- The rich and powerful are in Davos, Switzerland for day three of the World Economic Forum.
- BI is talking to people on topics from AI to the economy to how consulting firms are gearing up for a big year.
- This is what we’re hearing on the ground.
The World Economic Forum has brought the rich and powerful together to discuss topics ranging from Donald Trump’s impact on the economy to AI’s impact on their industries.
This is what Business Insider is hearing and seeing on the ground.
Meta is trying to reassure advertisers about its moderation changes
Mark Zuckerberg’s Meta makeover has had some advertisers concerned about what changes to content moderation might do for what people start seeing across Facebook and Instagram.
In a Davos roundtable discussion with BI, Nicola Mendelsohn, head of Meta’s global business group, said the company had been speaking with advertisers in recent days and trying to reassure them that nothing will change. Mendelsohn said advertisers would still be able to stop ads appearing next to political content if they wish.
“What they’ve shared back actually is the reassurance that all the commitments that we have to brand safety, brand suitability on the platform, none of that changes,” she said. — Hugh Langley
Consulting firms are ready for a big year
Consulting firms are ready for what is expected to be a big year for their business thanks to a flurry of potential changes on the horizon.
“There are several macro factors that have been in play for a while: AI certainly, but also strong economic indicators in the US, as well as the current pro-growth sentiment in the market as a result of the incoming administration. So, there might be an uptick in business activity,” Sharon Marcil, BCG’s North America chair and a managing director and senior partner, told me.
A massive ramp-up comes with issues, though, as was evident in 2021 when the surge in M&A activity led to employee burnout across financial services.
A complete repeat of 2021’s record year seems unlikely, but there are still staffing considerations. It’s a tricky balance. You need enough workers so resources aren’t stretched too thin while avoiding a surplus where there is not enough work to go around.
An immediate fix also isn’t easy, as bringing on new talent requires a necessary training period. And good luck telling clients to hold off on deals, especially after so many have been sitting on the sidelines waiting for the market to open up.
“For us, periods of increased activity force us to predict staffing. And that can sometimes be hard. There is a sweet spot between being understaffed and overstaffed. If we find we haven’t gone far enough, we try other approaches like off-cycle hiring. It’s definitely a balancing act,” Marcil said. — Dan DeFrancesco
We need a new institution to ensure human-like AI doesn’t harm humanity, Google DeepMind’s CEO said
Hugh Langley/Business Insider
Google DeepMind CEO Demis Hassabis had a busy Tuesday here with two near-back-to-back interviews at Google Haus. If there was one big takeaway, it was Hassabis saying we’re not thinking enough about the AI bigger picture. “I think there’s way too much hype in the short term,” he said. “Actually it’s underrated still, underappreciated, the amount of transformation that’s going to happen in the medium to long term, so the five to 10 years,” he added.
In response to a question from BI, Hassabis said he believed there were big questions around capitalism and society that need to be pondered. “One of the big things economists should be thinking about is what does that do to money, the capitalist system, even the notion of companies. I think all of that changes.”
Hassbis said we need an institution that can “meet the moment” — a governing body that can ensure artificial general intelligence, or AGI, is managed in a way that benefits humankind.
“That would be where you put a wise council, an international council of very diverse and smart people from different backgrounds. Not just technologists. I’m talking about philosophers, social scientists, writers, et cetera. But who is building that institute, is what I would ask. And I think we really need that.”
He also discussed his work on protein folding with AlphaFold, which recently earned him a Nobel Prize. And who better to discuss the science than Bill Nye, “the science guy,” who took the mic for the second interview. — Hugh Langley
Proper snow boots are the way to go here
Dan DeFrancesco/Business Insider
We’re three days in, and we’ve yet to touch one of the most interesting debates I’ve found at Davos: footwear. Being that we’re in the mountains, the abundance of snow and ice means opting for typical business shoes or heels isn’t necessarily your best bet.
Boots of varying degrees of heftiness and fashion sense are a popular choice. (They don’t call it “suits and boots” for nothing.) Others wear spikes that can be taken on and off.
Personally, I’ve gone all in, opting for proper snow boots. Wearing them with my suit every day is a bit … jarring. However, my daughter thinks I look like Kristoff from “Frozen,” so that’s a win.
Of course, some people throw caution to the wind and still opt for their dress shoes. Davos is a lot about status, and the luxury of wearing normal shoes since you’re being chauffeured around speaks to that. — Dan DeFrancesco
