Page 43 - Azerbaijan State University of Economics

Li Ting: The Impact of Artificial Intelligence and Robotics on International Trade: A Study
on the Reshaping of the Global Value Chain and the Transformation of Trade Patterns

5. In terms of promoting the growth of digital trade and service trade. AI models,
algorithms, software, etc. have become tradable "digital commodities". AI-assisted
telemedicine, education, design, law and other services can be exported across borders.

2.3 Artificial Intelligence Reshapes the Global Value Chain
Review of the Basic Concepts of the Global Value Chain. The concept of the global
value chain originated from the earlier theoretical framework of global commodity
chains, first articulated by Gereffi and Korzeniewicz in 1994, which analyzed how
international production is organized across dispersed networks of firms and retailers
and laid the groundwork for later GVC research (Gereffi & Korzeniewicz, 1994). It
refers to a cross-border production and trade system in which different
countries/regions share multiple links, from raw material acquisition, parts processing,
assembly manufacturing to sales and services. Traditionally, GVCs rely on:
comparative advantages (such as labor costs), transportation and communication
infrastructure, and market access and tariff policies.

Artificial Intelligence Reshapes the Global Value Chain. Recent empirical research
shows that artificial intelligence significantly reshapes the organizational structure
and operational mechanisms of global value chains by enhancing production
capabilities and reallocating industrial positions across countries and industries (Liu,
Kuang, & Wang, 2024).

First, with the high automation of manufacturing processes, AI and robotics have
significantly boosted production efficiency, driving a trend of manufacturing “reshoring”
in developed countries. For instance, recent evidence indicates that the adoption of
advanced robotics and automation encourages firms to reshore production, reducing
dependence on low-cost labor abroad and potentially eroding traditional comparative
advantages of developing countries in global value chains (Calatayud, 2025).

Second, AI is driving the evolution of high-value-added segments like design,
marketing, and customer service toward virtualization and cloud-based operations,
forming the so-called “digital slicing” trend. This has given rise to “digital value
chains” centered on software, algorithms, and platforms, disrupting the traditional
division of labor dominated by physical trade.

Simultaneously, data is increasingly becoming a critical input resource within global
value chains. The training and optimization of AI models heavily depend on large-scale
data acquisition and processing capabilities, granting platform-based enterprises (such as
Google and Alibaba) that control data resources a dominant position in the value chain.

Moreover, artificial intelligence applications in supply chain management—including
predictive analytics, demand forecasting, and inventory optimization—significantly

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