At the World Economic Forum in Davos 2026, radical uncertainty emerged as the dominant theme in boardroom discussions and panel conversations. McKinsey leaders Gautam Kumra and Alex Panas addressed the unprecedented challenges facing global businesses, emphasizing that traditional strategic approaches are no longer adequate for navigating today's complex landscape.

Expanded Risk Landscape Beyond Traditional Concerns

Speaking to CNBC-TV18, Kumra explained that CEOs are confronting challenges far more complex than the tariff risks that dominated Davos conversations just a year ago. The current environment encompasses multiple dimensions of uncertainty that require fundamentally different strategic thinking.

Kumra noted that governments globally have deployed nearly $2 trillion over the past five years on subsidies, incentives, and trade restrictions, dramatically expanding the complexity of the business environment. This massive intervention has fundamentally altered how companies must approach strategic planning and risk management.

Strategic Response Framework for Uncertain Times

According to McKinsey's analysis, the scale and complexity of today's global disruptions mean traditional scenario planning is no longer sufficient. Instead, companies must adopt a new strategic framework focused on three key elements: no-regret moves, bold actions, and maintaining optionality.

Kumra warned that freezing in uncertainty risks long-term decline, while reckless aggression could prove equally damaging. The optimal approach involves balancing defensive measures with selective offensive strategies to emerge stronger from the current period of instability.

Technology and M&A Activity Driving Business Transformation

Panas highlighted that despite widespread uncertainty, CEOs remain focused on fundamental business drivers including growth acceleration, technology-enabled business transformation, and renewed merger and acquisition activity. The approach to artificial intelligence has evolved significantly beyond experimental phases.

"AI has moved beyond pilot projects. The focus now is on ROI, rewiring processes and making technology a CEO and board-level agenda, not just a CIO issue," Panas explained.

M&A activity has returned strongly after years of backlog, supported by higher equity valuations and opportunities to leverage technology as a transformation catalyst across multiple sectors including consumer goods, industrials, energy, and telecommunications.

India's Strategic Position in Global Trade Reshaping

For India and Asia, Kumra identified significant opportunities amid the global rewiring of trade relationships. McKinsey estimates that $12-14 trillion of global trade could be reshaped over the next decade, positioning India at the center of some of the world's safest and fastest-growing trade corridors.

A potential India-EU Free Trade Agreement could further strengthen India's global positioning within this reshaping trade landscape. This represents a substantial opportunity for Indian businesses to expand their international presence and capture value from shifting global supply chains.

AI Implementation as 2026 Defining Theme

Looking toward 2026, Kumra identified converting AI from hype to practical reality as a defining business theme. He emphasized that "the fastest learners will survive," indicating that competitive advantage will increasingly depend on organizations' ability to rapidly adapt and implement AI technologies effectively.

AI will play different roles across various markets, from enhancing productivity in aging economies to driving growth and solving complex problems in developing markets like India. This differentiated approach to AI implementation will be crucial for companies operating across multiple geographic regions and market conditions.