Insights

AI governance remains a topic of serious debate and practical implementation even under the Trump administration. While there may be a push for looser AI regulation, the reality is that AI governance is here to stay. Most AI regulation is not explicitly focused on AI but rather the enforcement of general-purpose rules. States and other governments have passed numerous AI bills and regulations that can force companies to change their practices. The Biden administration's regulatory approach to AI, focused on "soft law" and industry self-regulation, is likely to endure. Industry leaders have already invested resources in AI governance and responsibility practices. However, there is still a need for regulatory sanctions and government-defined rules as a backstop to ensure responsible AI development.
Even Under Trump, AI Governance Is Here to Stay
Japan's push to become a global leader in artificial intelligence (AI) is hindered by its cultural aversion to risk and failure. Despite being a top spender in R&D, Japan struggles with embracing disruptive innovation and digital transformation. However, Japan's meticulous attention to precision and ethical standards could be turned into competitive advantages, particularly in fields like healthcare and autonomous systems. Japanese businesses are finding ways to integrate AI while preserving traditional practices, such as NEC's AI solutions for manufacturing that enhance quality inspection while preserving skilled workers' expertise. The media also plays a crucial role in reframing societal attitudes towards risk and failure.
Japan
Reconciling tradition and innovation: Japan's path to global AI leadership
Possible futures for the global economy under new trade tariffs proposed by former US President Donald Trump include confrontational scenarios, with higher prices and inflation, as well as potential benefits such as increased demand for US-produced goods and technological innovation. Another scenario involves a transactional approach, where the US offers appealing terms for market access in exchange for concessions. This could lead to a restructuring of supply chains and the formation of economic blocs centred around the US and China. A third scenario involves China accepting US demands to rebalance bilateral trade, but this is seen as unlikely. UK and EU exports to the US would face tariffs, potentially leading to retaliatory measures and complicating the UK's relationship with both the US and EU.
Three possible futures for the global economy if Trump brings in new trade tariffs
The overuse of the term "crisis" distorts strategic thinking in foreign and defense policy, as it fosters urgency and obscures long-term dynamics. Jonathan Guiffard argues for a reevaluation of geopolitical analysis, advocating for foresight as a crucial tool instead of reactive measures triggered by so-called crises. The author highlights that many events labeled as crises are instead milestones in ongoing historical processes. A shift towards broader, more reflective thinking is essential to effectively address complex international issues rather than succumbing to immediate media-driven pressures.
From Crisis to Foresight: for a Long-Term Foreign Policy
South Africa’s AI dilemma: Bridging policy gaps for global leadership Fragmented domestic AI policies risk undermining South Africa's G20 leadership potential, calling for urgent cohesion and action. According to consulting company PwC, the global artificial intelligence (AI) market will grow from US$136.6 billion in 2023 to US$1.81 trillion by 2030. South Africa has expressed its ambition to lead global AI policy discussions as part of its G20 presidency and clearly intends to capture a share of these transformative opportunities. With several AI hubs, the country is well-positioned to lead in continental AI innovation but its fragmented domestic approach threatens to undermine its potential to leverage AI for economic growth and social development.
Angola, Botswana
South Africa’s AI dilemma: Bridging policy gaps for global leadership
Trade between the European Union and Central Asia has increased by nearly 39% over the past decade, with the Middle Corridor being pivotal in this growth. The World Bank forecasts that travel times between China and Europe's western border will decrease by half by 2030, while freight volumes could triple, reaching 11 million tons. This indicates the Middle Corridor's significant potential to transform global trade dynamics and encourage policymaking and investment aimed at enhancing connectivity and prosperity in the Eurasian region.
Armenia, Bosnia and Herzegovina, Croatia, Hungary, Kazakhstan, Kyrgyz Republic, Moldova, Morocco, Pakistan, Russian Federation, Tajikistan, Türkiye, Ukraine, United Arab Emirates, Uzbekistan
The Middle Corridor: Navigating Current Realities and Embracing Future Prospects
The paper examines the trade patterns and potential diversification in the Central Asia Regional Economic Cooperation (CAREC) Program amid recent external shocks. It analyzes trends in merchandise and service trade volumes, partners, and routes in the CAREC region. The study also explores the trade potential of the Middle Corridor as a transport and transit option for CAREC. The paper concludes with policy implications for diversifying trade and transport routes in the region.
Diversifying Trade Flows and Transport Routes in the CAREC Region amid External Shocks
Foreign direct investment (FDI) in Vietnam is concentrated in well-developed regions with good road infrastructure, according to a study analyzing firm-level and customs data. The research also highlights the role of multinational firms from East Asia and the United States in reshaping Vietnam's trade flows following the US-China trade dispute. The study provides insights into the connection between transport infrastructure, FDI, and international trade dynamics.
Viet Nam
Foreign Direct Investment Location and Trade Dynamics in Viet Nam After the US-PRC Trade Dispute
By leveraging AI and sustainable financing, Africa has the potential to become a central player in the global economy and build a resilient, climate-proof future. With its growing population and abundant natural resources, Africa is set to become the growth center of the world, while many other regions face population constraints. To ensure Africa can maximize the impact of its labor force, increased public-sector investment in infrastructure and human capital is necessary. However, challenges such as a potential Chinese slowdown and a borrowing crisis caused by a strong dollar must be addressed.
Rwanda, South Africa | Financial services
Rita Babihuga-Nsanze: “The solutions are in Africa itself”
Turkey’s geo-economic shift: An opportunity to revitalise EU integration amid sanctions publication_icon Meryem Gökten and Richard Grieveson wiiw Policy Note/Policy Report No. 90, December 2024
Türkiye
Publication: Turkey’s geo-economic shift: An opportunity to revitalise EU integration amid sanctions
Governments, companies, and civil society worldwide are increasingly conducting AI audits to assess the risks and benefits of AI systems. A literature review of 78 peer-reviewed articles, along with 21 documents from industry groups and national policies from 20 countries, highlights a need for unified global standards in AI auditing. Three main findings emphasize that current audits predominantly focus on the global north, suggesting that audit regimes must consider the broader social and environmental impacts of AI systems. Establishing consistent criteria and evaluation mechanisms is crucial for enhancing trust in AI audit outcomes.
Global Approaches to Auditing Artificial Intelligence: A Literature Review
Advocates claim that AI can help tackle climate change by modeling wildfires and optimizing energy consumption. However, a recent report raises concerns about the environmental impacts of AI. It is difficult to compare the carbon footprint of AI and human tasks, and some studies have made flawed comparisons. Additionally, the current estimate that AI is responsible for just 0.01% of global carbon emissions is based on limited data. The reliability of current research on AI and sustainability is also in question. There is a need for a more comprehensive investigation into AI's achievements and potential before making claims about its climate benefits.
Will AI save the planet? Why the evidence is flawed
India's Digital Public Infrastructure (DPI) has catalyzed significant economic and social transformations, providing a biometric identity system, an interoperable digital payment interface, and frameworks for data sharing. Achievements include 96.8% of the population having digital IDs and strong financial inclusion, projected to add 2.9-4.2% to India's GDP by 2030. The open network approach, in contrast to systems like China’s, enables tailored solutions and innovation across sectors. India's DPI is being exported as a Digital Public Good, with principles of accountability and transparency guiding its development and application.
India | ICT, Financial services
India’s Digital Public Infrastructure: a Success Story for the World?
AI agents have the potential to empower human potential and revolutionize various industries, but they also come with risks and challenges. AI agents are autonomous systems that sense, learn, and act upon their environments to achieve specific goals. Recent advancements in machine learning and large language models have allowed for the development of more capable AI agents, including multi-agent systems that collaborate to achieve shared goals. AI agents are already being utilized in areas such as software development, healthcare, education, and finance. However, there are concerns about the autonomy of AI agents and the potential for unintended behaviors. Addressing safety, security, and governance implications is crucial as AI agents continue to advance.
AI agents can empower human potential while navigating risks
AI agents are autonomous systems that can sense, learn, and act. This white paper discusses the development of AI agents and their connection to recent advances in language and multimodal models. It explores how AI agents can improve efficiency in various sectors like healthcare, education, and finance. The paper also addresses the benefits and risks of AI agents, emphasizing the ethical considerations of transparency and accountability. It highlights the importance of robust governance frameworks and cross-sector collaboration. Understanding the opportunities and challenges of AI agents allows stakeholders to responsibly leverage these systems for innovation and enhancing quality of life.
Navigating the AI Frontier: A Primer on the Evolution and Impact of AI Agents
AI agents are autonomous systems that can sense, learn, and act in their environments. This white paper explores the development of AI agents and their connection to recent advances in language and multimodal models. It emphasizes how AI agents can improve efficiency in sectors like healthcare, education, and finance. The paper also discusses the evolution of AI agents, highlighting both the benefits and risks. Ethical considerations, such as transparency and accountability, are emphasized, calling for robust governance frameworks and collaboration across sectors. Understanding the opportunities and challenges of AI agents can drive innovation and improve quality of life.
Navigating the AI Frontier: A Primer on the Evolution and Impact of AI Agents
AI agents, also known as agentic AI, are autonomous systems that can sense and act upon their environment to achieve goals. These agents are set to revolutionize various industries and redefine productivity. Companies like Microsoft, IBM, and OpenAI are developing AI agents that can perform complex tasks with minimal human supervision. AI agents have several core components, including user input, environment, sensors, a control center, percepts (data inputs), effectors (tools for action), and actions (alterations made). These agents have the potential to close skills gaps, improve supply chain efficiency, and enhance various sectors such as software development, education, finance, customer service, and healthcare.
The rise of ‘AI agents’: What they are and how to manage the risks
Türkiye's natural gas policy is driven by its quest for energy security and the expansion of its regional/global influence. The country, located in a politically unstable neighborhood, recognizes the importance of access to energy resources for economic growth. Türkiye's foreign policy has shifted over the years, and it currently engages in issue-based deal-making with multiple power centers. To support its economic program and minimize exposure to external shocks, Türkiye aims to achieve carbon neutrality by 2053 and adopt clean energy policies. However, it still depends on natural gas consumption and faces the risk of excessive dependence on Russia due to the war in Ukraine. Türkiye is striving to diversify its energy sources and improve energy efficiency to maintain economic growth.
Bermuda, Kyrgyz Republic, Liberia, Pakistan, Russian Federation, Türkiye, Ukraine
Türkiye’s Natural Gas Policy: Economics, Security, Diplomacy
Exercise has short-term cognitive benefits that can last up to 24 hours after working out, according to a new study. Researchers found that middle-aged and older adults who engaged in moderate-to-vigorous physical activity performed better on memory tests the following day. Additionally, getting more sleep, particularly slow-wave sleep, was associated with improved memory scores. The study suggests that maintaining an active lifestyle and good sleep habits can help support cognitive function as we age.
Exercise boosts memory for up to 24 hours after a workout – new research
Geopolitics and trade policy are increasingly intertwined, impacting the global economy. Countries are making trade decisions based on global politics rather than just economic benefits. Trade policies are being shaped to protect interests, reduce risks, and promote independence. There is a growing trend of using trade policies to achieve non-trade objectives such as tackling climate change and human rights. Experts emphasize the broad impact of trade across various sectors and the challenges of seeking resilience in supply chains amidst geopolitical tensions. The interconnectedness of trade presents risks beyond trade itself. Future trade strategies include maintaining open markets, addressing security concerns, connecting trade and climate change, and building alliances with other countries.
Poland, Türkiye | Financial services
Geopolitics and trade policy are becoming intertwined. Here's how it's impacting the global economy

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