AI Risks Rise Fastest as World Faces Economic and Technological Uncertainty: WEF Report

The global economy is on the cusp of 2026, anticipating a period of challenge driven by geo-economic conflict, technological risk, and the climate crisis. The main risk to businesses for the next two years is seen to be an increase in economic-strategic conflict (tariff wars) between countries, while the negative potential related to artificial intelligence (AI) has been recognized to have grown at the fastest pace, according to the Global Risks Report 2026 by the World Economic Forum (WEF). The world is at a turning point, according to the World Economic Forum, where instability is becoming the norm.

This report by the WEF has been compiled using a survey conducted among 1,300 leaders in government, business, and other sectors. According to the report, geo-economic confrontation has risen to the top of the list of business concerns over the next two years. This includes the tendency to use tariffs, regulations, supply chains, and capital flows as weapons. The report warns that such competition could lead to a significant contraction in global trade.

The most striking change in this survey was observed in the risks associated with artificial intelligence. According to the report, AI could lead to massive job displacement, creating a vicious cycle of income inequality, social division, declining consumer spending, and socio-economic discontent, even if productivity increases significantly.