Artificial intelligence took centre stage alongside geopolitics at this year’s Davos gathering, underscoring how deeply AI is now tied to national power, economic competitiveness, and global influence. According to Cathy Li, head of the Centre for AI Excellence at the World Economic Forum, countries are increasingly racing to secure AI sovereignty—their ability to govern and control their own AI systems—amid rising strategic tensions.
Li described a world where every nation is actively planning its AI future, driven by fears of dependency on foreign technology. Yet she cautioned against equating AI sovereignty with isolation. Building every layer of AI domestically is neither practical nor environmentally sustainable. Instead, she advocates “strategic interdependence”: countries investing in their strengths while forming targeted international partnerships. Europe, she noted, already offers a model through cross-border cooperation among member states, demonstrating how layered collaboration can allow more people to benefit from powerful technologies.
Despite the United States and China leading today’s AI race, Davos discussions highlighted Europe’s potential to emerge as a major force. Jensen Huang, CEO of Nvidia, called AI a once-in-a-generation opportunity for Europe, pointing to the continent’s strong manufacturing base and its ability to “leapfrog” directly into robotics and physical AI. Li echoed this optimism, citing Europe’s deep talent pool, strong regulatory frameworks, social stability, and industrial foundations. Still, she acknowledged structural barriers, especially fragmented markets that make it harder for startups to scale across borders—often pushing European innovators toward the US instead.
Energy emerged as another defining challenge. Data centres that power AI consume vast amounts of electricity, making energy costs a decisive factor in global competitiveness. Satya Nadella of Microsoft warned that energy economics may ultimately determine which countries lead in AI. Li reframed this obstacle as an opportunity: modernising outdated power systems and accelerating clean energy adoption could strengthen entire societies while supporting long-term AI sovereignty.
The pace of AI development itself is reshaping policy debates. Li compared today’s progress to living “100 years in AI” for every human year, noting how quickly focus is shifting from large language models to physical AI like robotics. Decisions being made now—about investment, regulation, and workforce strategy—will have lasting consequences.
Looking ahead, Li stressed that next year’s Davos will likely revisit the same core questions: how AI can serve humanity rather than just corporate profits, and how societies protect future generations. She criticised companies planning to eliminate entry-level roles, arguing that younger, “AI-native” workers should instead be paired with experienced leaders to maximise innovation and returns. She also warned against allowing AI to deepen the digital divide between the Global North and South.
Ultimately, Li framed AI sovereignty not as a race for dominance but as a responsibility. AI must be powered by clean energy, shared more equitably, and guided by human values. The goal, she said, is to ensure technology uplifts everyone—placing cooperation, inclusion, and care at the heart of the global AI agenda, and redefining AI sovereignty as collective resilience rather than national isolation.