The below is the executive summary. You may download the full report on this page.
Maximizing the Benefits of AI
As a major catalyst for the transformation of our era, AI, in synergy with other enabling technologies, can enhance productivity and economic resilience, optimize the functioning of GVCs, and improve infrastructure planning, natural resource management, energy demand forecasting, and climate mitigation. Investing in AI and its applications ethically and inclusively will usher industries into the data economy, expand the labor market, and enhance progress in key sectors such as healthcare and life sciences. More effective public-private partnerships enhance education, skills, risk-based frameworks, interoperability, and capacity building, and make AI applications safer, and more secure and trustworthy.
Building upon the G7 AI Hiroshima Process, the B7 fully supports the G7 in establishing human-centered principles and standards to monitor and guide its evolution, while fostering innovation and interoperability for the benefit of all.
Enhancing Global Trade and GVCs’ Resilience
Critical dependencies should be addressed by coordinating policies, streamlining compliance costs associated with export controls and investment screening regimes, enhancing partnerships with, and investing in Least Developed Countries (LDCs), sharing frameworks to predict supply chain disruptions, and increasing preparedness and security.
In parallel, the G7 strive for a global level playing field by eliminating unjustified existing barriers and refraining from adopting new ones. The B7 is deeply concerned about the future of the WTO and reiterates its support for a rules-based multilateral trading system. Making the WTO Moratorium on Electronic Transmissions permanent is vital, while a sound reform of the Organization remains the overarching priority. The G7 policymakers should limit policy uncertainty and support businesses’ strategies, investments, and confidence. Delivering on the objectives of the PGII and the Build Back Better World (B3W) is paramount for revamping investments and supporting the sustainable growth of market economies.
Tackling Energy, Environmental, and Climate Challenges
The G7 countries’ industrial policies and regulatory frameworks should converge while ensuring energy security, competitiveness, and decarbonization. Investing in sustainable and low-carbon technologies, research and development-oriented projects, and strategic value chains according to the principle of full technological neutrality and enhancing the diversification of cost-efficient transition energy sources’ supplies and carriers would favor the affordability of energy prices during the transition phase. Public-private investment funds, convergent taxonomies and labeling, aligned incentives, and reduced divergencies in carbon markets would support the decarbonization of hard-to-abate industrial sectors, boost circular economy initiatives, energy efficiency, facilities’ reconversions and recycling, and new smart transmission and distribution infrastructures.
For a just transition, the G7 should make the Loss and Damage Mechanism operational, and promote voluntary cooperation and targeted technological transfer, while preserving intellectual and industrial property rights. It should also take into account that just transition requires the build-out of infrastructure to empower consumers and Micro, Small and Medium Enterprises (MSMEs) beyond the most advanced areas.
Embracing the Data Economy and Digital Technologies
The G7 should operationalize Data Free Flow with Trust (DFFT) through the Institutional Arrangement for Partnership (IAP) while promoting a continuous dialogue with the industry to craft regulations for a digital trust framework. Recognized evidence and risk-based standards for data flow transparency and accountability should be established, and incentives to favor trust, privacy, risk mitigation, cybersecurity, intellectual property, and interoperability should be prioritized. Promoting the development of a common G7 quantum computing ecosystem and joint research on post-quantum cryptography will enhance the security and reliability of digital infrastructures and technologies.
Also, the G7 should promote an ambitious connectivity agenda to further accelerate the take-up of advanced technologies, and enhance digitalization by spreading digital skills across businesses, administrations, and societies, notably by leveraging STEM-based pathways and the use of Digital Identity for G2B, G2C, B2B and B2C transactions.
Unleashing Talents’ Potential and Enhancing the Resilience of Welfare Systems
The B7 calls on the G7 to reform the educational systems at all levels to meet emerging job markets’ requirements and new technological trends and to facilitate the transition from education to work. The B7 renews its commitment to bridge between the workforce and employers by identifying labor market gaps, investing in skills development, and funding apprenticeship and mid-career reskilling programs. The B7 urges G7 governments to strengthen active labor market policies, promote entrepreneurship, encourage the social inclusion of underrepresented groups, particularly women and youth, and modernize welfare systems through farsighted fiscal and employment policies providing citizens with long-term equitable access to quality services in healthcare and education and address the old-age dependency.
Measuring Achievements
The B7 Italy 2024 introduces the adoption of leading Key Performance Indicators (KPIs) making the G7 and the other owners accountable for measurable outcomes. To track these KPIs over time and measure progress against the related targets, the B7 recommends the establishment of a joint G7-B7 Monitoring Committee.
