AI Emerges as Central Focus at Davos Amid Geopolitical Tensions

Web Reporter
4 Min Read

While geopolitics dominated discussions at this year’s World Economic Forum in Davos, artificial intelligence (AI) emerged as an equally urgent concern for world leaders navigating questions of technological sovereignty and strategic power.

Cathy Li, head of the Centre for AI Excellence at the World Economic Forum, told Euronews Next that the global race for AI independence is accelerating. “Not only is it possible, it’s happening,” she said. “Within this geopolitical environment, every country is doing their own planning. Of course, people are worried and concerned about not having the so-called sovereignty.”

The concept of AI sovereignty—nations controlling and governing their own AI systems—has risen to the top of the agenda, particularly as tensions grow between the US, China, and Europe. Li stressed that sovereignty does not mean isolation. “We try to move away from the notion that this needs to be a full national AI ownership, but more towards strategic interdependence,” she said. This approach encourages countries to combine domestic investment with international partnerships while selecting the right collaborators.

Europe was highlighted as a model for layered cooperation, with cross-border partnerships among EU member states helping to ensure that “everyone can benefit from this powerful technology,” Li said. Despite US and Chinese dominance, AI presents a major opportunity for Europe. Nvidia CEO Jensen Huang described AI as “exciting for Europe” due to its strong manufacturing base and industrial capabilities, calling it a chance to “leapfrog” the software era.

Li noted Europe’s advantages include exceptional talent, stable regulatory systems, and robust industrial foundations, but acknowledged hurdles remain. Market fragmentation within the EU makes scaling startups difficult and limits talent mobility. “Many start-ups born in Europe still see it’s much easier to enter a big market like the US than to try to tackle the fragmented domestic markets within the European Union,” she said.

Energy demands also pose a significant challenge. AI systems require vast amounts of electricity, particularly for data centers. Microsoft CEO Satya Nadella told Davos attendees that energy costs will play a decisive role in which nations lead in AI. Li framed this as both a challenge and an opportunity: upgrading “outdated” energy infrastructure and shifting to clean energy could benefit societies as a whole.

Li warned that AI is advancing at unprecedented speed, moving beyond large language models to physical AI, including robotics. She stressed that technology must serve humanity, not just corporate profit. “How do we protect our children’s future, not just our own?” she asked, cautioning against cutting entry-level jobs in favor of automation. Instead, she urged pairing younger, “AI-native” workers with experienced management to maximize returns.

Li also emphasized the need to prevent AI from widening the digital divide between the Global North and South and to power AI with clean energy. “We really look at technology as an uplifting force that can uplift the whole of humanity. We’re humans, we’re unique because we take care of each other, so that needs to be front and centre of our agenda,” she said.

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