Pope Leo XIV, the first American to lead the Catholic Church, invoked the legacy of Pope Leo XIII during his inaugural address on May 18, 2025. He referenced Rerum Novarum, the 1891 encyclical that first addressed the Church’s response to industrial capitalism. Speaking to over 250,000 attendees and world leaders at the Vatican, Leo XIV promised to restore Catholic ethics in today’s economy and AI-driven society. His message emphasized the Church’s duty to promote justice and fairness during rapid technological change and growing financial inequality.
Pope Leo XIV’s inauguration marked a historic transition from Pope Francis, drawing significant attention worldwide. He warned that the Church must not remain silent as digital transformation and economic imbalance intensify. Analysts see him as uniquely positioned to combine the Church’s moral teachings with the complexities of modern global economics. Leo XIV stressed that the Church should actively engage with emerging technologies, guiding their ethical use to protect human dignity.
Ettore Gotti Tedeschi, former head of the Vatican Bank, praised Pope Leo XIII as a visionary for challenging unchecked corporate power through Rerum Novarum. Tedeschi highlighted the connection between this encyclical and the U.S. Sherman Antitrust Act, passed soon after in 1890. He believes Pope Leo XIV can influence fairness in today’s economy, shaped by artificial intelligence and global monopolies.
The new pontiff urged the Church to confront powerful economic actors with moral clarity. He compared these actors to ancient rulers who must be held accountable. This call echoes previous efforts by Pope Benedict XVI, who co-authored Caritas in Veritate during the 2008 global financial crisis. That document criticized globalization and digital capitalism for neglecting human dignity in favor of profit. Pope Francis later expanded on these ideas, calling AI “a gift from God” during the 2024 G7 summit, while urging careful ethical oversight.
Pope Leo XIV’s American roots have sparked hope for renewed financial strength at the Vatican. Officials expect him to restore confidence among donors and reverse the decline in contributions to St. Peter’s Pence. Historically, the U.S. accounted for half of this fund’s donations, but support has fallen in recent years.
Tedeschi noted that Leo XIV could rebuild American support by reaffirming Catholic values with moral consistency. U.S. Vice President JD Vance recently emphasized that American backing depends on clear ethical leadership from the Vatican. So far, Leo XIV has combined economic awareness with respect for traditional Catholic teachings and aesthetics. His approach signals a bold stance on social ethics without abandoning Church heritage.
Experts and observers now watch whether Pope Leo XIV’s vision will influence economic policy and technology ethics worldwide. His focus on justice, equity, and moral responsibility comes at a time when AI and digital capitalism rapidly reshape societies. By grounding his leadership in the Church’s longstanding ethical traditions, Leo XIV aims to address both spiritual and practical challenges in the 21st century.
The Vatican hopes this renewed moral leadership will guide the global community through an era of unprecedented change, combining faith with practical action.
Pope Leo XIV’s inauguration represents a hopeful new chapter for the Catholic Church. His call to blend tradition with modern challenges seeks to inspire justice, equity, and ethical guidance in a complex world shaped by technology and economic shifts.
