The Effects of AI on International Trade with Evidence from Egypt, UK, and USA

Abstract

This paper examine the impacts of AI or Digitalization on international trade in Egypt, UK, and USA. It found that AI will leads to reduce the transaction costs of trade, expanding cross-border services, improve service sector growth, and empowerment of SME. In Egypt AI leads to Customs Modernization, Rising Digital Exports, and Market Access. In UK it will lead to Digitally Delivered Services and International Market Access, increase AI as an Emerging Export Sector, increase the importance of Digital Customs and Border Transformation, and reduce trade costs.

The United States acts as a dominant net exporter of cloud computing, platform ecosystems, and data-driven services. In USA, AI will effect on U.S. Leadership in Digitally Deliverable Services,   AI and Expansion of Cross-Border Digital Services (AI adoption → higher productivity → lower service-production costs → greater international competitiveness → expansion of digital exports), Cross-Border Data Flows as a Trade Infrastructure (digital infrastructure and regulatory environment that allow data to move internationally). And AI, will improve Global Value Chains and Manufacturing. So always USA is the leader and Pioneer in every filed, especially in which are related with AI and Digitalization forever.

Keywords: AI, Digitalization, International Trade, and applied on Egypt, UK, and USA.

DOI: 10.7176/JESD/17-7-05

Publication date: October 30^th 2026