Closing the Gap Between Artificial Intelligence (AI), the Law, and Illicit Trade

Artificial Intelligence (AI) is evolving more rapidly than legal and regulatory systems can adapt, creating governance gaps that are increasingly exploited by illicit trade networks. The primary challenges include the pace of technological change, fragmented regulatory frameworks across jurisdictions, and uncertainty regarding liability when AI-enabled harms occur. These issues are compounded by the transnational nature of organised crime, which allows illicit actors to exploit differences in national laws and operate beyond the reach of traditional enforcement mechanisms. AI can enhance criminal activities by improving fraud, counterfeiting, cybercrime, and the coordination of illicit supply chains, making detection and enforcement more difficult. Existing legal frameworks often struggle to assign responsibility when AI systems contribute to harmful outcomes. To address these challenges, policymakers should adopt technology-neutral approaches that focus on harmful conduct rather than specific technologies. Strengthening accountability mechanisms, improving international cooperation, enhancing information sharing, and building enforcement capacity will be essential to mitigating AI-enabled illicit trade while supporting responsible innovation.