The World Economic Forum (WEF) took place in Davos, Switzerland last week, bringing together world leaders, making new announcements and highlighting new advancements concerning the global economy and financial industries. Here is a short recap of the relevant
and exciting announcements from the conference.
Over 3000 participants attended the event, including academics, business executives, civil leaders, entrepreneurs, and more. Davos welcomed over 100 governments, all major international organisations, and 1000 partners to the conference, which was focused
on the theme ‘Rebuilding Trust’ from 15-19 January.
Notable attendees were
CEO of OpenAI, Sam Altman, Salesforce executives Amy Weaver and Marc Benioff, UK Ehancellor of the Exchequer Jeremy Hunt, President of France Emmanuel Macron, US Secretary of State Antony Blinken, IMF director Kristalina Georgieva, World Bank President
Ajay S. Banga, and World Trade Organisation director-general Ngozi Okonjo-Iweala.
In the context of several ongoing conflicts, the war on Gaza and in Ukraine, the economic repercussions of the global political situation echoed throughout the conference.
Considering the state of the globe politically, there were several ongoing conflicts with economic repercussions echoing throughout the conference. The complexity of the geopolitical landscape with the war on Gaza and in Ukraine has generated concern from
world and business leaders alike.
Sustainable development at Davos
Exploring the impact that businesses have on climate change, the forum discussed how businesses can act more sustainably and build new economic models that will have a positive impact on the environment.
Gim Huay Neo, managing director of the WEF Geneva, alluded to “regeneration”, an approach that rethinks business supply chains to mitigate risk.
Davos added panels to include further discussion on sustainable values and acting against climate change. From the diseases that can become more prevalent with increased natural disasters such as flooding, drought, and heavy rainfall, to the mental health
effects of climate change, there is much to be considered in what can be done for public health and business responsibility. World-renowned primatologist and conservationist Jane Goodall also spoke on wildlife protection and the impact of climate change.
The need to tackle climate change has become more urgent, as speakers at Davos emphasised progress needed on the energy transition and reorganising the regulatory landscape in Europe concerning the green transition. Financing the transition was a core issue
at the conference, with concerns for funding being raised, sustainable development goals discussed, and strategies such as the European Green Deal and Sustainable Development Goals.
Luc Triangle, general secretary of the International Trade Union Confederation, said on equity and social responsibility when it comes to green transitions
at the summit: “Developed counties have to assist in the financing of climate action in the developing countries, because if we don’t do that, this inequality will only grow and will have winners and you will have losers…rebuilding trust cannot be limited
to only a number of countries. It has to include the whole world.”
John Kerry, Special Presidential Envoy for Climate, from the US, spoke on the momentum behind the energy transition and the driving economic revolution. He stated that the private sector has much to offer the transition.
Overall, the summit highlighted the need for a holistic approach and systemic response to climate change and nature to aid the adoption of sustainable principles and finance the transition to clean and green energy.
AI was a hot topic
CFO and president of Salesforce, Amy Weaver, spoke on how AI is becoming more streamlined and accessible, however, tech firms need to reorganise their data centres to stay ahead of the curve.
Concerning new developments in fintech, a report on the future of global fintech was launched by executive director and co-founder of the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School at Davos, which revealed
that the fintech industry is increasing in demand and branching out its services into other industries and that AI was would be the
widest discussed topic looking into the next five years.
Altman
stated at a panel: "I think AI has been somewhat demystified because people really use it now. And that's, I think, always the best way to pull the world forward with a new technology.”
AI dominated the event, with AI adoption and GenAI developments being fervently discussed by business leaders and regulators alike. Noting the discussions at the summit, head of data science and analytics at Avaloq Gery Zollinger commented:
“The use of the technology in financial services must be coupled with a monitoring framework to constantly improve performance as well as to identify and rectify any potential shortcomings, including unethical outcomes. Ultimately, the AI should act as a
‘co-pilot’, with the final decision being made by an individual. Therefore, we welcome the nature of discussions surrounding AI at Davos, because a measured, collaborative approach to regulation will enable us to successfully evaluate and mitigate risk, while
capitalizing on the vast opportunities presented by this technology.”
Studies on the impact of AI and its ability to bring about significant change was considered, with panellists discussing the reskilling required for individuals in an AI economy, further governance and regulatory frameworks in the field, and the possible
applications of AI within the tech sector.