Policy Backgrounders

Insights from Davos

January 26, 2024

Trusted Insights for What’s Ahead™

The overall temper of the mountaintop meeting in Davos this year was much more burdened by a profound understanding of the expansive scope of change underway and was overlaid with a somewhat forced optimism about our ability to traverse these changes and manage positive outcomes. 

• AI’s explosive entry and adoption in the global economy and “complex” geopolitics, two interwoven historic events, dominated the discussions which had promised a more varied set of issues. The “urgency of now” rang loudly on both. 
• Every company with a storefront on the promenade touted the importance of AI and the many discussions underscored the historic and rapid introduction of this technology’s advances—10 times faster than any other previous technology breakthrough. The main theme of the multiple and varied discussions on AI was that this fast-paced adoption and the fear of being left behind are compounding the need for CEOs, their C-suites and policymakers to understand this technology, to join in reskilling a global workforce, and to undertake the very hard task of placing responsible guardrails while not crippling innovation. 
• Compounding the impact of AI on the global economy is the geopolitical disruption. On the geopolitical front, the return of a large and senior Chinese delegation led by Chinese Premier Li Qiang, was very much welcomed by the Davos participants who were concerned the meetings had been devolving into the West talking to itself. 
• But the message from China was very clearly China-focused—the Chinese market is a good investment. Left unanswered was whether China would leverage its global status to help solve the two very hot wars that threaten escalation in major global centers—Europe and the Middle East, and not create a third over Taiwan. 
• While President Zelensky made a forceful case for support for Ukraine that sparked a standing ovation, serious questions remained as he left the Davos stage, as to whether Ukraine would receive it and how and when this devastating conflict would end. Similar questions remained regarding the tragic war in the Middle East, which continues to threaten broader escalation either by design or miscalculation. 
• US Secretary of State Blinken and National Security Advisor Sullivan each made strong appeals that these crises could lead to more peaceful and stable solutions, if we have the political will.
• Davos is providing the platform for important meetings among critical players in these crises and they hold the hope for positive movement. But, that “if” regarding political will remains a big “if” without all the major powers and players fully engaging. 
• And, in a year with over 50 elections and 4 million casting votes, the US presidential election is the biggest unknown, casting a shadow on CEOs’ predisposition to be optimists and political leaders’ ability to chart paths forward on global security and the global economy.