Davos 2026: The End of the Rules-Based Order and the Rise of AI

Geopolitical Fragmentation and Sovereignty

• 🌍 Davos 2026 marked a significant shift, with a palpable mood of geopolitical tension and a declared end to the traditional rules-based order.
• 🗣️ Canadian Prime Minister Mark Carney's speech highlighted that the rules-based order is over, emphasizing a rupture rather than a smooth transition and the need for middle powers to build new alliances.
• ⚠️ European leaders, like Belgium's Prime Minister, expressed concerns about Europe's risk of becoming "unwilling slaves" due to dependency, underscoring the urgency of technological sovereignty.
• 🔗 The concept of interdependency is increasingly viewed as a weapon, leading to a focus on managing risks and ensuring real sovereignty, particularly concerning US software and cloud services.

The Reality of AI Adoption

• 🚀 The discussion around artificial intelligence has moved from speculative science fiction to practical enterprise adoption and its impact on work and employment.
• 📊 While AI capabilities are doubling rapidly, enterprise adoption is still in its early stages, with most companies in a learning and rollout phase, not yet widespread success.
• 💡 Some large companies are building impressive AI tooling for core business functions, indicating potential for improved business performance and customer service.
• 🛠️ The use of open-source AI models is gaining traction, as seen with Hypocratic AI, allowing for greater control, cost management, and improved gross margins compared to closed-source alternatives.

Key Figures and Themes

• 🎤 Donald Trump's arrival at Davos generated unprecedented buzz, with a record-breaking queue to hear his speech, highlighting his significant impact on the geopolitical narrative.
• 🤝 Despite the move towards nationalist policies, the world remains interconnected, with trade outside the US growing rapidly, suggesting a complex global landscape beyond a simple black-and-white picture.
• 💡 The week's dominant themes were the awakening to geoeconomic and geopolitical fragmentation and the practical realities of AI adoption in organizations.
• 📈 While sustainability discussions were less prominent in the observed sessions, the overarching sentiment was one of practical adaptation to a new global order and the operationalization of AI.