Navigating Key Trends: Geopolitics, AI, Inflation, and Human Risks

1. Geopolitical change will continue, and new risks will arise even as current risks are addressed – tracking, as predicted. The first half of 2025 has brought with it a continuum of geopolitical risks, which have manifested in various forms such as extreme weather events, shifts in trade regulations, and escalating market volatility. Business leaders are focusing on understanding these multifaceted risks, which include climate change impacts, global conflicts, and cyber threats. According to WTW’s Emerging Risk Survey, organizations are advised to reassess their strategies regularly, as decisions based on the prior understanding may no longer apply in the evolving landscape. A proactive approach to governance, where leaders remain flexible and prepared for sudden changes, is essential.
2. AI and new tech development will outpace adoption, yet show additional limitations and risks – tracking, as predicted. As generative AI and other technological advancements continue to unfold, leaders are grappling with their practical applications and limitations. Gartner’s 2025 Hype Cycle indicates that a significant number of organizations are facing challenges in demonstrating the return on investment for AI initiatives. High-profile cancellations of AI projects are becoming common, often attributed to unclear value propositions and rising costs. As companies reconsider how they govern technology, adopting framework strategies that are adaptive and capable of responding to rapid technological evolution is becoming increasingly vital.
3. Labor markets, inflation, work arrangements, and talent shortages remain in the news – tracking, as predicted, generally. The employment landscape is showing signs of stabilization; however, pockets of significant challenges remain, particularly in labor shortages and inflation. Some regions, such as the U.K. and Eurozone, have seen inflation rates fluctuate, prompting concerns among business leaders. Moreover, talent retention presents its own set of challenges, as the demographic shifts continue to affect workforce availability. Companies are realizing the importance of enhancing employee experiences and adapting compensation and benefits to foster a supportive work environment amidst these challenges.
4. People risks are at the forefront – tracking as predicted. With a sharp focus on employee health and wellbeing, organizations are acknowledging the importance of human capital governance. According to WTW’s 2025 Directors and Officers Risk Report, leaders are prioritizing strategies that improve employee wellbeing as a competitive advantage. They are increasingly recognizing that organizations that foster a positive employee experience are better positioned to attract and retain top talent.
5. Inability to plan and increased scenario testing – newly reported trend. As disruptions from the pandemic and geopolitical events continue to evolve, many business leaders have recognized planning as a significant challenge. Discussions across various regions reveal a common theme: leaders believe that traditional planning models are no longer adequate in the current landscape. The need for robust scenario testing appears more critical than ever, as organizations seek to maintain flexibility and responsiveness in the face of changing market dynamics.

Looking ahead

The ongoing pace of global change emphasizes the necessity of nimbleness in strategy and planning. Organizations that reassess risks, responsibly embrace emerging technologies, and prioritize the wellbeing of their workforce are better positioned to navigate the uncertainties of our time.

A version of this article originally appeared on Forbes on July 15, 2025.