If I were given a dime for each instance the term “AI” was mentioned at the World Economic Forum in Davos this week, I would undoubtedly amass significant wealth.
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The annual Davos meeting is currently in full swing, with AI taking center stage in all discussions. Whether it’s panel discussions or informal coffee gatherings, AI has permeated every aspect. While strolling along the Promenade, the primary thoroughfare in Davos, numerous conversations have commenced with the phrase “I may not be an AI expert, but…”
Nevertheless, several influential figures have conveyed to Business Insider that despite the prevalent interest in discussing AI among companies and governments at Davos, not everyone possesses a profound comprehension of how to effectively leverage it.
Sheila Warren, the CEO of the Crypto Council, notes that there is always a prevailing topic at the World Economic Forum each year: “It’s perpetually a subject, typically superficially addressed with superficial insights.”
Historically, themes such as ESG, bitcoin, blockchain, and VR have dominated discussions. However, this year, the focal point at Davos appears to be AI.
While AI garners significant attention, much of the discourse revolves around potential risks like automation replacing jobs, rather than delving into the technical intricacies or the specific issues it could address, as highlighted by Warren in her conversation with BI.
The emphasis on AI extends beyond mere conversations. Major corporations like Salesforce, Infosys, IBM, and Accenture have prominently displayed billboards and posters along the Promenade underscoring their dedication to AI.
Nigel Vaz, the CEO of Publicis Sapient, a consulting firm, likens the buzz surrounding AI to the nascent stages of the internet. He believes that discussions on AI have intensified because there is now a basic understanding of it within the community.
Vaz speculates that AI discussions are likely to intertwine with other subjects, akin to how the internet transitioned from being a standalone buzzword.
Drawing parallels, he remarks, “In the past, when the internet was the talk of the town, the discourse revolved around how the internet would revolutionize business. While we no longer fixate on it, the internet is inherently interwoven into every conversation we have. I sense AI is poised to follow a similar trajectory.”
A recent Accenture report underscores the pressing need for business leaders to look beyond the impact of generative AI on roles and tasks and instead focus on restructuring processes across their organizations.
The report indicates that nearly 10% of organizations are at the forefront in terms of reinvention capabilities and leveraging generative AI to enhance efficiency and productivity.
Nela Richardson, the chief economist at ADP, asserts that there exists a substantial knowledge gap regarding what constitutes AI. Much of what is being labeled as “generative AI” has existed for decades, while what many perceive as AI is essentially automation.
Richardson suggests, “A true indicator of a company mastering AI is when they confidently attribute a percentage of their revenue to Gen AI during their calls, without encountering resistance from analysts. This level of confidence in their assertions signifies a profound understanding.”
Ivana Bartoletti, the chief privacy officer of Wipro, an IT services company, notes that businesses are currently transitioning from the allure of AI to its practical implementation.
Similarly, Guru Gowrappan, the CEO of ViaSat, a communications operator, observes that while many companies discuss AI at Davos, few are actively engaging with it.
Gowrappan believes that the genuine potential of AI in more intricate tasks such as contextual reasoning and healthcare applications is yet to be fully realized: “The audience here seems to have a superficial understanding.”
