Davos 2026 reveals competing visions for AI

AI has dominated debates at Davos 2026, matching traditional concerns such as geopolitics and global trade while prompting deeper reflection on how the technology is reshaping work, governance, and society.

Political leaders, executives, and researchers agreed that AI development has moved beyond experimentation towards widespread implementation.

Microsoft chief executive Satya Nadella argued that AI should deliver tangible benefits for communities and economies, while warning that adoption will remain uneven due to disparities in infrastructure and investment.

Access to energy networks, telecommunications, and capital was identified as a decisive factor in determining which regions can fully deploy advanced systems.

Other voices at Davos 2026 struck a more cautious tone. AI researcher Yoshua Bengio warned against designing systems that appear too human-like, stressing that people may overestimate machine understanding.

Philosopher Yuval Noah Harari echoed those concerns, arguing that societies lack experience in managing human and AI coexistence and should prepare mechanisms to correct failures.

The debate also centred on labour and global competition.

Anthropic’s Dario Amodei highlighted geopolitical risks and predicted disruption to entry-level white-collar jobs. At the same time, Google DeepMind chief Demis Hassabis forecast new forms of employment alongside calls for shared international safety standards.

Together, the discussions underscored growing recognition that AI governance will shape economic and social outcomes for years ahead.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

OpenAI models embedded into ServiceNow for enterprise automation

ServiceNow has announced a multi-year agreement positioning OpenAI as a preferred intelligence capability across its enterprise platform, extending access to frontier AI models for organisations running tens of billions of workflows each year.

The partnership reflects a broader shift towards operational AI embedded directly within business systems instead of experimental deployments.

By integrating OpenAI models such as GPT-5.2 into the ServiceNow AI Platform, enterprises can embed reasoning and automation into secure workflows spanning IT, finance, human resources, and customer operations.

AI tools are designed to analyse context, recommend actions, and execute tasks within existing governance frameworks instead of functioning as standalone assistants.

Executives from both companies emphasised that the collaboration aims to deliver measurable outcomes at scale.

ServiceNow highlighted its role in coordinating complex enterprise environments, while OpenAI stressed the importance of deploying agentic AI capable of handling work end to end within permissioned infrastructures.

Looking ahead, the partnership plans to expand towards multimodal and voice-based interactions, enabling employees to communicate with AI systems through speech, text, and visual inputs.

The initiative strengthens OpenAI’s enterprise footprint while reinforcing ServiceNow’s ambition to act as a central control layer for AI-driven business operations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Workers voice concern over AI-driven workplace change

Four in five workers believe AI will affect their daily tasks, as companies expand the use of AI chatbots and automation tools in the workplace, according to a new Randstad survey.

Demand for roles requiring ‘AI agent‘ skills has risen by 1,587%, reflecting a shift towards automation in low-complexity and transactional jobs, the recruitment firm said in its annual Workmonitor report.

Randstad surveyed 27,000 workers and 1,225 employers, analysing more than three million job postings across 35 global markets to assess how AI is reshaping labour demand.

Corporate cost-cutting pressures, weakened consumer confidence, and geopolitical uncertainty linked to US trade policies are accelerating workforce restructuring across multiple industries.

Gen Z workers expressed the highest level of concern about AI’s impact, while Baby Boomers reported greater confidence in their ability to adapt, as nearly half of employees said the technology may benefit companies more than workers.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

New EU cybersecurity package strengthens resilience and ENISA powers

The European Commission has unveiled a broad cybersecurity package that moves the EU beyond certification reform towards systemic resilience across critical digital infrastructure.

Building on plans to expand EU cybersecurity certification beyond products and services, the revised Cybersecurity Act introduces a risk-based framework for securing ICT supply chains, with particular focus on dependencies, foreign interference, and high-risk third-country suppliers.

A central shift concerns supply-chain security as a geopolitical issue. The proposal enables mandatory derisking of mobile telecommunications networks, reinforcing earlier efforts under the 5G security toolbox.

Certification reform continues through a redesigned European Cybersecurity Certification Framework, promising clearer governance, faster scheme development, and voluntary certification that can cover organisational cyber posture alongside technical compliance.

The package also tackles regulatory complexity. Targeted amendments to the NIS2 Directive aim to ease compliance for tens of thousands of companies by clarifying jurisdictional rules, introducing a new ‘small mid-cap’ category, and streamlining incident reporting through a single EU entry point.

Enhanced ransomware data collection and cross-border supervision are intended to reduce fragmentation while strengthening enforcement consistency.

ENISA’s role is further expanded from coordination towards operational support. The agency would issue early threat alerts, assist in ransomware recovery with national authorities and Europol, and develop EU-wide vulnerability management and skills attestation schemes.

Together, the measures signal a shift from fragmented safeguards towards a more integrated model of European cyber sovereignty.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Cisco and OpenAI push AI-native software development

Cisco has deepened its collaboration with OpenAI to embed agentic AI into enterprise software engineering. The approach reflects a broader shift towards treating AI as operational infrastructure rather than an experimental tool.

Integrating Codex into production workflows exposed it to complex, multi-repository, and security-critical environments. Codex operated across interconnected codebases, running autonomous build and testing loops within existing compliance and governance frameworks.

Operational use delivered measurable results. Engineering teams reported faster builds, higher defect-resolution throughput, and quicker framework migrations, cutting work from weeks to days.

Real-world deployment shaped Codex’s enterprise roadmap, especially around compliance, long-running tasks, and pipeline integration. The collaboration will continue as both organisations pursue AI-native engineering at scale, including within Cisco’s Splunk teams.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

ChatGPT and the rising pressure to commercialise AI in 2026

The moment many have anticipated with interest or concern has arrived. On 16 January, OpenAI announced the global rollout of its low-cost subscription tier, ChatGPT Go, in all countries where the model is supported. After debuting in India in August 2025 and expanding to Singapore the following month, the USD 8-per-month tier marks OpenAI’s most direct attempt yet to broaden paid access while maintaining assurances that advertising will not be embedded into ChatGPT’s prompts.

The move has been widely interpreted as a turning point in the way AI models are monetised. To date, most major AI providers have relied on a combination of external investment, strategic partnerships, and subscription offerings to sustain rapid development. Expectations of transformative breakthroughs and exponential growth have underpinned investor confidence, reinforcing what has come to be described as the AI boom.

Against this backdrop, OpenAI’s long-standing reluctance to embrace advertising takes on renewed significance. As recently as October 2024, chief executive Sam Altman described ads as a ‘last resort’ for the company’s business model. Does that position (still) reflect Altman’s confidence in alternative revenue streams, and is OpenAI simply the first company to bite the ad revenue bullet before other AI ventures have mustered the courage to do so?

ChatGPT, ads, and the integrity of AI responses

Regardless of one’s personal feelings about ad-based revenue, the facts about its essentiality are irrefutable. According to Statista’s Market Insights research, the worldwide advertising market has surpassed USD 1 trillion in annual revenue. With such figures in mind, it seems like a no-brainer to integrate ads whenever and wherever possible.

Furthermore, relying solely on substantial but irregular cash injections is not a reliable way to keep the lights on for a USD 500 billion company, especially in the wake of the RAM crisis. As much as the average consumer would prefer to use digital services without ads, coming up with an alternative and well-grounded revenue stream is tantamount to financial alchemy. Advertising remains one of the few monetisation models capable of sustaining large-scale platforms without significantly raising user costs.

For ChatGPT users, however, the concern centres less on the mere presence of ads and more on how advertising incentives could reshape data use, profiling practices, and the handling of conversational inputs. OpenAI has pleaded with its users to ‘trust that ChatGPT’s responses are driven by what’s objectively useful, never by advertising’. Altman’s company has also guaranteed that user data and conversations will remain protected and will never be sold to advertisers.

Such bold statements are never given lightly, meaning Altman fully stands behind his company’s words and is prepared to face repercussions should he break his promises. Since OpenAI is privately held, shifts in investor confidence following the announcement are not visible through public market signals, unlike at publicly listed technology firms. User count remains the most reliable metric for observing how ChatGPT is perceived by its target audience.

Competitive pressure behind ads in ChatGPT

Introducing ads to ChatGPT would be more than a simple change to how OpenAI makes money. Advertising can influence how the model responds to users, even if ads are not shown directly within the answers. Business pressure can still shape how information is presented through prompts. For example, certain products or services could be described more positively than others, without clearly appearing as advertisements or endorsements.

Recommendations raise particular concern. Many users turn to ChatGPT for advice or comparisons before making important purchases. If advertising becomes part of the model’s business, it may become harder for users to tell whether a suggestion is neutral or influenced by commercial interests. Transparency is also an issue, as the influence is much harder to spot in a chat interface than on websites that clearly label ads with banners or sponsored tags.

Three runners at a starting line wearing bibs with AI company logos, symbolising competition over advertising and monetisation in AI models, initiated by ChatGPT

While these concerns are valid, competition remains the main force shaping decisions across the AI industry. No major company wants its model to fall behind rivals such as ChatGPT, Gemini, Claude, or other leading systems. Nearly all of these firms have faced public criticism or controversy at some point, forcing them to adjust their strategies and work to rebuild user trust.

The risk of public backlash has so far made companies cautious about introducing advertising. Still, this hesitation is unlikely to last forever. By moving first, OpenAI absorbs most of the initial criticism, while competitors get to stand back, watch how users respond, and adjust their plans accordingly. If advertising proves successful, others are likely to follow, drawing on OpenAI’s experience without bearing the brunt of the growing pains. To quote Arliss Howard’s character in Moneyball: ‘The first guy through the wall always gets bloody’.

ChatGPT advertising and governance challenges

Following the launch of ChatGPT Go, lawmakers and regulators may need to reconsider how existing legal safeguards apply to ad-supported LLMs. Most advertising rules are designed for websites, apps, and social media feeds, rather than systems that generate natural-language responses and present them as neutral or authoritative guidance.

The key question is: which rules should apply? Advertising in chatbots may not resemble traditional ads, muddying the waters for regulation under digital advertising rules, AI governance frameworks, or both. The uncertainty matters largely because different rules come with varying disclosure, transparency, and accountability requirements.

Disclosure presents a further challenge for regulators. On traditional websites, sponsored content is usually labelled and visually separated from editorial material. In an LLM interface such as ChatGPT, however, any commercial influence may appear in the flow of an answer itself. This makes it harder for users to distinguish content shaped by commercial considerations from neutral responses.

In the European Union, this raises questions about how existing regulatory frameworks apply. Advertising in conversational AI may intersect with rules on transparency, manipulation, and user protection under current digital and AI legislation, including the AI Act, the Digital Services Act, and the Digital Markets Act. Clarifying how these frameworks operate in practice will be important as conversational AI systems continue to evolve.

ChatGPT ads and data governance

In the context of ChatGPT, conversational interactions can be more detailed than clicks or browsing history. Prompts may include personal, professional, or sensitive information, which requires careful handling when introducing advertising models. Even without personalised targeting, conversational data still requires clear boundaries. As AI systems scale, maintaining user trust will depend on transparent data practices and strong privacy safeguards.

Then, there’s data retention. Advertising incentives can increase pressure to store conversations for longer periods or to find new ways to extract value from them. For users, this raises concerns about how their data is handled, who has access to it, and how securely it is protected. Even if OpenAI initially avoids personalised advertising, the lingering allure will remain a central issue in the discussion about advertising in ChatGPT, not a secondary one.

Clear policies around data use and retention will therefore play a central role in shaping how advertising is introduced. Limits on how long conversations are stored, how data is separated from advertising systems, and how access is controlled can help reduce user uncertainty. Transparency around these practices will be important in maintaining confidence as the platform evolves.

Simultaneously, regulatory expectations and public scrutiny are likely to influence how far advertising models develop. As ChatGPT becomes more widely used across personal, professional, and institutional settings, decisions around data handling will carry broader implications. How OpenAI balances commercial sustainability with privacy and trust may ultimately shape wider norms for advertising in conversational AI.

How ChatGPT ads could reshape the AI ecosystem

We have touched on the potential drawbacks of AI models adopting an ad-revenue model, but what about the benefits? If ChatGPT successfully integrates advertising, it could set an important precedent for the broader industry. As the provider of one of the most widely used general-purpose AI systems, OpenAI’s decisions are closely watched by competitors, policymakers, and investors.

One likely effect would be the gradual normalisation of ad-funded AI assistants. If advertising proves to be a stable revenue source without triggering significant backlash, other providers may view it as a practical path to sustainability. Over time, this could shift user expectations, making advertising a standard feature rather than an exception in conversational AI tools.

Advertising may also intensify competitive pressure on open, academic, or non-profit AI models. Such systems often operate with more limited funding and may struggle to match the resources of ad-supported platforms such as ChatGPT. As a result, the gap between large commercial providers and alternative models could widen, especially in areas such as infrastructure, model performance, and distribution.

Taken together, these dynamics could strengthen the role of major AI providers as gatekeepers. Beyond controlling access to technology, they may increasingly influence which products, services, or ideas gain visibility through AI-mediated interactions. Such a concentration of influence would not be unique to AI, but it raises familiar questions about competition, diversity, and power in digital information ecosystems.

ChatGPT advertising and evolving governance frameworks

Advertising in ChatGPT is not simply a business decision. It highlights a broader shift in the way knowledge, economic incentives, and large-scale AI systems interact. As conversational AI becomes more embedded in everyday life, these developments offer an opportunity to rethink how digital services can remain both accessible and sustainable.

For policymakers and governance bodies, the focus is less on whether advertising appears and more on how it is implemented. Clear rules around transparency, accountability, and user protection can help ensure that conversational AI evolves in ways that support trust, choice, and fair competition, while allowing innovation to continue.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

UK names industry leaders to steer safe AI adoption in finance

The UK government has appointed two senior industry figures as AI Champions to support safe and effective adoption of AI across financial services, as part of a broader push to boost growth and productivity.

Harriet Rees of Starling Bank and Dr Rohit Dhawan of Lloyds Banking Group will work with firms and regulators to help turn rapid AI uptake into practical delivery. Both will report directly to Lucy Rigby, the Economic Secretary to the Treasury.

AI is already widely deployed across the sector, with around three-quarters of UK financial firms using the technology. Analysis indicates AI could add tens of billions of pounds to financial services by 2030, while improving customer services and reducing costs.

The Champions will focus on accelerating trusted adoption, speeding up innovation, and removing barriers to scale. Their remit includes protecting consumers, supporting financial stability, and strengthening the UK’s role as a global economic and technology hub.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU considers further action against Grok over AI nudification concerns

The European Commission has signalled readiness to escalate action against Elon Musk’s AI chatbot Grok, following concerns over the spread of non-consensual sexualised images on the social media platform X.

The EU tech chief Henna Virkkunen told Members of the European Parliament that existing digital rules allow regulators to respond to risks linked to AI-driven nudification tools.

Grok has been associated with the circulation of digitally altered images depicting real people, including women and children, without consent. Virkkunen described such practices as unacceptable and stressed that protecting minors online remains a central priority for the EU enforcement under the Digital Services Act.

While no formal investigation has yet been launched, the Commission is examining whether X may breach the DSA and has already ordered the platform to retain internal information related to Grok until the end of 2026.

Commission President Ursula von der Leyen has also publicly condemned the creation of sexualised AI images without consent.

The controversy has intensified calls from EU lawmakers to strengthen regulation, with several urging an explicit ban on AI-powered nudification under the forthcoming AI Act.

A debate that reflects wider international pressure on governments to address the misuse of generative AI technologies and reinforce safeguards across digital platforms.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UK watchdogs warned over AI risks in financial services

UK regulators and the Treasury face MP criticism over their approach to AI, amid warnings of risks to consumers and financial stability. A new Treasury Select Committee report says authorities have been overly cautious as AI use rapidly expands across financial services.

More than 75% of UK financial firms are already using AI, according to evidence reviewed by the committee, with insurers and international banks leading uptake.

Applications range from automating back-office tasks to core functions such as credit assessments and insurance claims, increasing AI’s systemic importance within the sector.

MPs acknowledge AI’s benefits but warn that readiness for large-scale failures remains insufficient. The committee urges the Bank of England and the FCA to introduce AI-specific stress tests to gauge resilience to AI-driven market shocks.

Further recommendations include more explicit regulatory guidance on AI accountability and faster use of the Critical Third Parties Regime. No AI or cloud providers have been designated as critical, prompting calls for stronger oversight to limit operational and systemic risk.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Strong growth pushes OpenAI past $20 billion in annualised revenue

OpenAI’s annualised revenue has surpassed $20 billion in 2025, up from $6 billion a year earlier. The company’s computing capacity and user numbers have also continued to grow.

The company recently confirmed it will begin showing advertisements in ChatGPT to some users in the United States. The move is part of a broader effort to generate additional revenue to cover the high costs of developing and running advanced AI systems.

OpenAI’s platform now spans text, images, voice, code, and application programming interfaces. CFO Sarah Friar said the next phase of development will focus on agents and workflow automation that can operate continuously, retain context over time, and take action across multiple tools.

Looking ahead to 2026, the company plans to prioritise what it calls ‘practical adoption’, with a particular emphasis on health, science, and enterprise use cases. The aim is to move beyond experimentation and embed AI more deeply into real-world applications.

Friar also said OpenAI intends to maintain a ‘light’ balance sheet by partnering with external providers rather than owning infrastructure outright. Contracts will remain flexible across hardware types and suppliers as the company continues to scale its operations.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!