- The rich and powerful are in Davos, Switzerland for the third day of the World Economic Forum.
- BI is talking to people about topics from AI to economics and how consulting firms are preparing for a big year.
- This is what we are hearing on the ground.
The World Economic Forum has brought together the rich and powerful to discuss topics ranging from Donald Trump’s impact on the economy to the impact of AI on their industries.
Here’s what Business Insider is hearing and seeing on the ground.
Trump is the main character here
It seems a conversation in Davos can’t go three minutes without Trump’s name coming up. In an interview at Bloomberg House on Tuesday, Google chief investment officer Ruth Porat she said without looking an “extraordinary opportunity” to work with Trump 2.0.
“I think the president and his team have been clear that they see technology as an asset to the country,” she said. — Hugh Langley
It feels like Europe is missing in action
The need for Europe to grow has been a recurring theme in my conversations with business and government leaders. Geopolitical and economic uncertainty is at the forefront of everyone’s mind.
While business leaders are excited about the new US president and Asia boasts some of the fastest growing economies in the world, Europe seems to be missing out on the action. Walking along the boardwalk in Davos, the presence of American, Asian and Middle Eastern delegations is unmistakable. But where is Europe? And where is Great Britain?
One CEO I spoke to on Tuesday night emphasized that Europe’s regulatory landscape needed to change to make it easier for businesses to operate there. “What Asia is gaining, Europe is losing,” he said.
Another executive noted that Europe was a major topic of discussion at Davos, but its presence felt muted. Srini Pallia, Global CEO of Wiprostressed that growth and regulatory challenges in Europe are the main concerns this year. “I was in a session shortly before this, where the European president was present and she was asked how the EU can reduce the regulatory barriers that are hindering growth. I think this is one of the big conversations happening here.” – Spriha Srivastava
Meta is trying to reassure advertisers about the moderate changes
Mark Zuckerberg’s flaw The makeover has some advertisers worried about what changes in content moderation might do to what people start seeing on Facebook and Instagram.
At a round table in Davos with BI, Nicola Mendelsohn, head of Meta’s global business groupsaid the company had been talking to advertisers for the past few days and trying to reassure them that nothing would change. Mendelsohn said advertisers will still be able to stop ads from appearing next to political content if they want to.
“What they’ve really shared is the reassurance that all the commitments we have to brand safety, brand fit on the platform, none of that changes,” she said. — Hugh Langley
We need a new institution to ensure human-like AI doesn’t harm humanity, says Google DeepMind CEO
Google DeepMind CEO Demis Hassabis I had a busy Tuesday here with two back-to-back Google Haus interviews. If there was one important thing, it was Hassabis saying that we are not thinking enough about the bigger picture of AI. “I think there’s a lot of hype in the short term,” he said. “It’s actually still underestimated, underestimated, the amount of transformation that’s going to happen in the medium to long term, so five to 10 years,” he added.
In response to a question from BI, Hassabis said he believed there were big questions about capitalism and society that needed to be thought about. “One of the big things economists have to think about is what this does to money, to the capitalist system, even to the notion of companies. I think that all changes.”
Hassbis said we need an institution that can “meet the moment” — a governing body that can ensure artificial general intelligence, or AGI, is managed in a way that benefits humanity.
“There you will put a wise council, an international council with very different and smart people from different backgrounds. Not just technologists. I’m talking about philosophers, social scientists, writers, etc. But who is building that institute , is what I would look for and I think we really need that.”
He too discussed his work on protein folding with AlphaFold, which recently won him a Nobel Prize. And who better to discuss science than Bill Nye, “the science guy,” who took the microphone for the second interview. – Hugh Langley
Consulting firms are poised for a big year
Consultancy firms are gearing up for what is expected to be a big year for their business thanks to a host of potential changes on the horizon.
“There are some macro factors that have been in play for a while: AI of course, but also strong economic indicators in the US, as well as the current pro-growth sentiment in the market as a result of the incoming administration. So there could be some upside there in business activity”, Sharon Marcil, president of BCG North America and a managing director and senior partner, he told me.
However, massive growth comes with problems, as was evident in 2021 when increased M&A activity led to employee burnout in financial services.
A complete repeat of 2021’s record year looks unlikely, but there are still staffing considerations. It’s a tricky balance. You need enough workers so that resources don’t run too low, avoiding a glut where there isn’t enough work to go around.
An immediate adjustment is also not easy, as bringing in new talent requires a necessary training period. And good luck telling clients to hold off on deals, especially since so many have been sitting on the sidelines waiting for the market to open.
“For us, periods of increased activity force us to anticipate staffing. And that can sometimes be difficult. There’s a sweet spot between being understaffed and overstaffed. If we find that we haven’t gone far enough, we try other approaches like off-cycle hiring is definitely a balancing act,” Marcil said. – Dan DeFrancesco
Proper snow boots are the way to go here
We’re three days in and we still haven’t touched on one of the most interesting debates I’ve found at Davos: shoes. Since we are in the mountains, the abundance of snow and ice means that choosing typical business shoes or heels is not necessarily your best choice.
Boots of varying degrees of weight and fashion sense are a popular choice. (They don’t call it “suits and boots” for nothing.) Others wear studs that can be worn on and off.
Personally, I’ve gone all in, choosing the right snow boots. Wearing them with my suit every day is a bit … annoying. My daughter thinks I look like Kristoff from Frozen, though, so that’s a win.
Of course, some people throw caution to the wind and still choose their dress shoes. Davos is very much about status, and the luxury of wearing normal shoes since you’re chauffeured speaks for itself. – Dan DeFrancesco