"We have entered a new world economy shaped by two fundamental forces: geoeconomic fragmentation and exponential innovation. In this environment, established cooperative and diplomatic frameworks are under pressure, requiring much more dialogue, imagination and entrepreneurship to regain forward momentum. At the same time, technology and innovation are being deployed at unprecedented speed, with companies playing an ever-greater role. These shifts are transforming how businesses operate across geographies."
"On one hand, we are seeing the return of governments reasserting themselves as central economic actors, redrawing economic boundaries and forging new blocs through measures, including industrial policy, tariffs and massive investments, in key domestic companies. On the other hand, rapid and large-scale technological advances, such as artificial intelligence, are generating vast opportunities and changing what it means to compete."
"This volatile and uncertain landscape, where geopolitical disruption and exponential technological innovation are deeply intertwined, has profound implications for how industry should approach business strategy. Business leaders can no longer solely rely on managing volatility as it arises. Instead, they must build foresight directly into their operating models and develop the ability to adapt continuously in a world defined by contested norms, shifting alliances and the erosion of trust. At the same time, they will need to discern enduring signals amid pervasive noise."
Two fundamental forces—geoeconomic fragmentation and exponential innovation—are reshaping the global economy. Cooperative diplomatic frameworks face pressure, requiring greater dialogue, imagination and entrepreneurship to restore momentum. Governments are reasserting themselves as central economic actors by redrawing boundaries and creating blocs through industrial policy, tariffs and large investments in domestic companies. Simultaneously, rapid technological advances, especially artificial intelligence, are creating vast opportunities and transforming competitive dynamics. Industry must incorporate foresight into operating models and develop continuous adaptability amid contested norms, shifting alliances and eroding trust. Firms must discern enduring signals from pervasive noise and treat these interconnected forces as central strategic priorities.
#geoeconomics #exponential-innovation #industrial-policy #business-strategy #artificial-intelligence
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