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2026: The Tipping Point For AI Investment Amid Growing Uncertainty

As global financial institutions cast a wary eye on artificial intelligence, top analysts at Deutsche Bank warn that 2026 may signal a turning point. Their analysis suggests that while AI remains a transformative force, its current benefits are largely confined to Silicon Valley and early adopters, with broader commercial impact yet to materialize.

Limited Impact Of AI

Adrian Cox and Stefan Abrudan, senior analysts at Deutsche Bank, argue that the promises of AI are not uniformly translating across industries. They note that many companies lack the data and infrastructure to harness AI at scale. While innovations such as enhanced coding tools and independent AI agents have captured headlines, the practical integration of these advancements into everyday business operations remains a significant hurdle.

Development Bottlenecks And Supply Chain Complexities

The analysts highlight several bottlenecks that plague the AI race, including limitations in compute capacity, energy demands, and talent shortages. The intricate supply chain that underpins AI technology is extraordinarily complex, with even minor disruptions holding the potential to derail progress. An acute shortage of memory, as workloads shift from model training to everyday applications, further complicates the picture, drawing attention away from even more critical issues such as data center energy supply.

Escalating Concerns Amid Investment Frenzy

Despite these challenges, investor enthusiasm remains robust. Giants like Amazon, Microsoft, and Google continue to invest billions in expanding cloud infrastructure, while smaller players are emerging to challenge established behemoths. An international dimension is also at play, with initiatives such as sovereign cloud services in Europe and data embassy projects in Saudi Arabia reflecting a global race to secure AI capabilities.

Rising Anxiety And Geopolitical Tensions

Looking ahead to 2026, Cox and Abrudan caution that anxiety over AI will intensify, fueled by legal disputes over issues ranging from copyright infringement to privacy and safety concerns related to chatbot behavior. Although fears of widespread job displacement are widespread, the analysts remain skeptical that AI alone will account for massive workforce reductions. Nonetheless, the growing geopolitical rivalry between the U.S. and China adds another layer of complexity to an already volatile landscape, as both nations vie for dominance in setting global standards.

As markets navigate these turbulent waters, the coming year promises to test the resilience of AI-driven growth. For investors and executives alike, understanding these multifaceted challenges will be critical to harnessing the long-term potential of artificial intelligence.

Women Make Up A Majority Of The EU’s Science And Technology Workforce But The Real Gap Is Elsewhere

Women now make up the majority of the EU’s science and technology workforce. According to Eurostat, in 2025, more than 81.6 million people aged 15 to 74 were employed in science and technology occupations across the EU. Of those, 52.5% were women, equal to 42.8 million women. The number of women in these occupations rose by 27.9% compared with 2015, an increase of more than 9.3 million over a decade.

On the surface, the numbers resemble progress. However, Eurostat’s category requires context before that figure can be read accurately. The data refers to HRST, or Human Resources in Science and Technology, specifically people employed in science and technology occupations. These are roles where the main tasks require professional or technical knowledge in physical and life sciences, but also in social sciences and humanities. That definition is wider and broader than engineering, ICT, laboratory science, or high-tech research alone.

Zooming In

The gender picture changes once the data moves from a wider definition of the workforce to the narrower scientist-and-engineer (research and manufacturing) subgroup.

Scientists and engineers represented almost a quarter of all people employed in science and technology in the EU in 2025. Eurostat describes scientists and engineers as often being the innovators at the centre of technology-led development, making them an important subgroup to focus on separately.

Women accounted for only 40.8% of scientists and engineers in 2025, despite making up more than half of the wider category. That share has increased by a mere 0.5 percentage points over the past decade. The absolute number of women working as scientists and engineers rose from 5.3 million in 2015 to 8.2 million in 2025, despite the push from national and international organisations to increase the number of women in the field. Europe has expanded the number of women in science and technology occupations over ten years. However, that expansion has not extended equally into the scientist-and-engineer subgroup, where much of Europe’s research and innovation work is conducted.

In 2025, of the 39.4 million women aged 25 to 64 working in science and technology occupations in the EU, 35.5 million worked in service activities. Only 2.7 million worked in manufacturing. Women accounted for 57.5% of science and technology employment in services, but only 31.3% in manufacturing.

In 2025, the highest shares of women employed in science and technology occupations were recorded in Latvia at 62.4%, followed by Hungary’s Great Plain and North region at 61.1%, Estonia at 60.5%, Poland’s Central macroregion at 60.4%, and Lithuania at 60.3%. No EU country recorded a majority of women among science and technology workers in manufacturing.

Break-down

Eurostat’s figures measure employment in broad science and technology occupations. They do not show job security, pay levels, management roles, promotion rates, research leadership, or whether women are concentrated in junior or senior workplace positions.

The classification of “senior” also requires additional explanation. Eurostat reports that 45.9% of science and technology workers aged 25 to 64 in the EU were classified as “senior” HRST in 2025. In this dataset, “senior” refers to workers aged 45 to 64. It does not mean senior manager, senior researcher, team lead, or decision-maker.

A high female share in the wider Human Resource Science and Technology (HRST) category does not parallel equal representation across scientists, engineers, manufacturing roles, senior posts, pay, research funding, or decision-making. These figures also reflect the occupational mix inside each country or region, not only structural progress across all areas of science and technology.

The Case Of Cyprus

Eurostat data places Cyprus’s overall science and technology employment at 37.2% of the labour force in 2025, slightly above the EU-27 figure of 36.9%, and above Greece at 26.8%, Malta at 33.9%, and Turkey at 18.2%. This figure covers the total share of the labour force employed in science and technology across all genders.

Progress Or Work-in-Progress?

52.5% in the broad category. 40.8% among scientists and engineers. 31.3% in manufacturing. Europe’s gender gap in science and technology hasn’t closed yet, and there is still work to be done to encourage and support more women to enter the field, especially in research and manufacturing.

Let’s not wait another decade for another couple of percentage points of hope.

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