"AI, a Double-Edged Sword of Opportunity and Risk"... Global Scholars Advise Korea on S...

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“AI, a Double-Edged Sword of Opportunity and Risk”... Global Scholars Advise Korea on Strategic Choices [ESF2026]

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Day 2 of the 17th Edaily Strategy Forum

Rexon Ryu: “Electric Power is a Strategic Resource in the Age of AI”

Thorsten Beck: “AI Emerges as a New Risk Factor in Financial Markets”

Noreena Hertz: “AI Safety Guardrails Must Be Established Alongside Innovation.”

[Edaily By Reporter Yu-ri Ahn ] Artificial intelligence (AI) emerged as one of the central themes at the second day of the 17th Edaily Strategy Forum on June 17, where global experts agreed that AI represents both the opportunities and risks, stressing the need for Korea to carefully consider its strategy in the era of technological competition.

The 17th Edaily Strategy Forum commenced on June 17 at the Shilla Hotel in Jung-gu, Seoul, under the theme: "The Age of Power, Recasting Civilization : Who Designs the New World?" Rexon Ryu, President of The Asia Group (TAG), delivers his keynote speech focusing on the theme: "Security and Defense Strategy in the Era of Self-Reliance." (Photo = Jin-hwan Noh, Edaily Reporter)

Rexon Ryu, president of The Asia Group (TAG) and former Director for Nonproliferation at the White House National Security Council (NSC), delivered a keynote address identifying electric power as the key resource in the AI era and diagnosed that technological competition is expanding beyond industry into issues of national security and geopolitics.

He said, “As AI data centers, semiconductors, and advanced chip production are driving electricity demand to unprecedented levels, reliable power supply is now no longer simply an issue of electricity prices, but a strategic national resource.” He also warned, “Today we should be more concerned that this has become a matter of negotiations among major powers. ”Today, an even greater concern is that negotiations among major powers could take place at a table where Korea itself is absent.“

He continued, ”“To effectively counter to this risk, it is important for Korea to pursue a strategy of deep integration into core global systems and supply chains, making itself an indispensable partner to its allies,” he said, “Only then will the risk not materialize.” He also added, “Korea has the capability to lead on the global stage, but leadershipis not completed through capability alone. This is now an important turning point for Korea.”

Thorsten Beck, Professor of Financial Stability at the European University Institute (EUI), delivers a presentation on the theme "Power Realignment and Productive Finance: The Role of the Financial System in a Changing Global Order" during Keynote Address 2 at the 17th Edaily Strategy Forum held at the Shilla Hotel in Changchung-dong, Jung-gu, Seoul on June 17. Convened under the overarching theme "The Age of Power, Recasting Civilization : Who Designs the New World?", the 17th Edaily Strategy Forum was organized to multi-dimensionally dissect the strategic turning points confronting our society in diplomacy, security, finance, and fiscal policy amidst great-power rivalry between the U.S. and China, the war involving Iran, and geopolitical upheavals fueled by intensifying 'America First' unilateralism, while searching for breakthrough solutions in times of crisis. (Photo = Edaily Reporter In-kwon Bang)

Thorsten Beck, Professor of Financial Stability at the European University Institute (EUI), diagnosed that geopolitical uncertainties combined with the rapid expansion of AI could act as new vulnerabilities into the global financial system.

“New forms of shocks are emerging as geopolitical and geoeconomic landscapes are shifting,” Professor Beck stated. “AI could become a new risk factor for financial stability in the future.” He continued, “The U.S. government recently restricted access to certain AI models (Mythos and Fable 5),” and predicted that “there could be debate over treating AI models as strategic assets.”

The strongest warning message of the day was delivered by Noreena Hertz, Honorary Professor at the UCL Policy Lab in University College London (UCL). She described the current pace of AI adoption as “frenzied” and emphasized the need to closely examine technology‘s profound impacts across society as a whole.

Noreena Hertz, Honorary Professor at the UCL Policy Lab, University College London (UCL), delivers her keynote speech on the topic of "How to Thrive in an Age of Division and Uncertainty" at the 17th Edaily Strategy Forum held at the Shilla Hotel in Changchung-dong, Jung-gu, Seoul on June 17. Convened under the overarching theme "The Age of Power, Recasting Civilization : Who Designs the New World?", the 17th Edaily Strategy Forum was organized to multi-dimensionally dissect the strategic turning points confronting our society in diplomacy, security, finance, and fiscal policy amidst great-power rivalry between the U.S. and China, the war involving Iran, and geopolitical upheavals fueled by intensifying 'America First' unilateralism, while searching for breakthrough solutions in times of crisis. (Photo = Young-hoon Lee, Edaily Reporter)

“One of the primary reasons I use the word ’frenzied‘ is due to the extraordinary speed of AI diffusion and adoption,” Professor Hertz explained. “While I personally utilize ChatGPT and Claude, it was only two years ago that very few people used them on a regular basis. Today, approximately 800 million people worldwide use AI regularly, equivalent to 10% of the global population.”

Professor Hertz further analyzed, “We do not yet know whether AI will lift individuals, companies, and economies to a new level, or if it will be brilliant at certain tasks while being absolutely terrible at others, or if it will cause enormous damage and harm. The reality is most likely be a mixture of all three.”

Addressing companies, she advised, “Now is the time to consider not only about where and how AI can create real value in your business, but also about what safety mechanisms should be established alongside it.”

Hertz also warned against excessive dependence on AI at the individual level. “The more we rely on AI, the greater the risk that our critical thinking or independent decision-making abilities may inevitably weaken,” she observed. “In the AI era, it is important not to blindly trust algorithms. Rather than asking AI whether you are correct, you should ask what you may have gotten wrong.”