IDEAS home Printed from https://ideas.repec.org/a/gam/jsoctx/v14y2024i9p180-d1476088.html
   My bibliography  Save this article

Brace for Impact: Facing the AI Revolution and Geopolitical Shifts in a Future Societal Scenario for 2025–2040

Author

Listed:
  • Michael Gerlich

    (Center for Strategic Corporate Foresight and Sustainability, SBS Swiss Business School, 8302 Kloten-Zurich, Switzerland)

Abstract

This study investigates the profound and multifaceted impacts of Artificial Intelligence (AI) and geopolitical developments on global dynamics by 2040. Utilising a Delphi process coupled with probabilistic modelling, the research constructs detailed scenarios that reveal the cascading effects of these emerging forces across economic, societal, and security domains. The findings underscore the transformative potential of AI, predicting significant shifts in employment patterns, regulatory challenges, and societal structures. Specifically, the study forecasts a high probability of AI-induced unemployment reaching 40–50%, alongside the rapid evolution of AI technologies, outpacing existing governance frameworks, which could exacerbate economic inequalities and societal fragmentation. Simultaneously, the study examines the critical role of geopolitical developments, identifying increased nationalisation, the expansion of conflicts such as the Russia–Ukraine war, and the strategic manoeuvres of major powers like China and Israel as key factors that will shape the future global landscape. The research highlights a worrying lack of preparedness among governments and societies, with a 10% probability of their being equipped to manage the complex risks posed by these developments. This low level of readiness is further complicated by the short-term orientation prevalent in Western businesses, which prioritise immediate returns over long-term strategic planning, thereby undermining the capacity to respond effectively to these global challenges. The study calls for urgent, forward-looking policies and international cooperation to address the risks and opportunities associated with AI and geopolitical shifts. It emphasises the need for proactive governance, cross-sector collaboration, and robust regulatory frameworks to ensure that the benefits of technological and geopolitical advancements are harnessed without compromising global stability or societal well-being. As the world stands on the brink of unprecedented change, the findings of this study provide a crucial roadmap for navigating the uncertainties of the future.

Suggested Citation

  • Michael Gerlich, 2024. "Brace for Impact: Facing the AI Revolution and Geopolitical Shifts in a Future Societal Scenario for 2025–2040," Societies, MDPI, vol. 14(9), pages 1-17, September.
    • Handle: RePEc:gam:jsoctx:v:14:y:2024:i:9:p:180-:d:1476088
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2075-4698/14/9/180/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2075-4698/14/9/180/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dani Rodrik, 2018. "Populism and the economics of globalization," Journal of International Business Policy, Palgrave Macmillan, vol. 1(1), pages 12-33, June.
    2. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 215-268, November.
    3. Reinhart, Carmen & Rogoff, Kenneth, 2009. "This Time It’s Different: Eight Centuries of Financial Folly-Preface," MPRA Paper 17451, University Library of Munich, Germany.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
    5. Reinhart, Carmen & Rogoff, Kenneth, 2009. "This Time It’s Different: Eight Centuries of Financial Folly-Chapter 1," MPRA Paper 17452, University Library of Munich, Germany.
    6. Gartzke, Erik & Rohner, Dominic, 2011. "The Political Economy of Imperialism, Decolonization and Development," British Journal of Political Science, Cambridge University Press, vol. 41(3), pages 525-556, July.
    7. Johan Rockström & Will Steffen & Kevin Noone & Åsa Persson & F. Stuart Chapin & Eric F. Lambin & Timothy M. Lenton & Marten Scheffer & Carl Folke & Hans Joachim Schellnhuber & Björn Nykvist & Cynthia , 2009. "A safe operating space for humanity," Nature, Nature, vol. 461(7263), pages 472-475, September.
    8. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    9. Effy Vayena & Alessandro Blasimme & I Glenn Cohen, 2018. "Machine learning in medicine: Addressing ethical challenges," PLOS Medicine, Public Library of Science, vol. 15(11), pages 1-4, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    2. Gunther Tichy, 2019. "Die nachhaltigen Folgen der Finanzkrise," WIFO Monatsberichte (monthly reports), WIFO, vol. 92(1), pages 47-60, January.
    3. Lamperti, Francesco & Bosetti, Valentina & Roventini, Andrea & Tavoni, Massimo & Treibich, Tania, 2021. "Three green financial policies to address climate risks," Journal of Financial Stability, Elsevier, vol. 54(C).
    4. Enrico Perotti & Magdelena Rola-Janicka, 2019. "Funding Shocks and Credit Quality," Tinbergen Institute Discussion Papers 19-060/IV, Tinbergen Institute.
    5. Christoph Trebesch, 2019. "Resolving sovereign debt crises: the role of political risk," Oxford Economic Papers, Oxford University Press, vol. 71(2), pages 421-444.
    6. Röhrs, Sigrid & Winter, Christoph, 2017. "Reducing government debt in the presence of inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 82(C), pages 1-20.
    7. Thanh C. Nguyen & Vítor Castro & Justine Wood, 2022. "Political environment and financial crises," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 417-438, January.
    8. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    9. Cai, Michael & Del Negro, Marco & Giannoni, Marc P. & Gupta, Abhi & Li, Pearl & Moszkowski, Erica, 2019. "DSGE forecasts of the lost recovery," International Journal of Forecasting, Elsevier, vol. 35(4), pages 1770-1789.
    10. Christensen, Bent Jesper & Nielsen, Morten Ørregaard & Zhu, Jie, 2015. "The impact of financial crises on the risk–return tradeoff and the leverage effect," Economic Modelling, Elsevier, vol. 49(C), pages 407-418.
    11. Osadchiy, Maksim & Sidorov, Alexander, 2019. "Do banks need a supervisor?," MPRA Paper 95290, University Library of Munich, Germany.
    12. James B. Ang & Jakob B. Madsen, 2012. "Risk capital, private credit, and innovative production," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(4), pages 1608-1639, November.
    13. Jonathon Adams‐Kane & Julián A. Caballero & Jamus Jerome Lim, 2017. "Foreign Bank Behavior during Financial Crises," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(2-3), pages 351-392, March.
    14. Allen, Franklin & Babus, Ana & Carletti, Elena, 2010. "Financial Connections and Systemic Risk," Working Papers 10-20, University of Pennsylvania, Wharton School, Weiss Center.
    15. Hartwig, Benny & Meinerding, Christoph & Schüler, Yves S., 2021. "Identifying indicators of systemic risk," Journal of International Economics, Elsevier, vol. 132(C).
    16. Ozlem Akin & José Montalvo & Jaume García Villar & José-Luis Peydró & Josep Raya, 2014. "The real estate and credit bubble: evidence from Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 223-243, August.
    17. Antonio Afonso & Jose Alves, 2015. "The Role of Government Debt in Economic Growth," Hacienda Pública Española / Review of Public Economics, IEF, vol. 215(4), pages 9-26, December.
    18. Dmitry Kulikov, 2012. "Testing for Rational Speculative Bubbles on the Estonian Stock Market," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 4(1).
    19. repec:zbw:bofrdp:2016_003 is not listed on IDEAS
    20. Malmendier, Ulrike M. & Steiny Wellsjo, Alex, 2020. "Rent or Buy? The Role of Lifetime Experiences on Homeownership within and across Countries," CEPR Discussion Papers 14935, C.E.P.R. Discussion Papers.
    21. Chung‐Hua Shen & Hsing‐Hua Hsu, 2022. "The determinants of Asian banking crises—Application of the panel threshold logit model," International Review of Finance, International Review of Finance Ltd., vol. 22(1), pages 248-277, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsoctx:v:14:y:2024:i:9:p:180-:d:1476088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.