Artificial intelligence is quickly becoming a part of our everyday life transforming everything around us including the things we do every day. This major shift and rapid adoption of AI across many industries is the start of a new era of how technology can help us improve our lives in a positive way. Behind the scenes AI is transforming major supply chain industries using many applications driven by AI such as robotics, predictive analysis, planning, operations and many more. Due to this fundamental structural impact, the entire industry is going through a significant transformative phase of evolution. This evolution is driving huge investments in AI infrastructure and global competitiveness. This paper examines the significance of this enhancement in global markets across industry leaders like Amazon, Maersk and Alibaba while also examining the institutional governance bodies such as World trade organization and UNCTAD.

The findings show that AI helps organizations make decisions faster, use resources more efficiently, and build supply chains that can better handle crises like the COVID-19 pandemic or geopolitical disruptions. However, these benefits are not shared equally and can widen the digital gap between advanced and developing economies. The spread of AI also brings challenges in governance, such as data privacy, transparency of algorithms, and how regulations fit across borders, as well as ethical concerns. By combining evidence and policy views from different stakeholders, this paper argues that while AI can make trade and production networks more accessible, letting it grow without regulation could make global inequalities worse. The paper calls for international cooperation and flexible governance to make sure the benefits of AI in global trade are fair, sustainable, and widely shared.