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Digital disruption: artificial intelligence and international trade policy

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  • Emily Jones

Abstract

Digitalization of the global economy is occurring apace and has spurred a new wave of trade negotiations, as governments and technology firms vie to establish international rules and standards for the digital era. This article examines the ways that trade policy-makers are responding to artificial intelligence (AI), arguably the most disruptive of the new digital technologies. In a digitalized global economy, trade rules have implications for AI innovation, uptake, and governance, yet existing trade rules have significant shortcomings and need updating in order to assist with effective AI governance. Updating is happening but, so far, the changes focus on promoting AI and disproportionately reflect the interests of large technology firms, the major innovators and owners of AI. New digital trade rules include stringent intellectual property protections for source code and algorithms, and strong commitments to enable the free flow of data across borders. However, much less progress has been made in addressing cross-border risks and harms associated with AI, in areas such as competition policy; ethical, transparent, and accountable use of AI; personal data protection; and protections against the exploitative use of algorithms in consumer and labour markets.

Suggested Citation

  • Emily Jones, 2023. "Digital disruption: artificial intelligence and international trade policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(1), pages 70-84.
    • Handle: RePEc:oup:oxford:v:39:y:2023:i:1:p:70-84.
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    File URL: http://hdl.handle.net/10.1093/oxrep/grac049
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    References listed on IDEAS

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    1. Mira Burri, 2023. "Cross-border data flows and privacy in global trade law: has trade trumped data protection?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(1), pages 85-97.
    2. Erik Brynjolfsson & Xiang Hui & Meng Liu, 2019. "Does Machine Translation Affect International Trade? Evidence from a Large Digital Platform," Management Science, INFORMS, vol. 65(12), pages 5449-5460, December.
    3. Magdalena Słok-Wódkowska & Joanna Mazur, 2022. "Secrecy by Default: How Regional Trade Agreements Reshape Protection of Source Code," Journal of International Economic Law, Oxford University Press, vol. 25(1), pages 91-109.
    4. Amelia Fletcher, 2023. "International pro-competition regulation of digital platforms: healthy experimentation or dangerous fragmentation?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(1), pages 12-33.
    5. M. Goyens, 2020. "Effective Consumer Protection Frameworks in a Global and Digital World," Journal of Consumer Policy, Springer, vol. 43(1), pages 195-207, March.
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    Cited by:

    1. Rafael Andersson Lipcsey, 2023. "The Transformative Effects of AI on International Economics," Papers 2312.06679, arXiv.org.
    2. repec:bcp:journl:v:9:y:2025:i:11:p:3123-3132 is not listed on IDEAS
    3. Bai, Haoyu & Chen, Yuntan & Zhang, Ziyu, 2025. "Exploring the mitigating role of sustainable innovation in supply chain disruption risks under the digital economy," International Review of Economics & Finance, Elsevier, vol. 103(C).
    4. Emily Jones & Christopher Adam, 2023. "New frontiers of trade and trade policy: digitalization and climate change," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(1), pages 1-11.

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