The World Trade Organization (WTO) recently released its 2025 World Trade Report, which explored the complex and fast-evolving relationship between artificial intelligence (AI) and international trade.
Below are the findings most relevant to the textiles and fashion apparel sector:
First, AI has the potential to boost global trade. However, the impact on different sectors varies. According to the report, AI is expected to significantly boost global trade by 34-37% between 2025 and 2040, with larger increases in digitally deliverable services (around 40% growth), followed by other services (around 30%). In comparison, the AI-driven growth of global trade in the manufacturing sector (22-24%) and the primary input sector (9.5-9.9%) will be much smaller.
Second, AI is helping to reduce trade costs through multiple channels. For example, as the report noted, AI can help reduce trade costs through “optimizing trade logistics, streamlining regulatory compliance and contract enforcement, reducing language barriers, enhancing international communication, and improving search and matching processes between suppliers and buyers.” As another example, the report noted that, “in retail, AI-supported scenario planning has helped firms to diversify suppliers and adjust sourcing calendars to align with changing tariff regimes.” All of these AI applications could be used in apparel sourcing and trade.
In a March 2025 survey conducted by the WTO and the International Chamber of Commerce (ICC) among firms currently using AI, 90 percent reported tangible benefits in trade-related activities, and 56 percent reported that AI enhanced their ability to manage trade risks. The survey also found that “Larger firms primarily use AI for compliance with trade regulations, contract analysis, and trade finance. Smaller firms, in contrast, tend to focus on market intelligence and improving communication.”
Third, AI’s impact on jobs seems to be complicated. For example, the report suggests that AI will have limited impacts on low-skilled apparel manufacturing jobs, but could replace middle-skilled and high-skilled jobs (such as those in apparel wholesaling and retailing). According to the report, “The task substitution from human labor to AI is more pronounced for medium-skilled and high-skilled occupations than for low-skilled ones.”
Meanwhile, the report categorized textiles and apparel manufacturing (ISIC code 13-15) as a “low” AI-intensity sector, and wholesale and retail (ISIC code 45-47) as “medium” AI-intensive. Nonetheless, the report estimates only a modest share of tasks to be replaced by AI—about 3% for low-skilled and 7–9% for medium- and high-skilled workers.
Fourth, the report calls for “deliberate efforts” by policymakers to broaden AI access and ensure the gains from AI will be evenly distributed globally. In other words, without targeted, proactive policymaking, AI could worsen global inequalities rather than reduce them.
For example, the report suggests that AI could act as an equalizer by increasing the productivity of medium- and low-skilled workers in developing economies. Combined with lower trade costs for cross-border services, these improvements could create more opportunities for companies and professionals in developing economies to engage more actively in global markets.
However, the report also warned that “AI may shift comparative advantages in ways that reinforce inequality.” Notably, “AI adoption is not uniform, as it tends to cluster in large, urban, digitally connected firms in high-income economies… AI technology favors capital- and data-intensive production, which could erode the competitiveness of economies that rely on low-skilled and low-cost labor.”
Additionally, the report noted that trade barriers remain an issue for international trade in the AI era. For example, AI-enabling goods are increasingly affected by technical barriers to trade (TBT). Also, AI-intensive services still face significant restrictions on trade as countries have only made modest commitments under the WTO’s General Agreement on Trade in Services (GATS). Furthermore, regulations on cross-border data flows are still largely fragmented. This explains why the WTO could still play a vital role in supporting AI development, from promoting open markets in AI-related goods and services, to supporting AI innovation and diffusion through intellectual property rights protection, and to encouraging greater regulatory consistency on trade-related aspects of AI.
Summary by Sheng Lu
FASH455 Global Apparel & Textile Trade and Sourcing 
This blog post provided a great deal of insight into how AI can transform international trade. As AI continues to evolve, it is increasingly important for the fashion industry to understand the tool and how it can be used. Professor Sheng Lu described that by 2040, global trade can be boosted through the use of AI by 34-37%. This number indicates that AI can grow international trade, showing its impact. A few ways that AI can help boost this growth are by reducing trade costs and managing trade risks. As we’ve discussed in class, we see how difficult it can be to manage supply chains. AI can help reduce any obstacles that come with ensuring that supply chains are working effectively. Despite these positive outcomes, it’s important to highlight the negative effects. Professor Sheng Lu shared that middle to higher-skilled jobs are at risk due to AI, as it can be used as a replacement. This is an outcome that must be monitored if the industry continues to use AI for international trade, as it can have economic and social consequences. Overall, AI can play a vital role in growing and supporting international trade. It is important to assess the negative side to maintain responsibility and ethics.
I thought this report was interesting, especially how AI is expected to grow global trade by over 30% but impact each sector differently. It made me think about how AI could change apparel sourcing, like improving supplier communication and reducing logistics costs, which could really benefit brands managing complicated global supply chains. I also found it surprising that low-skilled apparel manufacturing jobs might not be affected as much as mid and high skill ones in retail and wholesale. It shows that AI’s roles in fashion aren’t just about design or marketing but also efficiency, risk management, and fair access to tech across countries.
I thought this blog was very informational and gave a lot of thoughtful insight as to how AI can be beneficial when it comes to global trade. The points discussed in this blog were not surprising, given technology is changing all around us and the topic of AI is heavily talked about in conversation and will continue to be. The blog stated that AI is expected to significantly boost global trade by 34-37% between 2025 and 2040, with larger increases in digitally deliverable services. This is a huge change over the next decade and a half, and it suggests that AI will play a major role in driving innovation and efficiency across fashion markets. In addition to this, I wasn’t surprised to hear that AI could impact jobs, specifically replace middle-skilled and high-skilled jobs. I think this is very likely, as AI can complete many tasks faster and more efficiently, which will reshape certain career fields. I think this could benefit the fashion industry, as it would allow workers to focus on more human-centered roles that AI is not able to replicate.
Echoing the above comment, this post was very informative and thoughtful. One statement in particular claimed: “AI is expected to grow global trade by over 30% but impact each sector differently.” I believe that generative AI is set to take many jobs across the board, whether it be in design ideation, crafting, or labor through machinery. Thus, my main takeaway is the complex and multifaceted effect that AI could have on the fashion industry. For example, the report states that AI could present as an equalizer in regard to increasing worker productivity, while also stating that “AI may shift comparative advantages in ways that reinforce inequality.” The dual nature of the effect of AI is yet to be seen at a largescale level. Personally, my primary concern is authenticity in the fashion industry. Does Artificial Intelligence have to capacity to be authentic?
I agree with this report because it really shows how fast AI is changing global trade and how the fashion industry needs to keep up. The findings of AI boosting trade by 34–37% by 2040 make a lot of sense to me, especially since we’re already seeing how much technology is improving in supply chains and communication. I also agree with the point about jobs shifting-AI will definitely replace certain middleand high-skilled tasks, but I don’t really think that’s all negative. It could actually let people in fashion focus more on creative work and the human side of the industry. Overall, I think the report makes strong points about both opportunities and risks, and it’s important that the fashion industry pays attention to both.
After reading the World Trade Report on AI, what stood out to me the most is how the benefits of AI differ between sectors and even countries. AI offers many advantages to apparel and trade sourcing because AI can be used to track data efficiently and therefore predict better results for demand to avoid overstock or understocking. AI can also help predict different scenarios to avoid risks and easily re-route products which would be valuable since the supply chain can be disrupted at any time. However, AI also comes with potential challenges and can replace many skilled labor jobs. As the article highlighted, this would majorly impact the apparel industry because these jobs are often seen in lower income countries without the means to support technology like AI. AI could grant many benefits but could also widen the gap of inequality between developing countries and wealthier economies.
The report draws a clear line between AI’s gains in trade and who actually benefits. AI lifts total trade, but textiles and apparel sit in a “low” AI-intensity group and see far smaller gains than digital services. That matters for many exporting countries that depend on cut-and-sew work.
I find the job result striking. Low-skilled factory work in apparel changes little, yet medium- and high-skilled roles in wholesaling and retail face more task replacement. So the risk shifts from the factory floor to offices and showrooms. Training programs for planners, merchandisers, and buyers look more urgent than ever.
The survey data on large versus small firms feels very realistic. Big firms use AI for compliance, contracts, and finance. Small firms use it for market research and communication. That gap can widen power imbalances in global supply chains if smaller suppliers cannot access the same tools or data.
The policy message is the key part. AI can raise productivity for workers and firms in developing economies, but only if they gain access to infrastructure, data, and open markets. Without that support, AI strengthens already powerful players and makes trade in fashion even less equal.
The World Trade Organization’s post highlights the potential benefits and drawbacks of AI implementation in global trade and manufacturing industries. Specifically regarding the textile and apparel sector, AI can be used for logistical efficiency and streamlining internal processes. The most interesting point, I thought, was that AI is predicted to replace higher-level skilled jobs more so than lower-skilled jobs. This makes sense logistically as “lower-skilled” jobs require hands-on production, specifically in manufacturing, where as “high-skilled” jobs are more capital or technology driven. I wonder if this data point will have an impact on university vs trade school attendance as the usefulness of a college degree has come more under-fire in recent years. Will this data point be the final factor in influencing students to pursue a trade rather than a degree? Though the percentage is rather low for both low and middle-high skilled work being replaced by AI, the technological capabilities of AI have not been fully discovered, so these percentages could continue to increase as the implementation of AI also rises.
This article was a really insightful breakdown of the World Trade Report 2025. What stood out most to me is how uneven AI’s impact will be across different parts of the textile and apparel supply chain. It’s interesting that apparel manufacturing remains a “low” AI sector, yet other areas like wholesale and retail face much higher exposure to AI-driven job substitution rather than human labor. This reinforces how digital transformation is reshaping the business side of fashion much faster than the production side. It is able to fill the hands on work of business.
I was also intrigued by the report’s emphasis on AI reducing trade costs, especially with optimization, and better supplier matching. These applications feel particularly relevant as the apparel industry deals with sourcing diversification, tariff uncertainty, and constant pressure for faster decision-making.
What really stood out to me is how uneven AI’s impact will be on fashion and textiles. The report makes it clear that while AI could massively boost global trade overall, apparel manufacturing won’t see the same gains. Also, the jobs most at risk aren’t low-skilled factory roles but the middle and high-skilled positions in retail, wholesale, and even parts of sourcing. I thought the section on reduced trade costs was interesting, especially how AI can help brands diversify suppliers or adjust sourcing calendars, but it also feels like something only larger companies can fully capitalize on right now. The biggest takeaway, though, was the inequality angle. AI could help level the playing field for developing economies, or it could make the gap even worse depending on how accessible the technology becomes and how coordinated global regulations are. This report made the future of AI in fashion feel promising but definitely not evenly distributed.
This article showed me how AI is starting to shape global trade, especially in industries like textiles and fashion. Overall, the WTO predicts that AI could boost global trade by over 30% by 2040, with the biggest gains in digital services. For fashion and manufacturing, the impact is smaller but still important. AI is already helping companies lower trade costs by improving logistics, predicting demand, and making it easier to navigate regulations and sourcing changes. Most companies using AI say it helps them manage risks and communicate better across borders. The report also talks about how AI will affect jobs: it won’t replace many low skilled apparel manufacturing jobs, but it could impact more medium and high skilled roles like those in retail or wholesale. The WTO also warns that AI could worsen inequality if only wealthier countries and big firms benefit, so policymakers need to make AI access more global and fair.
This article immediately reminded me of our fashion panel discussion on November 12, where so many speakers emphasized that AI isn’t something the industry should run from, it’s something we need to learn to work with. The WTO report shows exactly why: AI is actively reshaping global trade, reducing sourcing costs, and even helping companies adjust to tariff changes through smarter forecasting and supplier matching. We literally saw this firsthand when the panelists explained how AI is already guiding consumers directly to specific products, like how Steve Madden uses AI-driven landing pages, personalization tools, and automated styling suggestions to push shoppers toward what they’re most likely to buy. The report’s point that AI will boost global trade by up to 37% and make supply chains more efficient makes total sense when you think about how quickly brands are adopting AI for logistics, market intelligence, and scenario planning. I also thought it was interesting that the report predicts limited impacts on low-skill apparel manufacturing jobs but bigger changes for mid- and high-skill retail roles, which aligns with what we heard about the rise of AI-powered merchandising, buying, and planning tools. To me, this reinforces that as future fashion professionals, our job isn’t to fear AI, it’s to understand it, use it, and let it elevate our skills. AI is clearly becoming woven into every part of the fashion ecosystem, from sourcing to retail, and the people who know how to work with it and not against it.
This report was really eye opening. I liked how it explains that AI can improve efficiency and transparency in global trade while also creating opportunities for smaller businesses to compete internationally. At the same time, it highlights the risks for countries and companies that lack access to technology or digital infrastructure, showing that supportive policies and investment are just as important as the AI tools themselves. It really makes you think about how trade and technology need to work together for growth to benefit everyone.
This report argues that AI can potentially transform global trade. It has the power to boost goods and services trade by nearly 40% and raise global GDP. This would be a great advancement, but the article warns that without strong policies, AI could worsen inequality and bad work ethics. This would leave low income groups and small businesses to suffer. The future of ethical sourcing and trade is going to be determined by the way the AI tools are integrated into supply chains rather than tariffs.
This breakdown of the 2025 World Trade Report really highlights how transformative AI could be for global trade and, indirectly, the apparel industry. I found it especially interesting that AI could boost global trade by an estimated 34–37% by 2040, largely through gains in digitally deliverable services, logistics efficiency, and smoother cross-border communication. The article also makes a great point that AI won’t affect every sector equally: apparel manufacturing is considered a low AI-intensity sector, meaning the direct impact may be more limited compared to services or retail, which can adopt AI more easily. Still, for sourcing professionals, the potential for AI to streamline compliance, improve supplier matching, and reduce operational friction could make global supply chains more efficient. Overall, this was a really thought-provoking look at where trade and technology are heading.
What stood out to me most in the WTO’s 2025 report was the contrast between how transformative AI could be for global trade overall and how little its direct impact may be on apparel manufacturing. Although textiles and apparel are considered “low” AI intensity sectors, the report made it clear that fashion still benefits a lot from AI through lower trade costs and better supplier matching, areas that matter just as much as production. I also found it interesting that AI may impact middle and high skilled jobs more than lower skilled ones, especially with the amount of retail and wholesale roles fashion students pursue. The reports warning about unequal AI adoption also stood out to me as very relevant. If capital and data rich countries gain most of the advantages, developing apparel exporting economies face the risk of falling behind. This post reinforces why global rulemaking, open data flows, and investment in digital technologies are key for making AI an equalizer rather than a divider in the fashion industry.
This article highlights that World Trade Organization’s 2025 report finds how AI could reshape global trade, specifically the fashion and apparel industry. Artificial Intelligence could boost global trade by 34-37% by 2040, which could significantly speed up supply chains and lower costs. This could help fashion brands improve sourcing, logistics, and compliance especially with smaller sized brands. Although, the report still warns that without fair access to different AI tools and strong rules on trade, countries risk being left out of this advancement leaving a space for inequality to grow.
This article was very informative, especially on how it highlights AI can help transform global trade. This is fascinating because what I mostly hear about AI is how it is bad for jobs and people since it can replace certain employment. This is discussed in the article and could replace the lower income jobs that many people rely on. However, the article discusses how the AI can help reduce the disruptions in the supply chain and benefit the tracking of demand which can reduce the amount of waste of materials. Technology is becoming more prevalent and are creating advantages but are taking away opportunities, but I am hoping that as it becomes more advance there is a way to create balance between people and technology and benefit the process of global trade.
This article provided a lot of insight into the relationship between AI and international trade. What stood out to me was how low-skilled apparel manufacturing jobs were at less of a risk to be replaced by AI than middle and high-skilled jobs. This makes a lot of sense when you consider how AI is useful and efficient when it comes to jobs involving things like planning and logistics. I also found it fascinating how AI has the potential to boost global trade by over 30%. I think it will be interesting to see if companies will use AI to replace jobs completely, or instead teach people how to work alongside AI.
I enjoyed this article because it helped me gain more knowledge on WTO’s findings by connecting AI with global trade. It is interesting to me how AI’s impact is different across various industries and areas around the world. One major thing I learned was that AI can reduce trade costs. AI plays roles in sourcing strategies for logistics, supplier matching, and more. To me it is especially interesting how companies are utilizing AI to adjust sourcing calendars around tariff changes. This is amazing how people are choosing to use technology in a way that can be convenient and effective. Furthermore, the section talking about careers was eye-opening for me. I enjoyed how it explained how AI will not be hitting manufacturing jobs as many might expect. They will mostly be affecting roles in retail and wholesale.
I liked that the article further explains the uses of AI and how it can make global trade faster and cheaper especially within the fashion industry. It did not surprise me to read that both small and large companies use AI for things like market research and financial tasks. However, it does make me nervous for future jobs. If AI can be used for trade regulations and trade finance, what will people whose job that is do? There are definitely positives and negatives effects with the use of AI. Like the article says, it could replace middle and high skilled jobs. This is very surprising to me because I would have expected low skilled jobs to be replaced first. I did not like to learn that AI can reinforce inequality because of the unfair advantage some countries have with advanced technology compared to others. I think it will be interesting to see how AI is used in the future and what the lasting effects will be.
This blog was very insightful into where the fashion industry is currently utilizing AI and the growth of this in upcoming years. One area though that brought up some interesting questions for me is when the report discusses how to utilize AI to manage trade risks regarding supply chain and manufacturing. There is no doubt that using AI has been helpful to brands allowing them to search through data and find the most efficient and help to mitigate risks connecting to production. My question is that recently the Trump Administration’s tariff plan caused so many huge issues for so many brands causing them to restructure their supply chain. This leads me to wonder if all brands use AI to manage their supply chain. What is to prepare them for another unpredictable problem that can come up such as the impacts of tariffs.
AI could affect the supply chain just as much as tariffs have been doing. Brands that have begun to incorporate AI, are seeing lower trade costs because there’s less paperwork that needs to be done and not as many delays between countries. This made me think about how many countries are even able to use AI. Lower and less developed countries may not have the funds or skills to even incorporate AI. This is going to create an uneven balance and make global trade even more uneven. While AI reduces costs for developing and production, it’s also a harm to our environment. This could turn consumers away from a brand in the long run. The fashion industry has only recently started to incorporate AI, which we are very behind from other industries. This makes me wonder if factory jobs will still be available, and all the jobs that will be lost are corporate jobs.
The article references the 2025 World Trade Report to detail how drastically AI has impacted the apparel and textile supply chain. This technology has the ability to increase global trade and lower costs. Both of these components are highly appealing and relevant within an industry facing pressures from tariffs and the need for efficiency. This technology possesses the ability to evolve the business piece of fashion, yet there remains struggle with the production side.
With AI already impacting the wholesale and retail sectors of the industry, I find there to be major concern for the complete substitution of technology in place of human labor. If trends continue and AI further evolves rapidly, those in lower-developed countries who rely heavily on these labor-intensive, low-wage jobs as their primary source of income, will be faced with hardship. There needs to be some balance in terms of how much we let AI enhance our apparel and textile supply chain, as too much lenience may come at the risk of individuals’ livelihoods.
The WTO’s new 2025 report breaks down how AI is basically becoming a huge part of international trade. Overall, AI is expected to boost global trade a lot, but not evenly. Services get the biggest jump, while manufacturing, including textiles and apparel, grows, just not as dramatically. AI is also helping companies cut trade costs in so many ways: smarter logistics, easier compliance, better communication, and even using AI to plan sourcing around tariffs. A survey showed that 90% of firms using AI already see real benefits, and more than half say it helps them manage risks. Big companies mainly use it for compliance and contracts, while smaller ones use it to find markets and communicate better. The job side is complicated. Low-skilled apparel manufacturing jobs aren’t affected much, but middle- and high-skilled jobs (like in wholesale and retail) could see more tasks replaced by AI. Still, textiles and apparel are considered “low AI intensity,” so the overall impact stays small. The report’s biggest warning is that AI access isn’t equal. Without proactive policies, AI could make global inequality worse. But if countries invest in training and access, AI could actually help developing economies become more competitive. Basically, AI is going to shape the way the world trades, but whether it helps everyone or just a few depends on the choices policymakers make now.
This article interestingly highlights how AI does not only change the operations of fashion companies, but also dictates who is allowed to participate in global trade as a whole. Although reports referenced in the article mention an estimate of “only a modest share of tasks to be replaced by AI—about 3% for low-skilled and 7–9% for medium- and high-skilled workers,” AI still is projected (and already is) to shift comparative advantages “in ways that reinforce inequality.” While there are certainly upsides to AI in global trade as mentioned in this article, it is important to move forward with caution and urge lawmakers to take this matter seriously.
What stood out to me most in the WTO’s 2025 report was the difference between how big AI could be for global trade and how little it might directly change apparel manufacturing. Even though textiles and apparel are considered low AI intensity sectors, the report showed that fashion still benefits a lot from AI, especially through lower trade costs and better supplier matching, which matter just as much as the actual production process. I also thought it was interesting that AI might affect middle and high skilled jobs more than lower skilled ones, especially since so many fashion students go into retail and wholesale roles. The warning about unequal AI adoption really stuck with me too. If countries with more money and data access get most of the benefits, then developing apparel exporting countries could fall behind.
I found it interesting that this shows how apparel manufacturing still is low in AI, but retail and wholesale are heavily reliant on it. I think this shows that that AI is not taking over the actual factories, but rather the more analytical processes like planning and merchandising.
The findings from the World Trade Organization report are important to review because of the fast-paced, ever-changing nature of how AI is transforming the fashion industry. It’s imperative that we stay up to date with industry reports to ensure that we’re aware of movement. I want to touch more on Andrell’s comment about how AI can reinforce inequality, a possibility I never considered before reading this. Companies that have the money and are located in tech centers/large cities will continue to get more efficient and be able to deliver cheaper products. In the meantime, their counterparts will get left behind. AI has the opportunity to level the playing field for workers in developing countries, but as the article suggested, policymakers must be intentional about how everyone can have equal access to these technologies. The reality is, how quickly can that actually happen?
This post made me realize the impact that AI has across different parts of the apparel supply chain. AI possibly being able to boost trade but still reinforce inequality was interesting to learn about, because it all depends so much on digital capacity and policy support. I also thought the distinction between large firms using AI for compliance and smaller firms using it for market intelligence was interesting. It feels like the biggest takeaway is that AI isn’t automatically “good” or “bad,” but policymakers and industry leaders need to think everything through and make sure its benefits are shared more. This reminds me of the topics we talk about in FASH455 when we talk about every idea having positive and negative effects.
I appreciate how this article shows the direct relationship between AI and global trade and how it deepened my understanding of the developing relationship between the two. For example, I wouldn’t directly assume that AI has the ability to boost global trade, but now I can see why this would happen. It makes sense for AI to be utilized in this way and expand upon the technology that is currently available in the industry. When thinking deeper into this, I can see how AI can perform in ways that humans just can’t compare to and because of this companies can utilize AI to optimize themselves for peak efficiency. I also appreciate the article’s distinction in that not all areas of global trade will be affected equally. I personally am excited to see how AI can be used in all areas of fashion, even to its varying degrees, for what I hope will be in good conscious. I am saddened to hear the article say that low-skill workers will not be the ones benefitting from the use of AI, as I would like to think they could be the people that would need the most help with their jobs and could benefit the most from AI lightening their load. This article also makes me concerned for the future of fashion jobs as the article mentions how middle and higher skilled workers will be the first to be the most affected by AI and potentially being replaced in their jobs. Even considering this, I am still choosing to be hopeful for the future of AI and fashion working together.
I found this blog very interesting. For starters, the way that AI is expected to grow such a large amount in so little amount of time, 30%+. The second biggest part of this post that stuck out to me was the way that we can’t just decide whether AI is a good or bad thing for the industry. The way that a lot of the public is so against AI because of how it is harming the earth, yet no one mentions all the good that it does. The role it has recently played in global sourcing can definitely highlight how it has amazing qualities that help this industry tremendously.
What I found most interesting and surprising about this article was that the report suggests that AI could replace middle-skilled and high-skilled jobs in the fashion industry. This is something that many people have been concerned about with the rise of AI, that the job market could continue to shrink as AI replaces certain roles within the fashion industry. However, I do question whether middle or high-skilled jobs such as wholesaling and retailing can actually be fully replaced by AI, as I feel that human knowledge and judgement need to be used beyond just data analysis to make decisions. Roles in manufacturing need to be a balance between data-driven analysis and creativity and intuition in decisions, which makes me think they can’t be fully replaced by AI and be more successful. Instead, I think AI can be utilized as a tool to aid in decision-making for these roles.