Artificial intelligence (AI) is beginning to reshape global services trade, though participation and policy hurdles remain, said an official from the United Nations Conference on Trade and Development (UNCTAD) at the ongoing China International Fair for Trade in Services (CIFTIS).
The five-day fair opened Wednesday, drawing participants from 90 countries and regions, along with more than 1,800 companies exhibiting on site.
Luz Maria de la Mora, director of UNCTAD’s Division on International Trade and Commodities, said this year’s AI-focused exhibition zones highlight how technology is moving to the forefront of services and trade.
"We are seeing great growth related to knowledge intensive services and digital deliverable services. In fact, we can say today that 56 percent of exports of services are driven by digital trade. So what this means is that more companies are involving into the digital space have the opportunity, but there is also a challenge. The challenge is that how do we make sure that countries, companies, regions can participate in that sector. Because the opportunities are there for growth," said Mora.
Mora said AI is beginning to reshape trade. She noted that services account for roughly 17 percent of inputs in global value chains, with growing diversity shaping countries’ growth prospects. As AI expands, she added, it is driving new applications in finance, education, health, communication and efforts to tackle financial exclusion.
"AI has the potential to increase productivity, to create better paid jobs, and also to include more people. But it also has challenge, since it's a new knowledge that requires infrastructure, it requires connectivity, it requires equipment, it requires people to know how to develop this sector, and to participate in this sector. We also need to make sure that policy makers also understand the opportunities, the challenges and the kinds of policies that they need to putting place to take advantage of these new technologies," she said.
UNCTAD's latest report shows that services are becoming a driving force in global trade, yet least developed countries continue to lag in digital exports. She discussed UNCTAD's efforts to narrow this gap.
"So the first opportunity and challenge is to be able to process data from different sources to make better decisions. And the second one has to do with policy recommendations. Those policy recommendations are based on the analysis. So we learn from the Chinese experience and we try to exchange information, we bring a dialogue. In this way, we can offer some alternatives, some pathways for developing countries to also be able to develop their own digital sectors. CIFTIS is a unique place. The business community, governments, policy makers, academia, civil society. So everybody convenes and they show what they have done in terms of developing the sector, in terms of policies. We learn about the experiences of each other," she said.
The director cited China’s pilot zones as an example, saying they have helped create companies in the service sector and digital economy. These companies, she said, have shown that integrating services and digital knowledge can raise productivity and improve pay.
"These examples of how China has piloted trade [in] services can help other developing countries also develop their own sectors. And China can also benefit from the knowledge, from the ingenuity of other countries to be able to strengthen the sector," she said.
AI beginning to reshape global services trade: UNCTAD official
