Navigating Tomorrow: Insights from the 2025 Goldman Sachs Global Institute Summits

The Goldman Sachs Global Institute recently convened its annual summits, bringing together executives, thought leaders, policymakers, and experts in New York and London. These events provided opportunities for in-depth discussions on the critical intersections of artificial intelligence, global markets, and geopolitics.

This year's summits also featured two keynote conversations. In New York, Jared Cohen, President of Global Affairs and Co-Head of the Goldman Sachs Global Institute, interviewed His Excellency Sheikh Mohammed bin Abdulrahman Al Thani, Prime Minister and Foreign Minister of the State of Qatar. In London, Sir Alex Younger, International Advisor, Goldman Sachs, and Former Chief of the British Secret Intelligence Service (MI6), interviewed Sir Richard Moore, who served as Chief of the British Secret Intelligence Service (MI6) from 2020 to 2025.

Artificial Intelligence: New Scarcities, Shifting Paradigms, and Technological Revolutions

The AI sessions, led by George Lee, Co-Head of the Goldman Sachs Global Institute, alongside Meghan O’Sullivan, Director, Belfer Center for Science and International Affairs, Harvard University, in New York and Yasmin Green, CEO, Jigsaw, in London highlighted transformative trends in today’s technology revolution, from energy to trust to capital.

In New York, the session stressed the degree to which the nexus between AI and energy is impacting not only where and how AI infrastructure is built, but also the evolution of the global energy industry. In London, discussions explored how AI could fundamentally reshape traditional fiscal policy in Western democracies, particularly concerning labor-based taxation and employment-tied redistribution. Both sessions emphasized emerging scarcities in semiconductors and energy, as well as the need for more human capital. Shortages are now seen not only for top technical talent, but also in blue-collar professions, which are essential for building data centers and upgrading grids.

While the US and China lead the AI race, Lee highlighted technological opportunities in Europe as well, noting, “AI is already powering economic growth. European countries and companies are key players in many aspects of the AI supply chain and, working with the US, can ensure that today’s technological revolution makes democracies stronger and more prosperous.”

Geopolitics: Persistent Tensions and Evolving Alliances

Geopolitics sessions, guided by Elizabeth Economy, Hargrove Senior Fellow, Hoover Institution, alongside Mike Gallagher, Head of Defense, Palantir, in New York and Jared Cohen and Clarissa Ward, Chief International Correspondent, CNN, in London delved into strategic competition with China and conflicts in the Middle East.

In New York, the session highlighted risks to a lasting truce in US-China competition due to unresolved fundamental issues. Concerns were raised about inadequate US investment in deterrence in the Indo-Pacific and the need for strategic clarity in the region. Despite these challenges, the US’s preeminence in markets and geopolitics remains intact, and positive developments include recent increases in US defense spending, efforts to reduce critical dependencies through public and private investments, and work to further operationalize security and economic alliances with partners like Australia, Japan, and South Korea.

The London summit highlighted that, more than two years after Hamas’s attack on Israel, the Middle East is at an inflection point. Israeli and US strikes against Iran and its proxies, as well as on Tehran’s nuclear program, have created the possibility for more stability in the region. And while the conflict may have temporarily halted further normalization agreements, the Abraham Accords have shown resilience, even providing new avenues of communication between Israel and Arab states. Meanwhile, Cohen highlighted the remarkable economic transformation in the Gulf, reminding the audience, “Israel has emerged after two years of war and has proven its strength, and the US remains the irreplaceable security partner to Jerusalem and Arab states alike. The region as a whole is emerging as a tale of two Middle Easts: one defined by instability, and the other, primarily the Gulf states, that is driving toward growth, technological innovation, and national transformations.”

Markets: Fragmentation, Leverage, and Opportunities

The markets discussions, led by Michael Froman, President, Council on Foreign Relations, in New York and Kunal Shah, Co-CEO, Goldman Sachs International, and Global Co-Head of FICC, in London explored the evolving global economic landscape and the prospects for growth and innovation in Europe.

Froman described the global trade system as effectively "dead," due to both China's non-market practices, as well as the US’s actions on trade. The session highlighted tradeoffs between frictionless globalization and supply chain resilience, as well as the need for likeminded countries to work together to advance security and growth. The conversation included a discussion of chokepoint technologies in economic competition, including semiconductors, critical minerals, and cloud infrastructure.

Europe’s challenges and opportunities came into focus during the London summit, including undervalued sectors that present promising areas for potential investments, particularly in information technology, healthcare, and defense. Participants emphasized the necessity of European growth and security, especially given Russia’s ongoing war on Ukraine, highlighting German fiscal expansion as a key driver of growth, and noting the strong performance of the European defense sector. However, concerns persist regarding the speed at which reforms are being implemented, as well as the need for Europe to overcome political challenges to build pools of long-term capital in both public and private markets. Shah described Europe’s economic moment, saying, “Across a range of countries and sectors, Europe shows potential for renewed growth. Global pools of capital can rotate further into Europe, but resources and talent need to be directed towards innovation, and constraints that range from expensive energy to the high regulatory burden need to be tackled. The firms and policymakers that act with clarity and purpose now will shape the continent’s path forward.”

Sir Alex Younger concluded the London summit with an observation about the current geopolitical moment, and its relationship to prior periods of tension, counseling, “‘Inflection point’ is an overused term. But that is exactly where Europe stands. Galvanized by the imperatives of war, Trumpian mercantilism and Draghi’s warning, Europe may at last release its latent strength and rediscover its relationship with hard power. Or, as predicted by gloomsters everywhere, it will instead double down on managed decline. I, for one, think it is a good time to be European."

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