smith.