Collaboration for the Intelligent Age

Implications for Entrepreneurs and Executives

Decision-makers from politics, business and science convene at the World Economic Forum 2025 (WEF) in Davos in order to discuss about “Collaboration for the Intelligent Age”. This year’s theme relates to opportunities and risks through technology and collaboration. For entrepreneurs and executives, this results in insights of strategic importance.

The term “intelligent age” goes back to Klaus Schwab. Based on the fourth industrial revolution, the WEF founder now sees an era dawning that is characterized by social upheavals far beyond technology. Driven by advances in artificial intelligence, blockchain and quantum computing, Schwab perceives an all-encompassing change in real time. To ensure that this does not divide society, it must go far beyond technological progress and actually promote human potential.

Opportunities and risks through technology

Schwab believes it is imperative to develop ecological, social and geopolitical intelligence in addition to technological intelligence.

On the one hand, AI and automation bring significant benefits to industries such as healthcare, agriculture, industry or finance. In addition, the quality of life shall improve e.g. through smart cities. Virtualization could have a fundamental impact on how people define personal space, property and community.
On the other hand, Schwab sees potential disadvantages and risks, because automation leads to millions of employees being displaced. He believes that the economic benefits of these changes must be fully shared if deepening inequalities and threatening social cohesion are to be avoided. At the same time, the considerable energy demand of the new technologies must be covered by renewable energies in order not to exacerbate climate change. According to Schwab, bias and the delegation of decisions to AI are also risky.

Social intelligence and geopolitical intelligence

Schwab therefore considers it necessary to focus on new forms of intelligence.

Social intelligence: In understanding the societal impact of technology, inclusion and equity must be promoted instead of dividing and polarizing. Companies should rethink their business models and ensure that employees and entire parts of society are not left behind – if many job profiles will disappear in the future due to technological development and new skills will become important.

Geopolitical intelligence: Understanding the impact of technology on global power dynamics would require finding solutions to promote collaboration rather than competition, as well as to mitigate the security challenges and potential conflicts posed by AI.

Against this backdrop, global cooperation and international framework conditions are indispensable for the governance of AI and new technologies. All nations must have a say in shaping the future.

Implications for the economy

For entrepreneurs and executives, these valid assessments have various implications. This applies to both the internal sphere and the business model.

Implications for the internal organization

Invest in upskilling and reskilling: Companies should invest in continuous upskilling and reskilling to ensure employees acquire the necessary skills to thrive in an AI-driven environment. This can be done through internal training programs, collaborations with educational institutions, or online courses.
Practice transparent communication: Employees should be informed about the adoption of new technologies and their potential impact on their workplaces. Clear communication can help reduce anxiety and make it easier to adapt to new ways of working.
Promote flexibility and adaptability: Companies should promote a culture of flexibility and adaptability. This means that employees should be encouraged to take on new roles and responsibilities and to constantly develop. A dynamic work environment can help overcome the challenges of automation and AI.
Support and provide resources: Organizations should provide employees with the necessary support and resources to facilitate the transition to new tasks and responsibilities. This can be done through mentoring programs, career counseling or financial support for further training measures.

Implications for the business model

Due to the new technological possibilities offered by AI and the parallels in different industries, there is also an unprecedented opportunity for companies to penetrate new business areas and open up new revenue streams. Across all industries, it can be seen that artificial intelligence and automation are becoming indispensable for companies. Unlike a few years ago, automation, for example, is no longer just about efficiency and substitution of human labor. In the future, the focus will be on ensuring productivity in the face of demographic change. Entrepreneurs and executives should therefore drive convergence on the one hand.

On the other hand, neo-imperialist tendencies and geopolitical tensions lead to risks for supply chains and sales markets. The effects of the Covid-19 pandemic and armed conflicts in various regions have shown that asset-light strategies and low vertical integration are highly risky. Friendshoring and nearshoring are therefore in vogue. For entrepreneurs and executives, it is essentially about making their company more independent – from individual customers, suppliers as well as material and geographical markets. In short: to drive diversification.

Both together – convergence and diversification – can also be described as “convergification”.

Collaboration as the key

Convergification requires collaboration. There are only a few companies that can diversify and converge at the same time. Different forms of cooperation have always shaped the development of the economy. From the construction of irrigation systems and pyramids in early civilizations such as ancient Mesopotamia and Egypt, to guilds of craftsmen and merchants in medieval Europe, to the modern digital era, it is evident that collaborative action and the exchange of knowledge and resources are key elements for economic success and innovation.

As the Bertelsmann Foundation emphasizes in its study “Collaborative Innovation Processes” published in June 2024, close cooperation inside and outside the supply chain is of great importance, especially for small and medium-sized enterprises, in order to increase their innovative capacity and competitiveness. According to the study, the chances of success of initiating a collaboration increase if the company succeeds in

the highest possible number of potential partners
to impart their respective skills and
to show which concrete competencies it is looking for.

Entrepreneurs and executives should look for suitable strategic partners from different industries and disciplines to further develop their business model in order to drive convergification forward in parallel. Public relations, digital platforms, associations and chambers and business promoters were to be used to show regionally, nationally and internationally what skills the company has and what competencies it specifically needs from a partner.

As the study also shows, small and medium-sized companies in particular are often reluctant in terms of collaborations with start-ups. This should be questioned self-critically, as the high rate of successful collaborations – if they are entered into on an equal footing – illustrates its important role as a source of innovation.

Once a potential partner has been found, it should be defined in an open dialogue on the basis of concrete milestones what is to be achieved with the collaboration and by when in quantitative and qualitative terms. If it becomes apparent in the further course that the goals are not being achieved or are not achievable, this determines the duration of the cooperation. It is difficult to estimate the duration in advance – especially if the development of the respective market is dynamic and/or the strategic partner does not yet have a long track record, which is particularly common with digital business models. Close monitoring of the development of the strategic partnership is therefore crucial.