Tariffs and AI Risks Emerge as Biggest Business Threats Warns World Economic Forum


Global businesses are facing a rapidly shifting risk landscape as trade tensions and the unintended consequences of artificial intelligence rise to the top of corporate concerns. According to recent findings highlighted by the World Economic Forum, economic confrontation driven by tariffs and protectionist policies is now seen as one of the most serious near term risks for companies operating across borders.

Business leaders surveyed by the forum pointed to the growing use of tariffs and trade restrictions as tools of geopolitical strategy rather than economic cooperation. These measures are increasing costs, disrupting supply chains and creating uncertainty around long term investment decisions. For multinational firms, planning has become more complex as trade rules shift frequently and relationships between major economies remain strained.

Alongside trade related risks, the downside of artificial intelligence has emerged as a major long term concern. While AI continues to promise efficiency gains and innovation, executives are increasingly worried about its broader implications. Issues such as job displacement, misinformation, regulatory gaps and ethical challenges are now seen as potential threats to economic and social stability if the technology advances faster than governance frameworks.

The forum’s findings also suggest that the overall environment for doing business has become tougher over the past year. Many executives reported that geopolitical tensions and technological disruption are combining to weaken global cooperation. This erosion of trust between countries and institutions makes it harder for companies to operate smoothly across markets and respond to global challenges.

Despite these risks, business leaders remain cautiously optimistic that proactive policy making and international dialogue can help manage both trade tensions and AI related challenges. The World Economic Forum has emphasized the need for cooperation between governments, regulators and the private sector to balance innovation with stability.

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