BUSINESSES and policymakers must rethink how they operate to stay competitive in “Global 2.0,” a new era where resilience matters more than cost efficiency and artificial intelligence (AI) becomes part of everyday infrastructure.
According to Navigating Technological and Geopolitical Transformation, a report from the inaugural IEX Berkeley Collider Summit co-organized by the IE School of Science & Technology and UC Berkeley’s International Co-Lab, the traditional playbook of globalization is being fundamentally “rewired.”
While the previous era prioritized efficiency and cost optimization, the report said the current landscape is increasingly shaped by differing regulations, national priorities, and tighter control over key resources and technology.
For businesses, this means resilience is no longer just a buzzword but a practical requirement in a world where capital, data, and talent move through channels shaped by regional politics rather than fully open markets.
In response to queries on practical execution, Ikhlaq Sidhu, dean of IE School of Science and Technology, said globalization is not retreating but being redesigned.
“The shift from efficiency to resilience means companies must continuously adapt to changes in AI, supply chains, and geopolitics, rather than optimize for a fixed model. For companies in Asia-Pacific, resilience means diversifying supply chains, understanding multiple regulatory systems, and building the ability to reconfigure operations quickly as conditions change,” he told BusinessWorld via e-mail.
AI AS PHYSICAL INFRASTRUCTURE
A key takeaway for the Philippines, particularly its information technology and business process management (IT-BPM) and manufacturing sectors, is the shift of AI from cloud-based software into embedded, real-world infrastructure.
The report said AI is becoming an integral part of logistics, healthcare, robotics, and energy systems.
Mr. Sidhu said this shift will change how technology is valued and delivered.
“AI is no longer something you buy as software — it’s becoming embedded into products, infrastructure, and operations. That makes standalone software harder to sell. In sectors like IT-BPM and manufacturing, value will shift to integrating AI into real-world systems — combining software, hardware, and human expertise to deliver outcomes at scale. The competitive advantage will come not just from using AI, but from embedding it deeply into workflows and going beyond what AI alone can do,” he said.
The report added that the next wave of innovation will come from the convergence of semiconductors, autonomous systems, and digital twins — areas that may require companies to rethink investments toward hardware-software integration and sensor-based systems.
CLOSING THE ‘AGENCY’ GAP
The report also pointed to a widening talent gap between “pedigree” (credentials) and “agency” (the ability to lead and act in uncertain conditions). As AI spreads across industries, traditional credentials alone are no longer enough.
Mr. Sidhu said talent must focus on human judgment and real-world impact to become more valuable in the job market.
“The bar for talent is rising. It’s no longer enough to have credentials — people need the ability to do what AI cannot. Companies need to move learning out of the classroom and into real projects — working with AI, but going beyond it with judgment, creativity, and context. Scale is the new innovation,” he said.
Trond Petersen, associate dean at UC Berkeley, said that institutions must shift toward building “interdisciplinary capability and navigability.”
To address these challenges, the report identified five strategic priorities: promoting adaptable, skills-based education; managing data across different regulatory systems; strengthening cross-border collaboration; improving energy efficiency in computing; and designing systems that can work seamlessly across global markets.
The report also noted that success in innovation is no longer measured by invention alone, but by real-world impact at scale.
“The challenge is not just to innovate, but to ensure systems can work together across boundaries,” said Leticia Cabral Calvillo, executive director of the IEX Research Xcelerator at IE University. — Arjay L. Balinbin
