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How AI will remake the rules of international trade

The US is likely to remain a leader in artificial intelligence’s innovation, but it may need to rely on other nations for final AI outputs

    • Nations that develop or tolerate AI-generated innovations could become more important exporters.
    • Nations that develop or tolerate AI-generated innovations could become more important exporters. PHOTO: AFP
    Published Thu, Oct 12, 2023 · 03:36 PM

    WHEN it comes to international trade and investment, artificial intelligence (AI) will create some obvious winners and losers. It’s the second-order effects that may prove more interesting.

    To understand those, start with two premises: First, AI services will consume a lot of energy, not all of which will be green. Second, many nations will regulate either the use of AI, or the implementation of AI-derived goods and services, for instance the creation of new pharmaceuticals or new educational techniques.

    Let’s consider each of these factors in turn.

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