New era of global trade conflicts: AI in navigating businesses and governments

Views: 20

Both Europe and the world entered a new era of international commerce: as the result, many businesses would go bust while new companies and governance models emerge. Digital technologies are going to play a vital role in resolving this and other emerging crises facilitating rapid change’s adaptation in political economies and governance. 

Introduction
The fast-growing arena of digital services in almost all spheres of national and global relations has some intentions to include the international trade too with increasing trans-national trade disputes (like recent turbulent calamities with the US-initiated tariffs), retaliations in digital services taxes, intellectual property changes, and so on and so forth.
Generally accepted experts’ opinion depicts the trend: as soon as digital revolution and artificial intelligence systems (AIs) have already occupied a profound place in dealing with crises over the last years, it is possible that they would efficiently deal with vast data sources and “train” possible solutions.
Numerous AIs are used presently in assisting corporate community in grasping the unfolding political-economic context. The present situation will be a defining test of AI’s ability to cope with epochal shifts, rather than making inferences within well-established parameters, noted the World Economic Forum’s head of international trade and investment, Sean Doherty.
The era of tariff turmoil will be a defining test of AI’s ability to decipher unclear and confusing outcomes. AI systems can help with vast data handling and new trade compliance obligations, as well as screening new commercial opportunities or tackling administrative burdens, outlining the emerging opportunities for the digital trade.
Doherty S. Navigating global trade: AI solutions for tariff turmoil. – The National, April 9, 2025. In: https://www.thenationalnews.com/business/economy/2025/04/09/navigating-global-trade-ai-solutions-for-tariff-turmoil/?utm_source=sfmc&utm_medium=email&utm_campaign=2849888_ForumStories-11April2025&utm_term=&emailType=Forum%20Stories

History and perspectives
Fair and transparent adoption of AI in trade demands that we look carefully at governance issues, including data access, end-user adaptability of AI models and their interoperability with diverse regulatory systems. Regional inclusion in governance decisions is needed, along with consideration of minority languages, for which training data may be sparse. Clear accountability rules are needed for managing potential machine-generated errors and hallucinations.
Various international frameworks for AI governance have been advanced, among them the G7-driven Hiroshima AI policy framework. In 2023, under Japan’s Presidency, the G7 launched the “Hiroshima AI Process,” a framework for discussion regarding international governance framework for advanced AI systems and agreed on the “International Guiding Principles” and “International Code of Conduct”. Besides, the Hiroshima AI Process Friends Group was launched in May 2024 as a voluntary framework of countries supporting the spirit of the Hiroshima AI Process. The latest meeting of the “AI Process Friends Group” took place in February 2025 in Tokyo. It is expected that the Hiroshima AI Process will be gathering broader support from a diverse range of actors, including governments beyond the G7 structure, including developing and emerging economies, private sector, academia and civil society, and will facilitate building up inclusive global governance on AI for the common good of the world, and thus enable people around the world to benefit from safe, secure and trustworthy AI.
This World-wide AI framework considers risks and opportunities, provides guiding principles for all actors in the system and formulates a code of conduct for digital developers.
On Hiroshima AI policy framework in: https://www.soumu.go.jp/hiroshimaaiprocess/en/meeting/results.html

Completing a trade deal and the transactions incorporates presently numerous new circumstance, such as SDGs and ESGs (e.g. with sustainable trade finance, circularity, public health, etc.), as well as digital means including AIs, has become a very important component of modern non-standard and mostly digitalized governing decision.
For example, the implications of AI on contemporary tariffs and trade regulations are profound, offering both opportunities for enhanced efficiency and challenges related to compliance and geopolitical tensions. Businesses that effectively leverage AI technologies will likely gain a competitive edge in navigating the complexities of the current global market landscape shaped by evolving tariff policies.
Besides, AI technologies enhance the assessment and collection of tariffs through improved data analysis, real-time monitoring capabilities, predictive modeling for strategic decision-making, automation of compliance tasks to reduce errors, and detection mechanisms for evasion tactics. These advancements not only streamline processes but also increase the effectiveness of tariff policies in a rapidly changing global trade environment.

The ChatGPT’s opinion on the issue
I asked Chat GPT: What is the role of AI in navigating global trade conflicts?
Here is the answer divided by sectors and/or paragraphs:
= AI is playing a crucial role in helping businesses and governments navigate the complexities of global trade conflicts by enhancing decision-making, improving compliance, and streamlining operations.
= Enhancing Decision-Making. AI technologies are increasingly being utilized to analyze vast amounts of data related to trade policies, tariffs, and market conditions. By leveraging machine learning algorithms and data analytics, businesses can gain insights into potential trade conflicts and their implications. For instance, AI can help identify patterns in trade flows that may indicate emerging disputes or shifts in market dynamics. This predictive capability allows companies to make informed decisions about sourcing, pricing, and market entry strategies.
Governments are also using AI to assess the impact of proposed trade policies on various sectors of the economy. By simulating different scenarios based on historical data and current trends, policymakers can better understand the potential outcomes of their decisions. This analytical approach helps mitigate risks associated with trade conflicts by enabling more strategic planning.
= Improving Compliance. As global trade becomes more complex due to varying regulations and standards across countries, compliance has become a significant challenge for businesses. AI can automate compliance processes by monitoring changes in regulations and ensuring that companies adhere to them. For example, AI systems can track updates in customs regulations or export controls, alerting businesses when they need to adjust their practices. Furthermore, AI-driven tools can assist in classifying products accurately according to international standards, reducing the risk of non-compliance penalties. This automation not only saves time but also enhances accuracy in compliance reporting.
= Streamlining Operations. AI is transforming supply chain management by optimizing logistics and inventory management. In times of trade conflict, disruptions are common; however, AI can help businesses adapt quickly by providing real-time insights into supply chain performance. For instance, AI algorithms can predict delays caused by geopolitical tensions or changes in tariffs, allowing companies to adjust their sourcing strategies proactively.
Additionally, AI technologies such as robotic process automation (RPA) streamline repetitive tasks involved in international trade operations. By automating these processes, businesses can focus on higher-value activities that require human judgment and creativity.
= Facilitating Negotiations. In the realm of international diplomacy and trade negotiations, AI tools are being employed to analyze negotiation strategies and outcomes. Governments can use AI to model the potential impacts of different negotiation stances on economic indicators such as GDP growth or employment rates. This analysis aids negotiators in crafting strategies that maximize benefits while minimizing risks during discussions with trading partners.
Moreover, AI-powered platforms facilitate communication between stakeholders involved in trade negotiations by providing real-time translation services and summarizing key points from discussions. This capability enhances collaboration among diverse parties with differing languages and cultural backgrounds.
= Conclusion. In summary, AI is significantly influencing how businesses and governments navigate global trade conflicts by enhancing decision-making capabilities, improving compliance with regulations, streamlining operations within supply chains, and facilitating effective negotiations. As these technologies continue to evolve, they will likely play an even more pivotal role in shaping the future landscape of international trade amidst ongoing challenges.
The probability of the answer is high and based on current information available as of April 2025.
Source and citation from: https://iask.ai/?mode=question&q=How+AI+is+navigating+businesses+and+governments+in+a+new+era+of+global+trade+conflicts+

Note. I leave it to the readers a chance to evaluate the efficiency of the answer…

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

fifteen + twenty =