Business leaders with extensive cross-border operations must improve their ability to track and assess geopolitical dynamics in today's era of rising economic nationalism and intensifying rivalries. A white paper based on interviews with 25 multinational companies explores how businesses are developing and deploying their geopolitical radar and sonar to gain insights into the drivers underlying geopolitical events. This report highlights the strong connection between geopolitics and international trade, investment, innovation, and the movement of data, people, and ideas across borders. It also presents six potential benefits to international businesses from better navigating geopolitical currents.
Iceland | Financial services
From Blind Spots to Insights: Enhancing Geopolitical Radar to Guide Global Business
State-based armed conflict, misinformation and disinformation, and environmental risks are identified as the top threats to global stability in the World Economic Forum's Global Risks Report 2025. The report highlights the increasingly fractured global landscape and the challenges posed by geopolitical tensions, societal divisions, and technological risks. The outlook for the future is characterized by intensifying environmental, technological, and societal challenges, leading to a turbulent global landscape. To address these risks, leaders are urged to prioritize collaboration, strengthen international ties, and foster conditions for renewed cooperation.
Financial services
Global Risks Report 2025: Conflict, Environment and Disinformation Top Threats
Businesses must develop a strong "geopolitical radar" to navigate and anticipate geopolitical dynamics. A white paper by the World Economic Forum, IMD Business School, and Boston Consulting Group emphasizes the importance of a geopolitical radar in helping businesses avoid risks and gain a competitive edge. By moving beyond immediate risks, strengthening internal structures, and viewing geopolitics as an opportunity, businesses can enhance their ability to track, assess, and respond to geopolitical developments. To strengthen their geopolitical radar, businesses should invest in horizon-scanning capabilities, embed geopolitical insights across functions, and develop strategic responses to future risks and opportunities.
Financial services
A 'geopolitical radar' is critical for global businesses. Here's why – and how to develop one
The rise of AI-driven fraud poses a significant challenge to the global economy. Cybercrime, including identity theft and fraud, is expected to cost $10.5 trillion annually by 2025. The use of generative AI (GenAI) has accelerated fraud, with cybercriminals using deepfake technology and AI-powered language models to bypass verification systems and deceive individuals into revealing sensitive information. To combat this, digital identity wallets combined with robust biometric verification are being embraced as a scalable defense against AI-driven fraud. Governments and organizations are adopting these wallets to ensure secure and convenient access to services while mitigating the risk of fraud.
How AI-driven fraud challenges the global economy – and ways to combat it
The convergence of AI and stablecoins is transforming the global finance industry by enabling faster, cheaper, and more efficient transactions on blockchain networks. Stablecoins, blockchain-native versions of fiat currencies, have grown from $4 billion to nearly $200 billion in circulation since 2020. The integration of AI in financial services has also been significant, with organizations using generative AI and large language models (LLMs). The combination of stablecoins and AI offers new opportunities for businesses in areas such as treasury management, microinsurance, and enhancing customer experiences. The use of blockchain networks facilitates near-zero cost transactions and programmable "smart contracts," while AI enables real-time analysis and automation. This convergence creates a more intelligent and inclusive internet financial system that has the potential to revolutionize traditional financial activities.
Financial services
AI and stablecoins: a pairing for a more intelligent era of online business
Addressing obesity is crucial to improve cardiometabolic health and support healthy aging in our aging societies. Chronic diseases associated with obesity are putting strain on health systems and economies, leading to absenteeism and early retirement. Taking decisive, innovative action and bringing together policy-makers, health leaders, and industry is necessary to combat overweight and obesity. The economic impact of overweight and obesity is predicted to reach $4 trillion by 2035. Urgent investment is needed in primary care, prevention, and multi-stakeholder partnerships to prioritize the health of our aging populations. Novo Nordisk supports a holistic approach to obesity prevention and management.
Healthier for longer: Taking care of our ageing societies by addressing obesity
Responsible use of AI in medicine requires balancing innovation with ethics, emphasizing transparency, trust, and human-centered approaches. Corporations have a growing responsibility to address the societal impacts of AI, requiring integrated governance models and ethical frameworks. Four key principles for responsible AI include aligning innovation with human rights and ethical integrity. These principles involve respecting humanity, being transparent and collecting data fairly, using data and technology responsibly, and protecting data and technology. A commitment to responsible AI is crucial for building trust and ensuring ethical, transparent, and accountable AI-driven innovations.
Innovation with integrity: The 4 principles of responsible use of AI
Anduril Industries, a military technology startup in Silicon Valley, is one of the leading players in the defence startup scene. The company specializes in artificial intelligence-enabled systems, including autonomous weapon systems. The integration of AI into defence programs has accelerated in recent years, driven by the influx of venture capital money and influence. Anduril has already secured multimillion-dollar contracts with the US Department of Defense and the UK Ministry of Defence. The global military AI market is projected to reach $35 billion in the next seven years. Venture capital investment in defence technologies has doubled in the past few years, indicating the growing interest in the defence sector among VC firms.
The Silicon Valley venture capitalists who want to ‘move fast and break things’ in the defence industry
Asia is well-positioned to lead in a changing world order by promoting globalization, addressing demographic change, and tackling climate change. Global connectivity and collaboration are crucial for achieving these goals. Asia already demonstrates leadership through free trade agreements, infrastructure projects, and partnerships with other regions like Africa and Latin America. Collaboration across borders, such as sharing expertise in renewable energy and healthcare technologies, is vital. Cultural exchanges and investments in youth leadership programs can also empower the younger generation. More work is needed in pursuing new industries, scaling up technologies, and developing new sectors. The Hong Kong Stock Exchange (HKEX) is committed to driving global connectivity and collaboration in Asia's financial markets.
Financial services
How Asia can lead in a changing world order
Technological innovations, such as artificial intelligence (AI), are reshaping industries, but people remain central to success in the Intelligent Age. A skills-led people ecosystem that prioritizes skills over experience and degrees is crucial for driving innovation and achieving sustainable growth. Additionally, fostering an adaptive culture and leveraging technology can further enhance organizational resilience and performance. By putting people at the center and embracing these strategies, businesses can thrive in the era of AI and create a sustainable future.
Education
People, organizations, technology: Preparing for the Intelligent Age from a people perspective
Scaling AI sustainably requires organizations to assess whether AI is the most efficient tool for a task, prioritize ethical considerations, and minimize environmental impact. Improving efficiency at every stage of the AI lifecycle can reduce energy consumption. Government, industry, and innovator partnerships are needed to promote sustainable energy solutions and equitable access to clean energy. We should prioritize using AI intentionally, optimizing performance across the entire AI lifecycle, and pushing for a cleaner energy future. Collaboration and urgent action are crucial to achieve AI sustainability.
Financial services
Scaling AI sustainably: 4 urgent priorities
Only 2% of companies are prepared for large-scale AI adoption, highlighting a readiness challenge. Building an AI-ready culture requires comprehensive workforce strategies and responsible AI practices. Partnerships among industry, academia, and government are vital for bridging skills gaps and fostering sustainable AI innovation. Organizations should develop a comprehensive AI strategy, future-proof the workforce through talent transformation, use AI to drive upskilling, break barriers to access opportunities, and apply AI responsibly.
Unlocking human potential: Building a responsible AI-ready workforce for the future
European businesses are responding to increasing geopolitical risks by implementing four key strategies: risk assessment, reduction, ringfencing, and rapid response. These strategies involve understanding the political and supply chain environments, diversifying sourcing and operations, increasing resilience through higher inventories, enhancing cyber defense, and reevaluating market priorities. While these responses are integrated into regular decision-making rather than a formal structured concept, they reflect a focus on resilience, agility, and preparedness in an uncertain global environment.
Financial services
How businesses are coping with ever-increasing geopolitical risks
The global economy is expected to face significant challenges in 2025, with chief economists predicting a weakening global economy and increasing risks of fragmentation. While there is optimism for short-term growth in the United States, the outlook for other major regions such as Europe and China remains less optimistic. The latest Chief Economists Outlook also highlights concerns over rising public debt levels and higher inflation in the US. The report reveals intensifying pressures on global economic interconnectedness, with predictions of further fragmentation in goods and services trade, barriers to labor mobility, and transfers of technology and data. The global trade system is facing significant threats.
Australia, Austria, Bulgaria, Canada, Chile, Costa Rica, Czech Republic, Ecuador, Egypt, Greece, Mauritius, Mexico, Nepal, Romania, Taiwan, China, Tunisia, Türkiye, United Kingdom | Financial services
All eyes on the US as new administration takes office. Chief economists expect turbulent year ahead
Chief economists surveyed by the World Economic Forum predict a weakening global economy in 2025 due to impending US policy shifts and increased fragmentation. The majority anticipate a "long-term shift" in US policy, including the use of prohibitive tariffs. Concerns also include further protectionism, fragmentation, conflict, rising debt levels, and increased inflation. However, there may be potential positives such as stock-market gains and increased trade volumes. Chief economists emphasize the importance of maintaining a healthy risk appetite amidst heightened uncertainty and navigating the complex global economic landscape.
Chad, Chile, Costa Rica, Czech Republic, Ecuador, Germany, Panama, Venezuela | Financial services
Chief economists look ahead to 'particularly complex' year of tariffs and tensions
AI has the potential to play a significant role in the global climate transition by driving growth and addressing climate challenges. The climate transition requires substantial investments, and AI can help by scaling innovation and driving systemic change. AI can improve power systems, accelerate the development of new technologies, empower consumers to make climate-friendly choices, enhance climate impact predictions and policy evaluations, and strengthen resilience to climate impacts. In sectors such as power, food, and mobility, AI could accelerate technology adoption and reduce annual emissions by approximately 3-6 gigatonnes of CO2-equivalent by 2035.
What is AI's role in the climate transition and how can it drive growth?
Partnerships between financial institutions and social economy initiatives are crucial for inclusive development. International financial institutions like the World Bank are evolving to address global challenges and integrate the voices and solutions of those most affected. By connecting social economy innovators with mainstream investments, a more holistic and resilient development model can be fostered. This requires policy frameworks, tailored financing channels, and opportunities to integrate social economy actors into national development strategies. The social economy, with its focus on social and environmental impact, has untapped potential for delivering sustainable and scalable solutions. Examples like SEWA and Muso demonstrate the transformative effects of these partnerships.
Financial services
How partnerships with financial institutions can power inclusive development
Diversification of trade routes and the creation of alternative trade corridors are crucial for building resilience in the face of disruptions to global trade. Geopolitical tensions and climate change have disrupted trade flows, leading to longer and more fragmented routes. Trade diversification not only builds resilience but also drives growth, increasing global GDP by up to 3% by 2030. Initiatives like China's Belt and Road Initiative and the India-Middle East Economic Corridor demonstrate the potential for creating resilient trading systems. However, realizing these projects requires significant investment and collaborative policies from the public and private sectors. Partnerships and private sector leadership are crucial to turn these plans into reality.
Financial services
Why trade corridors are the path to a more resilient future
The 20th edition of the World Economic Forum's Global Risks Report reveals that state-based armed conflict is the top immediate risk for 2025. Misinformation and disinformation are the leading short-term risks, while environmental risks dominate the 10-year horizon. Extreme weather events, biodiversity loss, and ecosystem collapse are the most significant environmental risks. The report emphasizes the need for collaboration and resilience in addressing these challenges. The longer-term outlook is also clouded by technological risks related to misinformation and adverse outcomes of AI technologies. Overall, the report highlights the increasingly fractured global landscape and the urgent need for effective global cooperation.
Qatar | Financial services
The Global Risks Report 2025, 20th Edition - Insight Report [EN/AR/DE/ID/IT/JA/PT/ZH] - World
A new research program called Abundant Intelligences is seeking to challenge the bias in the direction of artificial intelligence (AI) against non-Western modes of thinking, especially those originating from Indigenous cultures. The program aims to incorporate Indigenous knowledge systems to create a more inclusive and robust concept of intelligence that can be embedded into existing and future technologies. The researchers believe that this alternative approach to AI can address pressing environmental and sustainability issues, preserve Indigenous languages, and reimagine public health solutions. The program involves collaborations with Indigenous knowledge-holders, cultural practitioners, and community organizations, as well as AI professionals and industry researchers.
A new research program is Indigenizing artificial intelligence