The WTO Disciplines and Trade in Products Powered by Artificial Intelligence: Old Wine and New Wine-skin?

Abstract

As goods and services powered by AI continue to proliferate, scholarly opinion seems to consider that current WTO law is insufficient to regulate trade in AI-powered products. The following reasons can help explain this perceived insufficiency of the WTO law: (a) AI-powered products are difficult to categorise within the perceived goods/services dichotomy under WTO law, thus causing uncertainties as to the applicable legal regime; and (b) the WTO law has yet to respond to the need for national governments to strike a balance between trade and controversial trade practices regarding AI-powered products. This paper argues that while current WTO law is far from perfect, it does partly regulate trade in AI-powered products. The following observations substantiate the partial regulation of trade in AI-powered products by the WTO law: (a) AI-powered products cannot escape existing WTO disciplines on trade in goods and trade in services, by virtue of either the involvement of AI or the perceived goods/services dichotomy; and (b) efforts to balance trade/non-trade interests associated with trade in AI-powered products are allowed under the GATT/GATS’ ‘public morals’ and security exceptions.