The World Economic Forum Annual Conference, the global conference on all things finance and economy, took place this week in Davos, Switzerland. Bringing together leaders from every corner of the world and every industry, the WEF has seen discussions on the topics industry insiders think will dominate 2025.
Between AI, sustainability, and global affairs, trade was also highlighted as a central topic in the conference. At a panel on Thursday, January 23, tradetech took centre stage: in the discussion led by Miishe Addy, Chief Executive Officer of Jetstream Africa, panellists described ways new technologies can impact world trade, removing inefficiencies and boosting security and global interconnectedness.
The power of tradetech
AI is likely to be the most transformative new technology in trade, used for anything from fraud prevention to tailored services adapted to client needs. Developments in robotics, blockchain, and the Internet of Things will also be uniquely applicable to the world of trade, driving growth in nearly every sector.
Applying new technologies to the world of trade could reduce costly mistakes, decrease delays and turnaround times, and improve transparency. But for now, implementation of new technology is too isolated: initiatives work well on their own but lack the scale or capacity to make an impact on the wider industry.
“We’re already seeing many of those technologies under deployments, but in a very scattered way. Each stakeholder is going their own way when it comes to customers and procedures,” said Thani Ahmed Al Zeyoudi, United Arab Emirates Minister of State for Foreign Trade. An intentional focus on improving interoperability will be crucial to make sure new technology is harnessed everywhere.
Processes with a real world impact
Logistics is an area of trade that is long overdue for improvement: most processes are still human-centric and rely on paper documentation that can easily be lost, causing delays and fines. The United Nations Economic and Social Commission for Asia and the Pacific found that 13 million metric tons of paper could be saved from a complete transition to paperless trade procedures, eliminating up to 23 million tons of carbon dioxide equivalent (CO2e) emissions. Digitisation is a low-hanging fruit for environmental, social, and governance (ESG) compliance.
DP World has been employing blockchain to solve many of these issues in the Jebel Ali Free Zone through its World Cargo Terminal Operating System. The system uses blockchain technology to track containers, equipment, and vehicles in the port, reducing delays and increasing transparency. A similar project in Abu Dhabi, the Advanced Trade and Logistics Platform, lets port authorities track ships and containers while they are still in transit, enabling them to get clearance before even entering the port and streamlining a process that can often take days.
Harnessing the digital economy through FDI
Often, nations that could benefit most from new technology most are the ones that struggle to get investment to improve their processes. The Digital Cooperation Organization (DCO) plays an important role in democratizing access to finance by channeling investment in developing countries’ digital economies.
“By 2030, 70% of added value in the global GDP will come from the digital economy. […] To harness this opportunity the right way, [we need to] direct and focus the investments going into the countries,” said Deemah Al Yahya, Secretary-General of the DCO.
AI to democratise trade
As developing countries get investment to start the digital transformation, so SMEs, often the last to reap the benefits of new technology, are increasingly becoming more digital through AI-driven tools. AI can be revolutionary in democratising trade by increasing access to data, which can be crucial for monitoring and streamlining supply chains.
“[Companies] are using their own to try to figure out what’s going on and how to mitigate risks – but when you’re using just your own data, you’re putting yourself in a deficit to be reactive to the market,” said Theodore Krantz, CEO of Interos. With new AI technology, data from all sides of the market can be collected, analysed, and used to build resilience and predict risks.
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New technology is an exciting prospect that could have ramifications in every aspect of the industry if used correctly. Increasing interoperability, sending investment where it is most needed, and ensuring businesses of all sizes have equal access to tradetech will be crucial in the months to come to ensure tradetech reaches its full potential.
