Davos 2026: Leaders Exercise Caution On AI Governance In A World Without Clear Rules

This year's World Economic Forum in Davos gave us multiple viewpoints on artificial intelligence, and surprisingly, caution was equally talked about as was opportunity. There was an unease plaguing the discourse though, reflecting how leaders across the world are navigating several inflection points at once. Artificial intelligence sat at the heart of that unease — as a force already reshaping jobs, governance and power.

As European Union President Ursula von der Leyen observed, the global economy remains deeply interconnected even as it fractures along new lines. Trade barriers tripled in value last year, yet supply chains remain tightly bound. AI mirrors this contradiction. Leaders are being pushed to adopt it rapidly, while simultaneously confronting its disruptive consequences.

At Davos, the challenge was framed as a permanent tension: act decisively, but accept ambiguity; move fast, but protect what matters; adopt AI, but preserve human judgment. These, speakers stressed, are not temporary dilemmas waiting to be resolved, but paradoxes that demand navigation.

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Calmness as a Leadership Skill

One of the clearest calls for restraint came from economist and former Nigerian Foreign Minister, Ngozi Okonjo-Iweala, who urged leaders facing policy uncertainty not to "hyperventilate" as changes unfold. Her advice was to stay grounded and see what actually happens, and it struck a chord in a forum dominated by talk of disruption.

Steadiness, several participants argued, now matters more than projecting certainty. Naming trade-offs openly, asking better questions and allowing space for experimentation without losing momentum were repeatedly cited as markers of resilient leadership.

AI and Jobs: Disruption Is No Longer Abstract

That need for calm leadership was most evident in discussions on employment. Jamie Dimon, CEO of JPMorgan Chase, was unequivocal: AI will lead to fewer jobs over the next five years. With JPMorgan Chase deploying AI across hundreds of use cases, from fraud detection to customer service, Dimon warned that retraining and phased adoption are essential to avoid social backlash.

Similarly, Deloitte's CEO Joe Ucuzoglu said labour disruption is inevitable as AI reduces the amount of human effort needed for many tasks. While history suggests new roles will emerge, he cautioned that the transition could inflame inequality and political tension without coordinated public-private action.

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Productivity Gains, With a Catch

AI's economic upside was not dismissed. Nasdaq's President and CEO Adena Friedman pointed to early enterprise deployments delivering nearly threefold returns on investment. But she stressed that scaling AI across organisations requires significant capital, cultural change and top-down commitment.

"The technology works," Friedman noted, "but making it enterprise-wide is the real challenge." Reskilling, she added, is becoming an urgent priority for both governments and corporations.

A 'Tsunami' for Young Workers

Multilateral leaders sounded sharper warnings. Kristalina Georgieva, the managing director of the International Monetary Fund, described AI's impact on labour markets as a "tsunami," particularly for younger workers. IMF research shows AI could affect 60% of jobs in advanced economies and 40% globally, with entry-level roles most exposed.

Tasks that once served as gateways into stable employment are increasingly automated, Georgieva warned, raising risks for wages, hiring and middle-class stability. An unregulated, market-driven rollout of AI, she said, is her "biggest worry".

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When AI Stops Being Just a Tool

Beyond jobs, Davos also hosted deeper questions about identity and power. Historian and Author of 'Sapiens: A Brief History of Humankind', Yuval Noah Harari argued that AI is shifting from tool to agent — systems that can learn, decide and persuade independently. That, he said, could trigger both an identity crisis and an "immigration crisis" as AI systems cross borders without visas, loyalties or cultural constraints.

The implications extend to law and governance. If AI systems can run companies or influence societies on their own, leaders may soon face decisions about legal recognition - and the geopolitical risks of countries making different choices.

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Leading Without Certainty

Not all voices were alarmist. Microsoft CEO Satya Nadella emphasised AI's potential to deliver real economic benefits, while Jensen Huang highlighted massive infrastructure build-outs creating new demand for blue-collar labour.

Still, the dominant mood at Davos was one of caution rather than celebration. AI, leaders agreed, will bring both disruption and opportunity. The outcome will depend less on the technology itself and more on how societies manage the transition.

If Davos 2026 leaves one lasting message, it is this: leadership in the age of AI is no longer about having all the answers. It is about staying present in uncertainty - resisting false certainty long enough for wiser choices to emerge - and leading from within the tension rather than collapsing under it.

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