Role of Artificial Intelligence in International Trade

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions or it also defines as the theory and development of computer systems able to perform tasks normally requiring human intelligence such as follows – 

• Visual Perception
• Speech recognition
• Decision making
• Translation between languages 

It has a transforming impact on International trade and affects the international trade in the number of ways, it increases the Economic growth and provides new opportunities for international trade, it affects the type and quality of economic growth with international trade implications.

Artificial intelligence changing global value chains and international trade patterns, the World trade organization will play a critical role in further shaping how is developed and deployed globally.

Artificial Intelligence has an impact on global value chains, which can be used to improve predictions of future trends – changes in consumer demand, and how to manage risk along the supply chains. Stocks in the warehouse can be managed more efficiently to improve the accuracy of just in time manufacturing and delivery, Robotics aid in packing and inventory inspections. AI has a great impact on the digital platform used for international trade marketing.

The following technology used in the manufacturing of export goods-

• Smart Manufacturing leverages sensors & Internet-connected machines.
• Materials and supplies to enable predictive self-maintenance.
• Quick adaption to customer demands.
• Greater connectivity in smart manufacturing.
• Create trends towards onshoring of production.
• Broader Automation opportunities and scaling of 3D printing can reduce the need for extended supply chains.
• Use of Robotics.

The WTO and FTAs can be the decision-maker in the development of AI in the trade business. 

Artificial intelligence used in other technologies also which includes cloud computing, big data, Internet of things (IoT), these rely on cross border data flows. The Government supports and provides financial assistance for using the technology on the manufacturing of goods for export. The use of technology in manufacturing increases efficiency reduces the cost of products and the manpower.

The Government of India Provides the incentives on the export of goods and services to offset infrastructure inefficiency involved in the export process under MEIS Scheme for the exporters of the goods and SEIS Scheme for the service exporters in the form of Duty credit scrip which can be transferred.

Recently the Government launched RoDTEP Scheme replacing the MEIS Scheme, which will be implemented in a phased manner which means when the RoDTEP benefits rate will be notified for the goods same time the MEIS Rate will be discontinued for those goods.