Artificial intelligence (AI) was in the spotlight in Davos this week. The World Economic Forum’s head of AI spoke to Euronews Next about the most pressing issues.

While geopolitics dominated the economic forum in Davos this week, artificial intelligence emerged as an equally urgent topic for world leaders trying to navigate questions of technological sovereignty and strategic power.

According to Cathy Li, Head of the Centre for Advanced AI at the World Economic Forum, which organises the annual meeting, the technology is not just transforming economies — it is increasingly shaping how countries position themselves on the global stage.

“This is not just possible, it’s already happening,” Li told Euronews Next, describing the global race for technological independence. “In the current geopolitical environment, every country is doing its own planning. And of course, people are worried and anxious about the lack of so-called sovereignty.”

Rising geopolitical tensions have made AI sovereignty — a country’s ability to independently control and govern its own AI systems — a top priority for many nations. What this will look like in practice, however, remains unclear.

In Li’s view, AI sovereignty should not mean isolation, as it is impractical and, in reality, impossible for most countries to build every layer of the technology within their own borders. Moreover, such an approach would be unsustainable for the planet.

“We are trying to move away from the idea that AI must be fully nationally owned and instead move toward strategic interdependence,” she said.

Under this approach, countries leverage their unique strengths through targeted domestic investments and international partnerships, while making strategic trade-offs to find the right partners.

Li cited Europe as an example, pointing to cross-border AI partnerships between member states. She advocated for multi-level cooperation so that “everyone can benefit from this powerful technology.”

Can Europe become an AI leader?

Despite the dominance of the United States and China in the AI race, technology leaders in Davos noted that AI presents major opportunities for Europe.

Nvidia founder and CEO Jensen Huang said at the forum that AI is “interesting for Europe” due to its “incredibly strong manufacturing base” for building AI infrastructure.

Huang described this as a moment for Europe to “leapfrog” the software era, calling robotics a “once-in-a-lifetime opportunity” for the continent.

Li shared this optimism, highlighting Europe’s strengths: exceptional talent, effective regulation, a “stable society that also encourages innovation,” and a strong industrial base.

However, she acknowledged serious challenges ahead. Market fragmentation across the continent makes cross-border expansion difficult for startups and hinders talent mobility.

“Many European startups still find it much easier to enter a large market like the United States than to navigate fragmented internal markets within the European Union,” Li said.

The energy challenge

Another major challenge for AI — not only in Europe — will be energy. The data centres that power AI systems require enormous amounts of electricity.

This infrastructure is so critical that Microsoft CEO Satya Nadella said in Davos that energy costs will be the key factor in determining which country wins the AI race.

Li added that the energy challenge also presents an opportunity to modernise “outdated” energy systems.

“Those systems that move toward clean energy will benefit society as a whole, but we need to think long-term and understand how to build the entire ecosystem,” she said.

The AI questions ahead

According to Li, the pace of AI development is unprecedented — “it’s almost as if one year of our lives now equals 100 years in the AI world.” Applications discussed today may quickly become obsolete tomorrow.

This year’s Davos, she noted, showed how AI is shifting from large language models (LLMs) toward “physical” AI such as robotics, as well as how countries are deciding on AI investments and regulation.

Asked what key topics she expects to dominate Davos next year, Li said much would remain the same — including discussions on how AI can serve humanity, not just corporate profits.

“How do we protect the future of our children, not just our own?” Li asked.

She criticised corporate leaders planning to cut entry-level jobs due to AI, calling it “the biggest mistake you will make.”

Instead, she urged companies to pair young employees with experienced senior leadership to maximise impact, emphasising that young professionals are “AI-native,” meaning they are inherently comfortable with the technology.

Li also said AI should not widen the digital divide between the global North and South and called for greater efforts to ensure AI systems are powered by clean energy.

“We truly see technology as a force that can uplift all of humanity. We are human beings — what makes us unique is that we care for one another, and that must be at the centre of our agenda,” she said.