TY - JOUR AU - Goldfarb, Avi AU - Trefler, Daniel TI - AI and International Trade JF - National Bureau of Economic Research Working Paper Series VL - No. 24254 PY - 2018 Y2 - January 2018 DO - 10.3386/w24254 UR - http://www.nber.org/papers/w24254 L1 - http://www.nber.org/papers/w24254.pdf N1 - Author contact info: Avi Goldfarb Rotman School of Management University of Toronto 105 St. George Street Toronto, ON M5S 3E6 CANADA Tel: 416/946-8604 Fax: 416/978-5433 E-Mail: agoldfarb@rotman.utoronto.ca Daniel Trefler Rotman School of Management University of Toronto 105 St. George Street Toronto, ON M5S 3E6 CANADA Tel: 416/946-7945 Fax: 416/978-5433 E-Mail: dtrefler@rotman.utoronto.ca M1 - published as Avi Goldfarb, Daniel Trefler. "Artificial Intelligence and International Trade," in Ajay Agrawal, Joshua Gans, and Avi Goldfarb, editors, "The Economics of Artificial Intelligence: An Agenda" University of Chicago Press (2019) M3 - presented at "Economics of Artificial Intelligence", September 13-14, 2017 AB - This paper explores the international dimensions of the economics of artificial intelligence. Trade theory emphasizes the roles of scale, competition, and knowledge creation and knowledge diffusion as fundamental to comparative advantage. We explore key features of AI with respect to these dimensions and describe the features of an appropriate model of international trade in the context of AI. We then discuss policy implications with respect to investments in research, and behind-the-border regulations such as privacy, data localization, standards, and competition. We conclude by emphasizing that there is still much to learn before we have a comprehensive understanding of how AI will affect trade. ER -