The World Economic Forum (WEF) 2025 annual meeting, being held in the Swiss town of Davos, has brought together nearly 3,000 attendees from over 130 countries to discuss and address global challenges in the intelligent age.
Amid rapid advancements in artificial intelligence (AI), quantum computing, and blockchain technologies, there are also growing concerns about geopolitical crises, economic fragmentation, and climate change.
These longstanding issues, coupled with new technological developments, have created a complex web of risks and uncertainties that threaten global stability.
Klaus Schwab, the founder and chairman of the WEF, has emphasised the importance of collaboration in tackling these challenges. Schwab highlighted the need for a collective approach to overcome the difficulties posed by the rapid pace of technological change.
At the same time, he warned of the geopolitical risks that continue to escalate due to military tensions in various parts of the world.
According to the WEF's Global Risks Report 2025, five major risks face the world in 2025: state-based armed conflicts, extreme weather events, geoeconomic confrontations, misinformation and disinformation, and societal polarisation.
Saadia Zahidi, Managing Director at the WEF, pointed out that the ongoing crises in Ukraine, the Middle East, and Sudan are pushing geopolitical tensions to the forefront of global risks. These conflicts are creating uncertainty and could impede global development in the years to come.
Adding to these geopolitical concerns, the WEF's Chief Economists Outlook has predicted a weakening global economy in 2025. Over half of the economists surveyed expect a slow economic recovery, with rising protectionism and ongoing issues such as inflation and debt preventing smooth growth.
Global economic fragmentation, particularly the rise of protectionist policies, will only hinder international trade and deepen global disparities. The impact of these economic divisions could have long-lasting effects on countries' economies, particularly in a post-pandemic world.
As the global economic landscape shifts, AI is also emerging as a transformative force. WEF President and CEO Borge Brende highlighted that AI could potentially increase global productivity by up to 10% over the next decade.
This new growth momentum, however, must be managed carefully to ensure that AI's benefits are distributed equitably across the world. In this regard, both multilateral and bilateral cooperation will be essential to ensure that AI governance is established effectively and responsibly.
While the risks facing the world are daunting, the WEF has called for international cooperation to tackle these challenges. Brende stressed that many of the world’s most pressing issues are transnational and require a global response.
From conflicts to climate change, the need for coordinated, collective action has never been greater. Mark Elsner, head of the WEF's Global Risks Initiative, echoed this sentiment, stressing the urgent need to rebuild trust and cooperation among nations.
Without concerted action, the consequences of inaction could be felt for generations to come.
One of the key topics for international cooperation at this year's meeting is the global governance of AI. Liang Guoyong, a senior economist at the UN Conference on Trade and Development (UNCTAD), explained that both multilateral institutions like the United Nations and bilateral cooperation between major countries will play crucial roles in shaping the future of AI. The promotion of the Global Digital Compact and stronger partnerships between countries are seen as essential to ensuring that AI benefits humanity while safeguarding against potential risks.
China's contribution to addressing global challenges has also garnered attention at the WEF. As the world's second-largest economy, China has played an important role in fostering international cooperation. Despite challenges such as trade protectionism and the risk of economic decoupling, China's foreign trade has remained resilient. Brende expressed optimism about China's long-term economic prospects, citing its continued role in driving global growth and its ability to stimulate domestic consumption.
China has also made significant contributions to AI governance. The Global AI Governance Initiative, launched by China, aims to promote the development and security of AI in a balanced manner. This initiative reflects China's commitment to addressing the global challenges posed by AI and has been recognised as an important reference for the international community.
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