Latest news with #economicvolatility
Forbes
6 days ago
- Business
- Forbes
Beyond Disruption: How Tech Leaders Are Using AI To Navigate A New Era Of Economic Volatility
Mohit Gupta, the CEO of Damco Solutions , is a visionary business leader with over 30+ years of industry experience. getty While the media may have moved on from trade wars and tariffs, the underlying economic volatility is far from over. If anything, it's become more complex. For tech leaders, the real challenge today isn't just inflation or labor shortages—it's the unpredictable mix of geopolitics, policy shifts and economic signals that no longer follow old patterns. What we're seeing isn't a temporary disruption. It's a structural shift. Traditional strategies alone won't preserve margins. Lean teams won't guarantee speed. And decentralization won't ensure resilience. Today, tech leaders need to rethink how they operate in a world where change happens faster than ever. In today's unpredictable world, AI is no longer a futuristic technology. It's become a critical tool for making smarter, faster decisions. AI is helping businesses address new challenges that didn't exist a few years ago. Take supply chains, for example. Geopolitical risks, labor shortages and sudden changes in weather or regulations can disrupt operations quickly. AI helps businesses predict these disruptions before they happen by analyzing vast amounts of data and generating real-time risk assessments. It allows businesses to shift strategies, like finding new suppliers or adjusting inventory, based on changing conditions. This shift from reacting to disruptions to predicting and preparing for them is where AI shines. It's no longer just a tool for efficiency; it's now central to how businesses stay resilient in uncertain times. Smarter, More Agile Operations It's not just supply chains that are being affected by economic changes. Costs are rising across the board (energy, labor, materials, etc.). And while many businesses are already tightening belts, the challenge isn't just about cutting costs—it's about predicting how these rising costs will impact the bottom line and making proactive adjustments before it's too late. AI allows businesses to forecast how changes in supply costs or labor expenses will affect margins. By understanding these impacts in advance, companies can make smarter decisions around pricing, staffing and resource allocation rather than scrambling at the last minute to adjust. In short, AI makes it possible to protect margins proactively instead of reacting after the damage has already been done. AI For Innovation Under Constraints Another area where AI is helping businesses thrive is innovation. With so many supply-side constraints—like shortages of raw materials or sudden regulatory changes—companies need to find new ways to continue innovating, even when their normal processes are disrupted. AI makes this possible by helping companies redesign products and processes in real time. For example, when a specific material is in short supply, AI can help companies quickly identify alternative materials or design adjustments that still meet performance standards. This kind of flexibility is key to staying ahead, even in challenging times. Moreover, AI supports product development by speeding up decision-making. Instead of relying on a traditional R&D cycle, AI enables businesses to simulate and test different options quickly, speeding up innovation without sacrificing quality. Building AI-Driven Agility Into Operations AI isn't just about reacting faster—it's about building agility into the very systems that run the business. Whether it's adjusting cloud infrastructure based on real-time usage or reconfiguring production schedules based on sudden supply changes, AI is making it possible for businesses to adapt to new challenges without missing a beat. Companies are using AI to ensure their operations can sense and respond to changes as they happen. For example, AI can automatically shift workloads or resources to different areas of the business based on immediate needs. This level of automation and agility is becoming a critical part of how businesses stay competitive in a volatile world. The Role Of Policy In Tech Strategy In this new environment, businesses can no longer treat regulatory compliance as an afterthought. Regulations are evolving quickly, and the ability to stay on top of new rules—whether related to data privacy, security or cross-border commerce—can give businesses a competitive edge. AI is increasingly being used to track and analyze these changes, allowing businesses to integrate compliance into their tech strategy rather than treating it as a separate concern. This means companies can avoid costly mistakes and continue to innovate without falling behind in regulations. By using AI to understand and anticipate policy shifts, businesses can stay ahead of the curve and ensure their technology strategies align with global trends. What Comes Next For Tech Leaders The challenges of today's world are forcing tech leaders to rethink how they approach operations, innovation and risk. The key to thriving in this environment is not just about cutting costs or waiting for disruption to pass—it's about using AI to stay agile, predictive and proactive. Here are some strategic steps tech leaders can take today: • Integrate AI Into Decision-Making: Don't just test AI in small pilots—embed it deeply into your day-to-day operations, from supply chain management to pricing decisions. • Forecast And Adapt To Changing Costs: Use AI to predict how rising costs will impact your bottom line and adjust before it's too late. • Rethink Innovation In A World Of Constraints: Let AI drive faster, smarter innovation by simulating product adjustments and redesigns under new conditions. • Build For Flexibility, Not Redundancy: Focus on creating systems that can adapt to change, not just continue operating under normal conditions. • Align Your Tech Strategy With Policy: Use AI to monitor and adapt to new regulatory changes, ensuring compliance doesn't hold back innovation. In A World Of Constant Change, Intelligence Is Your Advantage In today's unpredictable world, where every decision is intertwined with global shifts in regulation, supply and customer expectations, the ability to act with intelligence is the true differentiator. AI is not a luxury—it's a necessity for staying agile and competitive in a world that won't stop changing. Tech leaders who treat AI as core to their operations, not just as a tool to reduce costs, are the ones who will thrive in the coming decade. The question isn't whether AI can help your company. The question is: How will you make AI a central part of your strategy to navigate this era of volatility? Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Forbes
08-07-2025
- Business
- Forbes
The Nonprofit Sector Is At A Breaking Point; It's Time For A New Playbook
Sarah Evans, Founder & CEO of Well Aware, Co-founder of Well Beyond, Toyota Mother of Invention, U.S. Global Leadership Coalition Advisor. In my 16 years working within and alongside the nonprofit sector, I have never witnessed a landscape so fraught with peril. The year 2025 is proving to be a crucible for most nonprofit organizations that were already operating on razor-thin margins. After weathering years of compounding crises, from a global pandemic to economic volatility and social upheaval, the sector's foundational model is cracking under the strain. With an estimated 20,000 nonprofit staff laid off so far this year alone, we are seeing a devastating loss of talent and capacity at the precise moment our services are most critically needed. This isn't just an internal problem for charities; it is a systemic risk to our social and economic fabric. Nonprofits constitute over 10% of the U.S. workforce and serve as an essential backstop where government and the private sector fall short. But the outdated operational norms and funding paradigms that govern our work are no longer sustainable. To survive this challenging period and build a more resilient future, we must fundamentally redesign our approach. This requires an honest assessment and a courageous commitment to change from four key stakeholder groups: funders, nonprofit leaders, corporations and individuals. For Funders: End The Tyranny Of Restricted Funding For decades, the default for many foundations and philanthropists has been restricted funding—donations earmarked for a specific program or project. This approach is rooted in a desire for control and a belief that it guarantees direct impact. In reality, it does the opposite. It strangles innovation, prevents agility and saddles organizations with a crushing administrative burden as they struggle to allocate every penny according to external dictates. Imagine telling a high-growth tech company it can spend new investment on servers but not on the engineers needed to run them or the marketing team to sell the product. It's a recipe for failure. Yet, this is how we often treat the organizations tasked with solving our most complex social problems. The solution is clear and backed by extensive data: Provide unrestricted, multiyear general operating funds. This is not a donation; it is a strategic investment in an organization's mission, leadership and long-term sustainability. It is an act of trust that empowers leaders to allocate resources where they are needed most, responding to challenges and opportunities in real time. For Nonprofit Leaders: Retire The Overhead Myth For Good The nonprofit sector has been complicit in perpetuating one of its most damaging narratives: the overhead myth. The idea that a low overhead ratio is the primary indicator of an effective charity has been a fundraising gimmick for too long. Promoting a "100% of donations go to programs" model is not only deceptive (as essential costs are obviously being covered somehow), but it also reinforces the dangerous notion that investing in people, technology and systems is wasteful. Successful for-profit enterprises understand that investing in core infrastructure and top talent is paramount to achieving results. In contrast, the pressure to minimize overhead in the nonprofit world often leads directly to staff burnout, high turnover and an inability to scale effective solutions. We must collectively reframe this conversation. "Overhead" is not a dirty word; it is the mission-critical infrastructure that enables impact. It is time for nonprofit leaders to transparently communicate these real costs and educate their supporters that well-funded operations are the engine of sustainable results. There is a small handful of large nonprofit executives who could be a significant influence in shifting this conversation. To them, I plead with you that now is the time. For Corporations: Recommit To The Ecosystem Corporate support for the nonprofit sector is undergoing a quiet but consequential shift. While highly publicized strategic partnerships are on the rise, many of the broad-based support systems that once benefited the entire sector have eroded. Corporate giving programs, employee matching gifts and nonprofit discounts for essential software and services have been steadily scaled back by some of the world's largest companies. This trend forces nonprofits to divert precious resources—both time and money—away from service delivery and toward covering rising operational costs. Corporate leaders must look beyond bespoke partnerships that serve marketing goals and recognize their role in supporting the entire community ecosystem. Reinstating and promoting robust discount programs, pro-bono services and employee giving initiatives is a powerful, high-leverage way to strengthen the thousands of organizations our communities depend on, and it's proven to strengthen corporate culture to rally employees around their social impact initiatives. For Individuals: Embrace The Power Of Sustaining Support Finally, individual donors have a crucial role to play. Much of individual giving is transactional and reactive, spiking during natural disasters or end-of-year campaigns. While valuable, this creates a "feast or famine" cycle that makes long-term planning nearly impossible. The most powerful way for an individual to support a cause is to become a sustaining donor. Providing a predictable, recurring monthly donation is a game changer for financial stability. It allows an organization to budget effectively, retain staff and invest in developing long-term solutions rather than lurching from one funding crisis to the next. The challenges facing the nonprofit sector are immense, but they are not insurmountable. The solutions do not require complex new inventions but a fundamental shift in mindset. It is time for funders, nonprofit leaders, corporate partners and individual donors to abandon outdated practices and embrace a new playbook built on trust, transparency and a shared commitment to sustainable impact. The resilience of our communities and the future of the nonprofit workforce depend on it. Forbes Nonprofit Council is an invitation-only organization for chief executives in successful nonprofit organizations. Do I qualify?
Fox News
04-07-2025
- Business
- Fox News
Business Rundown: Can The Fireworks Last On Wall Street?
The first half of 2025 was full of economic surprises and volatility. With recent record highs in US markets, this Independence Day we're looking at if the fireworks can continue for Wall Street. FOX Business correspondent Gerri Willis speaks with Annex Wealth Management's chief economist Brian Jacobsen about how we got here from Liberation Day and shares which stocks & sectors are trending hot in 2025. Photo Credit: AP Learn more about your ad choices. Visit
Yahoo
01-07-2025
- Business
- Yahoo
Euro zone inflation picks up to ECB target
(Reuters) -Euro zone inflation edged up last month to the European Central Bank's 2% target, confirming that the era of runaway prices is over and shifting policymaker focus to trade war-induced economic volatility. Inflation in the 20 nations sharing the euro currency crept up to 2.0% in June from 1.9% a month earlier, in line with expectations in a Reuters poll of economists, as energy and industrial goods continued to pull down prices, offsetting quick services inflation. Underlying inflation, a closely watched measure that excludes volatile food and fuel prices, meanwhile held steady at 2.3%, in line with expectations. Anticipating this fall, the ECB has lowered interest rates from record highs by two full percentage points over the last year, and debate has turned to whether it needs to ease policy further to prevent inflation becoming too low given weak growth. The development in services costs, which have been stubbornly high for years, is pivotal as it has raised fears that domestic inflation could get stuck above 2%. Last month, services inflation edged up to 3.3% from 3.2%, as prices rose 0.7% on the month, supporting the argument of policy hawks that domestic inflation remains uncomfortably high, reducing the risk of undershooting. Financial investors expect one more ECB rate cut to 1.75% towards the end of the year, then anticipate a period of steady rates before possible increases towards the end of 2026. The outlook, however, is complicated by the fact that it depends on the outcome of a trade dispute between the EU and the U.S. President Donald Trump's administration. For now, the conflict has reduced price pressures because it has sapped economic confidence, pushing up the value of the euro and lowering energy prices. Indeed, the euro zone's economy is barely growing, with full-year expansion expected at less than 1%, as industry struggles after a multi-year recession, with private consumption weak and investment low. If U.S. trade barriers stay, the EU is likely to retaliate and that is bound to be inflationary. Firms will then start rearranging value chains, which would add to increased production expenses. Once the cost of the green transition and the ageing of the working age population are factored in, then prices could come under more sustained upward pressure, economists say. Sign in to access your portfolio
South China Morning Post
08-06-2025
- Business
- South China Morning Post
John Lee keeps a level head in the face of multiple challenges in Hong Kong
Economic volatility and geopolitical tensions are hurting confidence around the world, and Hong Kong is no exception. It is good, therefore, that Chief Executive John Lee Ka-chiu, in an interview with this newspaper to mark his third year in office, has highlighted the many opportunities that are available to drive this city forward. Advertisement Despite growing US hostility and restrictions on trade and other areas, Lee is determined to build on Hong Kong's many unique advantages under the 'one country, two systems' governing principle. These include maintaining Hong Kong's status as a free port that Lee believes is the city's 'successful DNA' and further enhancing integration with mainland China without losing sight of our international connections. Lee also vowed to do more to help businesses reduce reliance on the US and tap opportunities in new markets, including in the Middle East and Southeast Asia. Lee is well aware of the economic and livelihood challenges facing this city, citing data that offers a mixed picture. Nonetheless, he sees an improvement in the overall economy, while conceding some sectors, such as the retail and restaurant trades, are under huge pressure. With the unemployment rate ticking up and more shops, restaurants and cinemas closing, the predicament facing some industries must not be underestimated. How to divide the growing economic pie equitably and ensure all sectors of business and society can benefit remains a priority. Lee has rightly resisted the temptation to retaliate against the United States, which has imposed tariffs on goods shipped from the city as well as preposterous sanctions against Hong Kong officials. It is also good to learn that the government, while not showing its cards, is preparing to deal with the worst-case scenario should US-China relations continue to deteriorate. Advertisement Lee's pledge that the local currency's peg to the US dollar will stay is the strongest assurance yet that the city's role as an international financial centre will continue. But Lee also warned that private enterprises would harm their own interests if their business decisions did not align with national interests and security. These interests, he said, were not mutually exclusive. Earlier, CK Hutchison Holdings drew the ire of Beijing over its plan to sell overseas ports to a consortium led by the American investment firm BlackRock.
