The World Economic Forum’s (WEF) Global Risks Report underscores artificial intelligence (AI) as one of the key drivers of the significant shifts that the world faces today. And at the ongoing Davos 2024, AI emerges as a new highlight, pushing cryptocurrency to the background.
Davos 2024 highlights AI
In recent years, cryptocurrencies have dominated Davos meetings, with crypto firms occupying a large part of the Davos Promenade. However, Davos 2024 has reversed the trend, shifting the spotlight to AI. AI’s explosive rise is mainly driven by the popularity of ChatGPT, which OpenAI launched in November 2022.
In this year’s Davos meeting, the main strip in the Swiss ski resort town features some of the biggest companies promoting their AI products and services. Notably, several companies have joined hands to host the events space called AI House.
“One topic stood out in Davos last year: Artificial Intelligence. Since then, the conversation has only gotten bigger — and more complicated. As the potential of this new technology reaches broader global awareness, there’s a real need for policymakers, academics, and industry leaders to gather to discuss, pose questions, and offer solutions,” stated AI House on its website.
“With AI House Davos, we are establishing a forum to unite these leaders towards a common goal: Channeling AI’s immense potential for the advancement of humanity,” the statement further read.
This shift away from crypto is also reflected in investment trends. According to PitchBook’s Emerging Tech Indicator, AI and machine learning (ML) startups got an investment boost worth $600 million in the past three months. Meanwhile, Web3 and decentralized finance companies pulled in $100 million.
Additionally, Nvidia, a leading figure in AI in the public markets, witnessed a 239 percent rally in its stock in 2023.
Read: Generative AI market projected to reach $1 trillion by 2031
Not a bad thing
Dante Disparte, Circle’s chief strategy officer, is viewing this new trend in a positive light. Circle issues the U.S. dollar-pegged stablecoin, USDC.
“Today, there are very few crypto houses along the Promenade. They’re all AI houses, which is good. That suggests that this is becoming a background technology,” Disparate told CNBC. He further stated that it’s similar to how the internet went through its dotcom bubble phase.
Apart from Circle, notable institutions like the Global Blockchain Business Council and CasperLabs also represent the industry in the AI-dominated Davos 2024.
Beyond Davos, the industry also shows resilience. The Bitcoin value jumped by 150 percent in 2023. Moreover, the U.S. Securities and Exchange Commission recently approved a Bitcoin exchange-traded fund (ETF), boosting crypto as a legitimate asset class.
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