2040 Predictions – Impact Lab

By Futurist Thomas Frey

In 2023, I introduced the concept of the Neumann Engine—a self-replicating system for cities to thrive in the AI era by turning economic decline into innovation opportunity. Named after mathematician John von Neumann’s self-replicating machine theories, the Neumann Engine isn’t a single technology or institution. It’s a complete economic operating system that enables cities to generate prosperity through AI-powered entrepreneurship, autonomous coordination, and continuous adaptation.

By 2040, this concept will have evolved into one of the era’s defining megaprojects: The Neumann Engine Mega-Region Initiative—a $1 trillion global fund creating dozens of self-sustaining tech mega-regions across Europe, Asia, and the Americas. Linked AI-driven innovation corridors will connect continents, each designed as a fusion of venture studios, smart logistics, and autonomous governance.

The outcome: cities that don’t just survive AI disruption but use it as fuel for continuous economic reinvention. Self-replicating innovation ecosystems that spread across regions, creating prosperity exactly where traditional manufacturing and service economies are collapsing.

This is how post-industrial cities avoid becoming permanent decline zones—and how the global economy restructures around AI-native innovation rather than trying to preserve jobs that AI makes obsolete.

By Futurist Thomas Frey

Back in 2009, I wrote about the coming era of virtual countries—nations that would exist entirely online, offering citizenship, governance, and services without any physical territory. At the time, it seemed wildly speculative. The technology barely existed. The legal frameworks were nonexistent. The idea that traditional nations would recognize digital sovereignty seemed impossible.

Sixteen years later, we’re watching it happen in real-time. And by 2040, the first fully functional Digital Nation will exist—complete with millions of citizens, recognition from major physical governments, and comprehensive infrastructure operating entirely online. This $500 billion megaproject will redefine sovereignty for the AI era and create the first post-territorial nation in human history.

But we don’t get there in one leap. We get there through a series of escalating events, each building on the last, each making the previously impossible seem inevitable.

Category: 2040 Predictions

The Neumann Engine: Building Self-Replicating Innovation Ecosystems by 2040

The Digital Nation: How We Get to the First Post-Territorial Country by 2040