Why CEOs Must Invest in Geo-political Risk Strategy

Geopolitical tensions and dynamic economic shifts will increasingly influence and define the strategies of many companies and investors in 2025 and beyond.

Businesses and investors worldwide face increased uncertainty from the rise in potential trade wars that the new US administration is intent on starting, regardless of the view of many respected international economists.

All this uncertainty means that businesses need as much professional insight as possible into the impact of geopolitical and geoeconomic battles on their companies and investments, especially given the international nature of many businesses' supply chains. 

The knowledge that strategic communications, international public affairs and stakeholder engagement professionals will become indispensable for anticipating and navigating these disruptions, board members and C-suite leaders are intensifying their focus on geo-political and geoeconomic risk management.

There is no longer a need for just national lobbying. In the era we are entering, businesses and investors require people who can see how the world is connected internationally and who can offer insight into how to navigate these turbulent times. 

We are entering a world in which the expertise of strategic communicators will complement that of many businesses' general counsel.

Why Geo-political Risk Management Is a Top Priority

While geopolitical instability has been escalating for several years, especially with the looming Trump presidency, recent data underscores just how central these challenges have become.

According to the World Economic Forum’s 2025 Global Risk Perception Survey, over 60% of executives across G20 economies named geo-political tension as one of their top three risks. Separately, Deloitte’s 2024 Global Risk Management Survey revealed that 70% of chief financial officers attributed at least one major revenue shortfall in the last 12 months to political upheavals and policy shifts.

Such pressures extend well beyond supply-chain disruptions. Whether dealing with tariffs, trade sanctions, or localised conflicts, companies face potential financial losses, brand damage, and stalled expansion. At Davos, a keyword used was ‘fragmentation,’ the breaking down of the interconnected world that gave us globalisation.

In fact, The Economist’s Impact Unit has a dedicated team studying new globalisation. This team focuses on how the ‘global order is changing, ushering in a period of multipolar politics.’

This is not the end of globalisation by any means. It is an adaption of it, a move to a more local version, created by the disruption caused by AI and other technologies and growth in emerging markets, which has impacted people and their wants and expectations.

By investing in proactive national and international public affairs, strategic communications, and risk assessment frameworks, organisations stand a significantly better chance of weathering crises and capitalising on emerging opportunities.

Which Companies Need to Invest in Strategic Communications?

Global Technology Conglomerates

Tech companies operating multiple data centres worldwide and relying on a maze of international regulations can be particularly vulnerable. Policy shifts around data sovereignty or cybersecurity measures can dramatically affect these companies’ bottom lines and market access.

Looking at the rise of AI and GenAI, we are already seeing a different set of values in how nations and markets are looking to regulate this technology.

The United States, the United Kingdom, and the European Union are each shaping AI regulation with a mix of domestic oversight and global influence strategies. The EU’s AI Act, finalised in early 2024, is the world’s most comprehensive AI law, categorising AI systems by risk levels and imposing strict obligations on high-risk applications, particularly in biometric surveillance and critical infrastructure. By contrast, the US delegating responsibility more to the companies themselves and so pursues a more sector-specific and innovation-friendly approach. While the Biden administration focused on safety, national security, and voluntary industry commitments, the Trump presidency is looking to punish countries and markets that penalise American tech companies.

Meanwhile, the UK is positioning itself as a flexible regulator, advocating a “pro-innovation” approach that relies on existing legal frameworks rather than, for the time being, creating a single AI law.

Despite differing regulatory styles, all three are increasingly exporting their AI governance models globally. The EU’s AI Act has already influenced policymakers in Japan, Canada, and Latin America, while the US is leveraging its AI safety principles in diplomatic and trade discussions. The UK’s AI Safety Summit in 2023 served as a platform to build international consensus on AI risks and guardrails, particularly around advanced foundation models. As AI regulation evolves, these leading economies are using their regulatory weight and diplomatic channels to ensure their AI principles—whether focused on safety, ethics, or market-led flexibility—become the dominant global standards.

Venture Capital and Corporate Venture Capital Firms

Investors increasingly manage global portfolios with stakes in technology, life sciences, and fintech ventures. These firms must stay ahead of rapidly evolving regulations—from data privacy laws in Europe to emerging tech governance in Asia—to safeguard the value of their investments.

Corporate venturing companies can benefit from the expertise and influence network that their parent companies have if they have a global presence. Leveraging this knowledge and the insight of an external strategic adviser can help reduce the risk of a company that they are investing in struggling to enter a new market.

Mid-sized Companies with Global Ambitions

Businesses that are expanding overseas or contemplating partnerships abroad face the same set of complexities but often lack the in-house capabilities to manage them.

Their survival and opportunities for growth can hinge on being able to connect with partners and stakeholders that can help them navigate international regulatory environments, changing their positioning statements in order to access growth international markets.

For companies of these sizes, if they receive investment from VCs or CVCs, it is the geo-political expertise that parent companies have that can help them navigate different legal jurisdictions. 

Who Provides Effective Geo-political Risk Counsel?

In-house Public Affairs and Communications Teams

Larger organisations often maintain internal departments dedicated to public affairs, strategic communications, and government relations. These teams benefit from direct contact with the executive suite, a deep understanding of company culture, and existing relationships with influential stakeholders.

When geo-political risks spike, internal teams can swiftly coordinate cross-functional responses, aligning communications, legal, and operational strategies.

The rise of the partnered approach between a firm's General Counsel, who often has a legal background and a strategic communications advisor can provide the C-suite and Board with the necessary insight to make strategic decisions and help them navigate a growing fragmented trading environment.

Independent Specialist Advisers

For specialised insights, external consultants and advisers can offer strategic direction, regional expertise, and a broad network of government, media, and community contacts.

Venture capital firms, for instance, frequently retain boutique consultancies with deep knowledge of fintech regulations in emerging markets. Independent advisers also bring an outside perspective, helping boards and C-suites avoid insular thinking and group bias.

The Power of Research, Influence, and Intelligence

Robust Research and Real-time Monitoring

Staying ahead of abrupt policy shifts calls for continuous data collection and analysis. McKinsey’s 2024 Emerging Markets Risk & Opportunity Insights reported that companies with “mature” risk intelligence teams were 55% more likely to respond effectively to sudden regulatory changes than those without comparable capabilities.

Influence and Policymaker Engagement

Lobbying and relationship-building with policymakers are crucial, especially for tech and manufacturing firms.

Effective peer-to-peer stakeholder engagement strategies go beyond crisis management; they inform legislators about the broader economic and social value of a company’s operations, potentially reducing the scope for damaging regulations. For this, there is a clear need to understand how civil servants think and work.

Insight-Driven Corporate Strategy

The final step involves translating geopolitical intelligence into actionable plans. Whether diversifying supply chains, selecting a new market, or cultivating partnerships that mitigate exposure, strategic communications counsel ensures these decisions are communicated convincingly to investors, customers, and, critically to employees.

The Lasting Value of Strategic Communications Investment

Research demonstrates that organisations prioritising geo-political risk analysis and communication strategies outperform their peers in both resilience and growth.

By cultivating in-house expertise or bringing in specialists, companies can:

• Enhance Operational Stability: Mitigate disruptions from tariffs, conflicts, or policy reversals.

• Protect and Elevate Brand Reputation: Demonstrate foresight and agility, instilling confidence in stakeholders and, importantly, regulators.

• Seize New Growth Opportunities: Identify untapped markets or niches that competitors avoid due to perceived risks.

From Risk to Resilience

Geo-political and geoeconomic challenges show no sign of abating; if anything, they are likely to become more regular and complex.

In this environment, corporate boards and investors should view strategic communications and political risk advisory as a non-negotiable part of their organisational architecture. Whether relying on in-house teams or tapping into external expertise, a well-resourced approach to intelligence, lobbying, and stakeholder engagement is key to safeguarding growth and reputation.

By taking the long view, integrating geopolitical and geoeconomic risk analysis into core strategies, and staying connected with policymakers and global thought leaders, companies and investors of all sizes and sectors can convert uncertainty into a catalyst for innovation and expansion.

When managed skillfully, geo-political risk becomes more than a challenge—it becomes an avenue to shape the future of business on a global stage.

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Get in touch if your business or investment portfolio needs counsel, strategic communications support and advisory.

Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

Please comment, share or subscribe to my  LinkedIn Reputation Matters newsletter. Or connect with me on LinkedIn.

Number 10 Briefing With Lord Livermore: Business Readout

This morning, the UK Government held its first call with public affairs and communications professionals, in a strategy that aims to position it as open for listening and engaging with the business and investment community.

The strategy is a step forward and one that signals a commitment to transparency and collaboration, showing that the government values the insights of business leaders and policy influencers.

By opening the floor to discussion, the government acknowledges the need for shared responsibility in economic progress and aims to align its policies with industry realities. It recognises that growth can only be delivered by working collaboratively with the private sector.

This strategy, though, comes with inherent risks. Public forums invite scrutiny, and businesses will be watching to see whether this level of engagement translates into meaningful policy actions or remains merely a performative exercise.

Yet, as a consultant working in strategy and stakeholder engagement, I am pleased that the government is signaling that it has an open door.

The government must ensure that its words and promises materialise into real regulatory improvements and investment incentives; otherwise, businesses may grow sceptical of such engagements.

Despite these risks, this initiative is a notable move towards a more consultative approach to economic policy-making. If executed well, it can foster a more business-friendly regulatory environment.

Eight years as a specialist within the UK Government have taught me that while engaging with businesses and stakeholders outside of the government in the UK and overseas is critical, equally important is connecting the dots and making sure that the government collaborates with itself and is supported financially in the current spending review and with external expertise. The civil service needs confidence, support, and a clear vision of the practical outcome that gives it purpose and the ability to collaborate better for growth.

Here is a summary of the readout from the call with Lord Livermore hosted by James Carroll.

The UK’s Growth Mission: Why Stakeholder Engagement Matters  

Economic growth is the UK government’s top priority, as reaffirmed by Lord Spencer Livermore in the call that got over 700 communications and public affairs professionals. Lord Livermore stated that this mission, however, cannot be achieved in isolation—growth is driven by business, not government.

Effective stakeholder engagement and strategic collaboration will be crucial for policymakers crafting pro-business reforms and companies looking to shape a regulatory and investment environment that fosters stability, certainty, and expansion.

This is why government engagement matters more than ever: businesses must help steer the narrative and influence policy decisions that impact their future.

The UK’s Three-Pillar Growth Strategy  

Lord Livermore outlined the UK government’s clear framework to drive economic expansion, which is built upon three fundamental pillars:

1. Stability: The Foundation for Growth  

• The budget focused on stabilising public finances, recognising that economic certainty is essential for investment.

• Record levels of R&D funding and capital allowances were safeguarded, ensuring businesses have long-term clarity on taxation and incentives.

• A corporate tax roadmap was introduced, capping corporation tax at 25% for the duration of the current Parliament.

2. Reform: Removing Barriers to Growth

• The Infrastructure and Planning Bill will be fast-tracked to remove delays in major projects, including clean energy developments and housing.

• The government is currently engaging regulators in a deregulatory push to eliminate red tape that stifles business expansion.

• New sectoral industrial strategies will highlight opportunities for investment and reduce regulatory obstacles.

• Brexit-related trade barriers are being reassessed, with a renewed focus on strengthening ties with the EU, US, and China.

3. Investment: Driving Business-Led Expansion

• The expansion of offshore wind by 16GW will align with the UK’s clean energy transition.

• The third runway at Heathrow to improve global trade connectivity, with planning consent targeted by the end of this Parliament.

• The Oxford-Cambridge Growth Corridor is designed to become Europe’s Silicon Valley (can we please stop calling and comparing what we are trying to build to Silicon Valley?!).

• A National Wealth Fund to help de-risk private sector investments in emerging industries.

Summary Of Key Announcements and Business Implications

Lord Livermore talked about The Chancellor’s latest speech, which introduced a series of significant economic policies designed to unlock long-term growth opportunities. Among the most notable:

• £100 billion in capital investment over the next five years, to be allocated through the Spending Review.

• Small business support, including an increase in the Employment Allowance and improved public sector procurement access.

• Pension fund reforms to unlock greater domestic investment in high-growth industries.

• Ten-Year Infrastructure Strategy, providing long-term certainty for businesses and investors. 

The Question and Answers From Lord Livermore

1. Planning and Infrastructure Changes

• Question (Simon): How quickly will planning regime changes and infrastructure bill reforms take effect?

• A (Lord Livermore): The government is prioritising fast-track planning for major projects, including clean energy infrastructure. The Infrastructure and Planning Bill will be accelerated through Parliament with a “sizable majority” in the House of Commons.

2. Project Pipeline for Private Investment

• Question (Lee): Will the government create a clear pipeline for projects with mixed public-private financing?

• Answer: Yes. Three key strategies will signal investment priorities:

• Industrial Strategy: Identifies key high-growth sectors.

• National Wealth Fund: Helps de-risk private investments in areas like clean energy.

• 10-Year Infrastructure Strategy: Aligns major projects with private sector investment.

3. Encouraging Risk-Taking and Entrepreneurial Culture

• Question (Karen): How can the UK rekindle its risk appetite and entrepreneurial culture?

• A: Stability is key for businesses to take risks. The government extended Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) incentives for 10 years to support start-ups.

4. Supporting Small Businesses

• Question (Laura): What can be done to boost confidence among the smallest businesses?

• Answer:

• National Insurance Employment Allowance doubled to £10,500.

• Procurement reforms to improve small business access to public contracts.

• A new Small Business Strategy to be published later this year.

5. Responding to Business Criticism

• Question (James): Some businesses are critical of the government’s economic handling. How can firms that want to promote a positive UK narrative work with the government?

• Answer: The government encourages businesses to highlight opportunities rather than economic challenges. Groups like the CBI, IoD, and British Chambers of Commerce responded positively to the Chancellor’s speech, reinforcing confidence.

6. Spending Review’s Role in Growth Strategy

• Question (Susan): How critical is the spending review in delivering growth?

• Answer: The review will allocate £100 billion in new capital investment over five years, funding infrastructure, industrial strategy initiatives, and clean energy projects.

7. Addressing Global Economic Headwinds

• Question (Hayley): How can the UK navigate global economic challenges?

• Answer:

• Economic stability and resilience are crucial.

• Strengthening trade ties with the EU, US, and China will help offset global uncertainty.

Newsworthy Quotes from Lord Livermore  

• “Growth is our number one mission, and we recognise that business—not government—drives wealth creation.”

• “We are determined to draw a line under the instability of the past 14 years and create a stable foundation for economic growth.”  

• “Planning is the number one barrier to growth—fixing it is our top priority.”  

• “We need to instil confidence in businesses by removing barriers, ensuring access to finance, and providing regulatory certainty.”  

Does the UK Need a More Risk-Friendly Culture?

One of the most thought-provoking questions raised during the Q&A session was: “How can the UK rekindle its risk appetite and entrepreneurial culture to drive growth? Lord Livermore acknowledged that while the UK is a great place to start a business, scaling up remains challenging. The government has extended the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) tax incentives for another decade, but there is an urgent need to foster a culture that encourages calculated risk-taking. Greater policy stability and improved access to finance are key components in creating an environment where innovation thrives.

Strategic Implications for Businesses and Investors  

The government’s engagement with businesses signals an opportunity for proactive involvement in shaping policies that matter. Here’s what business leaders should consider:

• Policy Advocacy Matters: Companies and investors should actively engage with government consultations to ensure their interests are reflected in policy decisions.

• Regulatory Changes Are Coming: Businesses should prepare for reforms in planning laws, financial regulations, and sectoral strategies that will impact operations and investment flows.

• Trade Relationships Will Evolve: As the UK resets its post-Brexit strategy, firms with international operations should monitor upcoming trade negotiations.

What Comes Next?  

The UK’s economic strategy is ambitious, but its success will depend on how well businesses and policymakers collaborate to implement these initiatives.

For companies, now is the time to engage with the government, participate in consultations, and advocate for policies that support long-term investment and growth. The UK government's message is clear: growth is a shared mission, and businesses are at the heart of making it happen.

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Get in touch if your business or investment portfolio needs counsel, strategic communications support and advisory.

Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

Please comment, share or subscribe to my  LinkedIn Reputation Matters newsletter. Or connect with me on LinkedIn.

How Deepseek’s Open-Source AI is Changing the Industry

Deepseek AI has landed and disrupted BigTech’s current iron grip on AI and GenAI and how businesses worldwide see, perceive and use it.

For the past year, the established narrative has been that AI is just a game for Big Tech. It is centralised and the only option for companies that want to unlock the value of their data. Open source is seen as limited in scope and innovation. This view is very wrong.

Thanks to Deepseek and its R1 model’s impact, we now see a disrupted artificial environment ready to challenge companies like OpenAI’s ChatGPT, Microsoft’s Copilot, Google’s Gemini, Anthropic’s Claude, Meta’s Llama, and Mistral.

Yet, this disruption, while it creates and unlocks many opportunities, also poses technical and reputational risks.

Make no mistake: The narrative has changed, and Big Tech will work hard to challenge it to maintain the necessary control and sell its LLM to governments and companies.

Open-source alternatives like Deepseek now offer the market alternatives, highlighting that AI isn’t just a tool that can be built and used by enterprise-sized organisations.

This disruption will turbo-charge the development, adoption and usage of AI.

Worth listening to this Bloomberg In The City Podcast for great insight.

How Deepseek has disrupted the AI narrative and landscape

Until a few weeks ago, the AI and GenAI landscape and narrative were all about AI being a game only for BigTech—OpenAI, Google, Microsoft, and Meta. These companies controlled the majority of cutting-edge AI research, applications and the necessary computing power, creating a perception that only entities with deep pockets, substantial venture backers, and massive computational infrastructure could meaningfully participate in AI innovation and deliver change and transformation to businesses.

The control that these companies had enabled them to keep clients locked into ecosystems like Azure, Google Cloud, or OpenAI’s API services.

Challenges and Disruptions Posed by Open-Source LLMs

Open-source LLMs are democratising access to advanced AI capabilities, enabling a broader spectrum of organisations to develop and deploy sophisticated AI applications.

For example, DeepSeek’s R1 model has demonstrated performance on par with leading proprietary models and was created at a fraction of the cost and computational resources. This, of course, was only possible because of how Deepseek used the established model to train its own.

In a post on LinkedIn, Reuven Cohen gives a great description, highlighting how:

1. DeepSeek’s efficiency breakthrough dramatically lowers AI development costs

2. Open-source innovation lowers barriers and disrupts market power

3. Their thinking and strategy is potentially disrupting this AI industry, creating a threat to  to Nvidia’s dominance

Equally, Jan Beranek, whom I met and spoke with last week makes some great points on how open source is delivering great innovation.

Kevin Buehler, a Senior Partner at McKinsey, a former client and a leader in this space shares some comments on Dario Amodei’s shared views.

Deepseek has forced established AI companies to reassess their strategies, focusing on efficiency and innovation rather than sheer computational power. This has affected the valuation of companies like NVIDIA.

However, the rise of open-source LLMs has also introduced several challenges that companies large and small need to consider:

• Intellectual Property and Data Security: These models' open-source nature increases the risk of intellectual property theft and misuse, an issue for every data owner. Open source also enables the creation of potential applications for malicious activities.

• Market Volatility: The rapid adoption of open-source models has led to significant market fluctuations. Following DeepSeek’s R1 release, major tech companies experienced substantial valuation declines, with NVIDIA losing nearly $600 billion in market value in a single day. Not just that, but investors will ask more questions about the associated costs of delivering AI solutions.

• The location where their data is hosted and associated risks: Have you read the T&Cs of each GenAI or AI platform? You should. Reading the terms and conditions, something that sadly too many ignore gives you an idea of what you give up for the efficiency and cost-benefit you gain. For Deepseek, data is held in China. Not just that, but concerning any dispute, Deepseek states that “the establishment, execution, interpretation, and resolution of disputes under these Terms shall be governed by the laws of the People's Republic of China in the mainland.” In the current geopolitical world that we live in, this is a factor that companies will need to factor in.

Risks and Opportunities for Companies and Governments

Open-source LLMs, though, present huge opportunities that require careful consideration:

• Regulatory Challenges: Governments must navigate the complex task of regulating AI to ensure safety and ethical standards without stifling innovation. The European Union’s Artificial Intelligence Act, establishes a comprehensive legal framework for AI systems, categorising them by risk levels and imposing corresponding obligations. Meanwhile, the US currently lacks a federal AI law, instead relying on voluntary commitments from AI companies and sector-specific guidelines.

• Economic Opportunities: Open-source LLMs can drive economic growth by lowering barriers to entry, fostering innovation, and enabling small and medium-sized enterprises to leverage AI capabilities. IBM’s 2024 study found that 51% of businesses using open-source tools reported positive returns on investment, compared to 41% of those not utilising such tools. 

How Governments, Businesses and Investors Can Navigate the AI Ecosystem

The global AI landscape is defined by distinct geopolitical zones, each adopting a unique approach to AI regulation, development, and deployment.

In the United States, AI innovation is primarily driven by the private sector, benefiting from a relatively hands-off regulatory environment that encourages rapid technological advancement. They focus on innovation at pace because of the quarterly cycles businesses and investors work to. China, in contrast, operates within a state-controlled AI ecosystem, where significant government investment and oversight shape the direction of AI research and application. Meanwhile, Europe and the United Kingdom prioritise ethical AI, implementing stringent data protection laws and comprehensive regulatory frameworks to ensure transparency, fairness, and accountability.

The rest of the world—particularly emerging markets—is leveraging and looking to adopt open-source AI to reduce reliance on foreign technology, foster domestic innovation, and drive economic growth. These diverse approaches highlight AI's growing regionalisation and the need for businesses and governments to develop strategies tailored to each geopolitical landscape.

Understanding these regional differences is critical for companies seeking expansion, policymakers aiming to regulate AI effectively, and investors looking to capitalise on and support the global AI boom.

To effectively navigate the evolving AI landscape, the following strategies are recommended:

For Governments:

• Develop Adaptive Regulatory Frameworks: Establish policies that balance innovation with ethical considerations, ensuring that AI development aligns with societal values and safety standards.

• Invest in AI Literacy and Workforce Development: Implement educational initiatives to establish in the workforce the necessary skills for the AI-driven economy that will take control of the global economy. Continuous learning and adaptation are a must now, with governments needing to incentivise businesses to help the workforce become more productive through access to AI. We need to see AI not as technology efficiency - technology will take my job, but more as technology that will help me improve.

• Promote International Collaboration: Engage in global partnerships to harmonise AI regulations and share best practices, facilitating a cohesive approach to AI governance. Geopolitically, we see emerging markets come together as a block and trust specific economic entities more than others.

For Businesses:

• Embrace Open-Source Collaboration: Leverage open-source LLMs to enhance innovation, reduce costs, and avoid vendor lock-in while contributing to the open-source community to foster goodwill and shared advancement. Don’t just think of your organisation's data; instead, audit and identify data across your supply chain and environment. Collaboration can improve how services and products can be created, delivered, and bought.

• Implement Robust Data Governance: Establish comprehensive data management policies to ensure security, privacy, and compliance with evolving regulations, thereby building trust with stakeholders. Don’t just think of this from a legal point of view but from a trust and reputation perspective. Where there is trust, companies can increase adoption and the value of their own companies. Transparency, communications and stakeholder engagement are critical here. When I worked within the Department for International Trade’s (Department for Business and Trade now) Digital, Data and Technology Directorate, we focused monthly on publishing data on engagement on the trade platforms our teams built. Our departmental statistics team continuously verified this data. Nothing was published without their sign-off.

• Engage in Transparent Communication: Clearly articulate AI strategies, capabilities, and limitations to stakeholders, fostering trust and managing expectations. Building trust takes time, but it helps deliver innovation, build reputation, and unlock growth.

For Investors:

• Assess Technological Viability: Evaluate the potential of open-source LLMs to disrupt existing business models and identify investment opportunities in companies effectively leveraging these technologies. Ensure your investment teams are constantly plugged into the networks where innovation happens. Think strategically and look at the possibilities and the potential to disrupt. Equally, look at what strategy and communications support new AI companies seeking investment for growth. Tactical communications are, for now, strategic counsel and communications, which help reduce and manage risk while adding value. 

• Monitor Regulatory Developments: Stay informed about global AI regulatory changes to assess their impact on investments and adjust strategies accordingly. The world economy is splitting into regions, yet the technology that connects us can still be global. Ensuring that innovation in one market can deliver value in another requires a regulatory understanding of that environment and jurisdiction.

• Diversify Investment Portfolios: To mitigate market volatility and technological disruption risks, consider investing in various AI applications and industries, as well as the associated companies and sectors that support the growth of AI companies, such as energy.

Conclusion

The ascent of open-source LLMs like DeepSeek’s R1 signifies a pivotal shift in the AI industry, presenting challenges and opportunities.

Governments, businesses, and investors can harness the transformative potential of open-source AI while mitigating associated risks by developing adaptive policies, embracing collaborative innovation, and engaging in transparent stakeholder communication. This balanced, strategic, entrepreneurial approach will be crucial in navigating the complex and evolving AI landscape, ensuring sustainable growth and ethical advancement.

Turbo-Charging AI: Stargate’s $500B Global Impact

The Stargate Project, a $500 billion, four-year initiative spearheaded by the United States government, represents a transformative moment in artificial intelligence (AI) development. With SoftBank and OpenAI as lead partners, supported by Microsoft, NVIDIA, Arm, and Oracle, this ambitious project aims to establish and position the U.S. as the global leader in AI infrastructure and innovation.

The project, which was announced yesterday, is already underway in Texas, with additional sites under evaluation.

Stargate’s scale and ambition provide a platform to turbo-charge innovation across industries and geographies, offering opportunities for businesses, universities, governments, and investors while raising important strategic considerations.

The Potential to Turbo-Charge Innovation

Stargate’s focus on cutting-edge AI infrastructure offers unprecedented opportunities to accelerate technological progress.

Industries ranging from healthcare to manufacturing stand to benefit immensely. In healthcare, faster AI processing capabilities will enable breakthroughs in drug discovery and personalised medicine, while optimising diagnostics and patient care.

Founder of Google-owned Isomorphic Labs, Sir Demis Hassabis, said at the World Economic Forum yesterday in Davos, “We’re looking at oncology, cardiovascular, neurodegeneration, all the big disease areas, and I think by the end of this year, we’ll have our first drug.”

The energy sector will leverage AI-powered models to enhance renewable energy systems, improve grid efficiency, and reduce costs. Energy-focused start-ups will also see the opportunity to work with AI infrastructure companies, given the level of energy that AI compute platforms requires.

Manufacturing will experience a revolution in production processes, with AI enabling smarter, predictive maintenance and optimised supply chains.

Finance, similarly, will see enhanced capabilities in fraud detection, real-time risk analysis, and personalised financial services. Retail and e-commerce will thrive through AI-driven customer insights, enabling hyper-personalised experiences and dynamic pricing strategies.

Stargate is not just an infrastructure project; it’s an engine for innovation, offering companies the resources to experiment, iterate, and scale at an unprecedented pace. Start-ups and established firms alike will find see greater opportunities to create and deploy new products, services, and business models that would have been unimaginable a decade ago.

The Role of Universities in Driving Progress

Universities in the U.S., UK, and beyond have a critical role to play in realising the full potential of the Stargate Project. By leveraging the infrastructure and partnerships offered by Stargate, universities can expand their research capabilities, particularly in areas like generative AI, robotics, and ethical AI frameworks.

Collaboration between universities and industry partners will help accelerate the development and commercialisation of these technologies. Investing and partnering universities that specialise in either associated AI infrastructure research or subjects that will be transformed by AI has the potential to deliver great results.

Technology transfer offices within universities have an unparalleled opportunity to turn cutting-edge research into viable businesses. For example, spin-out companies focused on AI applications in biotech, fintech, and clean energy could attract significant funding from venture capitalists and corporate investors. By redesigning innovation ecosystems, universities can act as incubators for the next generation of AI solutions.

Internationally, universities can engage in collaborative research to pool expertise and resources. For example, here in the universities such as Oxford, Cambridge, Southampton, Imperial and others are already leading the way in how they position themselves.

In Germany, TU Munich is already leading in smart manufacturing while Singapore’s universities, such as the National University of Singapore (NUS), could collaborate on AI for urban planning and governance. Japan is also a country that is leading the way in innovation in academia, with Kyoto University specialising in a range of science and engineering research areas, which support the countries Society 5.0 strategy.

Balancing Regulation and Growth

Regulation will play a pivotal role in shaping the outcomes of the Stargate Project.

Governments must be pragmatic and adopt an entrepreneurial mindset, working collaboratively in an agile way to craft policies that balance the need for rapid innovation with the imperative to support businesses while safeguarding citizens.

International cooperation is essential to ensure consistent and ethical AI governance. While the public see the benefit and value that AI can deliver, they are equally cautious on the impact it can have. How AI initiatives are communicated to the public and wider stakeholders will either make or break how this transformational technology will be adopted. Here in the UK, DSIT, in December 2024 published it’s ‘Public attitudes to data and AI: Tracker survey (Wave 4) report,’ which is wort ha read.

Global standards for AI ethics, including transparency, fairness, and accountability, must guide the development and deployment of AI technologies.

Regulations should also address critical issues like data privacy, cyber risks, and the equitable distribution of AI benefits. Frameworks like the EU’s General Data Protection Regulation (GDPR) offer valuable insights but need to evolve to meet the demands of emerging AI applications.

Governments must also focus on incentivising innovation through tax credits, grants, and public-private partnerships. By fostering a supportive policy environment, countries can attract investment, drive economic growth, and ensure that the benefits of AI are widely distributed.

Opportunities for Investors

The Stargate Project offers unparalleled opportunities for investors across venture capital, corporate venture capital, private equity, and family offices.

Investors must focus on sectors directly aligned with Stargate’s priorities, such as advanced semiconductors, renewable energy, and cybersecurity. Amazon, Google and Microsft, one of project Stargate partners, are already investing in Nuclear in order to ‘provide the emissions-free electricity needed to run artificial intelligence and other businesses.’ Companies and university spin outs specialising in clean energy will see great opportunities. One example is Tokamak Energy, a fusion power company based near Oxford, which in November 2024 raised $125 million to accelerate ambitious plans to commercialise fusion energy and grow its transformative high temperature superconducting (HTS) technology solution.

Venture capitalists should prioritise early-stage companies innovating in edge computing, AI-powered diagnostics, and climate modelling.

Corporate venture capital arms have a unique role in targeting businesses that complement their parent companies’ strategic goals, such as renewable energy providers or next-generation AI tools.

Private equity firms, meanwhile, can identify mid-sized companies poised for growth due to Stargate’s infrastructure, particularly in the hardware and energy sectors.

Family offices, often seeking diversified portfolios, can invest in funds or projects that support AI’s broader ecosystem.

By aligning their investments with Stargate’s trajectory, investors can not only achieve strong financial returns but also contribute to shaping the future of AI and economies worldwide.

Strategic Communications and Stakeholder Engagement

Effective communications and engagement strategies are essential for governments, businesses, and universities aiming to align with Stargate.

Governments must lead with clear, consistent messaging that highlights the societal and economic benefits of AI adoption. Public campaigns can build awareness and support for AI initiatives, while bilateral engagements with Stargate stakeholders can secure partnerships and funding. Collaboration will be a key to unlock value, growth and positive transformation.

Businesses should craft narratives that align with Stargate’s objectives and showcase their contributions to innovation and societal progress.

Some top-line initial recommendations include the need for sophisticated communications strategies to ensure alignment with Stargate’s goals, including:

1. Clear Messaging: Highlight how AI adoption benefits society, including job creation, improved healthcare, and environmental impact.

2. Stakeholder Mapping: Identify and prioritise key partners (e.g., OpenAI, SoftBank) and tailor engagement plans accordingly.

Communications and engagement needs to focus on the following timeframes:

• Short-Term: Build awareness and articulate national AI goals.

• Mid-Term: Showcase successful collaborations with Stargate.

• Long-Term: Establish a leadership narrative in AI innovation.

Proactive participation in trade bodies and industry associations can amplify their voices and influence policy debates. But, as I said, what is needed is entrepenerial mindset across all decison-making stages. Leaders and their teams need to better understand the concept of risk and the value and return that risk-taking can deliver, which I’ve written about before.

Universities must invest time to engage stakeholders and positioning themselves as critical research and talent hubs. They should develop targeted outreach strategies to attract AI-focused students and researchers while fostering relationships with Stargate partners.

Global Collaboration for Equitable Growth

International alignment will be critical to unlocking Stargate's full potential.

Countries like the UK, Germany, and Japan must deepen their ties with Stargate stakeholders and leverage their unique strengths to complement the initiative.

But, an important point, it is worth looking at the partners that are not part of the announcement and look at what their response to this announcement will be. Startgate is the first initiative to which there will be counter initiatives in the US and internationally.

Collaborative efforts in R&D, infrastructure development, and talent training will ensure that the benefits of AI are widely shared.

Data-sharing agreements, harmonised privacy standards, and international regulatory frameworks will be essential to fostering trust and enabling cross-border collaboration.

By working together, countries can mitigate risks and ensure that AI’s transformative potential is realised in a way that benefits all.

Shaping a Collaborative Future for AI Innovation

The Stargate Project represents a once-in-a-generation opportunity to redefine AI’s role in global progress. By embracing collaborative innovation, aligning policies, and investing strategically, governments, businesses, and universities can harness AI's transformative potential to create a future that benefits all.

This initiative is not just about infrastructure; it’s about creating an ecosystem that fosters creativity, drives economic growth, and addresses the world’s most pressing challenges. To succeed, stakeholders must act boldly, communicate effectively, and work together across borders and sectors.

The era of AI-driven innovation is here. How we navigate it will shape the future of our societies, economies, and industries. It’s time to engage, collaborate, and lead.

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Get in touch if your business or investments need counsel and strategic communications support and advisory. Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

Please comment, share or subscribe to my  LinkedIn Reputation Matters newsletter. Or connect with me on LinkedIn.

How to Rebuild Trust: Lessons from Edelman’s Trust Barometer 2025

Today’s Edelman Trust Barometer 2025 delivers critical insights into the world's trust deficit. This report follows up on and confirms the findings from the World Economic Forum’s Risk Report for 2025, which confirms the growing risks the world is experiencing and how people are reacting to and shaping their views and opinions.

Edelman’s report offers actionable pathways for businesses, governments, and investors to navigate the fractured landscape in which we live and work.

Businesses and governments must work hard to regain trust and rebuild their reputations. This work needs to involve more than communications; it must involve actionable strategic decisions that improve the quality of people’s lives worldwide.

Edelman’s Key Findings: Trust Under Pressure

A Crisis of Grievance

The Edelman report identifies a “crisis of grievance,” with 61% of respondents expressing moderate to high dissatisfaction with institutions. This issue is not new but has been growing for a number of years. It stems from widespread perceptions that the actions of businesses and governments disproportionately benefit elites while neglecting broader societal needs and communities.

Trust inequality persists and has entrenched itself, with low-income groups showing significantly lower trust levels than high-income groups. For instance, the trust gap between these groups exceeds 20 points in some nations, deepening societal divisions.

Business Remains the Most Trusted Institution

Yet, despite these challenges and the world's current situation, business is the most trusted institution, with 62% trust globally. This positions the private sector as a pivotal force in rebuilding societal confidence.

Notably, respondents increasingly see businesses as ethical, marking a 19-point improvement in perceived business ethics since 2020.

However, trust is fragile and varies by region. For example, business trust in high-income countries like Japan (39%) and the UK (43%) lags far behind emerging markets such as India (75%).

Misinformation Undermines Trust

A stark 70% of respondents worry about being misled by business or government leaders. Moreover, 67% believe news organisations prioritise ideology over public interest, amplifying mistrust in media. These findings underscore the corrosive impact of misinformation on societal trust and push people onto alternative platforms from where they get their news and are at greater risk of the misinformation they want to avoid.

Strategic Recommendations for Rebuilding Trust

For Businesses: Lead with Purpose

Businesses are uniquely positioned to address the grievances that people across society have. To rebuild trust, the report suggests that they must:

Take Responsibility for Societal Issues

Edelman reveals that 73% of respondents believe CEOs are justified in addressing societal challenges if their actions create meaningful change.

To demonstrate their commitment to the public good, companies should focus on climate change, misinformation, and workforce reskilling.

Businesses face a challenge balancing returns on investment and addressing climate change, issues that should not be mutually exclusive.

Invest in Workforce Development

Economic insecurity drives grievance, with 85% of respondents expecting businesses to provide reskilling opportunities for employees.

Upskilling, especially given the disruption that AI will cause across certain labour market disciplines, can reduce mistrust. Prioritising fair wages, training, and job security can help.

Fight Misinformation

Misinformation poses a key threat to businesses' reputations and their perceptions.

Businesses must actively counter misinformation by collaborating with trusted partners and ensuring clear, factual communication with stakeholders. Proactively addressing false narratives can prevent reputational harm.

For Governments: Restore Legitimacy

The Edelman report finds government trust stagnating at 52%, with grievances linked to perceived inequality and inefficiency.

To rebuild confidence, governments must:

Deliver Tangible Benefits

Policies that improve quality of life, address affordability concerns, and invest in public infrastructure can bridge trust deficits. These policies are actionable, and people can see and experience them beyond headlines and announcements.

Partner with Business

Public-private partnerships are critical for tackling complex issues like climate change, misinformation, and unemployment. Joint initiatives and ventures can enhance credibility and deliver visible results.

Learning from the private sector can deliver efficiencies and improve how policies are rolled out into actions that deliver change that the public can experience.

For Investors: Prioritise Reputational Capital

Investors wield significant influence over corporate strategy.

Edelman highlights the growing expectation that investors focus on ethical practices and stakeholder impact:

Support ESG Initiatives

While some leaders are retreating from ESG and other ethical initiatives, prioritising investments in companies that align with environmental, social, and governance (ESG) principles builds trust with both stakeholders and the public.

Engage with Local Communities

Investments that demonstrate tangible benefits for communities, such as job creation and infrastructure development, can reduce grievances and foster goodwill.

Again, action over announcements is what will give people trust and confidence.

The Misinformation Challenge

Edelman’s findings on misinformation highlight its power and influence on eroding trust across institutions. With 70% of respondents expressing concern about being misled and 67% doubting the neutrality of news organisations, misinformation presents a systemic risk.

To combat this:

• Businesses and governments must prioritise transparency and factual accuracy in their communications.

• Media organisations should adopt stricter editorial standards to regain public confidence. The Reuters Institute for the Study of Journalism report examined this issue in more detail.

Turning Insights into Action

The 2025 Edelman Trust Barometer underscores a critical truth: trust is not granted; it is earned through action and leant to organisations by people and other stakeholders.

Businesses, governments, and investors must work collaboratively to address societal grievances, combat misinformation, and rebuild reputational capital.

By focusing on transparency, fairness, and shared value creation, institutions can restore trust and unlock opportunities for sustainable growth. In a world rife with challenges, trust remains the foundation for progress.

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Get in touch if your business or investments need counsel and strategic communications support and advisory. Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

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The TikTok Ban: National Security or Corporate Competition?

Today, TikTok has gone dark in the  U.S., sparking widespread controversy over the impact of how  U.S. lawmakers have treated this Chinese-owned company compared to  U.S. digital and social media companies.

Critics argue that the ban on TikTok, while framed as a measure to protect national security, is a calculated move by competitors and lobbyists to stifle competition and protect their social media ecosystem controlled by American giants like Meta and others.

So, let’s examine how TikTok has grown, examine the accusations levelled against it, compare its data practices with those of U.S. competitors, and explore how lobbying efforts leveraged and influenced  U.S. lawmakers’ limited technological expertise to promote a compelling—and potentially strategic—narrative that TikTok is a strategic threat to the U.S.

TikTok: From China To The World

Owned by the Chinese company ByteDance, TikTok launched internationally in 2016 and swiftly secured a massive user base. By 2025, it boasted over 170 million users in the U.S.

However, its Chinese ownership raised alarms among U.S. officials who feared the Chinese government could access American users’ data, posing a ‘national security threat.’

These concerns led to legislative actions, including the Protecting Americans from Foreign Adversary Controlled Applications Act, which mandated ByteDance to divest its ownership of TikTok or face a ban in the U.S.

How TikTok Became the Fastest Growing Social Media Platform in the U.S.

TikTok’s adoption in the United States has been nothing short of meteoric, setting a new benchmark for social media growth. It achieved this after merging with Musical.ly in 2018 and giving it the necessary traction, through which it could leverage an established user base with its unique algorithm to attract millions of new users.

By the end of 2018, TikTok had been downloaded over 80 million times in the U.S., topping the Apple App Store’s download charts in Q4.

The platform’s ability to quickly personalise content and spark viral trends made it a favourite among Gen Z and millennials. This positioning of the platform as a cultural phenomenon raised concern among incumbent  U.S. social media companies like Facebook, Instagram, Snapchat, and others.

The COVID-19 pandemic in 2020 further accelerated TikTok’s growth, as lockdowns drove users to explore new forms of entertainment.

By mid-2020, the platform had reached 100 million monthly active users in the U.S. alone, doubling its user base in less than a year.

By the start of this year, TikTok’s U.S. user base surpassed 170 million, making it a dominant player across all age demographics.

Its unparalleled adoption has revolutionised how people consume and create content, triggering scrutiny from competitors and policymakers concerned about its influence and Chinese ownership.

TikTok’s Data Practices vs. U.S. Social Media Giants

TikTok’s data collection practices are ‘similar’ to most social media platforms. It gathers:

• User behaviour data (likes, shares, watch time).

• Device information (IP address, operating system).

• Location data (when permissions are granted).

• Content creation details (e.g., videos, comments).

Critics have argued that ByteDance’s ownership of TikTok raises concerns about Chinese government access. The platform denies sharing data with any government.

To counter that perception, TikTok launched Project Texas in 2022, a US$1.5 billion initiative to safeguard American user data and address U.S. national security concerns.

The project involves routing all U.S. user data through Oracle’s cloud infrastructure, ensuring that the data remains stored and managed on U.S. soil under the oversight of an American company.

The company also established an independent subsidiary, TikTok U.S. Data Security (USDS), to oversee compliance and implement security protocols aimed at limiting ByteDance’s access to U.S. data and addressing fears of potential ‘interference by the Chinese government.’

Yet, despite these measures, sceptics continued to argue that the project does not entirely mitigate perceived risks, reflecting broader geopolitical tensions and competitive dynamics in the tech industry.

How U.S. Platforms Collect and Use Data

Platforms like Meta (Facebook and Instagram), Google (YouTube), and Snap (Snapchat) collect similar, if not more extensive, user data, including:

• Cross-app tracking to monitor user activity across different platforms and websites.

• Highly detailed ad profiling to target individuals with precision.

Meta has faced significant legal scrutiny in the U.S. and the UK for its role in data misuse during elections. Most notably, it was involved in the Cambridge Analytica scandal, in which Facebook user data was improperly accessed to influence voter behaviour. The company has been fined and criticised for failing to protect user data and allowing targeted political ads that spread disinformation.

Similarly, Twitter, particularly under Elon Musk’s ownership, has faced widespread criticism for relaxing content moderation policies that amplified the spread of misinformation and disinformation campaigns on the platform, especially during major political events and crises.

Meta and Google have been sued and fined multiple times for breaching privacy laws. Yet, they have not been subjected to the same level of scrutiny regarding national security or its influence on users.

Key Difference: The argument against TikTok hinges not on the volume of data collected but on the potential for the Chinese government to access it. However, no concrete evidence of misuse by TikTok has been presented, making the case speculative and about perception.

The Narrative Used Against TikTok and Its Impact

The most effective narrative pushed against TikTok was rooted in national security—a concern guaranteed to resonate with lawmakers and the public. Since 2018, TikTok has been framed as a national security threat.

The key elements of this narrative included:

• Suggesting TikTok could be used for espionage, with the Chinese government accessing user data.

• Claiming the platform could influence U.S. public opinion by amplifying or suppressing specific content, including during elections.

• Highlighting viral trends as evidence of harm to society, even when those trends originated elsewhere.

Exploiting Lawmakers’ Lack of Tech Expertise

Lobbyists capitalised on the fact that many lawmakers lack deep technological expertise. By presenting TikTok’s risks in broad, fear-inducing terms, they successfully avoided nuanced discussions of:

• How TikTok’s data practices compare to U.S. platforms.

• The technical feasibility of the claims (e.g., whether the Chinese government could realistically use TikTok for large-scale surveillance).

• TikTok has implemented safeguards to address these concerns.

Lawmakers, faced with a “national security” argument, were more likely to err on the side of caution, even without concrete evidence.

Equally, making TikTok into the villain enabled US competitors to distract away from the issues facing their entities relating to misinformation and hate content.

What has been interesting to see is how ‘free speech’, as defined in the US, can be weaponised to influence audiences on American social media platforms, but it is not allowed on a foreign platform.

Lobbyists and Competitors: A Strategic Alliance

The Washington Post reported how Meta ‘paid GOP firm to malign TikTok.’ Lobbyists representing U.S. tech companies were instrumental in amplifying these national security threat narratives. The campaigns they ran benefited from the following:

• Simplified messaging that made TikTok’s risks sound unique and alarming.

• A focus on patriotism, casting the issue as a choice between American values and foreign interference.

• Public relations efforts to tie TikTok to harmful societal trends and incidents.

How TikTok’s Competitors Benefited from the Ban

What Meta, YouTube, Snapchat are hoping to gain from ‘TikTok going dark’ is an exodus from TikTok and a move onto their platforms.

Meta, YouTube, and Snapchat stand to gain the most from TikTok’s absence. The platform’s ban means:

• Greater ad revenue as brands redirect their budgets to these platforms.

• An influx of TikTok influencers and their audiences.

• Reduced competitive pressure, allowing them to maintain dominant positions without the need for innovation.

This is not yet happening, with many users moving to Chinese-owned Red Note.

Cloud Providers and Data Services

U.S.-based data providers like Oracle, Amazon Web Services, and Google Cloud will also benefit as companies and governments prioritise “domestic” data storage solutions.

Political Stakeholders and Advocacy Groups

The ban allows U.S. lawmakers to claim a win in protecting citizens from foreign threats, bolstering their political and ‘America First’ narratives.

Advocacy groups lobbying against TikTok also gain prominence and funding.

Economic Fallout from TikTok’s Ban

Since 2020, social selling on Instagram and TikTok has experienced significant growth, transforming how consumers discover and purchase products online.

87% of buyers now believe that social media helps them make shopping decisions, and 66% of customers are more likely to purchase after seeing others’ social media posts. This shift has led to social selling generating 45% more opportunities than traditional sales channels, with 78% of salespeople who use social selling outperforming their peers.

TikTok has been at the forefront of this evolution, particularly with the introduction of TikTok Shop, which seamlessly integrates social media and e-commerce. This feature lets users purchase products directly through videos, live streams, and influencer content. In 2024, TikTok Shop’s gross sales topped $1 billion monthly since July, indicating the platform’s significant impact on social commerce.

Additionally, TikTok’s popularity among Gen Z shoppers and its investments in live shopping has contributed to the platform’s role in driving U.S. social commerce sales, which are projected to surpass $100 billion by 2025.

Creators and small businesses that rely on TikTok for income and exposure now face significant disruptions:

• Creators lose a platform optimised for organic growth and engagement.

• Small businesses that use TikTok’s cost-effective advertising tools may struggle to reach younger audiences on more expensive platforms like Meta.

Ripple Effects on the Economy

TikTok’s creator economy contributes billions to U.S. economic activity. Its ban will:

• Impact adjacent industries such as influencer marketing agencies, digital product developers, and e-commerce platforms.

• Reduce competition, potentially leading to higher advertising costs for businesses.

A Broader Issue: Data Sovereignty and Corporate Influence

The TikTok saga underscores deeper issues about data sovereignty and corporate influence:

• Data Privacy Legislation: The lack of consistent regulations leaves gaps that disproportionately target foreign companies while allowing U.S. entities to operate with impunity. This is an example of the ‘America First’ mindset supporting American companies.

• Corporate Power: TikTok’s case illustrates how U.S. companies can influence public narratives to suppress competition.

A Convenient Scapegoat in a Competitive Landscape

When compared to the influence and threats that American digital and social media companies pose to users of their respective platforms, the TikTok ban appears to be less about genuine national security threats and more about protecting U.S. corporate interests under the guise of patriotism.

Social media companies' influence over users through the amplifying of misinformation or hate content makes this an issue for everyone. It can only be resolved by improving awareness of how content and narratives online can be promoted to influence opinions and perceptions.

The real losers are the creators, businesses, and audiences who rely on TikTok for innovation, income, and engagement.

@shou.time Our response to the Supreme Court decision @TikTok ♬ original sound - Shou

If the U.S. wants to address these challenges meaningfully, it must adopt comprehensive data privacy laws that apply universally—domestic or foreign—and avoid allowing lobbying efforts to dictate policy. But, given the influence and ability that social media has a whole to influence opinion, and because of the coming ecosystem that we are going to be entering, this in unlikely to happen.

Policymakers and industry leaders must advocate for balanced regulations that protect data privacy without stifling competition. Only then can we build a fair and secure digital economy.

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Get in touch if your business or investments need counsel and strategic communications support and advisory. Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

Please comment, share or subscribe to my LinkedIn Reputation Matters newsletter. Or connect with me on LinkedIn.

Why Entrepreneurs, Start-Ups, and Investors Need Strategic Communications to Grow

Embarking on the entrepreneurial journey demands more than a solid grasp of business theories. Recent research underscores that while competencies in business planning, marketing, and financial management are foundational, they alone don’t equip entrepreneurs to navigate the complexities of today’s dynamic markets. A study published in The Conversation reveals that co-working spaces serve as collaborative ecosystems where entrepreneurs exchange knowledge, foster innovation, and build resilience through shared experiences.

This collaborative learning environment highlights the necessity for entrepreneurs and their investors to leverage a critical yet often underemphasised asset: strategic communication and stakeholder engagement.

Strategic Communication: A Core Business Asset

Viewing communication merely as an operational task involving press releases or social media updates is a misconception. Strategic communication is integral to shaping a company’s identity, building its reputation, and uniting stakeholders under a shared vision. For instance, Airbnb is renowned for transparent and engaging communication with investors. It consistently provides detailed updates on financial performance and strategic initiatives, building trust and aligning investors with the company’s long-term objectives. 

Establishing clear and consistent communication from the outset lays a foundation of trust and credibility for start-ups. This transparency encourages employees to commit to the mission, customers to become brand advocates, and investors to provide sustained support.

Stakeholder Engagement: Driving Sustainable Growth

Engaging stakeholders—including employees, customers, partners, and investors—proactively creates avenues for valuable feedback, collaboration, and strategic alignment.

Effective stakeholder engagement is a cornerstone of successful change management. Case studies demonstrate that aligning diverse stakeholder interests and building trust through strategic engagement can significantly enhance the effectiveness of transformation initiatives. 

Start-ups prioritising stakeholder engagement from the beginning are better positioned to overcome challenges, attract investment, and achieve sustainable growth. Research by the Project Management Institute indicates that effective stakeholder engagement is a key driver of project success, emphasising the importance of identifying and engaging stakeholders to meet their expectations and achieve project objectives. Meanwhile, McKinsey found that approximately 50% of a company’s value is often concentrated in just 15-20 key roles, highlighting the importance of identifying and engaging critical stakeholders to capture this value.

Investors: Enhancing Value Through Communication Strategies

Advocating for start-ups to adopt strategic communication and stakeholder engagement practices yields substantial benefits for investors.

Transparent and proactive communication enables investors to make informed decisions and fosters an environment of trust. Successful start-ups have demonstrated that effective investor communication can significantly impact growth and development. This is confirmed by a 2020 study by Cornell University, which looked at ‘the impact of social media presence and board member composition on new venture success (pre-Elon Musk takeover of Twitter!).’

Private and public-facing communications strategies and activities support future funding rounds and enhance the start-up’s reputation for reliability and professionalism, distinguishing it in competitive markets.

Challenging Traditional Views of Communication

There is an outdated perception of communication as merely a marketing or PR function. This needs reevaluating.

In today’s business environment, communication is a strategic driver that integrates a start-up’s mission, vision, and values with stakeholder actions and decisions.

Effective and strategic communications help build trust and collaboration among stakeholders, which is crucial for the success of transformation projects. This is the private work beyond media releases, public-facing events, and announcements.

In sectors where trust and reputation are critical—such as technology, finance, and healthcare—strategic communication directly influences valuation, competitive positioning, and long-term success.

Recommendations for Entrepreneurs and Investors

1. Integrate Communication into Core Strategy: Incorporate strategic communication into your business plan from the outset to ensure alignment with your mission and growth objectives. And make sure that the founders and their team are aware of the value that this delivers to their venture.

2. Engage Stakeholders Proactively: Maintain transparent, two-way communication with employees, customers, and investors to build trust and gather valuable insights.

3. Use Collaborative Networks: Leverage co-working spaces in the early days and engage in opportunities that foster relationships that deliver valuable insight that drive innovation and strengthen your support system.

4. Prioritise Investor Relations: Investors should encourage start-ups to establish robust communication frameworks - it’s not just the capital, it is the strategic advisory that helps a company grow, as these directly impact the success of future funding rounds.

Laying the Groundwork for Success

Entrepreneurship transcends theoretical knowledge; it is a practical, interconnected ambition that relies on strategic thinking and robust relationships. It is more than just risk-taking. Disrupting a market or business sector needs communications to help secure success.

For start-ups and their investors, embracing strategic communication and stakeholder engagement is not optional—it is fundamental to growth, resilience, and success.

By embedding these elements into the core of your business or investment, entrepreneurs can unlock new opportunities, and investors can ensure their investments yield meaningful and sustainable returns.

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Get in touch if your business or investments need counsel and strategic communications support and advisory. Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

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Please comment, share or subscribe to my LinkedIn Reputation Matters newsletter. Or connect with me on LinkedIn.

World Economic Forum Global Risks Report 2025: Managing Global Risks Through Strategic Communications and Stakeholder Engagement

The World Economic Forum’s Global Risks Report 2025 highlights the growing complexities of an increasingly fragmented world. Geopolitical tensions, economic protectionism, and disinformation campaigns now challenge stability in the stability of businesses, governments, and investors. As the risks escalate, a reactive approach is no longer sufficient. Instead, organisations must adopt proactive strategies to build trust, foster resilience, and thrive amid uncertainty.

Business as usual is no longer an option.

Leaders can navigate these turbulent times by refining communication strategies and strengthening stakeholder engagement with transparency, confidence, and purpose.

Understanding the Risks: Challenges in a Polarised World

The risks identified in the report are deeply interconnected. Societal polarisation, disinformation, and protectionist policies feed into one another, creating cascading challenges. For businesses, governments, and investors, these risks manifest in several ways:

1. Geopolitical Tensions and Trade Barriers

Governments are implementing protectionist measures, such as tariffs and investment restrictions, to protect domestic interests. This disrupts global trade and complicates industries reliant on cross-border collaboration.

2. Misinformation and Disinformation

Disinformation campaigns, often aimed at institutions or brands, distort narratives, destabilise societies, and erode consumer trust. This can harm the reputations of businesses, particularly in industries focused on sustainability or technology.

Misinformation and disinformation have emerged as critical global challenges. 86% of individuals worldwide report encounters with fake news. In the United Kingdom alone, over 90% of people say they have faced online misinformation, underscoring its sweeping prevalence. Social media platforms, with a staggering 4.9 billion users globally, remain at the heart of this crisis, serving as powerful conduits for the spread of false information.

The consequences extend far beyond individual deception. The economic toll is significant, with misinformation disrupting financial markets, skewing investor decisions, and inflating healthcare costs by propagating unreliable medical advice.

For businesses, the stakes are equally high—targeted disinformation campaigns can tarnish reputations, erode consumer confidence, and inflict severe revenue losses. For governments and wider society, the impact is no less troubling. Misinformation erodes democratic institutions, deepens social divides, and undermines public trust in governance.

3. Polarisation of Public Opinion

Rising societal divides, influenced by misinformation, complicate policymaking, hinder regulatory consensus, and create unstable investment climates. This polarisation makes it harder for governments and businesses to align on critical issues like climate change and technological innovation.

Why Communications and Stakeholder Engagement Are Essential

Managing these interconnected risks requires more than operational agility—clear communication, strategic foresight, and stakeholder collaborative relationships.

Trust and transparency are vital in an age of misinformation. Businesses and governments must rethink their communication strategies to build credibility, foster alignment, and combat the influence of false narratives.

Strategic Recommendations for Leaders

To navigate global risks effectively, leaders should adopt the following strategies:

1. Align Communication with Strategic Objectives

Clear and consistent messaging is critical in a fragmented world.

• To build public trust, governments must ensure that policy communications are coherent across departments and agencies.

• Businesses should proactively counter disinformation with transparency and credibility. For example, a technology firm accused of unethical practices could address concerns through third-party audits, transparent reporting, and campaigns that showcase responsible innovation.

2. Invest in Multisector Coalitions

Collaboration is key to addressing shared challenges.

• Governments and businesses should improve their engagement with civil society, academia, and international organisations to combat misinformation and strengthen ethical communication.

• Industry-wide initiatives, such as AI-driven tools to detect false narratives, can mitigate the spread of disinformation. Advertisers and their agencies significantly influence social media platforms like Meta, which amplify misleading content. They need to be aware of and leverage their power and influence, individually and collectively, to demand greater accountability because of the risk that misinformation poses by association to their companies and brands. By lobbying for stricter content moderation and transparency, advertisers can push platforms to align with societal expectations and reduce risks to brands and consumers.

3. Build Resilient Supply Chains

Geopolitical tensions and protectionism emphasise the need for supply chain diversification.

• Businesses should map vulnerabilities, diversify sourcing strategies, and establish regional partnerships.

• Engaging with governments and trade organisations can secure support for these adjustments.

4. Strengthen Scenario Planning

Effective risk management begins with foresight.

• Organisations must incorporate geopolitical and societal risks into strategic planning.

• Scenario exercises—such as assessing the impact of trade restrictions, cyber threats, or disinformation campaigns—can prepare leaders to act decisively and communicate with their audiences to position them as being proactive in how they trade.

5. Foster Stakeholder Trust

Trust underpins resilience in a polarised world.

• Governments can reinforce public confidence through accountability and transparency.

• Businesses can build loyalty by prioritising ethical practices, community engagement, and ESG-focused initiatives.

Opportunities in a Fragmented World

Despite the challenges, businesses and governments that adapt can seize significant opportunities:

• Companies that prioritise sustainability and ethical operations will attract ESG-conscious investors.

• Cybersecurity and data analytics firms are poised for growth as organisations invest in countering misinformation and protecting critical infrastructure.

• Regional trade alliances championed by governments can drive investment and bolster economic resilience.

Thriving Through Strategic Action

The Global Risks Report 2025 calls for leaders to act decisively and collaboratively. By adopting forward-looking strategies, strengthening communication, and fostering trust, organisations can mitigate risks and position themselves as leaders in a fragmented world.

As the global landscape evolves, success will favour those who adapt with purpose, build coalitions, and communicate transparently. Businesses, governments, and investors can thrive in complexity by turning risk into opportunity and uncertainty into strength.

Let’s start the conversation. If you want to explore how strategic communications and stakeholder engagement can support your goals, contact us today.

Driving AI Success in the UK: How Culture, Policy, and Strategy Will Transform Growth and Innovation

The UK stands on the brink of a technological revolution with its AI Opportunities Action Plan. Designed to position the nation as a global leader in artificial intelligence, the plan outlines a bold roadmap for economic growth, innovation, and societal transformation. However, achieving this vision requires more than infrastructure and talent investment. It demands a cultural transformation of the UK — a shift from being shy and cautious to a mindset that embraces innovation, experimentation, and calculated risk-taking.

To deliver growth to everybody, a cultural transformation is going to be critical. By fostering trust, collaboration, and proactive engagement with AI, the UK can unlock an additional £400 billion in economic growth by 2030 and lead the global race in innovation.

Why the UK Needs a Culture of Innovation to Lead in AI

The UK has an enviable foundation in artificial intelligence. Home to global AI leaders such as DeepMind and ARM, the country ranks third in the world for AI market size.

Its universities produce cutting-edge research supported by tech transfer teams, and the country’s regulatory leadership in AI safety has set global standards. However, these strengths are underutilised due to a deeply ingrained cultural hesitancy. Even our companies are reluctant to invest directly or through a corporate venture capital company in the many opportunities that we create.

Statistics highlight the challenge: only 15% of UK businesses have adopted AI, compared to 31% in the US.

Public scepticism is another barrier, with 60% of citizens expressing concerns about AI’s impact on jobs and privacy. Without addressing these cultural factors, the UK risks falling behind more proactive nations such as the US, China, and Singapore.

What are industry leaders saying about the AI Opportunities Plan?

UK Prime Minster Keir Starmer has appointed Matt Clifford as an adviser to support in the delivery of this transformational AI Action Plan.

In a LinkedIn post to coincide with the publishing of the plan, Clifford says that, "AI is the single most powerful lever we have to achieve this. But we need to act boldly and we need to act now. That’s what the Action Plan is about."

As Matt notes, the response to date has been overwhelmingly positive.

Brent Hoberman announced today the 'launch of the London AI Hub, in partnership with Techspace.'

Keith Strier, SVP for AI Markets at AMD, formerly from NVIDA, was direct in his praise, saying, “UK for the Win!”

Meanwhile for Chief Scientific Adviser at The Department for Business and Trade, Dr Mike Short CBE FREng FIET FBCS FITP, highlights that the "plan to points to a more strategic and comprehensive plan towards implementation than previous UK attempts by government." Rightly so, Mike wants "to see more AI scale up options to ensure this works well internationally and collaboratively."

While Gerard Grech makes some great observations in the reply to his LinkedIn post about the difficulty of securing the opportunities. But the government is seeing AI as 'cutting across all areas.'

How can we establish a risk-taking culture that helps unlock growth 

For the UK to lead in AI, it must shed its legacy of risk aversion and build a culture that rewards experimentation and innovation. This shift requires strategic policy changes, fiscal incentives, and a concerted effort to influence how the public and businesses see risk and reward.

Fostering a Pro-Innovation Mindset

The UK needs a cultural reset that positions risk-taking as a path to opportunity.

Government leaders must champion this mindset by consistently framing innovation and experimentation as not just national priorities but part of our historic DNA.

Businesses should follow suit, embedding innovation into their strategies and empowering teams to experiment without fear of failure.

Public procurement can be catalytic here. By prioritising innovative solutions in government contracts, the public sector can set an example and create a market for AI products that inspires industry confidence.

Create a UK corporate venture capital ecosystem

The UK is filled with opportunities, whether from academic tech transfer teams or from founders, UK or international, who base themselves across the UK to build transformational businesses. Yet, the investment that they need comes from venture capital companies, many of which are overseas.

The UK needs to incentivise corporates to create their own corporate venture units, through which they can invest in new transformational technology that can support their growth and that of their supply chains.

Incentivising AI Adoption and Experimentation

Financial incentives are critical to encouraging businesses to adopt AI. Enhancing R&D tax credits to specifically include AI projects and offering grants for SMEs and start-ups in AI-focused sectors would lower the barriers to experimentation.

Additionally, the government could establish AI Growth Zones with streamlined planning processes, infrastructure development subsidies, and company tax relief.

These zones should target underdeveloped regions to drive economic regeneration and bridge geographic disparities in AI adoption.

Addressing Public Concerns with Transparency

Building trust is essential for widespread AI adoption. Clear, transparent communication must address public concerns about ethics, privacy, and job displacement.

Governments and businesses alike should commit to ethical AI practices with regulatory frameworks that ensure accountability and fairness.

Establishing an independent AI ethics board to oversee major projects would further reassure the public. Meanwhile, public education campaigns showcasing AI's tangible benefits—such as faster healthcare diagnoses or improved public transportation—can demystify the technology and build confidence.

Investing in Education and Skills Development

A skilled workforce is the backbone of an AI-powered economy.

The UK must increase its investment in AI education, creating pathways from primary schools to postgraduate programmes. A flagship scholarship programme, modelled after the Rhodes or Fulbright scholarships, would attract top talent to the UK and reinforce its global reputation for innovation.

To help workers adapt to AI-augmented roles, lifelong learning initiatives and vocational training must be expanded beyond formal education. Collaboration with businesses is essential to ensure these programmes align with industry needs.

Building a Narrative for AI Adoption and Growth

Strategic communications will be critical to enabling this cultural shift. The UK must craft a unifying narrative that positions AI as a force for good, highlighting its potential to create jobs, improve public services, and drive economic growth.

Businesses and government leaders should use media, industry events, and digital platforms to communicate success stories that resonate with both stakeholders and the public. For example, showcasing AI-driven solutions that reduce NHS waiting times or enable carbon-neutral manufacturing could inspire confidence and enthusiasm.

Transparency should underpin these efforts. The UK can build credibility and trust by openly discussing the challenges and risks of AI adoption alongside its benefits. Engaging with diverse voices—including ethicists, industry experts, and community leaders—will further strengthen this narrative.

How Businesses and Investors Can Lead the AI Revolution

Senior leaders and investors have a pivotal role in driving this cultural transformation.

Businesses must integrate AI into their operations, not as an afterthought but as a core capability. Leadership teams should prioritise upskilling their workforce and fostering a culture of innovation that encourages experimentation and tolerates failure.

Collaboration is equally vital. By partnering with government initiatives such as AI Growth Zones or contributing to shared data ecosystems, businesses can help accelerate AI development while gaining early access to cutting-edge technologies. Investors, meanwhile, should focus on high-potential start-ups in sectors ripe for AI disruption, such as healthcare, advanced manufacturing, and financial services.

The Role of Government in Leading by Example

The government must demonstrate its commitment to AI adoption by integrating the technology into public services. From piloting AI in healthcare diagnostics to streamlining transportation systems, these initiatives will improve service delivery and showcase AI’s potential to the broader public.

To further signal its commitment, the government should use its purchasing power to drive demand for AI solutions, offering contracts to innovative businesses and setting benchmarks for ethical and effective AI use.

A Call to Action for Business, Government, and Society

The AI Opportunities Action Plan provides a robust framework for the UK’s leadership in AI, but it cannot succeed without a cultural transformation. By fostering a culture of innovation, trust, and collaboration, the UK can unlock AI’s full potential to drive growth, create jobs, and enhance societal well-being.

For senior business leaders, investors, and policymakers, this is a once-in-a-generation opportunity to align with a national vision that prioritises boldness and creativity. By embracing risk, investing in talent and technology, and building trust with the public, the UK can secure its place as a global leader in the AI-driven future.

The new AI Opportunities Action Plan is a step in the right direction. But critically, it needs support to get the UK to buy into it. The wrong culture can hinder unlocking the growth that the government has identified.