At the World Economic Forum in Davos, executives and policymakers framed artificial intelligence as a fast-moving economic force that could improve areas like health care, education, and productivity, while warning that society and businesses must manage disruption responsibly. Several speakers emphasized that the biggest near-term constraints and side effects are physical—rising demand for energy, water, minerals, and compute—driving a global buildout of AI infrastructure measured in the hundreds of billions of dollars with trillions more projected. Alongside the tech agenda, President Donald Trump’s Davos appearance drew attention to geopolitics and trade, including renewed calls for negotiations to acquire Greenland and tariff threats that add uncertainty for European industries and ...
At the World Economic Forum in Davos, executives and policymakers framed artificial intelligence as a fast-moving economic force that could improve areas like health care, education, and productivity, while warning that society and businesses must manage disruption responsibly. Several speakers emphasized that the biggest near-term constraints and side effects are physical—rising demand for energy, water, minerals, and compute—driving a global buildout of AI infrastructure measured in the hundreds of billions of dollars with trillions more projected. Alongside the tech agenda, President Donald Trump’s Davos appearance drew attention to geopolitics and trade, including renewed calls for negotiations to acquire Greenland and tariff threats that add uncertainty for European industries and supply chains.
Highlights:
- IMF warning: IMF managing director Kristalina Georgieva said AI could lift growth but is hitting labor markets “like a tsunami,” urging countries and companies to focus on building new skills.
- Five-layer stack: Nvidia CEO Jensen Huang described AI’s foundation as a stack starting with energy, then chips, cloud infrastructure, and higher layers, arguing the world is in the middle of the largest infrastructure buildout and that investment scale can create perceptions of an “AI bubble”.
- India’s focus: India’s IT minister Ashwini Vaishnaw said India’s strength lies in the AI “application layer” and emphasized translating models into real-world productivity gains, disputing the IMF’s ranking of AI capabilities.
- Tariffs and autos: DigiTimes reported that President Trump’s linkage of Greenland sovereignty demands with punitive tariffs is casting a shadow over Europe’s auto sector and Asia-connected manufacturing supply chains.
- Davos dynamics: MIT Technology Review’s Davos reporting described AI and President Trump as the dominant topics in side conversations across the meeting.
We see enormous benefits, whether it’s discovery of new materials, new drugs, or tech-driven productivity. But at the same time we really have to watch out for what we’re doing. - Abhijit Dubey
Perspectives:
- Business executives (TIME100 Talks panel): Leaders said AI can unlock breakthroughs and productivity, but must be implemented with attention to workforce transitions and resource intensity such as energy and water use. (TIME)
- International Monetary Fund: The IMF’s managing director highlighted a tension between AI-driven growth and labor disruption, calling for proactive reskilling by governments and businesses. (eWEEK)
- Nvidia: Jensen Huang argued AI is already producing economic benefits and that the scale of required infrastructure investment remains enormous, with energy and compute as foundational constraints. (South China Morning Post)
- Government of India: India’s technology minister positioned the country as strong in practical AI applications and said policy focus is on turning models into deployed solutions that raise efficiency. (Firstpost)
- US administration: President Trump used Davos to reiterate calls for negotiations to acquire Greenland and said he would not use force, while broader tariff threats have added to market and industry uncertainty. (Insider Paper)
- United Nations: UN chief Antonio Guterres warned that leaders “picking & choosing which rules to follow” undermine global order, in comments timed with President Trump’s Davos address. (Insider Paper)
Sources:
- The Download: Trump at Davos, and AI scientists - technologyreview.com
- At Davos, Business Leaders Seek a Human-Centered AI Future - time.com
- Davos 2026: AI takes center stage as leaders debate compute, control, and consequences - digitimes.com
- Davos 2026: AI Anxiety Set to Rise Amid Layoffs and Lawsuits - eweek.com
- World in midst of biggest infrastructure buildout as AI shapes future: Jensen Huang - scmp.com
- At Davos, Jensen Huang says AI is already bringing economic benefits and needs more investment, and an "AI bubble comes about because the investments are large" (Mauro Orru/Wall Street Journal) - techmeme.com
- India ranks among top global AI powers, says Ashwini Vaishnaw at Davos - firstpost.com
- Trump demands ‘immediate negotiations’ to acquire Greenland - insiderpaper.com
- Trump's Greenland Ultimatum In Davos: "Say No And We Will Remember" - ndtv.com
- Trump’s arrival in Davos off to a bumpy start, as his quest for Greenland could take center stage - fastcompany.com
- Is America Really Going to War for Greenland? - reason.com
- European lawmaker uses universal language Trump understands - boingboing.net