Insights

As AI and automation threaten traditional jobs, people are increasingly prioritizing creativity in their careers, viewing it as less replaceable by technology. Studies show that when faced with automation threats, individuals emphasize creative skills in applications, prefer creative training, and seek employers valuing a creative culture. This shift persists even after awareness of AI's creative capabilities grows. While creativity may not be fully automation-proof, it is perceived as a distinctly human skill offering a strategic advantage in adapting to future workforce changes.
Education
Is AI Prompting a Creative Renaissance?
Ernest Shackleton's expedition highlights the difference between maps—detailed plans—and compasses—vision and values—in navigation, a metaphor for business leadership. Business plans (maps) provide goals and structure for stable environments, while a leader’s compass guides through unpredictable change. Many companies overly rely on rigid plans, failing to adapt when external conditions shift drastically, leading to failures like Kodak or Blockbuster. Effective leadership balances map-based optimization with compass-based adaptability, fostering creativity and responsiveness to ongoing, interconnected changes in complex environments.
Education
When the Fog Rolls In, Do Leaders Need a Map or a Compass?
The 2026 IESE Insight special edition on AI provides research-based guidance for business leaders navigating AI-driven change amid geopolitical and sustainability challenges. It emphasizes transforming individual generative AI successes into firm-wide impact with tailored organizational capabilities. The report explores AI’s potential to disrupt global knowledge work offshoring and offers practical advice for implementing AI effectively. Additional topics include managing polarized and complex environments, fostering innovation in distributed teams, overcoming resistance through entrepreneurial framing, data-driven pricing, adapting to the EU Circular Economy Act, and decision-making lessons from athletes. The edition promotes human-centered leadership to simplify complexity and enhance purposeful leadership.
Iceland, Singapore, United Arab Emirates | Education
AI’s Simplicity Illusion
Green finance is both a critical challenge and an opportunity for CAREC countries to align their financial systems with climate and sustainability goals, promoting long-term economic stability. A regional approach with harmonized regulations, green bonds, and tax incentives can mobilize private capital effectively. Drawing on global best practices, a coherent 10-year phased strategy is proposed to shift investments toward low-carbon and climate-resilient sectors across the CAREC region.
Latin America | Financial services
Green Finance Development in CAREC Countries: Challenges and Possibilities
Copyright in the AI era is complex and unclear, with Creative Commons (CC) licenses insufficient to address how content is used in AI systems or creators' intentions. Creators and institutions increasingly employ legal, technical, and financial controls—such as restrictive licensing, CAPTCHAs, and paywalled APIs—to limit access. These measures indiscriminately block all machine use, harming public interest activities like research, preservation, and accessibility. This trend risks fragmenting and shrinking the commons and weakening public interest protections in the digital ecosystem.
From Signals to Infrastructure: Strengthening the Commons for the AI Era
Geoff Mulgan’s Advanced Introduction to Public Sector Innovation examines the mindsets, methods, and strategies essential for successful innovation in government. Drawing on global case studies, it offers practical tools to generate, assess, and scale new ideas across local, regional, and national levels. The book explores the roles of markets, competition, specialist teams, labs, finance models, data, and AI, while addressing challenges like political resistance to risk-taking. This accessible framework is valuable for policymakers, practitioners, and scholars in public administration and governance.
Education
Advanced Introduction to Public Sector Innovation
Middle powers currently struggle not due to great powers' dominance but because of their own disorganization and lack of a unified agenda. Despite calls by leaders like Canadian Prime Minister Mark Carney for middle powers to unite against great power domination, efforts remain fragmented and largely ineffective, as seen in responses to the US-Iran conflict. Regional middle powers, particularly in the Gulf, are gaining significance over traditional European allies in US strategic considerations, indicating a shift in global power dynamics. However, middle powers face challenges in balancing alliances and exerting substantial influence on major international issues.
Latin America
What Is the Status of Middle Powers?
The ongoing conflict in Iran, now three months in, has severely weakened the Islamic Republic economically and militarily but failed to eliminate its nuclear threat. The regime remains radicalized and internally strengthened, with its nuclear program delayed but not destroyed. The war has destabilized the Middle East, creating a prolonged state of neither war nor peace, with significant global repercussions, including economic disruptions due to the Strait of Hormuz’s strategic importance for oil and gas exports. Key regional and global players like the Gulf states, Israel, China, Russia, and Ukraine face complex outcomes as all navigate uncertainty and search for alternatives in trade and security networks.
Afghanistan, Bahrain, Egypt, Japan, Jordan, Malaysia, Oman, Pakistan, Russian Federation, Saudi Arabia, Taiwan, China, Ukraine, United Arab Emirates, United Kingdom, Uzbekistan, Venezuela, Yemen
The Fourth Gulf War: a Trial of Weakness?
China is rapidly advancing toward semiconductor self-sufficiency with state-led coordination and significant investment, aiming for 80% domestic production of key chips by 2030. The U.S. faces structural limits despite substantial federal incentives like the CHIPS Act; its share of global chip manufacturing has declined, and new fabs won't be fully operational until technologies become outdated. Europe's EU Chips Act drives major investments and boasts strengths in EUV equipment and automotive chips, yet its global production share remains stagnant around 10%. Future semiconductor dominance will depend on training engineers, resilient supply chains, and effective university-industry partnerships rather than export controls.
Belgium, Denmark, Estonia, Georgia, Germany, Hungary, Poland, Singapore, Sweden, Taiwan, China, United Arab Emirates, United Kingdom | ICT
Which market will dominate the semiconductor industry in the next decade?
Three major revolutions are disrupting the global order: AI is transforming learning, work, and cognition; illiberalism is enabling the rise of new autocracies; and global powers are adopting divisive, fragmented strategies. In response to these challenges, Europe must navigate this turbulence by adapting its policies and leadership to maintain stability and cohesion in an increasingly fragmented world.
Ukraine, United Kingdom | Financial services, Health, Education
AI, illiberalism, and a change in leadership: Europe in a turbulent world
Climate risks in Asia are escalating, posing threats to fiscal sustainability, infrastructure resilience, and macro-financial stability. Effective disaster risk financing requires an integrated, layered approach combining adaptation and resilience investments, risk transfer mechanisms, and post-disaster funding. Investments in adaptation reduce vulnerabilities, enhancing the affordability and effectiveness of financing tools. Establishing a common data architecture integrating hazard, exposure, and vulnerability information supports better prioritization and risk management. Despite challenges in data availability and measuring resilience outcomes, risk-based taxonomies can improve investment alignment. Strengthening data systems and institutional coordination is vital for linking adaptation, disaster risk financing, and fiscal risk management in the region.
Financial services
Adaptation and Disaster Risk Financing in Asia: Toward an Integrated Climate Risk Management Framework
Bhutan can enhance its digital payment ecosystem by upgrading infrastructure, improving cybersecurity, and harmonizing cross-border payment regulations. Addressing challenges like unreliable connectivity and limited digital literacy, along with coordinated stakeholder efforts and tailored solutions for small businesses, will boost adoption and global market integration. Drawing on international case studies, these measures aim to strengthen financial inclusion, promote trade, and support inclusive, sustainable economic transformation in Bhutan.
Bangladesh | ICT, Financial services
Advancing Digital Payments in Bhutan: Infrastructure Upgrades and Policy Development for Enhanced Trade Facilitation
Global climate finance reached $1.46 trillion in 2022 but remains insufficient, especially in developing Asia-Pacific countries needing up to $1.1 trillion annually for mitigation and adaptation. While governments increase public investments and mechanisms supporting climate resilience, accountability systems lag. Simply mobilizing funds does not ensure effective outcomes without transparent, coordinated oversight. Technical tools like climate budget tagging and green taxonomies aid identification but cannot guarantee efficiency or impact alone. Supreme Audit Institutions (SAIs), as independent auditors, play a crucial role by assessing not only financial compliance but also the effectiveness and coordination of climate finance across sectors. Strengthening SAI involvement is essential to build public trust, ensuring climate finance is managed transparently, efficiently, and delivers measurable climate results.
Financial services
Building Trust Through Accountability in Climate Finance
Generative AI (GenAI) has the potential to revolutionize business by augmenting human expertise and boosting productivity, especially when used as a copilot to assist workers. However, its adoption in firms remains uneven and relatively low, with the most significant uptake in ICT industries. Early productivity impacts often show a dip as organizations adapt, reflecting the typical J-curve pattern of new general-purpose technologies. Effective integration of GenAI requires careful managerial efforts to reduce implementation frictions, as benefits depend on organizational culture, skills, and complementary practices. While some firms have replaced jobs with AI agents, sustainable gains come from combining human and AI efforts thoughtfully.
Education
How to put AI to work in your organization
Special Economic Zones (SEZs) in Viet Nam from 2006 to 2020 boosted employment, revenues, and attracted more foreign-invested firms. However, they negatively impacted domestic private firms, which saw declines in revenue and numbers. SEZs also deteriorated provincial economic governance by limiting land access, reducing transparency, and increasing informal charges. The establishment of the first SEZ heightened concerns over preferential treatment and rent-seeking behaviors.
Viet Nam
The Role of Special Economic Zones in Shaping Viet Nam’s Local Business Environment
The May 2026 Chief Economists’ Outlook reveals a more pessimistic global economic forecast due to conflict escalation in the Middle East and the closure of the Strait of Hormuz. Key challenges include disrupted supply chains, rising energy and food prices, financial volatility, and inflation pressures, leading to weakened confidence and lower growth expectations. Regional divergence is evident: the US and India maintain moderate to strong growth amid inflation, China’s outlook improves slightly, Europe faces weaker growth and stagflation risks, and South-East Asia shows resilience but remains vulnerable to import cost increases. Multinational companies are shifting investments toward the US, India, and South-East Asia, while optimism about artificial intelligence endures despite slower, uneven productivity gains.
Afghanistan, Australia, Austria, Bahrain, Belgium, Bolivia, Bulgaria, Chile, Colombia, Denmark, Ecuador, Egypt, Estonia, Georgia, Germany, Ghana, Greece, Hungary, Iceland, India, Indonesia, Israel, Jamaica, Japan, Jordan, Kenya, Malaysia, Mauritius, Moldova, Mozambique, Myanmar, Namibia, Oman, Pakistan, Peru, Philippines, Poland, Republic of Korea, Russian Federation, Rwanda, Saudi Arabia, Senegal, Seychelles, Singapore, South Africa, Sweden, Switzerland, Taiwan, China, Tajikistan, Tanzania, Thailand, Tunisia, Uganda, Ukraine, United Arab Emirates, United Kingdom, Uzbekistan, Venezuela, Yemen, Zimbabwe | Financial services
Chief Economists' Outlook: May 2026
The global economic outlook for May 2026 has turned more pessimistic due to escalating Middle East conflicts and closure of the Strait of Hormuz, causing supply chain disruptions, rising energy and food prices, financial volatility, and heightened inflation pressures. Growth expectations have weakened, with the US and India showing moderate to strong growth but facing inflation risks. China’s outlook has improved modestly, while Europe faces weaker growth, energy shocks, and stagflation risks. Southeast Asia remains resilient but vulnerable to rising import costs. Multinational companies are adjusting investments and supply chains, favoring the US, India, and Southeast Asia. Artificial intelligence offers optimism, though productivity gains may be slower and uneven.
Afghanistan, Australia, Austria, Bahrain, Djibouti, Egypt, Estonia, Georgia, Ghana, Greece, Hungary, India, Indonesia, Israel, Jamaica, Japan, Jordan, Kenya, Malaysia, Myanmar, Namibia, Oman, Pakistan, Philippines, Russian Federation, Senegal, Seychelles, Singapore, South Africa, Sweden, Taiwan, China, Tanzania, Thailand, Tunisia, Uganda, Ukraine, United Arab Emirates, United Kingdom, Uzbekistan, Venezuela, Yemen, Zimbabwe | Financial services
Chief Economists' Outlook: May 2026
Pope Leo XIV's encyclical *Magnifica Humanitas* marks a significant Vatican engagement with artificial intelligence (AI), focusing on AI's impact on humanity amid rapid technological change. The document, launched in the presence of industry leaders including Anthropic co-founder Chris Olah, advocates for a pro-human, socially responsible approach rather than an anti-technology stance. It calls for transparency, participation, and shared power in AI governance, rejecting techno-utopianism and emphasizing AI should enhance human dignity, meaningful work, and finite relationships. The text also challenges how AI reshapes human identity, work, education, politics, and power structures, urging ethical reflection grounded in Catholic social teaching.
Education
The story of Pope Leo’s ‘landmark’ text on AI technology – by a member of its launch panel
Pope Leo XIV’s encyclical Magnifica Humanitas addresses the ethical governance of artificial intelligence, emphasizing the protection of human dignity and peace amid technological advances. Beyond cautioning against autonomous weapons, the document calls for a broader moral framework guiding AI development to serve humanity. It highlights the responsibility to safeguard the human person, underpinning the importance of PeaceTech and its role in promoting peace through technology.
Technology, Peace, and Human Dignity: Reflections on the Relevance of Magnifica Humanitas for PeaceTech
Over the past two decades, governments worldwide established numerous innovation labs and multidisciplinary teams to address complex, digital, and interconnected public challenges that traditional structures could not manage. Early iterations, such as Denmark's MindLab and the UK's Policy Lab, successfully introduced user-centered design, strategic cross-departmental approaches, and new professional roles within government. These labs fostered protected spaces for experimentation, proximity to decision-makers, and evidence-based innovation, leading to meaningful transformations in public policy and service delivery. However, many labs have since lost these critical conditions that made them effective, diminishing their impact.
ICT, Health, Education
Stop Building Innovation Labs

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