The rapid transformation driven by AI was a central theme at Davos 2025, sparking both optimism and serious concern. Klaus Schwab referred to this era as the transition from the Industrial Age to the “Age of Intelligence,” a time of exponential change laden with unprecedented risks and opportunities. Yet, as the discussions unfolded, one truth became clear: AI without human wisdom, ethical grounding, and a clear sense of purpose is a dangerous performance, not progress.
AI’s potential to solve pressing challenges — climate change, food security, and health crises — is immense. It is reshaping industries, redefining work, and challenging the boundaries of creativity. However, its impacts extend far beyond efficiency and innovation. AI is also deepening the isolation of younger generations, straining their relationships, and jeopardizing their mental health. These unintended consequences highlight a critical gap: our technological advancements are not always matched by ethical foresight or societal readiness.
The Risks: When Intelligence Outpaces Wisdom
Cathy Li of the World Economic Forum emphasized that “Generative AI thrives when it enhances human capabilities, not when it replaces them.” Yet, even as AI accelerates productivity, it is simultaneously disrupting 40% of global working hours within the next five years. This shift is not just about jobs — it’s about identities, communities, and human connections.
For younger generations, the omnipresence of AI has led to an unsettling paradox: greater digital connectivity but increased feelings of loneliness and disconnection. Platforms driven by AI algorithms often prioritize engagement metrics over meaningful interactions, creating echo chambers, fueling anxiety, and diminishing authentic relationships.
As Ravi Kumar, CEO of Cognizant, pointed out, “Reskilling is essential, but so is ensuring AI systems are designed to augment humanity, not alienate it.” Without ethical oversight, AI’s disruptive capabilities risk leaving vulnerable populations, particularly young people, more isolated than ever before.
Opportunities: Aligning AI with Human Values
While AI holds the promise of transformative solutions, its deployment must align with human-centric values. Julie Sweet, CEO of Accenture, stressed the importance of building trust through transparency and ethical practices. Schwab echoed this, calling for
“a Renaissance grounded in collaboration and trust.”
AI should not be an end in itself but a means to enhance empathy, creativity, and societal well-being. Leadership must move beyond delegating AI to technical teams and instead take direct responsibility for shaping its purpose and impact. Paul Hudson, CEO of Sanofi, aptly stated,
“If you delegate AI to your Chief Data Officer, you’ve already lost.”
We must also recognize that AI’s benefits must be accessible to all, not just the privileged few. Amin Nasser of Aramco warned of the dangers of “technological poverty,” where unequal access to AI exacerbates global disparities. Equitable access to AI is not just a moral imperative — it is a cornerstone of sustainable development.
The Human Cost: A Generation at Risk
Perhaps the most urgent concern lies in AI’s impact on younger generations. The rise of AI-powered platforms has coincided with a mental health crisis among youth. Social media algorithms, designed to maximize screen time, often exploit insecurities and fuel unhealthy comparisons.