Innovation frontier: zero-knowledge proofs (ZKP) BOX 15 ZKP represent a breakthrough in cryptographic technology that could transform how trade information is verified and secured. This emerging technology allows parties to verify trade transactions and compliance without exposing sensitive underlying data. When combined with blockchain and AI applications, ZKP offer two key advantages: –Enhanced privacy: Enables verification of trade compliance while keeping transaction details confidential –Reduced concentration risk: Increases system resilience through decentralizationFor example, customs agencies could verify regulatory compliance without accessing complete transaction details, effectively balancing transparency requirements with data privacy needs. Despite its transformative potential, ZKP technology remains in its infancy. One challenge involves the need to develop governance frameworks for ZKP implementation. Regulatory sandboxes offer a promising approach to accelerating responsible adoption while developing appropriate governance structures. Source: Key State CapitalAssurance and accountability through digital ID BOX 14 The Global Legal Entity Identifier Foundation (GLEIF), a non-profit organization established by the Financial Stability Board, created a global digital ID system known as the verifiable Legal Entity Identifier (vLEI). The system creates unique identifiers or cryptographic signatures for every transaction, supplier and purchaser. These identifiers cannot be altered by downstream participants in the supply chain and can, therefore, help reduce counterparty risk. vLEIs can be used to cryptographically sign records at every point in trade transactions, thus they enable verifiable ways to establish reputations and help reduce the scope for fraud and data processing errors. While the vLEI system does not completely eliminate all risks for fraud, it nonetheless offers a mechanism for establishing accountability previously impossible in digital systems. Such a foundation can facilitate real-time adaptation and defensibility of supply chains. Source: Key State Capital Public-private partnerships Implementing AI across global trade demands coordinated action, not isolated initiatives. This challenge is complex: supply chains span hundreds of entities with competing interests, varying resources and different capabilities to adopt new technology. While effective AI systems require comprehensive data sharing, current structures struggle to balance collaboration with competitive interests.Public-private partnerships (PPPs) offer the most viable framework for driving ecosystem- wide AI adoption. By combining private innovation with public-sector support, PPPs can ensure AI implementation is technically sound, sustainable and inclusive. These partnerships can operate at multiple scales, from modernizing individual ports to developing cross-border frameworks that help businesses adapt to technological change. Artificial Intelligence for Efficiency, Sustainability and Inclusivity in TradeTech 28

Artificial Intelligence for Efficiency Sustainability and Inclusivity in TradeTech 2025