A Seat at the Table: The Questions Leaders Are Asking Ahead of the World Economic Forum

Much like parenthood, there is no playbook to answer the questions of tomorrow; you live, you make mistakes, you try again, and you learn. But, like parenthood, most of the time you’re not making important decisions in isolation. As the adage says, "it takes a village," and without being too trite, it feels like we need a village to get us on the same page. What better place to get started than the ‘village’ at Davos?

As leaders from around the globe prepare to converge at the World Economic Forum (WEF) to tackle some of the most pressing issues of our time, the events of 2024 continue to persist and will compound the triangulation of heavyweight challenges being discussed around the table. But what are the key questions and challenges that leaders are bringing to the table this year?

How can economies adapt to and thrive amidst permanent economic changes?

It’s hard not to look back on the past with rose-tinted glasses – inflation, interest rates, global conflict, a world pre-pandemic. There is no return to the ‘norm’ of 4 or 5 years ago; businesses need to adapt to an era defined by perma-change and shake off the shackles of the past. But, if we step back and remove the glasses, the climate and geopolitical headwinds were blowing, and with the election Supercycle behind us, we must now look to how changing policies and regulation will define the rest of this decade. Without a crystal ball, it’s hard to get a firm grasp on what to expect, but leaders should be prepared for an anticipated reduction in regulations (read more here from the Global Regulatory Network Outlook for detailed analysis), with a focus on financial and environmental regulations.

However, we don’t need a crystal ball to tell us that the global operating environment will not look the same in 2035 – the next 10 years will define the way we do business, with more onshore manufacturing and tariffs expected in the near term, and the expansion of trade protectionism – doubling down on digital and climate tech.

The scale and height of hurdles mounted in 2024 have tested the resilience of businesses across the globe, and despite the ongoing geopolitical tensions and economic uncertainty, the economy has steadied. Now is the time to ask the questions of tomorrow - the road to 2035 will not be straightforward.

How can we drive sustainable economic growth?

The stakes are high, and sustainable economic growth will rely on several factors, chiefly: trade/supply chains and regulation. Trade between “friends” rose 6% last year, which is interesting given overall global trade contracted by 5% - leaders need a sharp geostrategy if they are to capitalize on this. Given that one-third of CEOs cite geopolitical uncertainty as the top disruptive force within the next 12 months, now is the time to act.

Let’s dive into the numbers: projections forecast global economic growth at 3.2% in 2025, consistent with 2024 – no big surprises here, which leaves room for optimism. The US economy is on track for another year of outperformance with 2% growth in 2025 – growth of 2.7% in 2024, and historically low unemployment (4.2% in Nov 24).

Meanwhile, developed markets will see modest growth in 2025 (EU 1.5%; UK 1.6%; Japan 1.5%) while developing markets will experience growth below historically higher growth rates (China 4.4%; India 6.6%).

With many eyes on the US and the incoming administration, it is prudent to note that business sentiment rose post-election, despite uncertainty on policy prolonging investment caution. The next 12-18 months will set the tone for governments across the globe, as the Trump administration sets about realizing its ambition, with renewed interest in the US-China trading relationship. The so-called ‘friendshoring’ has driven record investment into the ASEAN market as companies diversify supply chains and should absolutely remain in the top 10 items for leaders as they consider strategies for 2025 and beyond.

How do we navigate the digital transformation?

The word on everyone’s lips: AI. This is an incredibly exciting time to be in business – AI is transforming EVERYTHING, and the possibilities are endless. Leaders have the opportunity (and I could also add, responsibility) to address the digital divide and ensure that technological advancements benefit all segments of society.

What’s super interesting for me is the scale and pace of adoption across industries – the oil and gas sector is looking at reinventing operations with sophisticated AI applications; while the banking sector is looking at AI from a functional perspective to reduce cost and improve productivity; it is clear we are finally exiting the ‘hype’ phase and entering the revolution, with proof of concepts finally making their debut.

While we will certainly see some exceptional changes this year, navigating this transformation is not cut and dry, particularly in industries such as banking and insurance, where trust is paramount owing to the volume of sensitive information. A recent report states that 69% of businesses say they need to learn more about the ethical, security, and regulatory considerations when implementing AI technologies, echoed by consumers (72% of ‘Gen-Z’ have concerns about how their data is used).

What’s crucial is ensuring the whole enterprise is considered when implementing large-scale transformation; pockets here and there will hinder maturity and could expose parts of the organization.

The consumer must come front and center of every conversation and be at the heart of decision-making – the customer is savvier than ever and with a multi-generational workforce coming into play, the benefits of a diverse perspective have the power to positively influence the way you develop, build, and market your solution or product.

Don’t discount the power of collaboration. Collaboration is no longer a nice-to-have or a buzzword to be sprinkled into reports – it is a business imperative – it can often mean the difference between success and failure.

Joint ventures, alliances, and ecosystems are increasingly important to gain access to new skills and capabilities and remain ahead of the innovation curve. It will come as no surprise that more than 1/3 of organizations in the tech sector have implemented an ecosystem model for their business.

and finally..

If I wanted to hypothesize a phrase for 2025, it might be ‘steady the ship’ – not hugely groundbreaking, but an important message to leaders seeking to grow and expand while navigating (and riding) the waves.

The village of WEF is an example of how meaningful collaboration starts, but it is paramount the action doesn’t end at the airport – the complexities in front of us require strong governance and a commitment to proactive change if we are to remain resilient and agile.

All industries need to continually prepare and invest, and it starts with imagining the possibilities of collaboration, both inside and outside of the organization.

I look forward to sharing the best of the World Economic Forum with my colleagues and clients in due course – in the meantime, what does collaboration mean to you? Ideas and guidance are always welcome.

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