What Machine Learning has to do with Global Trade

AI, artificial intelligence

Machine Learning (ML) is commonly seen as the scientific study of algorithms and statistical models used by computers to perform specific tasks. Considered a subset of artificial intelligence, ML could have game-changing implications for people of the world struggling with language barriers. As we know, Chinese, Spanish and English are the most spoken languages of the world. What ML can potentially do is to help people translate native languages into other different languages they may need to speak in with the help of artificial intelligence, and when this happens, this could seamlessly unite the world in more ways than one. Just sample Google Translate and you’ll know what I am talking about.

How does this help global trade? If economists are to be believed, language barriers have hurt trade substantially, and precisely why, with ML demolishing the language barriers, world trade could change. According to the “gravity model”, a common language between trading partners could raise trade by almost 50 percent. If trading nations, involving millions of people and corporations, begin dealing in a common language (thanks to ML), imagine the gains from the trade! This could mean people being able to work in countries where they couldn’t earlier as they didn’t know the native language, or communicate easily for work, leisure or fun.

With machine translation becoming more efficient and widely used, speakers of languages other than English, Chinese or Spanish will compete with them and the global market will be full of such people wanting a share of the employment pie. Job markets will no longer discriminate on grounds of language. Machine learning may just be paving the path to the possibilities of great human cooperation by bringing down the language barriers.

Yet, ML’s direct benefits for trade remain a matter of discussion for many scholars. They argue that the progress in ML may be limited to indirect communication and as far as trade ties involving direct communication are concerned, factors such as a preference for local products, trust between trading partners and familiarity with business may undermine the role of a common language. Then, there are linguistic, religious, and legal influences that could play a significant role.

Sources here and here.

 

 

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