AI takes center stage, edging out cryptocurrency at World Economic Forum 2024

In a notable shift at the 2024 World Economic Forum in Davos, artificial intelligence (AI) has eclipsed cryptocurrency firms along the main strip, signaling a change from the dominance of crypto in previous years, as reported by CNBC.

Cryptocurrency companies held sway over the Davos scene for several years, promoting their innovations. However, this year witnessed a surge in AI presence, with major global companies showcasing their AI products and services boldly declaring, "The future is AI."

This shift is attributed to the significant surge in AI investments and interest sparked by the popularity explosion of ChatGPT, the AI chatbot developed by OpenAI and launched in late 2022, according to CNBC. Companies such as Intel and Salesforce adorned their properties with AI slogans, underscoring the fierce competition among global tech giants vying for leadership in the AI realm.

The prominence of AI was evident not only in company displays but also in dedicated spaces like the "AI House," hosted by Swiss telecommunications firm Swisscom, as reported by CNBC. This shift marks a departure from previous years when cryptocurrency-related themes dominated discussions.

The dominance of AI aligns with investment trends, as PitchBook’s Emerging Tech Indicator revealed that AI and machine learning startups received over USD 600 million in the third quarter, overshadowing the approximately USD 100 million garnered by Web3 and decentralized finance companies.

Nvidia, a notable player in the AI sector, experienced a remarkable 239% stock rally in 2023, further fueling the momentum for AI technologies. Despite this shift, the cryptocurrency industry seemed accepting of the change.

Dante Disparte, Chief Strategy Officer for Circle, a major player in the stablecoin market, noted that the evolution signifies that AI is becoming a background technology. He highlighted the crypto industry’s shift towards traditional banking, finance, and payments, emphasizing that the focus is transitioning from explaining technology to delivering results.

While some crypto firms still maintained a presence at Davos, including Circle and blockchain firm CasperLabs, the overall crypto representation appeared more muted. The industry, buoyed by Bitcoin’s 150% rally in 2023, is increasingly seen as having established itself, with the recent approval of a Bitcoin ETF by the US Securities and Exchange Commission solidifying crypto’s status as a legitimate asset class, according to industry insiders.