In the bustling corridors of the recent World Economic Forum (WEF) in Davos, Switzerland, where global leaders, industry titans and thought leaders converge, the conversation was framed by the urgent challenges facing humanity. Yet questions persist about the forum’s true impact and its ability to address the world’s most pressing issues.
So we sat down with Gorgi Krlev, an associate professor of sustainability at ESCP’s Paris campus, to understand the implications for businesses in 2024, along with the political undercurrents shaping the forum, the evolving discourse on emerging technologies like artificial intelligence, and the imperative for inclusive, action-oriented dialogue to drive meaningful change.
Addressing exclusion and elite agendas
Kicking things off, Krlev underscores the increasing politicization of the forum, held in mid-January, and the ensuing debate over its relevance in shaping global policy. “This year it was very political compared with previous forums, but there was disagreement over how politically relevant the forum is and should be in the future,” he says. “This is problematic: if we want meaningful change to happen, we need government action as well as private sector contributions, and especially better integration between the two.”
In this context, one of the critical issues that our expert highlights is the potential overshading of pressing global challenges, such as the climate transition, by recent conflicts like the Israel-Hamas war, without as he says, “recognizing how spirals of violence only perpetuate human suffering and make global collaboration on risks that will affect everyone nearly impossible”. He also points to the issue of exclusion at the WEF, arguing some global elites drive the agendas that align primarily with their business interests. “We should level the playing field, ensuring that outcomes from the WEF benefit a broader range of participants and address more of the issues the WEF’s own Global Risk Report highlights, including earth systems, biodiversity, misinformation, forced migration or societal polarization,” says Krlev.
If we want meaningful change to happen, we need government action as well as private sector contributions, and especially better integration between the two.
Navigating the evolving AI landscape
He notes that the forum generates a wealth of information, reflecting the diverse insights and perspectives shared by industry leaders. However, how can companies leverage the information and discussions to adapt and thrive in the changing economic landscape? For one, he cautions against overlooking the risks associated with emerging technologies like generative AI.
The rapid development of this technology was among the principal trends at the WEF, but Krlev underlines how discussions over the business benefits were displacing debates about how to use it responsibly. “There was a lot of talk about how far you can use AI to gain competitive advantage. And at the same time, there were more critical debates missing about the imperfections of AI, such as the reproduction of biases in terms of gender and race,” he says. “Our focus on AI is miss-placed somewhat at the moment.”
Although numerous economists predict that the increasing prevalence of AI will result in enhanced productivity, they also acknowledge that it will bring about significant disruptions to the workforce. This was reflected in a study by consulting firm PwC, conducted at this year’s WEF. It found that 25% of CEOs worldwide foresee a reduction in jobs by at least 5%, owing to the implementation of generative AI, with 46% being optimistic about the technology boosting profits in the upcoming year.
Furthermore, Krlev draws attention to recent governance travails at ChatGPT-maker OpenAI, which ousted and then reinstated its boss Sam Altman. Tensions were brewing between a group led by Altman, who is pushing for rapid deployment and commercialization of AI, while others wanted to prioritize safety. “OpenAI is a non-profit being pulled into the for-profit world,” Krlev says. “The furore highlights a desire to use AI to serve humanity. How can we improve algorithms to be less biased or use them to prevent food waste, for example, rather than only looking at how it can improve a firm’s product pricing?”
Driving social innovation and collaboration
Another key theme at this year’s WEF, highlighted by Krlev, is the growing emphasis on social innovation and collaboration between mainstream businesses and social enterprises, signalling a shift towards a more holistic approach to economic development. “Companies are committing to increasing their investments in social enterprises, which represents a shift towards a more holistic approach where the traditional economy actively supports and integrates with the social economy,” he says.
The term “social economy” refers to organizations and initiatives that prioritize social or environmental impact alongside financial success. “This approach encourages businesses to explore the intersections between profit-driven activities and social or environmental objectives, to create synergies that benefit both the economy and society at large,” adds Krlev.
There’s an abundance of speeches but insufficient dialogue among participants, and there’s a need to shift from mere discussion to actionable plans.
Moving towards tangible outcomes
Regarding the structure of the event, beyond the content of the discussions within it, Krlev notes a previous criticism of the forum: the absence of heads of state and the subsequent emphasis on rebuilding trust and fostering collaboration among stakeholders. In this context, he provides two suggestions:
“There’s an abundance of speeches but insufficient dialogue among participants, and there’s a need to shift from mere discussion to actionable plans. Should the WEF adopt a formal declaration akin to those seen in conferences like the UN climate summit COP, to drive tangible outcomes?”
Key recommendations for businesses
Lastly, our expert offers up some key recommendations or actions that businesses should consider based on the takeaways from the 2024 WEF. He notes the increasing awareness of how AI will impact various aspects of the workplace, saying that businesses need to take this impact more seriously and explore ways to leverage AI to address environmental concerns, such as capturing Scope 3 emissions, and reshape global value chains.
“Scope 3 emissions are the indirect emissions occurring throughout a company’s supply chain, including transportation, distribution or disposal after a product’s lifetime. AI can provide businesses with deeper insights into their value chains, to identify inefficiencies and implement sustainable practices to curb emissions,” he says.
Additionally, rather than passively accepting these transformations, he advocates for a reflective and proactive approach to better prepare for and navigate the evolving business landscape, partly shaped by AI. “This may involve investing in research and development initiatives, upskilling employees to leverage AI-driven tools and technologies, and fostering a culture of experimentation and continuous learning with an explicit focus on creating positive impact,” he says.
By embracing AI responsibly, investing in social innovation and fostering collaboration, he says businesses can ultimately contribute to building a more resilient and inclusive global economy.
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