Samjong KPMG "Davos Forum, Issues on Supply Chain, Energy Transition, and AI Utilization"

Through the 2024 World Economic Forum (WEF·Davos Forum), the need to respond to new paradigms in three key areas?sustainable supply chains, energy transition, and AI (artificial intelligence)?was raised.

Samjong KPMG presented the agenda selected at the Davos Forum and issues to be examined in the political, economic, and industrial environment in a report published on the 23rd.

Executives of major global companies focused on ‘productivity innovation through AI technology.’ They expected that the introduction of AI technology across various industries would reduce the time spent on product research and development and customer service, thereby increasing productivity.

‘Energy transition’ was proposed as a solution that satisfies energy equity, security, and climate crisis response. Strategies by countries and companies to triple renewable energy generation capacity by 2030 were explored. Measures to ensure energy equity during the energy transition process were also discussed. In relation to recent geopolitical conflicts, concerns about ‘the contraction of free trade and supply chain crises’ were also raised.

The ‘job changes caused by AI’ were also discussed. The 2024 Global Risks Report published by the Davos Forum predicted that AI technology development would have a disruptive impact on the work of 44% of workers between 2023 and 2028.

Samjong KPMG advised domestic companies to proactively seek opportunities and respond to sustainable supply chain redesign, energy transition, and AI in connection with the Davos Forum. The report pointed out, “As access to critical raw materials is restricted due to geopolitical issues, it is necessary to redesign by balancing the proximity and stability of supply sources. Supply chain planning should be conducted across the entire value chain, investments should be made in AI-based predictive analytics systems, and risk management should be advanced.”

It further explained, “As energy security emerges as a major issue, pressure on energy transition is increasing. To secure price stability directly linked to energy security, stable procurement of raw materials should be ensured, and not only diversification of supply sources but also direct entry strategies into the production process can be considered.” The report added, “Multifaceted efforts are required for digital innovation and responsible AI use, and to ensure high reliability of results generated by generative AI, corporate policies for this purpose need to be established alongside strategic planning.”

This content was produced with the assistance of AI translation services.