How will AI empower international trade

Artificial intelligence (AI) has profoundly changed the way we live and work. In this era of globalization, AI will play an increasingly important role in international trade, accelerating the process of trade and improving efficiency.

The main application directions of AI in international trade

Automate and optimize supply chain management

AI can automate and optimize supply chain management through data analysis and machine learning. For example, AI can predict demand so that goods are prepared in advance to avoid overstocking or stock shortages. In addition, AI can optimize transportation routes and methods, reduce transportation costs, and improve delivery speed.

Smart contract management

AI can assist in developing and enforcing smart contracts. These contracts can be automatically executed according to terms and conditions, reducing human error and delays. At the same time, AI can monitor the performance of contracts, detect potential problems in a timely manner, and reduce the risk of default.

Intelligent tariff and rate management

AI can automatically calculate import and export duties and rates, improving accuracy and reducing human error. In addition, AI can analyze changes in global tariff policies to provide a reference for companies when making decisions.

Intelligent risk management

AI can use big data analysis to identify potential trade risks, such as political risk, exchange rate risk, etc. Enterprises can use AI to develop risk management strategies and reduce potential losses.

Empower international trade

According to the World Trade Organization (WTO), the volume of global trade has continued to grow in recent years. Among them, the volume of global trade increased by 1.9% in 2019, reaching $31.6 trillion. Despite the decline in global trade volume in 2020 due to the impact of the pandemic, global trade volume is expected to resume growth in the coming years as the global economy recovers. In this process, AI will play an important role in accelerating trade and increasing efficiency.

Specifically, AI can accelerate international trade in the following ways:

Improve the efficiency of supply chain management

Through the application of AI, enterprises can process orders and shipping information more quickly, thereby improving the efficiency of supply chain management. This will help shorten lead times and improve customer satisfaction. It is predicted that by 2025, 90% of the global supply chain will be managed automatically.

Reduce logistics costs

AI can reduce logistics costs by optimizing transportation routes and methods. For example, through machine learning and big data analytics, AI can predict future demand trends and provide enterprises with the best transportation strategy. This will help reduce inventory overruns and out-of-stock phenomena, and reduce the operating costs of enterprises. According to statistics, global logistics costs account for about 15% of total trade, and through the application of AI, this proportion is expected to be reduced by 5%.

Improve the accuracy of trade decisions

AI can provide accurate information on trade decisions through big data analysis. For example, AI can analyze trends in global tariff policies to provide companies with the best import and export strategies. This will help companies reduce decision-making risks and improve profitability. It is estimated that by 2025, AI will play an important role in trade decision-making, improving the accuracy and efficiency of decision making.