Will the AI-led 'intelligent age' change the way we live and work?

Governments and companies worldwide are also struggling with increased geopolitical risks, World Economic Forum executive says

A screen displaying AI generated artwork in Davos, Switzerland. Technological advancements are converging to reshape industry and society. EPA

It's fair to say 2024 was a year marked by rapid technological progress. Generative artificial intelligence is being discussed in boardrooms across sectors ranging from retail and energy to health care and logistics.

Technological advancements are converging to reshape industry and society. Humanity is living in the "intelligent age" in which a range of emerging technologies, including AI, quantum computing, and clean energy are growing exponentially, according to Mirek Dusek, managing director of the World Economic Forum.

"We are living in an era of technological renaissance," he told The National at a recent WEF event in Dubai.

"We call it the intelligent age because it's not only one technology but whole sets of technologies that are growing exponentially to market."

He highlighted the role of generative AI, which has sparked global interest, but emphasised that AI has been around for some time. The convergence of AI with other fields offers potential energy production, new fuels, and sustainability breakthroughs.

"The AI revolution is a big piece of the intelligence age," he said. "But we're also seeing huge advancements in quantum and cleantech reshaping industries and society."

AI could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined, according to PwC. Of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion from benefits to consumers, it added.

The global generative AI market in particular, estimated to be valued at $16.87 billion this year, is forecast to expand at a compound annual growth rate of 37.6 per cent from 2025 to 2030, according to Grand View Research.

Unlike the overall field of AI, the generative AI sub-sector largely involves the creation of new content in the form of images, video, text, speech, sound and music.

In recent years, generative AI has been applied to software development, life sciences, health care and finance sectors, often speeding up traditionally tedious tasks. This has led to an entrepreneurial and technological race globally to capitalise on the potential of generative AI.

However, AI risks include labour market disruption, intellectual property theft, potential proliferation of misinformation, and national security concerns.

While technological advancements present enormous economic growth and productivity potential, Mr Dusek also stressed the importance of responsible development.

"If done right, and if done responsibly, we could really reap the benefits in terms of dramatic increases in productivity," he added.

Changing economies

But it is not only technology that is disrupting economies and societies. Governments and companies worldwide are grappling with challenges such as armed conflict, trade wars and rising political polarisation, all driving a significant shift in global decision-making, Mr Dusek said.

"We are seeing an uptick in conflict overall around the world and that, of course, is a huge drag on the economy, beyond the immediate suffering of people," he said.

He added that peace and security are in decline, and this shift is influencing how businesses operate.

Where multinational corporations once prioritised efficiency in supply chains, geopolitical considerations have now become a critical factor.

"Before Covid, many big multinational companies and their decision-makers didn't really think geopolitics was material," Mr Dusek added. "But now, geopolitics has become a big factor."

He praised the UAE's role as a model for agile governance, noting its efforts to be "fit for purpose" in the face of 21st-century opportunities and challenges. He added that governments play a crucial role in shaping regulatory environments supporting global economic competitiveness.

"If they are not nimble enough; if they do not have access to the full spectrum of information, the regulatory environment they create, it could set them back in how they can be competitive in this new global economy that is emerging," Mr Dusek said.