When Artificial Intelligence (AI) first appeared on the scene, its underlying technology was generally aligned with the interface of blockchain technology. For the uninitiated, visualize AI programming as computers who teach themselves and each other.
When blockchain technology is added to this visualization, you have computer systems that teach themselves based on records that have a specific value.
Picture a half dozen computers programmed to allow data input that can also base their understanding of data input according to value structure set forth by blockchain records.
Two Types of AI
There are two types of AI, the general and original kind and what is known as narrow AI. It is easier to understand that general AI can apply to generic data, while narrow AI, as its name implies, is limited to specialized data input such as international trade.
In both types, AI outperforms humans in handling repetitive tasks and processing complex algorithms more expediently. One might conclude AI is basically cognitive computing that can simulate human thoughts.
How AI Will Impact International Trade
If by definition, AI is cognitive computing that can simulate human thoughts, the impact on international trade may include:
. Interest rates
. Aggregate economic structure
. Goods and services produced
. Unemployment as a result of cognitive computing
. Global trade regulatory compliance for imports and exports
. Investments in new technologies that complement AI
AI Impacts Productivity
It is easy to see computers will still require initial, selective human data input before each computer can transfer segments of data to others in the blockchain.
However, this impacts human productivity. For example, where human input was required to predict customer behavior, assess, evaluate and calculate the most beneficial and economically feasible shipping routes and predicate foreseeable customer order cancellations, all of which require several types of human expertise, AI provides this on a faster, more proactive basis.
How Interest Rates are Impacted by AI
It has already been seen how a national change in interest rates impacts global economies. AI adds to these impacts by having the ability to take interest data and predict outcomes of changes in global interest rates on a country to the country level.
Obviously, by beginning with interest data in blockchain AI, it is possible for cognitive computers to develop beneficial changes to bank interest rates as well as impact inflation rates.
Aggregate Economic Structure and AI
For many countries that adopt AI for international trade, their trade partners in developing countries may not be structured to adopt sophisticated technologies such as AI.
The impact of this type of breach in macroeconomics relates closely to international trade agreements and trade partnerships and relationships.
Goods and Services Produced Impacted by AI
Since there is a reduction in the need for services formerly managed by human input, products and services are also impacted by AI.
With highly developed machine learning coupled with robotics, goods and services are positively impacted as a result of the ability to produce more accurate services that involve the production of products.
For instance, a manufacturing company can be located internationally, and its goods can be managed by robots, while AI determines advanced levels of robotic productivity.
Unemployment as a Result of Cognitive Computing
When computers can produce multitasking that surpasses human ability, the natural impact is for unemployment to increase. However, this is not necessarily due to the effects of AI.
In developing countries with low economic growth or limited goods and services to promote internationally, the impact may cause unemployment if there is no government preparedness for AI technology or incentive to educate and train employees for emerging hi-tech jobs.
International Trade Regulatory Compliance for Imports and Exports
The United States established International Traffic in Arms (ITAR) regulatory structure that restricts and controls the exportation of defense and military-related technologies.
ITAR was created to protect U.S. national security and strengthen its international trade policies.
Thus, U.S. exporters of military and defense technologies must have an ITAR registration in order to comply with the compliance for imports and exports.
Investments in New Technologies that Compliment AI
The cost of investment in new technologies that complement the implementation of AI for the most beneficial impact strikes at the heart of international trade.
The fundamental elements of international trade allow for the exchange of goods, services, and capital across various international territories and/or borders.
As such, it is easy to imagine the need for investments in new technologies that promote and advance the use of AI over the international schematic of trade.
Countries whose goods are crucial to the need of their trade partners will need to invest in speech recognition, natural language generation and processing (NLP), AI optimized hardware, virtual agents, decision management, robotic process automation, biometrics. Text analytics, deep learning, and machine learning platform technologies.