Global Trade Needs Integrated Blockchain, AI Infrastructure, Forbes Council Member Writes

The global trade industry needs an integrated platform combining blockchain and artificial intelligence to overcome the limits of existing financial infrastructure, according to a Forbes contribution.

Forbes reported on June 11 that Milan Gupta, a member of the Forbes Finance Council, wrote that the global financial system still relies on correspondent banking networks, paper documents and legacy messaging systems. He argued that structure is ill-suited to the speed and complexity of 21st-century trade.

Gupta said the trade finance market faces a funding gap of about $2.5 trillion. Letters of credit, bills of lading, invoice financing and compliance procedures are scattered across banks, insurers, customs authorities and logistics companies, raising costs and slowing operations.

He described blockchain as a key technology for addressing those problems. An integrated distributed-ledger infrastructure could provide an immutable record shared by transaction participants. Smart contracts could automate settlement, document verification and financing execution in real time.

Gupta also wrote that compliance costs tied to anti-money laundering checks, know-your-customer requirements and sanctions screening are limiting access to finance for financial institutions in emerging markets and for small and medium-sized businesses. A platform combining blockchain and AI would let multiple institutions share verified identity data and transaction records, sharply reducing the cost of duplicate reviews.

He said governance of international financial infrastructure remains centered on advanced economies. Emerging markets in India, Southeast Asia and Africa are leading innovation in digital payments, central bank digital currencies and mobile finance, he wrote, adding that the Global South should participate as a co-designer of financial infrastructure.

Gupta also emphasized AI's role. He said AI can analyze supply-chain data to detect fraudulent transactions, optimize liquidity allocation and improve credit assessments for companies with limited credit histories. Global trade is becoming increasingly digital and decentralized, he wrote, and integrated platforms built on blockchain and AI are no longer optional but are becoming essential infrastructure for the global economy.