The AI governance gap: It is time for balanced oversight

The rapid advancement of artificial intelligence (AI) demands our immediate attention as business leaders. Recent findings from Corporate Europe Observatory reveal a concerning imbalance in AI governance that should give us pause: over 55% of Europe's AI standards committee members represent corporate or consulting interests, mirroring similar patterns in the US.

As a global business navigating the AI revolution, you can see the tremendous opportunities and responsibilities ahead of you. The statistics are clear: According to recent polling, 79% of Americans support strict AI regulation. Regulation isn't just about compliance; it's about sustainable business leadership in an era where technology increasingly shapes society.

The current landscape presents a paradox: while tech giants lead crucial innovations in AI, their dominance in setting standards raises legitimate concerns about oversight. Major tech corporations have faced significant challenges with data privacy and information integrity despite their innovation capabilities. This track record underscores why diverse perspectives in AI governance are beneficial and essential.

What's at stake isn't merely regulatory compliance but the future of AI integration in global business. As leaders of multinational organizations, you must ask: Are we comfortable with a framework where industry giants effectively write their own rules? How can we ensure our AI adoption strategies balance innovation with responsible governance?

The solution lies in embracing a more inclusive approach to AI governance.

Global business leaders can create more robust and sustainable AI standards by supporting the integration of academic expertise, civil society insights, and public interest perspectives alongside industry knowledge. This isn't about impeding progress but ensuring that AI technological advancement aligns with societal values and long-term business sustainability.

Companies that champion responsible AI development will increasingly have a competitive advantage. As global business leaders, you can uniquely shape this trajectory. By advocating for balanced oversight now, you can help create a global AI ecosystem that serves both business interests and the broader public good.

The path forward requires proactive leadership from the global business community. Let's move beyond the false choice between innovation and oversight and advance an AI framework where both can thrive.

-Marc

The rise of Arctic competition: Why business leaders should pay attention

The Danish government's recent $2 billion Arctic security investment marks a pivotal moment in global strategic positioning that every multinational CEO should be monitoring.

This investment isn't just about military modernization - it's a signal of fundamental shifts in global trade routes, resource access, and international relations that will impact business operations for decades.

Why does this matter to business leaders?

The Arctic represents the intersection of several critical business factors: new shipping routes, untapped natural resources, and emerging geopolitical tensions. Denmark's move from using sled dog patrols to investing in advanced ships, drones, and satellites reflects this region's rapidly evolving strategic importance.

Three key implications for global business:

First, shipping and logistics leaders need to closely monitor the development of Arctic routes. As the ice melts and new pathways open, companies could save significant time and cost on Asia-Europe shipping. However, the militarization of the region could complicate access and increase operational risks.

Second, the intensifying competition between great powers in the Arctic will affect resource extraction and development rights. The region holds an estimated 30% of the world's undiscovered natural gas and 13% of undiscovered oil. Companies in energy, mining, and related industries must factor this new security environment into their long-term strategic planning.

Third, this military buildup signals potential regulatory and compliance challenges. As Arctic nations enhance their presence and oversight capabilities, companies operating in or through the region will likely face increased scrutiny and new regulatory frameworks.

Denmark's investment isn't happening in isolation. It comes amid renewed US strategic interest in Greenland and a broader NATO focus on Arctic security.

For business leaders, the Arctic is transitioning from a peripheral concern to a central theater of global competition.

The global business takeaway: We're entering an era where Arctic strategy needs to be part of every multinational's risk assessment and opportunity analysis.

It's becoming clear that the Arctic is no longer just a remote frontier—it's emerging as a critical nexus of global trade, resource competition, and strategic positioning. As business leaders, you must consider how these developments will affect our operations, supply chains, and market access in the coming years.

Enjoy the ride + plan accordingly.

-Marc

Sound More Interesting at Cocktails Memo | January 24

Here are 25 talking points for better conversation at cocktails from news of the past week.

1. Only 16 Districts: Of the 435 US House races conducted in 2024, only 16 district electorates voted for a different party's nominee for Representative than they did for President—meaning 96.3% of the US House district electorates voted for a straight party ticket for President and the US House.

2. MI-GOV: Secretary of State Jocelyn Benson (D) announced a run for Michigan governor.

3. SC-GOV: Rep. Nancy Mace (R)says she is considering a run for governor of South Carolina.

4. Egg prices rise nearly 37 percent: In some states, eggs cost as much as $9 per dozen.

5. Donald Trump is the first president in more than 100 years to call for new American territory—including Mars.

6. An Oxfam report claims Colonial Britain drained India of $64.82 trillion.

7. Sweden has sent 550 troops to Latvia, its first major deployment since joining NATO in March, which ended its decades-long neutrality.

8. Turkey is home to more than 3 million Syrian refugees.

9. Wildfires in Brazil last year burned an area larger than Italy, monitor MapBiomas has said. Some 120,000 square miles burned in 2024, up 79% from the previous year.

10. Trade power: Less than 3% of the world's electricity is internationally traded.

11. AI job loss? Last year, the IMF reported that up to 40% of jobs globally would be impacted by or lost to AI.

12. AI data centers need lots of space: About 875 acres in Abilene, Texas, or roughly the size of New York's Central Park, have been set aside to construct data centers dedicated to AI.

13. AI is power-hungry: Legislators in at least eight states have filed or plan to file bills establishing eco-conscious guardrails for the AI industry. According to the US Department of Energy, the AI industry will consume up to 12% of US electricity by 2028.

14. South Carolina will reboot its giant nuclear project to meet the demand for AI.

15. Google is backing artificial intelligence developer Anthropic with a further $1 billion.

16. MrBeast has joined a new bid to buy TikTok.

17. The SEC announced "SEC Crypto 2.0," a task force "dedicated to developing a comprehensive and clear regulatory framework for crypto assets."

18. Citigroup plans a £1 billion upgrade to its London HQ to tempt staff back to the office.

19. 25%: The share of the global population living in cities of over a million people, up from 15% six decades ago.

20. Detroit property values have increased for the 9th year.

21. Netflix surges past 300 million subscribers.

22. According to a paper published in the British Journal of Psychiatry, people with ADHD live shorter lives. Researchers studied the health records of more than 300,000 people in Britain and found that the average life expectancy was 6.8 years shorter for men with neurological conditions and 8.6 years for women.

23. Conan O'Brien will receive the 2025 Mark Twain Prize for American Humor.

24. 'Emilia Pérez' garners 13 nominations to lead the Oscars race, followed by 'The Brutalist' and 'Wicked,' each earning 10 nominations.

25. The Paris Olympics medals designed by LVMH are tarnishing.

Enjoy the ride + plan accordingly.

-Marc