Digital services trade reshapes global economy

Global services trade is expanding rapidly, increasingly driven by digital delivery, but policymakers warn that uneven access could deepen global inequality rather than narrow it. The issue was highlighted during the 14th session of the World Trade Organisation Ministerial Conference held in Yaoundé.

Services now account for more than a quarter of global trade and have grown at more than twice the rate of goods over the past decade. Yet developing economies remain significantly underrepresented in higher-value digitally delivered services exports.

The gap is pronounced. More than 60% of services exports in advanced economies are digitally delivered, compared with just 16% in the poorest countries. Limited data availability and weaker statistical systems further reduce the ability of many states to design effective trade, digital economy, and development policies.

Efforts led by the UN Trade and Development, in cooperation with the World Trade Organisation and the World Bank, are focused on improving data collection, strengthening policy frameworks, and supporting competitiveness in services exports.

The disparity is shaping how the gains from the fastest-growing segment of global trade are distributed. Without greater inclusive access, the expansion of services risks reinforcing existing economic imbalances rather than supporting broader development.

That makes current international efforts more than a technical exercise in data and trade measurement. They are also a test of whether digital trade growth can be translated into more inclusive economic participation for countries that remain at the margins of high-value services exports.

Why does it matter?

Because digitally delivered services are becoming one of the most dynamic parts of the global economy, and the countries that cannot participate fully risk falling even further behind. The issue is no longer only about trade volumes, but about who has the infrastructure, data capacity, skills, and policy tools to benefit from the digital economy. If those gaps persist, the fastest-growing part of global trade could end up concentrating gains in already advanced markets while leaving poorer economies with limited access to the most valuable segments of cross-border services.

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MIT develops AI framework to test ethics in autonomous systems

Researchers at MIT have introduced a new framework designed to evaluate the ethical impact of autonomous systems used in high-stakes environments. The approach aims to identify cases where AI-driven decisions may be technically efficient but fail to meet fairness expectations.

Growing reliance on AI in areas such as energy distribution and traffic management has raised concerns about unintended bias. Cost-optimised systems can still disadvantage communities, especially when ethical factors are hard to measure.

The framework, known as SEED-SET, separates objective performance metrics from subjective human values. A large language model is used to simulate stakeholder preferences, enabling the system to compare scenarios and detect where outcomes diverge from ethical expectations.

Testing shows the method generates more relevant scenarios while reducing manual analysis. Findings highlight its potential to improve transparency and support more balanced decision-making before AI systems are deployed.

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EIB highlights AI as key driver of Croatia’s economic growth

The European Investment Bank and the Croatian National Bank have emphasised the strategic importance of AI in strengthening Croatia’s economic competitiveness. Discussions at a joint conference focused on accelerating AI adoption through coordinated investment, policy development and skills enhancement.

Despite strong investment activity among firms in Croatia, the uptake of advanced technologies remains limited. Only a small share of companies systematically use generative AI, with applications largely confined to internal processes, highlighting significant untapped potential for productivity gains.

Participants identified key structural barriers, including limited access to finance, shortages of skilled workers and regulatory uncertainty.

Addressing these challenges requires a combined approach that mobilises private capital, improves access to funding for smaller firms and supports the development of a more robust innovation ecosystem.

The EIB continues to play a central role in Europe’s digital transformation, with major funding initiatives aimed at scaling AI technologies and strengthening strategic infrastructure.

By aligning financial instruments with policy priorities, the initiative seeks to enhance long-term growth, resilience and integration into global value chains.

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EPO accelerates digital patent shift with paperless system by 2027

The European Patent Office (EPO) is accelerating its transition towards a fully digital patent system, with plans to implement a paperless patent-granting process by 2027.

Discussions at the latest eSACEPO meeting highlighted steady progress and broad stakeholder support for modernising patent workflows.

Electronic filing and communication are set to become the default, with paper-based processes limited to exceptional cases. The shift aims to improve efficiency and accessibility, supported by legal adjustments and the gradual introduction of structured data formats to enhance processing accuracy.

Digital tools continue to evolve, with the MyEPO platform expanding its functionality through interface upgrades, self-service features and new capabilities such as colour drawing submissions.

The rollout of DOCX filing, alongside optional PDF backups, reflects a cautious approach designed to balance innovation with reliability.

AI is increasingly integrated into patent examination processes, supporting tasks such as search and documentation.

However, the EPO maintains a human-centric model, ensuring that decision-making authority remains with patent examiners while AI enhances productivity and consistency.

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New Oracle agentic AI tool streamlines CAD to procurement workflows

Oracle has launched a new agentic AI application designed to connect engineering and procurement into a single workflow. The Design-to-Source Workspace for product lifecycle management aims to reduce delays, improve traceability, and minimise compliance risks across sourcing processes.

Traditional design-to-source models often operate sequentially, with engineering and procurement working in separate stages. Oracle’s approach replaces that structure with a continuous, coordinated loop, where AI evaluates cost, supply, and risk in real time as designs evolve.

The platform translates CAD data directly into sourcing actions, eliminating manual input and reducing errors. Automated workflows handle supplier identification, risk assessment, and request-for-quote execution, while maintaining compliance and auditability throughout the process.

Expected gains include up to 60% less manual work, significantly faster RFQ cycles, and a 20% to 30% reduction in overall sourcing timelines. Greater accuracy and improved decision-making allow teams to focus on higher-value tasks rather than repetitive coordination.

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Experts warn YouTube AI slop harms children and demand action

Fairplay and more than 200 experts have urged YouTube to address the spread of ‘AI slop’ targeting children. The letter was sent to Sundar Pichai and Neal Mohan, along with a petition.

The signatories state that AI-generated videos harm children’s development by distorting reality and overwhelming learning processes. They also warn that such content captures attention and is being recommended to young users, including infants and toddlers.

The letter cites findings that 40% of videos following shows like Cocomelon contained AI-generated content. It also states that 21% of Shorts recommendations included similar material, and misleading science videos were shown to older children.

Fairplay and its partners propose measures, including labelling AI content and banning it from YouTube Kids. They also call for restrictions on recommendations to under-18s and for tools that allow parents to turn off such content.

The initiative was organised by Fairplay and supported by organisations and experts, including Jonathan Haidt. The group says platforms must ensure content is safe and appropriate for children.

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Microsoft announces $5.5 billion Singapore plan with free Copilot for students

Microsoft will invest $5.5 billion in Singapore from 2025 to 2029 to expand cloud and AI infrastructure and operations. The announcement was made by Vice Chair and President Brad Smith at the Asia Tech x Inspire event.

Every tertiary student in Singapore will receive free access to Microsoft 365 Copilot for 12 months. More than 200,000 students will use AI tools integrated into applications including Word, Excel, Outlook and PowerPoint.

Educators will receive free AI training through Microsoft Elevate for Educators across schools and higher education institutions. Nonprofit leaders will also be supported through Microsoft Elevate for Changemakers to build practical AI skills.

Officials said the initiatives aim to strengthen workforce readiness and support responsible AI adoption. The programmes align with Singapore’s National AI Strategy 2.0 and broader efforts to expand AI literacy.

LinkedIn data shows demand for AI literacy skills in Singapore has increased by more than 70% year on year. Microsoft said the investment reflects long term confidence in Singapore as a global digital leader.

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Mozambique explores AI role in strengthening electoral systems

Electoral stakeholders in Mozambique are examining the growing role of AI in democratic and electoral processes. AI tools are increasingly used to improve voter registration, logistics, and public engagement, yielding greater efficiency and accessibility.

Concerns remain around data protection, digital security, and institutional accountability. Officials and partners stressed that while AI can strengthen electoral administration, it also introduces risks that require careful governance and clear ethical safeguards.

A technical session organised under a UNDP-supported project provided a platform for national institutions, including the electoral commission, judiciary, and police, to discuss responsible AI adoption.

Participants highlighted the need for structured preparation, training, and due diligence before wider implementation.

The discussions also underscored growing interest in coordinated AI integration, while reinforcing the central role of transparency and public trust, which remains central to any technological adoption in electoral systems.

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EDB fund and Kazakhstan ministry sign AI cooperation memorandum

The Fund for Digital Initiatives of the Eurasian Development Bank has signed a Memorandum of Cooperation with Kazakhstan’s Ministry of AI and Digitalization. The agreement was signed during the Digital Qazaqstan forum held on 27 March in Shymkent.

The memorandum outlines a strategic partnership to introduce AI technologies and support digital projects. Areas of cooperation include identifying and implementing joint AI projects, exchanging expertise, and strengthening both sides’ capacities as centres of AI competence.

Also, the agreement is intended to deepen the partnership and support Kazakhstan’s strategic objectives for AI development. It also links the memorandum to wider efforts to expand cooperation between the bank’s digital initiatives fund and the ministry.

During the forum, Vice Chairman of the Management Board, Tigran Sargsyan, held a working meeting with Deputy Prime Minister and Minister of AI and Digitalization, Zhaslan Madiyev. The discussion covered prospects for broader cooperation, priority projects, and tools to support AI adoption in key sectors of Kazakhstan’s economy.

Sargsyan described 2025 as a record year for the bank in Kazakhstan, with the most projects implemented in digital public administration, platform solutions, and AI deployment. Madiyev, in turn, proposed creating a registry of Kazakhstan’s open-source e-government component solutions for possible replication across EDB member states.

The announcement presents the memorandum as part of the Eurasian Development Bank’s broader support for digital transformation and AI development across its member states.

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Swiss survey highlights concern over big tech and digital sovereignty

Public concern over big tech companies is growing in Switzerland, according to a new survey by gfs.bern conducted on behalf of the Mercator Foundation Switzerland. A large majority of respondents view major technology firms as primarily profit-driven, while also expressing unease about their broader influence on society and politics.

Survey findings show that 90% of respondents believe big tech companies are mainly motivated by profit, while 94% support stronger protections for children and young people on social media platforms. Concerns extend beyond commercial behaviour, with 84% worried about political influence from the countries where these companies are based and 82% fearing increasing dependence on firms from the United States and China.

Overall perceptions in Switzerland remain mixed: 21% of respondents express a positive view of big tech companies, 40% hold a neutral stance, and 38% report negative impressions. Similar attitudes have been observed across Europe, where surveys in countries such as France and Germany indicate that many citizens consider existing regulatory frameworks insufficient.

Despite concerns about corporate influence, attitudes towards digitalisation itself remain broadly positive. Around 58% of respondents see digitalisation as beneficial overall, and 53% believe it offers personal advantages. However, only 48% think it benefits society as a whole, while 46% perceive its impact on democratic processes as negative.

A strong majority expects public institutions to take on greater responsibility for managing digital transformation. Around 88% support government efforts to ensure transparency in AI decision-making, while 86% want human oversight in critical situations. High levels of trust in Swiss authorities suggest public backing for a more active state role in shaping digital policy and safeguarding democratic values.

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