Davos 2025: World Economic Forum focuses on trade, tariffs, AI, and UN leader Guterres

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    Davos, Switzerland — U.N. Secretary-General António Guterres has intensified his alarm regarding climate change and characterized the global dependence on fossil fuels as a “Frankenstein monster” that affects everyone. He emphasized the need for increased vigilance against the risks associated with uncontrolled artificial intelligence, even as some leaders highlighted its potential benefits.
    Guterres was a pivotal figure during several events and discussions on Wednesday at the annual World Economic Forum in Davos. The discussions also focused on developments in Washington during U.S. President Donald Trump’s first week back in office, garnering attention among government officials, business executives, and academics alike.
    Ukrainian President Volodymyr Zelenskyy was present at the forum, engaging in meetings with various leaders, including Israeli President Isaac Herzog and Vietnamese President Luong Cuong. He aimed to rally support for Ukraine amidst its ongoing conflict with Russia.
    A brief summary of the day’s discussions reveals Guterres’s call to action regarding the oil industry. Among energy and tech industry executives present, he reiterated his appeal for enhanced global efforts to confront climate issues. Trump’s pledges to ramp up domestic fossil fuel production and various concerns regarding economic setbacks in Europe have shaken commitments to reduce carbon footprints.
    Guterres expressed dismay at the realities of 2024 being recorded as the hottest year, cautioning that rising sea levels may soon inundate ports critical for oil transportation. He remarked, “Rising temperatures, mainly driven by fossil fuel combustion, frame our addiction to these energy sources as a monster that leaves destruction in its wake.” He warned that companies reversing their climate strategies are “on the wrong side of history.”
    On the subject of artificial intelligence, Guterres acknowledged AI’s potential to transform learning, enhance healthcare, and improve agricultural efficiency. However, he stressed the dangers associated with unregulated AI, stating it could be exploited as a deceptive tool that erodes trust in institutions, disrupts job markets, and complicates warfare.
    In related developments, Trump recently announced a partnership aimed at investing up to $500 billion in AI-linked infrastructure, spearheaded by Oracle, SoftBank, and OpenAI. The initiative, named the Stargate project, seeks to establish the necessary energy and data capabilities to meet the demands of rapidly advancing AI technology in Texas.
    Julie Sweet, CEO of Accenture, praised the Stargate initiative as proof of AI’s significance for both corporations and nations. She indicated that the U.S. seems poised to favor an innovation-first approach towards AI while introducing “suitable safeguards” later on, contrasting with regions that prioritize regulations initially. “For AI to thrive, it must earn people’s trust,” Sweet stated, adding that the motivations for ensuring trustworthy AI are universally recognized across various sectors.
    Malaysian Prime Minister Anwar Ibrahim voiced the need for his country to adapt to the advancing landscape of AI, affirming a commitment to accelerate its integration due to his recognition of time constraints. Speaking at Davos, he mentioned a recent economic collaboration with Singapore aimed at enhancing job creation and attracting investments.
    Anwar acknowledged the challenges posed by AI, noting Malaysia’s lack of expertise in the area. He asserted that this transition would necessitate alterations in sectors such as education, healthcare, and blockchain technology.
    Meanwhile, Spanish Prime Minister Pedro Sánchez implored the European Union to take decisive action to regulate social media, which he accused of being controlled by tech billionaires undermining democracy. He lamented that platforms, initially designed to foster unity, have devolved into sources of division and misinformation, threatening economic sectors and public trust.
    Sánchez announced plans to advocate for policies aimed at eliminating user anonymity on social media and to enforce accountability on platform owners for any misconduct arising from their services.
    Lastly, discussions about potential tariffs proposed by Trump were prominent, with UK Treasury Chief Rachel Reeves expressing hope that Britain might evade such import taxes. She explained that the U.K. operates a modest trade deficit with the U.S., indicating that tariffs on the U.K. would not effectively address the challenges Trump is attempting to tackle. Reeves highlighted the interlinked nature of the economies, stressing that tariff impositions would not be beneficial for either nation.
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