The road to tomorrow: AI Act implementation, race for talent and geopolitical shifts in 2024

Welcome to the fourth edition of our EY Public Policy Pulse. The last edition for 2023 of our quarterly newsletter curated by the EMEIA Public Policy team — in which we share 安永 views, thought leadership and insights on material European policy themes for the EY organization and its clients; all the way from sustainability to digital, corporate governance, reporting and tax.

Through it, we aim to spark meaningful conversations and foster an exchange of ideas. We invite you to join these conversations as we strive to contribute positively to the development of solid public policy. Please do get in touch with us to share your thoughts and perspectives.?You can also access our previous editions.

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?? Before you wrap up for the holidays, take a moment to explore what we've prepared for you:

1. EU AI Act implementation is a multifaceted journey, says EY at European Business Summit
2. COP28: EY will support the Global Carbon Market Utility
3. Save the Date: European Corporate Governance Conference 2024 on March 20
4. Top 10 geopolitical developments for 2024

Spotlight ??

EU AI Act implementation is a multifaceted journey, says EY at European Business Summit

Last month, at the 23rd edition of the European Business Summit, Beatriz Sanz Saiz , EY Global AI & Data Consulting Leader, joined a panel discussion on artificial intelligence (AI) alongside Martin Ulbrich , Dragos Tudorache and Gianclaudio Malgieri .

Beatriz stressed that implementing the AI Act is a multifaceted journey which will require adaptability, close dialogue between policymakers, industry and civil society, and continuous adjustments along the way for all stakeholders involved. In parallel, ensuring access to a considerable pool of high-quality data, attracting and retaining top AI talent, and driving significant investments are 3 critical components to bolster Europe's role as a leading hub for innovation, research, and trust in the AI ecosystem.

?? “AI is about three things: computing capacity, data and algorithms. Europe has major assets in all three”, said Thierry Breton , European Commissioner for Internal Market, at the 4th European AI Alliance Assembly in Madrid last month.

We have prepared a comprehensive summary of the key elements of the political agreement reached by the EU institutions on the EU AI Act on December 8, and what it means for businesses. ??

In case you missed it, we’ve done the same for President Biden’s Executive Order on AI and the G7 AI Principles and Code of Conduct.

For more information, please contact Ivan Mannino and Anne McCormick .

COP28: EY will support the Global Carbon Market Utility

After an intense two weeks filled with compelling speeches, in-depth discussions and hard-fought negotiations, the COP28 climate conference in Dubai drew to a close on December 13. The international community sealed a landmark deal, signaling the “beginning of the end” of the fossil fuel era by committing to transition away from fossil fuels within this decade. The agreement also sets a net-zero target for 2050, urging nations to triple global renewable energy capacity by 2030 and reduce methane emissions.

As announced in early December in Dubai, EY will assist in the design process of the Global Carbon Market Utility, established at COP27, to help develop carbon credit markets that are more transparent, auditable and legally enforceable.

How can we ensure a just and equitable energy transition? Can we keep the current levels of energy consumption by relying solely on renewable energy sources? What is technology’s role in energy transition? Gerard Gallagher (EY EMEIA Sustainability Leader) and Mikki Corcoran (Vice President for Sustainability at 斯伦贝谢 ) engaged in a thoughtful discussion with Máximo Mazzocco ( 联合国开发计划署 Youth Global Ambassador) to explore these questions.

?? They recognized the critical need to involve today’s youth, who will be tomorrow’s CEOs, not just in conversations but also in empowering them to actively drive the transition.

Companies’ progress on sustainability is slowing down at a time when climate action needs to accelerate if we are to meet the 1.5°C goal set out in the Paris Agreement. As revealed by a recent EY survey of 520 corporate sustainability leaders across 10 industries and 23 countries worldwide, only 34% of businesses are spending more on climate change in 2023 – a significant drop from the 61% reported in 2022.

However, technology could play an increasing role as nearly 4 in 5 leaders see potential for AI to support carbon emissions reduction. More on this ??

For more information, please contact Amy Brachio .

Save the date: European Corporate Governance Conference 2024 on March 20

It is positive that, on December 14, the EU institutions reached a provisional deal on the Corporate Sustainability Due Diligence Directive (CS3D). It will require large companies to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights and on the environment in their global value chains.

Through its commitment to due diligence and sustainability, the EU is leading the way toward a healthier and more sustainable future for businesses operating in Europe.

This Directive, and its next steps, will be one of the many themes that we will discuss with experts, policymakers and practitioners at the European Corporate Governance Conference 2024 on March 20 in Brussels.

It will be held under the auspices of the Belgian Presidency of the Council of the European Union 2024 and organized in partnership with ecoDa a.s.b.l - The European Confederation of Directors Associations , BusinessEurope , EuropeanIssuers , GUBERNA - Instituut voor Bestuurders/Institut des Administrateurs , Accountancy Europe and VBO FEB .

?? Keep an eye out for more details in the next edition in early 2024 – don't miss it!

For more information, please contact Elsa Venturini .

Top 10 geopolitical developments for 2024 ??

What lies ahead in terms of geopolitics in 2024, and which key trends are poised to be the most impactful?

Look no further – EY has just published the 2024 edition of the Geostrategic Outlook, highlighting the top 10 geopolitical trends anticipated to affect business next year ??

The momentum gained in 2023 will propel the geopolitical importance of AI even further in 2024. Governments will compete to regulate AI to diminish potential sociopolitical risks, while simultaneously encouraging domestic AI innovation to enhance geopolitical competitiveness.

??? Prepare for a global elections supercycle in 2024, where voters in markets representing approximately 54% of the world's population and nearly 60% of global GDP head to the polls. The ensuing regulatory and policy uncertainty is likely to shape the short- and medium-term landscape.

These are just 2 of the top 10 developments that will influence the geopolitical landscape in the coming year.

?? Interested in international trade? Our colleagues George Riddell and Sally Jones reflected on their 2023 predictions in this short blog – what held true and what didn't.

For more information, please contact Famke Krumbmüller and Alessandro Faini .

We would love to hear your thoughts on any of the topics above, so please feel free to share this newsletter and leave your comments below ??

The views reflected in this article do not necessarily reflect the views of the global EY organization or its member firms.

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.?