Artificial Intelligence (AI) is profoundly reshaping digital trade by enabling the full digitalization of the global value chain, significantly altering cost structures and operational efficiency. In this context, the Asia-Pacific region faces both opportunities for development driven by technological innovation and challenges posed by technical and spillover risks. To promote deeper economic integration in the region, it is crucial to establish more transparent and predictable digital trade rules that are market-driven and support innovation. This project will conduct discussions and produce a summary report to reflect the development of digital trade and the evolution of related trade rules in the context of AI, with emphasis on voluntary cooperation and flexible implementation approaches. It will help APEC economies identify and mitigate barriers to digital trade, enabling them to harness the transformative potential of AI as a catalyst for trade growth while addressing challenges in the rapidly evolving digital trade landscape.