Davos 2025: AI Adoption, Agentic AI & Geopolitics Top Tech Agenda
Davos, Switzerland, served as the backdrop for key discussions among tech executives regarding the evolving landscape of artificial intelligence and its impact on global business. The World Economic Forum’s annual gathering revealed a shift in focus from the capabilities of AI models themselves to the practicalities of enterprise adoption and potential future developments. These conversations carry significant weight, potentially influencing the revenue and share prices of major technology firms worldwide.
Enterprise AI Adoption
Businesses are poised to increase their adoption of AI this year, but the approach will differ from the widespread pilot projects seen in 2025. Last year, many companies experimented with AI tools, including chatbots from Microsoft and OpenAI, driven by a “fear of missing out,” or FOMO. Dowson Tong, CEO of Tencent’s cloud group, noted this trend.
However, a more pragmatic approach is emerging. Tong stated that customers are now “a lot more specific” in their AI needs, moving beyond the initial rush to experiment. Raj Sharma, global managing partner for growth and innovation at EY, emphasized the need for businesses to reimagine entire processes to fully leverage AI’s potential, stating, “That’s when you will start seeing the value.”
Agentic AI
“Agentic AI” emerged as a prominent topic at the forum, referring to AI systems capable of performing tasks autonomously on behalf of people. While implementation is underway across various industries, the scale and capabilities of these agents vary considerably.
Uljan Sharka, CEO of startup Domyn, cautioned that these agents are not yet fully autonomous and are unlikely to replace human employees entirely. Fabricio Bloisi, CEO of Prosus, presented a more optimistic outlook, stating that Prosus currently utilizes 30,000 agents and envisions a future where companies could be run by them within the next five years. Bloisi asserted, “I don’t think it’s a hype and hope.”
Geopolitics
The impact of geopolitical instability was a recurring theme in discussions. EY’s Sharma highlighted that geopolitical issues will likely serve as either a “deterrent” or an “accelerant” in the development and adoption of AI.
Physical AI
The concept of “physical AI”—AI applications manifesting in physical forms like robotics and driverless cars—is gaining traction. One attendee even reported encountering a robot at dinner during the Davos event. EY’s Sharma predicted that physical AI could become five to six times larger than agentic AI within five to six years.
Sassine Ghazi, CEO of Synopsys, noted that the development of physical AI is accelerating faster than initially anticipated. Jensen Huang, CEO of Nvidia, identified AI robotics as a “once-in-a-generation” opportunity for Europe, citing the region’s strong industrial manufacturing base.
Frequently Asked Questions
What is Agentic AI?
Agentic AI refers to AI systems designed to carry out tasks on behalf of people, with the ultimate goal of creating autonomous agents requiring minimal user interaction.
How is enterprise AI adoption changing?
Businesses are moving away from widespread pilot projects and a “fear of missing out” mentality towards a more pragmatic and selective approach to AI adoption, focusing on specific needs and process reimplementation.
What role does geopolitics play in AI development?
Geopolitical issues are expected to significantly influence the development and adoption of AI, potentially acting as either a hindrance or a catalyst for progress, according to EY’s Sharma.
As AI continues to evolve, how might the balance between human oversight and autonomous AI systems shift within organizations?