Along with geopolitical and technological upheaval, brain capital—the combination of brain health and brain skills -is expected to be the talk of Davos this year.
Shaping smarter, healthier brains is key to harnessing the full potential of both human and artificial intelligence – each enhancing the other, says a January 15 report entitled “Building Stronger Brains in The Age of AI” compiled by the World Economic Forum, in collaboration with the McKinsey Health Institute.
Last year the Forum launched, in collaboration with the McKinsey Health Institute, the Brain Economy Action Forum to bring together a diverse and dynamic group to elevate brain health as a global priority and help tackle major challenges such as:
- Improving cognitive performance to sustain workforce adaptability in the face of technological innovation and AI
- Developing cognitive resilience in the face of geopolitical uncertainty, changes in the job market and digital misinformation
- Improving the diagnosis, treatment, and management of mental health and rising neurodegenerative diseases which risk hurting workforce productivity and increasing healthcare and social costs.
Among other things, the Brain Economy Action Forum is focused on increasing the level of investment in brain capital as a driver of sustainable economic growth and well-being. Partners are developing frameworks and identifying the measurements needed to effectively evaluate holistic health interventions at workplaces. “This will help organizations to make a business case so CEOs and boards see there is a competitive advantage and real economic and societal value from investing in this space,” says Andy Moose, the World Economic Forum’s Head of Health and Wellness, Centre for Health and Healthcare.
Building on this momentum, the Global Brain Economy Initiative will be launched at the annual meeting and brain capital, an asset that has seen its value increase in the age of AI, will be emphasized across 20+ events taking place in Davos January 19-23.
The Global Brain Economy Initiative will provide high level coordination across leading organizations from business, civil society, academia and government to cultivate continued investment in the brain economy and drive coordinated action towards increased brain capital, brain health, and brain skills.
“This initiative was built with the idea that brain capital is critical infrastructure,” physician and neuroscientist Harris Eyre, a senior advisor to the McKinsey Health Institute and Executive Director of the Global Brain Economy Initiative, wrote in a LinkedIn blog post. “When we invest in brain health and brain skills as intentionally as we invest in roads or data centers, we unlock innovation, resilience, and long-term growth. Building brain capital is one of our biggest opportunities for the 21st century – with the potential to generate $6.2 trillion in annual global GDP. “
Sessions in Davos will make a strong case for investing in the brain. Based on 2025 burden projections, brain health conditions (including the primary and associated burden for mental, neurological and substance abuse, disorders, stroke and self-harm) account for 24% of the total global disease burden. While many brain health conditions may not have a known cure, they are treatable. Scaling access to proven brain health interventions could reduce the global burden of disease by more than 260 million disability adjusted life years – a measure that captures both years lost to early death and years lived with illness or disability, according to the report.
But health alone is not enough. Brain skills – the foundational cognitive, interpersonal, self- leadership and technological literacy abilities that enable people to adapt, relate and contribute meaningfully –are equally critical, says the report.
“We run the risk of under investing in our brains at exactly the moment they matter most,” Kana Enomoto, report co-author; Partner, McKinsey & Company; and Director of Brain Health at the McKinsey Health Institute said in a statement. “When brain health and brain skills are neglected – from early childhood development through later life – the consequences extend far beyond health, into productivity, equity, and economic growth.”
For businesses, the case is urgent. Burnout, absenteeism and talent shortages are already hampering growth, says the report. In a world where 59% of the workforce is expected to require upskilling by 2030, strengthening brain capital is necessary as a core talent and innovation strategy.
Organizations that embed brain health and brain skills into their business model will be better positioned to adapt, compete and grow, the report says. It outlines five levers to activate brain capital:
*Safeguard Brain Health: The report urges governments and business to treat brain health as foundational by expanding access to the strategies, services and support mechanisms that safeguard brain health.
*Foster brain skills across people’s life span: Developing these skills requires intentional support in a variety of systems and settings, including early childhood, formal education systems, workplaces and programs to support healthy ageing.
*Elevate brain capital as an area of interdisciplinary research: This involves connecting siloed efforts, attracting more strategic investment and supporting crucial work on measurement.
*Invest in brain capital at scale: The report calls on governments to create enabling environments, investors and philanthropies to expand catalytic capital and businesses to lead by example, testing new approaches and embedding brain skills into talent pipelines.
*Foster sustained action from a broader set of actors: The report urges widening efforts to encourage not just the health or education sectors but finance, labor, technology and other sectors to make brain capital an economic and societal priority.
Building AI and Human Capabilities in Parallel
As AI reshapes work, competitiveness will hinge on combining human and machine strengths, says the report. Many companies hope to turbocharge their businesses with AI “but you can’t do that without investing in the brain and building up human capabilities in parallel,” Lucy Pérez Senior Partner, McKinsey & Company; Global Leader, McKinsey Health Institute, a co-author of the report, said in an interview with The Innovator.
The future socio-economic landscape will be informed by how we bring out the best in both natural and artificial intelligence. “There is a tendency to frame this discussion as humans versus AI. We see it as humans with AI, and how leaders can invest to bring out the best in both,” Shyam Bishen, report co-author, Head, Centre for Health and Healthcare and Member of the Executive Committee, World Economic Forum said in a statement.
“CEOs need to understand the value they are leaving on the table by not investing in brain health and brain skills,” Erica Coe, a co-author of the report; Partner, McKinsey & Company; and Global Executive Director, at the McKinsey Health Institute, said in an interview “Tech alone is not a differentiator, human capability is. The winners won’t be the ones with the most AI. It will be the companies that have employees that are healthy and skilled enough to use the AI well.”
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