Upheaval on the Alps: Davos 2025

The 55th annual World Economic Forum (WEF) has concluded amongst a sense of profound disruption. From a new wave of U.S. tariffs promised by President Donald Trump to an anxious Europe confronting big questions on trade and technology, and an AI boom which raises complex challenges, global leaders in Davos were left grappling with a world in flux.

Amongst this turbulent landscape, corporate adaptability may be the trait that decides who thrives and who merely survives in this new era of geopolitical and technological upheaval.

Below is our roundup of the biggest developments and key takeaways from Davos 2025.

1. The Age of Political Disruptors

Donald Trump’s second-term inauguration collided with the opening of Davos, instantly shaping its agenda. By the time he spoke via video link on Day Four, delegates were braced for new tariffs and fresh deregulation:

Threatened Tariffs Everywhere: Trump told CEOs to “make your product in America” or face steep levies. He hinted that “hundreds of billions, if not trillions,” could be redirected into the U.S. Treasury via tariffs—rattling trade officials and threatening to disrupt supply chains.

Oil and Interest Rates: The new President asked OPEC to slash crude prices — arguing lower oil prices could end the Russia-Ukraine war— and urged central banks worldwide to reduce borrowing costs.

Milei’s Populism: Echoing the president’s tone, Argentina’s Javier Milei branded “woke ideology” a cancer, calling for radical deregulation. Trump has also shared similar concerns, having signed an executive order to place all US government staff working on diversity, equity and inclusion schemes on immediate paid administrative leave.

2. Europe’s Existential Questions

European leaders arrived under a cloud of uncertainty. European Commission President Ursula von der Leyen spoke of “harsh geostrategic competition,” with the EU scrambling to avoid an all-out trade conflict while German Chancellor Olaf Scholz found himself juggling an upcoming election and stoking business confidence. Meanwhile:

Social Media and Democracy: Spain’s Prime Minister Pedro Sánchez declared war on “poisonous” social media algorithms, insisting owners be held accountable. “Tax the Super-Rich!” banners and smaller protests in Davos underscored the anger at global elites and Big Tech.

Zelenskyy’s Critique: Ukraine’s President Volodymyr Zelenskyy, cited slow-moving European alignment and action, warning that “Europe deserves to be more than just a bystander” and risks losing its seat at the table if it fails to bolster security and invest in advanced technologies.

3. The UK’s Post-Brexit Reset

Chancellor Rachel Reeves swooped into Davos for 36 hours to reassure global CEOs about the UK’s direction amid a slowing economy and rising public debt:

High-Skilled Visa Overhaul: The government promised fresh visa routes for AI and life sciences professionals, hoping to entice more top-tier talent. Ministers insisted the UK remains “open for business and open for talent” despite toughening rhetoric on immigration.

Drive for Growth: Reeves blasted “burdensome” oversight and demanded Britain’s competition watchdog pivot to fuelling growth. The sudden departure of its Chairman a signal of the UK’s seriousness in reshaping rules to attract capital. Elsewhere the UK Government made a flurry of announcements to stimulate growth including airport expansion and, planning deregulation.

Budget Strains: Another month of higher-than-expected borrowing left investors wary. Still, Reeves emphasised that budget policy would aim to balance day-to-day spending with robust infrastructure and AI investments. The Chancellor also announced a willingness to announce changes in the Spring Statement if necessary.

4. AI Overdrive but the Future of Regulation Remains Unclear

As has been the case in recent years, tech firms dominated the Davos slopes, showcasing cutting-edge generative AI and workplace solutions. Executives heralded improved efficiency and customer engagement, yet the atmosphere was cautious:

Divergent strategies: While tech executives gathered at the White House, promoting an AI investment boom, ahead of U.S. regulation, Von Der Leyen walked a tightrope. Her speech called for the continent and globe to take advantage of the potential rewards from AI and innovation, while recognising the need to manage risks. She called for unity saying “we aren’t in a race against each other, but we are in a race against time. Even in a moment of harsh competition, we need to join forces”.

Climate Contrasts: While world leaders reaffirmed their commitment to staying on course with global climate action, it was impossible to ignore the backdrop of President Donald Trump withdrawing the US from from the Paris Agreement. Elsewhere, Greenpeace protesters infiltrated the event to demand more immediate and tangible action against climate change.

5. The Global Economic Outlook

Speakers offered cautious optimism about the economy in 2025, with the Middle East and United States most primed for success. There was concern about the impact of tariffs, most notably inflation, but leaders praised central banks for keeping inflation in check.

The International Monetary Fund projects global growth to remain steady at 3.3% in 2025, which is 0.4 percentage points below the historical average of the early 21st century. The same report expected inflation to drop to 4.2% this year, and to 3.5% by 2026, raising hopes for lower interest rates in the long term.

Fink on Europe: While most commentators have been bearish on Europe’s economic prospects, BlackRock CEO Larry Fink highlighted that there is excessive pessimism surrounding Europe and suggested that it might be an opportune time to invest in the region.
PwC’s Global CEO Survey: Revealed a cautious optimism among business leaders, with 60% of CEOs expecting a rise in global economic growth in 2025. Surprisingly the UK finished second as the market most primed for investment in 2025.

What did key media think?

For the Financial Times, the “main tenets of the Davos agenda — diversity, equity and inclusion, free trade and climate change — were drowned out by US exceptionalism, artificial intelligence and a cryptocurrency frenzy”.

On the growth of AI, Reuters added: “Tech executives and investors using AI agents to automate certain tasks, starting with the straightforward and repetitive ones, could fuel the next wave of adoption.”

The Spectator opined: “WEF has been out of touch for years” and that there are now many other, smaller, and more exclusive global insider CEO ‘thought leadership’ conferences such as the Sun Valley Conference which “don’t come with pressure to sign up to the climate change religion.”

In Bloomberg Opinion’s view, “In the past, the confab has been a breeding ground for initiatives to foster workplace diversity, fight climate change and leverage business to combat income inequality” but that this year, Davos was different given “significant slices of corporate America have been divesting themselves of the world-saving ideals that Davos is built on.”

Reuters Breaking Views thought that Davos presented attendees with an economic Rorschach Test and that despite the unknowns presented by President Trump, “the Davos elite remain keen to see the glass as half full.”

Finally, The Guardian stated that this year’s meeting at Davos has shown that “global collaboration is out”, with EU Commission chair, Ursula von der Leyen, commenting that the world has “entered a new era of harsh geostrategic competition”.

Key Takeaways

1 Prepare for Policy Volatility
With Trump 2.0 and wider populism, policy surprises—especially on trade and tariffs—are likely. Contingency plans and scenario modelling at the ready.

2 Ride the Deregulation Wave
The U.S. (and to an extent the UK) are trimming red tape to spur growth. In response they’ll want businesses to show they are taking advantage of looser regulation across AI, finance, house building and energy to drive growth.

3 Embrace AI, but in an Ownable Way and be Mindful of Reputational Risks
AI is clearly going to dominate 2025. However, it’s a crowded landscape and businesses will struggle to stand out amongst the hyperscalers. In this landscape, be ambitious, but don’t overclaim about how AI is being used within a business, and beware the reputation risks, whether it is employees concerned about the impact on jobs or sudden regulatory change.

4 Post Purpose?
The widening culture war apparent at Davos and re-election of Donald Trump doesn’t signal an end to businesses communicating important commitments on DEI, climate change and ESG. However, the risk of overclaiming is greater than it’s ever been.

5 Stay Agile
Nothing is going to be simple in 2025. Trump, tariffs, tech regulation, geo-politics, you name it. In this climate, agile management and crisis preparedness has never been more critical.