Dr. Abdel Wahab Ghneim, Deputy Head of the Arab Digital Economy Union at the Arab League and Cambridge University consultant, has shed light on the significant impact of artificial intelligence (AI) on global trade. According to him, AI is a crucial application of the Fourth Industrial Revolution, revolutionizing trade through its influence on production, marketing, and distribution methods. It also enables companies to analyze markets, predict demand, choose efficient shipping routes, and enhance customer service.
Dr. Ghneim further explained that AI plays a vital role in supporting e-commerce and increasing productivity while reducing costs. He pointed out that other essential applications of the Fourth Industrial Revolution include big data analysis, the Internet of Things, nanotechnology, biotechnology, drones, and the Metaverse. These technologies are transforming the way businesses operate and interact with consumers.
The e-commerce sector, Dr. Ghneim noted, undergoes four stages, starting with product search through digital platforms, where AI is invariably present. The subsequent stages involve purchasing and contracting, digital payments, and finally, supply chain management. AI significantly optimizes these processes, making them more efficient and cost-effective.
Highlighting AI's potential, Dr. Ghneim cited a McKinsey research institute report, which predicts that AI will contribute approximately $13 trillion to global economic growth by 2030. This projection represents about 10% of the world's economy, underscoring AI's substantial role in accelerating digital economy growth. Global e-commerce, valued at $30 trillion, is a significant beneficiary of AI applications.
Dr. Ghneim emphasized that e-commerce encompasses not only products but also services, including digital services provided to consumers and businesses over the internet. These services, such as paid research, legal or medical consultations, contribute significantly to the economy, particularly in countries like the United States, where the service sector is a substantial economic driver.
The Egyptian government is taking steps to leverage AI, with plans to establish an information center for artificial intelligence. This initiative aims to enhance Egypt's digital infrastructure and support efforts to adopt advanced technologies. By investing in AI, Egypt seeks to bolster its position in the digital economy.
The integration of AI into various sectors is expected to continue, driving growth and efficiency. As Dr. Ghneim's insights suggest, understanding and harnessing the power of AI is crucial for businesses and governments alike to remain competitive in the evolving global trade landscape.
Key points
- Dr. Abdel Wahab Ghneim highlights AI's role in optimizing e-commerce processes, from product search to supply chain management.
- AI is projected to contribute $13 trillion to global economic growth by 2030, according to McKinsey.
- The Egyptian government plans to establish an AI information center to enhance its digital infrastructure.
