US Commerce Secretary Howard Lutnick on 3 September called on G20 nations to harness artificial intelligence to eliminate unnecessary trade barriers, fortify global supply chains, and create a more level playing field for businesses competing across borders. Speaking at the G20 Innovation Ministerial in Chapel Hill, North Carolina, Lutnick argued that the way technical standards are set could determine the fate of emerging technologies in international markets.

Standards at the Centre of the Debate

Lutnick placed technical standards at the heart of his argument, contending that they shape whether companies can bring new technologies to market and whether those technologies can function across national boundaries. “Standards determine whether companies can bring new technologies to market, whether those technologies can connect across borders and whether you can actually compete globally or not,” he said.

He was unambiguous that standards must not be weaponised as protectionist instruments. “Technical standards and regulations should not be disguised as barriers to trade,” Lutnick said. “They should increase interoperability and allow the best technologies access to compete.”

AI as a Tool for Standards Reform

Lutnick argued that AI could give governments and businesses sharper tools to measure, test, and benchmark standards across countries — reducing reliance on individual-government assessments of whether foreign products or technologies are safe. “We can study them, we can check them. We can know better by doing incredible comparisons,” he said.

Beyond compliance, he suggested AI could actively improve standards themselves — identifying weaknesses and making products and systems safer before problems emerge. “If we transform the way the standards and regulations on standards are set, we can undress unnecessary barriers to trade,” he said.

Industry Partnership and Supply Chain Resilience

Lutnick emphasised that private companies, as direct participants in developing and deploying new technologies, were best placed to help convert established practices into flexible, technically sound international standards. He called on G20 members to involve the private sector closely in building infrastructure, expanding manufacturing, and diversifying supply chains.

He also urged governments to use AI to stress-test supply chains and identify vulnerabilities before they become economic crises. “Let’s check our supply chains. Let’s check how we’re interoperable. Let’s worry about where our weaknesses are. Let’s test them. Let’s study them,” he said. Notably, this call comes amid ongoing global concerns about supply-chain fragility exposed during the COVID-19 pandemic and subsequent geopolitical disruptions.

Red Carpet vs Roadblocks

Lutnick cited foreign investment flows into the United States as proof that a welcoming regulatory climate pays dividends. He warned that countries placing excessive restrictions on industry and AI risked falling behind economically. “If you roll out the red carpet, you’ll succeed,” he said. “And if you put your hands up to stop them and stop industry, stop AI, you’re going to slow yourself down.”

He reserved particular concern for small and medium-sized businesses, arguing that greater interoperability and fewer unnecessary restrictions would disproportionately benefit smaller firms seeking access to overseas markets.

Reframing AI: Education, Not Just Intelligence

In a notable conceptual aside, Lutnick offered a broader definition of AI’s value. “I think intelligence is the wrong word. I think it’s education,” he said, suggesting AI could give people access to some of the world’s greatest minds in their own languages and help them adapt that knowledge to their specific circumstances. The remarks signal a rhetorical effort to reframe AI adoption as a democratising force rather than a purely technological one, with implications for how the US plans to pitch AI governance frameworks to developing-economy G20 members.