New Year, New World Order

Happy New Year, and welcome to a new era, featuring the return of Donald Trump for a final second term, and the U.S. economy with its strongest numbers yet.However, post-pandemic inflation in daily consumer prices is still high, paired with two world conflicts: the Gaza-Israel ceasefire and the return of hostages, and the Russia-Ukraine war, as well as Syria, newly freed Syria from a failed half-century dictatorship supported by Russia. Also, enter artificial intelligence in its maturity stage, and ready to make a big impact on our daily lives. 

We had a somewhat rocky 2024, with mixed results that are now the basis for what happens next. The fragility of the  ceasefire between Gaza and Israel or the lack of ceasefire between Russia and Ukraine come with big risks for the world supply chain. The fragility of unregulated AI, even with Elon Musk working in a non-Cabinet position for the Trump administration, where he will make recommendations for digital transformation and AI regulation for Congress to consider or for executive order to turn into legislation and make it formal and long-lasting. The fragility of the commercial real estate market nationwide and its potential correction in mid-2025. The fragility resulting from the violence generated by the drug cartels and the move to declare them as terrorist organizations, which could allow Trump to use drones to invade Mexico and its fentanyl laboratories owned by cartels. Also, the opportunities that will come with a new, ostensibly universal legislative package, including fiscal tax cuts and the overhaul of the tax code again, just like back in 2017, to reinvigorate the economy and stocks in the tech sector. The opportunity of AI in creating new jobs and eliminating others at the same time. The opportunity for fresh capital ready to be injected into startups and enhancing current investment portfolios. The risk involved in what happens next with an ultimate resolution on Gaza-Israel, which has turned into turmoil for Lebanon. Syria and Yemen, with the Biden administration leaving a much bigger Middle East conflict if it doesn’t materialize. The risk of a no win-win negotiation for Russia-Ukraine that has rocked commodity markets around the world and created political polarization in the United States. This one will be quite a negotiation, where nobody will be happy and more than ever that the United States and NATO cannot be seen as losers before Russia if they make concessions. 

In the case of Mexico, a complicated context of events and economic threats by Trump on immigration, the illegal drug trade, border policies, and international trade agreements can be foreseen given Mexico’s President Claudia Sheinbaum has been very vocal – and not with a soft tone – in countering Trump’s multiple menaces. Specifically, the aerospace sector could see new growth if given the continued trust to support our most important neighbor, kickstarting things from a slow January to a speedier February and into the next half; however, the outlook seems to be a cautious one given Boeing’s challenges with its labor strike last summer, and  Airbus as well, with lots of supply chain issues, not to mention the volatility of the airline travel industry, which had some good numbers and some mixed numbers as an electoral year went by. 

This is a year where we will need to change trends across the board or expect the worst from unforeseen circumstances. Climate change and political stability will be challenges everywhere. This year, we will experience five critical issues: illusion versus realism, automation versus humanization, transformation versus legacy, redistribution versus concentration, and regulation versus liberty to operate. The intersection of all the above, one by one, and the ability to address at least 33% of them, will be made possible through the application of artificial intelligence supported by linear regression tools. With this in place, 10 trends are set to solidify during 2025::

1. Adaptive Renaissance: AI integration with human creativity will mark the start of a new era of innovation. Most experts in marketing already identify content as the most used feature of AI. Whoever adopts AI early will experience a 40% increase in productivity. 

2. Synthetic Reality: AI tech will continue to erase the fine line between what is real and what is not – every second, a business around the world reports deepfake fraud. Intelligence experts expect the Immersive Experience market will reach US$800 billion this year alone. 

3. Borderless Identities: The capability to redefine identities thanks to AI tech will open a debate over true authenticity. Apps offering virtual companions are gaining popularity, but they also risk weakening social exchanges and creating more social isolation. AI technology that also allows for “re-live” remembrances and past experiences will defy concepts of privacy and consent, completely transforming human relations and digital ones.

4. Progressive Breach: The resurgence of conservative movements and political parties is creating postmodern changes around the world. Examples include the right wing political tide that is being felt around Europe and the return of Donald Trump for a second term to the White House.

5. The New Elites : A new, global Elite is surging with a combination of traditional values mixed with advanced technology. 

6. Desire for Nostalgia: Climate anxiety and technological disruption are feeding nostalgia. Examples include vinyl record sales in 2024 reaching a 16-year high, and  top brand clothing companies using their 2025 collections inspired by the 1920s with the use of AI to offer emotional stability while also updating their most iconic products. 

7. Redefinition of Fame: Authenticity is replacing superficial fame. According to experts, 70% of consumers prefer brands that celebrate and elevate human authenticity. Celebrity lives are in focus for such activities, including podcasting and Hollywood scandals, and have an impact on society.

8. Obligatory Realism: The fraudulent use of AI is getting to the point where regulation has to become mandatory and strict. Authorities in the United States and some other countries, such as South Korea, have implemented tough sanctions for individuals or companies that engage in this behavior, including using false accounts or impersonations.

9. Income Revolution: Automation is accelerating the debate over a Basic Universal Income. Countries like the United States and Kenya have shown promising economic benefits, including an increase in active searches for jobs. 

10. Labor Evolution: The labor force is being transformed with the incorporation of AI and robotics. Schools and universities need to start immediately engaging in new subjects and data science in order to develop the next generation of highly skilled individuals.

Most certainly, AI will impact 80% of jobs in the next decade. We need to start getting engaged, prepared and ready for what’s already here and what’s coming. The better prepared, the better the acceptance of AI in our daily lives and where we work, including in the aerospace, automotive, tech, medical, financial, agriculture or any other field. The year will bring many opportunities and challenges, but adaptation and resilience is needed to overcome all these tensions around the globe and in our lives. Let’s see what the start of the year has for us.