Artificial Intelligence and Trade

Abstract

The last two hundred years have produced a remarkable list of major innovations, not least of which is artificial intelligence (AI). Like other major innovations, AI will likely raise average incomes and improve well-being, but it may also disrupt labour markets, raise inequality, and drive non-inclusive growth. Yet, even to the extent that progress has been made in understanding the impact of AI, we remain largely uninformed about its international dimensions. This is to our great loss. A number of countries are currently negotiating international agreements that will constrain the ability of sovereign governments to regulate AI, such as NAFTA and TPP 11. Likewise, governments around the world are freely spending public funds on new AI clusters designed to shift international comparative advantage towards their favoured regions, including the Vector Institute in Toronto and the Tsinghua-Baidu deep learning lab around Beijing. The international dimensions of AI innovations and policies have not always been well thought out: This work begins the conversation.