Davos 2024: AI as the Central Theme of the Forum

During the 5th annual World Economic Forum (WEF), leaders of nations, scientists, and economists discussed various topics relevant to the current global situation and prospects.

Technology and AI were the main focus of the discussions, emphasizing their impact on the economy, employment, and security.

I have reviewed the speeches of leaders such as Sam Altman, Satya Nadella, Yann LeCun, and Arvind Krishna. I want to briefly describe the current state of the industry and its trends.

I hope you find the material insightful and that you find all the answers you were looking for.

General Conclusion

The hype around AI has decreased in the last six months. Business circles now express optimism and have already seen a positive impact on their brands. For example, leaders of various conglomerates have started using generative AI to train personnel through L&D programs.

Machine Learning Language (LLM) is being actively integrated into software solutions by companies such as Google, Apple, and Microsoft. AI is improving internal and external processes, optimizing costs, and forecasting in medium and small businesses.

The Davos forum ended with cautious optimism about AI development in 2024, but not without discussing various challenges.

Current Limitations of AI

The primary challenge lies in the fact that LLM has exhausted its potential quickly. There is almost no data left on the network that AI has not processed. English-language materials and openly accessible resources do not contribute to the model's further development, especially in transforming it into a fully-fledged Artificial General Intelligence (AGI).

Bots are often limited to handling only text and are unable to interact with or analyze visual content. While there are exceptions, they typically rely on specific algorithms based on conditions rather than making independent decisions.

Another issue lies in working solely with English-language materials. Specialists are actively working on overcoming the limitations of this industry standard, which hinders local technology development. They focus on AI in various contexts.

Prospects for the Development of AI in the Next Decade

Industry leaders envision technology progressing from experiments to practical use cases and transforming into AGI.  There is some divergence of opinions in this field.

Sam Altman, for instance, is somewhat cautious in his predictions and often refers to the release moment of each subsequent iteration of ChatGPT. New bots caused a sensation in society and business, but excitement soon gave way to disappointment in the slow progress.

On the contrary, Satya Nadella compares the development of AI to the iPhone's modernization, where the difference between two consecutive versions is minor. Still, the progress between the first and last generation is colossal.

At the same time, both experts agree that even the emergence of full-fledged AGI will have a temporary wow effect, after which the interaction with AI will gradually become routine, similar to the case with ChatGPT.

The Impact of AI on Business and Society as a Whole

Considering the state of the AI market in 2023, Precedence Research experts forecast that the industry's value will reach approximately $2.6 trillion by 2032. Arvind Krishna says its capabilities will bring over $4 trillion in revenue to businesses as overall labor productivity increases in all types of companies.

AI is a technology available to anyone with internet access.

Therefore, everyone who invests in acquiring skills to work with modern tools reaps the benefits. These benefits include increased competitiveness in employment, opportunities to use AI to achieve specific business goals, personal earnings, and more.

Challenges AI Creates for the Job Market

IMF data shows that as of the beginning of 2024, AI has already influenced approximately 40-60% of positions. Professionals at different levels now require new skills to work with AI.

The development of AI will bring both improvements and challenges to businesses. Specifically, it will transform the job market, with about 23% of jobs undergoing changes. Around 83 million outdated positions will be replaced by about 69 million new ones.

This doesn't imply that the world is facing a new global economic crisis amid mass unemployment; it is far from it. However, there will be a redistribution of the value of human labor, where skilled professionals with AI skills will emerge as winners.

Implementation of AI Regulation Mechanisms

Since the beginning of 2023, all key players in the AI market, including the United States, Europe, China, India, parts of Africa, and Israel, have actively been developing legislative packages to regulate the use of technology in business. We have already seen some key provisions, but even they are not perfect and do not eliminate all risks.

Participants at the Davos forum expressed great concern about cybersecurity, the ethical aspects of AI use, misinformation, and information hygiene. There are no clear solutions to these problems.

Still, a temporary alternative is the coordinated efforts of institutions led by world leaders to globally educate humanity on the ethics of interacting with AI.

Future Outlook of AI Through the Eyes of Industry Leaders

Leaders at the World Economic Forum expressed cautious optimism about the global economy but also raised concerns about AI's impact on future elections and humanity's responsibility to address the issue.

CEOs from different companies view investments in AI as critical for sustainable development and maintaining competitiveness in target markets. 

Regulating access to confidential information when using AI depends on users' adherence to moral and ethical norms.

Global leaders are actively providing free education to the public on the critical principles of interacting with AI.

Final Thoughts

Summing up the above, we arrive at the key conclusions of the World Economic Forum in Davos:

• Current AI is not perfect and needs improvement.

• A full-fledged AGI is not expected in the near future.

• AI is transforming from innovation to routine.

• The impact of AI is already affecting the job market, and this trend will continue.

• Traditional professions are taking a back seat.

• Requirements for niche experts are changing with a focus on knowledge of AI.

• Businesses and the economy as a whole benefit from AI integration.

• It's worth incorporating AI-based systems into corporate platforms now.

I agree with global leaders that AI has significant potential to address current and future business challenges.

What are your thoughts?

Do you believe it's necessary to actively develop AI and implement new technological solutions, even if it means reducing the workforce?

Share your ideas in the comments!