The WEF panel discussed how AI is transforming the global economy, highlighting widening gaps between countries and within societies due to differences in infrastructure, skills, and regulation. They emphasized the need for international cooperation, investment in skills, and inclusive policies to ensure AI benefits are broadly shared and risks—such as job displacement and digital divides—are managed.
The World Economic Forum panel discussed the transformative impact of artificial intelligence (AI) on the global economy, emphasizing both opportunities and challenges. Panelists categorized countries into three groups based on their AI preparedness: those leading the way, those observing, and those lagging behind. The United States, Denmark, and Singapore were highlighted as top performers, with China possessing significant capabilities but facing challenges due to its size. Emerging economies like Saudi Arabia and India were noted for their rapid progress, while many low- and middle-income countries remain far behind, particularly in infrastructure, skills, diffusion, and regulation. The panel warned of a widening “accordion” of opportunity and impact, with AI affecting labor markets unevenly—up to 60% of jobs in advanced economies are being transformed, compared to about 25% in low-income countries.
The conversation shifted to the geopolitical implications of AI, with the US and China competing in innovation and diffusion, but with limited cooperation. Europe’s strong technology sector and transatlantic ties were emphasized as crucial, even as concerns about alignment and competition persist. India asserted its position as a leader in AI, working across all layers of the AI stack and focusing on practical applications and diffusion, rather than just building large models. Saudi Arabia, meanwhile, is leveraging AI as part of its Vision 2030 diversification strategy, investing in infrastructure, applications, and connectivity to become a global AI hub. Both countries stressed the importance of self-reliance and optionality, aiming to avoid overdependence on any single nation or technology provider.
Panelists also addressed the societal and economic impacts of AI within countries. While AI is boosting productivity in areas like translation and research, it is also replacing certain jobs and creating new skill demands. There is a risk of divergence not only between countries but also within them, as some communities benefit from AI while others are left behind. The panel highlighted the importance of matching AI skill supply with demand and warned of the dangers in countries where neither exists. In the US, concerns about the local impact of data centers—such as electricity and water use, and job creation—are becoming more politically salient than fears of job loss due to automation.
India and Saudi Arabia shared their approaches to AI diffusion and inclusion. India is investing in public-private partnerships to provide affordable GPU access, developing a suite of AI models, and training millions in AI skills to ensure broad-based benefits. Saudi Arabia is building regulatory frameworks, open data policies, and national champions to foster innovation and ethical AI use. Both countries are deploying AI in sectors like healthcare and energy, demonstrating tangible benefits such as improved diagnostics and resource efficiency. The panel acknowledged that while these nations are making strides, the global south as a whole risks falling further behind unless infrastructure and skill development are prioritized.
Finally, the panel discussed governance and the risks of AI weaponization and digital sovereignty. They called for international cooperation to prevent the misuse of AI and ensure technology remains accessible and beneficial. Investing in skills was identified as a cost-effective way for governments to stimulate AI adoption and economic growth. Panelists stressed the need for technical approaches to regulation, such as tools to detect bias and deepfakes, rather than relying solely on legislation. The session concluded with a call to bridge the digital divide, particularly in Africa, by investing in connectivity and digital government services, and by preparing young people for the evolving demands of the AI-driven economy.