Digitalization and AI could boost global trade by US$2.8 trillion by 2031

Digitalization and the adoption of artificial intelligence could add US$2.8 trillion to annual global trade by 2031, according to a report by Standard Chartered and Oxford Economics. This potential growth represents a 6.9% increase above baseline levels, with services trade expected to benefit significantly.

Data from the United Nations Conference on Trade and Development (UNCTAD) indicates that services are becoming central to global production, accounting for 71% of global intermediate inputs in 2022. Digitally deliverable services (DDS) now comprise 56% of global services exports, following a decade of 7.1% average annual growth.

However, a significant gap exists between developed and developing nations. While DDS account for 61% of services exports in developed economies, they represent only 16% in least developed countries. UNCTAD warns that weak connectivity, high payment costs, and low AI readiness may further widen this economic divide.