World Government Summit: AI Readiness is Imperative

Opening session of World Government Summit (WAM)
Opening session of World Government Summit (WAM)
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World Government Summit: AI Readiness is Imperative

Opening session of World Government Summit (WAM)
Opening session of World Government Summit (WAM)

Participants in the World Government Summit (WGS) 2024 on Monday unanimously agreed that the rapid progress in artificial intelligence technologies has become a pivotal point in preparing for the future, emphasizing the necessity of establishing strategies for this transformative wave.
The summit stressed the importance of clarifying the multifaceted dimensions of AI impact, starting with its ability to revolutionize industries and increase human capabilities.
Participants called for setting positive frameworks that help benefit from this technology.
The event also witnessed discussions about global economy and the challenges facing it.
- $17 trillion
UAE Minister of Cabinet Affairs and WGS Chairman Mohammed al-Gergawi announced that $17 trillion is the cost of disputes, conflicts, and violence around the world last year alone. He said six percent of this number could cover the cost of major challenges facing humanity in one year.
“For example, it could eliminate hunger and literacy, treat cancer and provide clean water. Imagine what could be achieved if we invested more in addressing other challenges facing humanity,” he said.
He pointed out that poverty rates are constantly declining in the world, noting that “poverty rate has been reduced by 50% in 20 years,” adding: if we look throughout history, we will find out that we are living in the best, safest, most prosperous, and healthiest human era.”
- Artificial intelligence
He stressed that the clear shifts in international trade portend a decline in globalization, and may cost up to 7% of the world's gross domestic product, represented by high inflation, labor shortages, and disintegration in the global financial system.
Gergawi cautioned that this technology is a double-edged sword, as “media misinformation” and the spread of misleading and false information will be one of the biggest challenges facing humanity.
The number of fabricated videos in 2023 has tripled from the previous year, and half a million fabricated content has spread in the digital space, he added.
The Minister pointed out that 50% of global growth comes from China and India alone, as these two countries emerge to shape the future of global economic growth.
China has surpassed the United States in the number of patents in AI and investment in clean energy, and India has the largest number of patents in the world.
With the rest of the Asia-Pacific region contributing up to 25% of global growth, this means that more than 70% of global economic growth will come from the East.
Gergawi called for cooperation to benefit from this emerging new global economic engine instead of confronting it and trying to obstruct it.
- Infrastructure
Meanwhile, Nvidia CEO Jensen Huang said on Monday that every country needs to have its own artificial intelligence infrastructure in order to take advantage of the economic potential while protecting its own culture.
"You cannot allow that to be done by other people," Huang said at the World Government Summit in Dubai.
Huang, whose firm has catapulted to a $1.73 trillion stock market value due to its dominance of the market for high-end AI chips, said his company is "democratizing" access to AI due to swift efficiency gains in AI computing.
"The rest of it is really up to you to take initiative, activate your industry, build the infrastructure, as fast as you can."
He said fears about the dangers of AI are overblown and some interests aim to "scare people about this new technology, to mystify this technology, to encourage other people to not do anything about that technology and rely on them to do it. And I think that's a mistake."
Huang stressed that investing in AI is a cornerstone of the economic future, noting that building the right infrastructure is essential to protecting local culture and maximizing economic benefits.

He emphasized the importance of joint efforts to make access to AI more democratic and how to improve the efficiency of AI computing.
The expert called on Arab countries to invest in strong AI industries and infrastructure, pointing to its enormous potential.
He underlined that the focus should be on the responsible development and application of AI, taking into account the principles of safety, transparency, and inclusivity.
Huang downplayed concerns about AI risks and pointed to the need for strategic investments in smart infrastructure and comprehensive policies that encourage open-source development.
- Egypt’s economy
For his part, Egypt’s Prime Minister Mustafa Madbouly said that the summit is being held amid delicate global circumstances, in light of the successive global economic crises and influential geopolitical developments that affect all nations.
He explained that the challenges include the widespread inflation, which necessitated changes in the priorities of economic policies, most notably monetary policy.
The PM explained that today’s governments face many challenges and threats to their traditional roles, including the economic repercussions of successive and complex global crises, which have led to higher inflationary waves.
He also referred to a significant decline in global economic growth, which is expected to remain during the current and next years lower than its historical records during 2000-2019, according to International Monetary Fund (IMF) estimates.



Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Tumbles as Investors Seek Safe Havens after US Tariffs

US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar banknote is seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar weakened broadly on Thursday, while the euro rallied after President Donald Trump announced harsher-than-expected tariffs on US trading partners, unsettling markets as investors flocked to safe havens such as the yen and Swiss franc.

The highly anticipated tariff announcement sent shockwaves through markets, with global stocks sinking and investors scrambling to the safety of bonds as well as gold.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners.

The new levies ratchet up a trade war that Trump kicked off on his return to the White House, rattling markets as fears grow that a full-blown trade war could trigger a sharp global economic slowdown and fuel inflation, Reuters reported.

The dollar index, which measures the US currency against six others, fell 1.6% to 102.03, its lowest since early October.

The euro, the largest component in the index, gained 1.5% to a six-month high of $1.1021.

Trump has already imposed tariffs on aluminium, steel and autos, and has increased duties on all goods from China.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and portfolio manager at Janus Henderson Investors.

The risk-sensitive Australian dollar added 0.56% to $0.63365, while the New Zealand dollar climbed 0.9% to $0.5796.

The yen strengthened to a three-week high against the dollar and was last up 1.7% at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"Negotiations are now going to be front of mind. This is probably the other big part of why we're seeing some of these currencies outperform," said Nicholas Rees, Head Of Macro Research at Monex Europe.

"It's very difficult actually to see how other countries make concessions that would encourage the US to lift these tariffs. And I think that's a big underpriced risk."

Investors are worried that some US trading partners could retaliate with measures of their own, leading to higher prices.

EU chief Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Worries about a global trade war have intensified since Trump stepped into the White House in January, combining with a slew of weaker-than-expected US data to stoke recession fears and undermine the dollar.

The dollar index is down more than 5.7% this year.

"These tariffs have certainly significantly increased the risks to the downside for global growth, so on balance we think that will eventually start to become more supportive again for the dollar," said Lee Hardman, senior currency analyst at MUFG.

In Asia currencies, China's onshore yuan slid to its weakest level against the dollar since February 13. China's offshore yuan also hit a two-month low.

The Vietnamese dong slumped to a record low.

Elsewhere, the Mexican peso and Canadian dollar strengthened.

Canada and Mexico, the two largest US trading partners, already face 25% tariffs on many goods and will not face additional levies from Wednesday's announcement.