WEBVTT 00:00:04.404 --> 00:00:05.839 Hi everybody, welcome. 00:00:05.839 --> 00:00:08.141 Joining us again in Gyeongju 00:00:08.141 --> 00:00:09.843 APEC 2025. 00:00:09.843 --> 00:00:14.714 I'm here with David Hill, our AP CEO, to have a quick interview, 00:00:14.748 --> 00:00:20.387 and share his thoughts on the government and business relationship. 00:00:20.620 --> 00:00:25.058 And the key, priorities that we have learned from the APEC 00:00:25.058 --> 00:00:29.162 participants as the next market disruption and challenges going forward. 00:00:29.195 --> 00:00:34.501 Obviously, we are living in an era of uncertainty and disruptions. 00:00:34.501 --> 00:00:38.271 And I think, you know, our APEC CEO Survey is also going to show, 00:00:38.271 --> 00:00:41.274 the specifics of what the CEOs are challenging. 00:00:41.408 --> 00:00:44.878 Among that, you know, what what would you advise 00:00:44.878 --> 00:00:49.849 the CEOs out there to capture the new opportunities 00:00:50.150 --> 00:00:53.653 without falling behind on these uncertain times with all the disruptions? 00:00:53.853 --> 00:00:59.025 There's a term, Tae, that we use at Deloitte called Expansive Resilience, 00:00:59.025 --> 00:01:02.228 which is really trying to turn volatility 00:01:02.228 --> 00:01:05.231 and uncertainty into opportunity. 00:01:05.398 --> 00:01:07.801 And that requires a lot of agility. 00:01:07.801 --> 00:01:13.106 The ability to be adaptable and to shift and be flexible in our strategies. 00:01:13.139 --> 00:01:16.376 There's been a lot of complexity and ambiguity in the world, 00:01:16.543 --> 00:01:20.947 and that requires us to test and learn, to experiment, to pivot. 00:01:21.481 --> 00:01:25.618 But also as leaders, there's inherent qualities that we must possess, 00:01:25.618 --> 00:01:29.722 that sense of resilience, curiosity, perseverance. 00:01:30.023 --> 00:01:34.394 So within, in APEC, we did a survey to all the CEOs, 00:01:34.461 --> 00:01:37.964 that were participating, and we had asked them, what are the, you know, 00:01:37.964 --> 00:01:42.001 common challenges that they foresee, to be, sort of a priority for them. 00:01:42.235 --> 00:01:45.171 And among them were AI, cyber risk, 00:01:45.171 --> 00:01:48.174 supply chain resilience and sustainable growth. 00:01:48.174 --> 00:01:51.311 from all matters that would be that would require sustainable growth. 00:01:52.545 --> 00:01:55.348 From your opinion, what type of investment priorities or strategies 00:01:55.348 --> 00:01:58.418 do you think that our CEOs should implement on these matters? 00:01:58.485 --> 00:02:01.821 To kind of come over the top and survive? 00:02:02.155 --> 00:02:06.126 Yeah, it requires, I think, a sense of portfolio theory. 00:02:06.126 --> 00:02:10.029 And that's what we're seeing. In the survey, more than half 00:02:10.029 --> 00:02:13.199 said they were boosting investment in sustainability. 00:02:13.433 --> 00:02:18.238 So actually doubling almost from 29% of CEOs last year 00:02:18.238 --> 00:02:22.375 saying they were investing in sustainability. This year, 59%. 00:02:22.876 --> 00:02:27.714 And similarly more than half were boosting their investment in AI. 00:02:27.914 --> 00:02:31.885 So it's actually covering the two bases because if for example, 00:02:31.885 --> 00:02:36.623 we go all in on AI, which we know is a heavy consumer of electricity, 00:02:36.956 --> 00:02:40.627 then some of our ESG objectives and goals can go out 00:02:40.627 --> 00:02:41.261 the window. 00:02:41.261 --> 00:02:47.467 So actually making sure that we have a portfolio of investments and pursue each of them. 00:02:47.467 --> 00:02:52.038 So again, you could have, for example, a focus on digitization, 00:02:52.405 --> 00:02:55.341 AI, increasing e-commerce, 00:02:55.341 --> 00:02:59.512 but you've got to couple that with an investment in cyber security. 00:02:59.512 --> 00:03:02.949 So always looking at offense and defense. 00:03:03.082 --> 00:03:05.151 Well, a little more on sustainability. 00:03:05.151 --> 00:03:08.621 Which kind of naturally brings up the ESG matter, 00:03:08.621 --> 00:03:11.858 which has been a kind of hot topic here in APEC as well. 00:03:12.258 --> 00:03:15.461 I think particularly in Asia, where, you know, 00:03:15.495 --> 00:03:19.666 the individual countries have very different, challenges that they're facing. 00:03:19.766 --> 00:03:21.134 Situations are all different. 00:03:21.134 --> 00:03:24.204 But the press for ESG still is there. 00:03:24.404 --> 00:03:27.574 You know, from your perspective, what are the ESG 00:03:27.574 --> 00:03:30.643 challenges that you've seen throughout Asia, among the companies? 00:03:30.877 --> 00:03:34.547 And what would be the right kind of steps and remedy plans that they could take, 00:03:34.847 --> 00:03:36.516 just to stay afloat? 00:03:36.783 --> 00:03:40.253 So I think there's a few, comments I would make on that. 00:03:40.253 --> 00:03:43.923 Obviously, I've just covered a bit on sustainability, so it's terrific 00:03:44.190 --> 00:03:48.027 to see that CEOs across Asia are embracing that. 00:03:48.027 --> 00:03:51.030 And in fact, when we look at Latin America, 00:03:51.130 --> 00:03:55.468 North East Asia, Southeast Asia, those investments 00:03:55.468 --> 00:03:58.805 in sustainability, per our survey are particularly high. 00:03:59.272 --> 00:04:02.008 But then there's also governance related issues. 00:04:02.008 --> 00:04:05.345 And probably the governance related issue of our time 00:04:05.345 --> 00:04:08.648 is the governance of AI. Really, really important 00:04:08.648 --> 00:04:13.786 that social interest test, trustworthy AI, responsible, safe, 00:04:13.786 --> 00:04:20.226 secure, accountable AI. So important we can never blame it on the AI. 00:04:20.393 --> 00:04:23.563 We ourselves as leaders are ultimately accountable. 00:04:23.963 --> 00:04:26.666 And so governance of AI 00:04:26.666 --> 00:04:29.669 really really important topic for boards today. 00:04:29.836 --> 00:04:32.839 Well while we're on the topic, I mean, you are also 00:04:32.839 --> 00:04:35.475 at the top of our Asia Pacific leadership 00:04:35.475 --> 00:04:40.446 How does Deloitte, do you think, would differentiate on ESG matters? 00:04:40.446 --> 00:04:44.550 And what do you foresee would be kind of like our next priorities on ESG, for the next few years? 00:04:44.550 --> 00:04:48.521 It's a great question, and I'm really proud that we've sort of focused. 00:04:48.521 --> 00:04:51.524 Right. We've picked the little acronym - SIT. 00:04:51.524 --> 00:04:55.962 It's about Sustainability, Inclusion and Trust. 00:04:56.195 --> 00:04:57.363 Under sustainability. 00:04:57.363 --> 00:05:01.634 We're looking at sustainable AI and sustainable technology. 00:05:01.901 --> 00:05:02.802 On inclusion, 00:05:02.802 --> 00:05:06.172 we're looking at health access, including access 00:05:06.172 --> 00:05:09.175 to health across the Asia Pacific region. 00:05:09.275 --> 00:05:12.979 And then under trust we're focusing in on trustworthy AI. 00:05:13.246 --> 00:05:17.984 So that's really the focus of our ESG and purpose related activities. 00:05:18.151 --> 00:05:22.822 Moving on to AI and ethics, obviously, whether it's Korea 00:05:22.822 --> 00:05:26.659 or whether it's China, Japan all around APEC, Asia Pacific, 00:05:26.959 --> 00:05:31.297 AI is becoming a thing where it's the biggest priority for all the CEOs. 00:05:31.464 --> 00:05:31.798 Yeah. 00:05:31.798 --> 00:05:35.034 Then we get to kind of get to the line of the ethics of AI. 00:05:35.168 --> 00:05:38.271 Where the technology investment has to meet 00:05:38.271 --> 00:05:41.240 with the right kind of regulatory controls. 00:05:41.774 --> 00:05:45.778 And I think a lot of CEOs are finding difficulties and balancing between that. 00:05:45.778 --> 00:05:50.850 Any type of, advice you can give on specific, type of, 00:05:50.917 --> 00:05:56.589 practical designs that you believe that these companies could implement 00:05:56.856 --> 00:06:00.760 to continue the well balance between the investment 00:06:00.993 --> 00:06:03.830 and also the governance. 00:06:03.830 --> 00:06:04.897 So two comments. 00:06:04.897 --> 00:06:09.535 One, I think this is a real significant opportunity for Deloitte. 00:06:10.069 --> 00:06:12.839 If you look at AI and for example, 00:06:12.839 --> 00:06:15.842 they need to ensure that it's free from bias 00:06:16.275 --> 00:06:19.345 and that the algorithms are safe and responsible. 00:06:19.612 --> 00:06:22.615 That's a massive role for Deloitte. Huge role. 00:06:22.815 --> 00:06:25.852 Then also AI can do a lot of good. 00:06:25.852 --> 00:06:30.022 You would know Tae, one prompt uses one bottle of water. 00:06:30.323 --> 00:06:33.726 That's extraordinary in terms of the impact on the environment. 00:06:33.726 --> 00:06:37.663 So at Deloitte we have a thing called environmentally conscious code. 00:06:38.131 --> 00:06:40.666 And we've actually designed an AI tool 00:06:40.666 --> 00:06:44.237 that looks at code because there's, you know, decades of code. 00:06:44.637 --> 00:06:50.643 A lot of that code is inefficient, a lot of it's not even used or it's poor quality coding. 00:06:51.144 --> 00:06:55.948 And so this enterprise conscious code, developed out of India, enhances 00:06:55.948 --> 00:07:01.687 the efficiency of algorithms and code, therefore reduces the burden on our environment. 00:07:01.687 --> 00:07:05.224 So great opportunity for us, but also AI itself. 00:07:05.224 --> 00:07:09.529 And some of these AI tools can be used for great effect. 00:07:09.595 --> 00:07:14.233 APEC CEO Summit is right at the center of all the agenda that APEC is covering. 00:07:14.901 --> 00:07:17.236 Obviously the collaboration between business and government 00:07:17.236 --> 00:07:20.573 is starting to get, more important, I think becoming more prioritised. 00:07:20.940 --> 00:07:25.978 The collaborative framework that we need to focus on is going to be very critical 00:07:25.978 --> 00:07:29.782 for all the countries. Any type of advice or observation 00:07:29.782 --> 00:07:33.553 that you learn from the last few days that you would like to address here. 00:07:34.353 --> 00:07:38.324 I would just observe that this is an extraordinary opportunity. 00:07:38.324 --> 00:07:41.360 And I just am so grateful to the 00:07:41.360 --> 00:07:45.998 forsight of the Korean firm to ensure that as Deloitte, 00:07:45.998 --> 00:07:50.970 we are the exclusive knowledge partner because there's been a real opportunity for us 00:07:50.970 --> 00:07:57.009 at Deloitte to shape conversations, feed the data and insights into those conversations, 00:07:57.343 --> 00:08:01.981 and for our brand to be front and center at an extraordinary summit. 00:08:02.548 --> 00:08:06.118 The meeting of the two, leaders of the two 00:08:06.118 --> 00:08:10.156 most important powers in the world today is occurring here. 00:08:10.923 --> 00:08:14.494 You know, we were honored to share the stage with two presidents. 00:08:14.494 --> 00:08:16.128 It's remarkable. 00:08:16.128 --> 00:08:21.734 So I think all I would say to all of our colleagues is we ought to use every opportunity 00:08:21.734 --> 00:08:26.772 like this to spend time with our clients, to engage, to have meaningful conversations, 00:08:27.240 --> 00:08:31.310 to shape the issues that matter and really deliver on our purpose. 00:08:31.978 --> 00:08:37.617 And our purpose is twofold. Our ambition is to be one of the most responsible and respected 00:08:37.617 --> 00:08:41.787 organizations, and I think we've really delivered on that at this summit. 00:08:42.255 --> 00:08:46.492 We also have a purpose statement to make an impact that matters. 00:08:46.792 --> 00:08:49.795 And I believe here at this summit, we've done exactly that. 00:08:49.929 --> 00:08:54.333 Well, to close up, I believe the APEC, the whole point of a APEC is kind of 00:08:54.333 --> 00:08:57.603 look at Asia Pacific from government 00:08:57.603 --> 00:09:00.606 perspective or from business perspective overall. 00:09:00.740 --> 00:09:04.911 I think with all the agenda that's going on and, and potentially 00:09:04.911 --> 00:09:09.815 all the matters that you've already covered today during the interview, I believe Deloitte's role, 00:09:10.082 --> 00:09:15.154 could be very significant for not only businesses but our government partners. 00:09:15.621 --> 00:09:21.093 What type of role do you think, as Deloitte, that we should all keep in mind and continue 00:09:21.093 --> 00:09:25.698 to have in our hearts, as sort of the last advice that you would give towards Deloitte network? 00:09:25.831 --> 00:09:31.370 Yeah, I would say there's a couple of areas and when we looked at the survey, 00:09:31.470 --> 00:09:34.473 on policy and role of government, 00:09:34.941 --> 00:09:38.644 there was two things that, that our CEOs said. 00:09:38.644 --> 00:09:43.716 One, 50% of them said they want greater harmonization 00:09:43.983 --> 00:09:46.118 of cross-border rules and regulations. 00:09:46.118 --> 00:09:48.154 Right, now we play a big part on that. 00:09:48.154 --> 00:09:51.257 So for example, digital reporting standards, Deloitte 00:09:51.257 --> 00:09:54.894 can really invest heavily in that and, play a key role. 00:09:55.194 --> 00:09:56.262 That's really important. 00:09:56.262 --> 00:09:59.265 And then the other thing they called for, which was interesting, 00:09:59.432 --> 00:10:04.036 was clearer sort of sovereign data and digital guidelines. 00:10:04.236 --> 00:10:08.074 And we've got a really amazing offering around that, you know, led by Nitin Mittal. 00:10:08.341 --> 00:10:12.945 It's all about sovereign AI and helping governments and countries 00:10:12.945 --> 00:10:15.948 around the world establish their sovereign 00:10:16.148 --> 00:10:19.986 AI capability with data sovereignty, data security, 00:10:20.186 --> 00:10:23.322 respecting privacy, copyright, confidentiality. 00:10:23.556 --> 00:10:28.127 So a real opportunity for us to be at the heart of those policy issues of today. 00:10:28.728 --> 00:10:29.695 Well, thank you very much David. 00:10:29.695 --> 00:10:34.433 I think that was it, folks, to hear from David Hill on APEC 2025 Summit. 00:10:34.467 --> 00:10:37.303 And hopefully we'll continue to hear from more from David later. 00:10:37.303 --> 00:10:39.238 Thank you David, I appreciate it. Appreciate it.