FII7 Highlights Importance of AI

The seventh Future Investment Initiative (FII7) forum kicked off in Riyadh on Tuesday. (FII)
The seventh Future Investment Initiative (FII7) forum kicked off in Riyadh on Tuesday. (FII)
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FII7 Highlights Importance of AI

The seventh Future Investment Initiative (FII7) forum kicked off in Riyadh on Tuesday. (FII)
The seventh Future Investment Initiative (FII7) forum kicked off in Riyadh on Tuesday. (FII)

The seventh Future Investment Initiative (FII7) forum kicked off in Riyadh on Tuesday under the theme “The New Compass,” focusing on Artificial Intelligence on its first day.

The conference presented a comprehensive overview of AI reality and several recommendations and solutions to ensure its safe and responsible use.

One of the conference’s sessions discussed the rapidly evolving AI models and how they shape the global economy, enabling small teams to develop science and technology and advance humanity.

The developments are driven by rapid advances in computing power, exponential growth in the volume of labeled data, significant reductions in training costs, increased capital directed toward developing AI, and democratized access to its advanced models.

Artificial intelligence faces short and medium-term global challenges, including the use of AI for disinformation, cyber-attacks and biological weapons.

However, the impact of AI challenges and the level of preparedness to confront them remains the major challenge, as world leaders must be ready to act within the framework of appropriate governance and policies.

The session presented recommendations to governments and the private and investment sectors:

- Boosting AI alignment: all AI companies must document and disclose how they are committed to implementing AI alignment, developing a set of basic requirements for releasing AI models, and supporting the development of early warning systems.

AI developers must conduct comprehensive model assessments before release, make the assessment results publicly available, and increase funding for top-level AI alignment research.

- Establish a unified and inclusive governance regime for AI: global challenges associated with AI can only be addressed through a global approach, including appropriate representation of emerging markets.

- Prepare for the transition: active investment in skills development and social safety net to ensure a just transition for workers displaced by AI.

Recommendations for the private sector and investment sector:

- Promote transparency and accountability: ensuring a greater commitment, transparency, and accountability to AI alignment by establishing plans detailing the strategies and processes that will be implemented to deliver it.

- Reducing artificial intelligence challenges: governments should cooperate to develop sufficient global response capacity, adopt a safety-based approach to developing AI, and ensure the security of its modern facilities and systems.

The initiative seeks to become a leading global platform through its commitment to working on solutions that everyone can adopt, building a shared understanding of this technology, and investing to increase global response capacity.

FII will establish an AI Coalition, bringing together investors, corporations, government leaders, and academics from developed and emerging markets to engage in a frank and candid dialogue on the critical issue of AI alignment.



Air France-KLM to Take Majority Stake in Scandinavian Airline SAS

(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
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Air France-KLM to Take Majority Stake in Scandinavian Airline SAS

(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)
(COMBO) This combination of pictures created on July 04, 2025 shows a Scandinavian airline SAS plane flying over Heathrow airport on the outskirts of London on January 15, 2024 (top) and an Air France-KLM plane taking off from Tegel 'Otto Lilienthal' Airport in Berlin on November 8, 2020. (Photo by Adrian DENNIS and Odd ANDERSEN / AFP)

Air France-KLM plans to increase its stake in Scandinavian airline SAS to 60.5%, the latest step towards consolidating Europe's fragmented airline sector as carriers seek to strengthen their position against rivals.

The Franco-Dutch airline group said on Friday it intended to increase its stake from 19.9% currently by acquiring the stakes held by top shareholders Castlelake and Lind Invest.

The purchase, subject to regulatory clearances, is expected to close in the second half of 2026, Reuters quoted Air France-KLM as saying.

The value of the investment would be determined at closing, based on SAS's latest financial performance, including core earnings (EBITDA) and net debt, the company said. It declined to give details on those metrics.

Air France-KLM expects to generate "three-digit million" euros in synergies from raising its SAS stake, Air France-KLM finance chief Steven Zaat told analysts on a call.

Zaat said the deal would be funded from cash or a "plain vanilla bond" and would not impact the drive to reduce the group's hybrid debt. "We have ample room for it," he said.

Air France-KLM shares were flat in early trading.

JPMorgan analysts said there were reasons to be positive about the deal.

"SAS offers deeper access to a GDP-rich region in Scandinavia, there will now be an opportunity to unlock cost synergies as SAS becomes a subsidiary of the group," they said in a note, adding that "industry consolidation should also be viewed positively for the whole sector, even if not game-changing in terms of size."

INDUSTRY CONSOLIDATION

SAS welcomed Air France-KLM's announcement.

"European consolidation had to happen further, and we're very happy to be part of that," SAS CEO Anko van der Werff told Danish broadcaster TV2.

"In the current setup where Air France-KLM is a 19.9% shareholder, they're still a competitor," he said. "With the new stake, going above 50%, we can really tap into all of those synergies and offer those benefits to customers."

SAS said it would continue to invest in its fleet and network.

In 2023, Air France-KLM said it would invest about $144.5 million for its initial SAS stake, boosting its presence in Sweden, Denmark and Norway with the option to become a controlling shareholder after a minimum of two years, subject to conditions.

SAS exited from Chapter 11 bankruptcy protection in August last year.

The two carriers have already had a commercial cooperation since summer 2024. Control of SAS would allow Air France-KLM to expand in the Scandinavian market and create additional value for shareholders, Air France-KLM said in a statement.

"Following their successful restructuring, SAS has delivered impressive performance, and we are confident that the airline's potential will continue to grow through deeper integration within the Air France-KLM Group," said Air France-KLM CEO Ben Smith.

The deal comes as executives seek more consolidation in Europe's fragmented airline industry, which they say is needed to compete with US and Middle Eastern rivals.

Earlier this year, Germany's Lufthansa bought a 41% stake in Italy's ITA Airways and a stake in Air Baltic. The Portuguese government is looking to privatize its national carrier TAP.

Lufthansa and Air France are also in talks about buying a stake in Spain's Air Europa.
SAS has 138 aircraft in service and carried more than 25 million passengers last year, generating revenues of 4.1 billion euros ($4.8 billion).

Air France-KLM group would have a majority of seats on the board of directors, while the Danish state will keep its 26.4% stake in SAS and its seats on the board.