People’s dependence on digital systems is deeper than ever, leaving individuals and businesses more exposed to cyber risks and data breaches. From the infamous 2017 Equifax incident to the recent cyberattack on Marks & Spencer, online operations remain highly vulnerable. Experts warn that meaningful action may only come after a large-scale digital crisis.
Research indicates that current strategies for managing risk and fostering innovation are flawed. Digital technologies—ranging from social platforms to artificial intelligence—are reshaping society. While these tools are powerful, they also carry risks of malfunction, manipulation, and exploitation. Yet governments struggle to differentiate between innovations that genuinely benefit society and those that create long-term harm.
The digital economy—defined as “businesses that increasingly rely on information technology, data and the internet”—is effectively running a global social experiment. Tech giants often capture most of the benefits while shifting risks onto society. The potential fallout could include cyberattacks crippling essential services like power grids or communications, or even tampering with infrastructure to create dangerous conditions.
Parallels can be drawn with the 2008 financial crisis. American sociologist Charles Perrow described “tight coupling,” where highly interconnected systems lacking redundancy can spiral into catastrophic failures. Today’s digital economy mirrors that model: rapid expansion, interconnected datasets, and platforms increasing interdependency while eliminating safeguards.
The “move fast and break things” culture intensifies risk, with companies absorbing competitors and erasing analog alternatives. This reduces redundancy and accelerates monopolistic control, making the system more fragile and complex.
Unlike the 2008 financial meltdown, today’s warning signs are visible to all. Attacks like WannaCry and NotPetya caused billions in damages, while the 2024 CrowdStrike outage grounded flights and disrupted TV broadcasts. Ransomware, hacks, and data leaks are constant reminders of the fragility of digital infrastructure.
Artificial intelligence compounds these threats. AI-driven hallucinations, misinformation at scale, and increased vulnerabilities to confidentiality and integrity make digital risks more severe. As AI evolves, it amplifies the speed and impact of these dangers.
The central concern is that despite obvious risks, political and regulatory systems remain reactive rather than preventative. As technology continues to accelerate, the likelihood of a systemic digital crisis grows.
