The development of AI-supporting devices such as computer chips or semiconductors is a result of globalization and the global supply chain. Now we are in a phase of de-globalization. De-globalization can be seen from the U.S. trade wars with China. Governments around the world are freely spending public funds on new AI clusters designed to shift international comparative advantage towards their favoured regions. AI affects the pattern of trade through economies of scale and scope and knowledge externalities. AI’s practical applications have significant benefits, even if the adoption of AI in international trade is not without challenges (data quality, ethical concerns, technological complexity, and public perception). To be noted is the transformative impact of AI on international trade and its specific applications in areas such as data analytics and translation services, which are reducing barriers to trade. Policy recommendations highlight the need for a robust data infrastructure, establishing ethical AI guidelines, fostering international cooperation to align data protection regulations.