The World Economic Forum in Davos 2025 has become a focal point for discussions about artificial intelligence, with AI emerging as one of the dominant themes alongside political and economic developments. Business Insider journalists on the ground report that agentic AI is dominating conversations among tech leaders and executives gathered at the Swiss resort.
Tech Mahindra’s Abhishek Shankar emphasized the importance of watching smaller AI players in the competitive landscape, noting that “small is the new big” in the current AI trend. During a discussion on Big Tech and AI, Shankar drew parallels to the David and Goliath story, highlighting emerging players like OpenAI, Anthropic, and Mistral as potential disruptors. He predicted that “the next few years are about watching some of these new-age players” and expressed confidence that “a new David will emerge to take that space open.”
The conference has attracted major tech executives, with sightings of Microsoft president Brad Smith and Amazon CEO Andy Jassy at the venue. Questions circulated about whether Sam Altman and other AI leaders who attended Trump’s inauguration would make the trip to Switzerland.
Navan’s CTO Ilan Twig presented an innovative solution to one of AI’s persistent problems: memory retention in chatbots. He revealed a new framework that more closely mimics the human brain, using specialized topic experts that communicate with each other while presenting a unified interface to users. The travel booking firm’s AI agent is already handling 7,000 chats daily, with nearly 60% of inbound requests resolved without human intervention.
Several tech CEOs expressed optimism about the Trump administration’s impact on technology business. Hewlett Packard Enterprise CEO Antonio Neri stated the new administration wants “more business, not less” from a tech perspective, while NTT Data Americas CEO Eric Clark anticipated “opportunities for expansion very quickly,” expecting the administration to be “pro-technology and pro-business.”
IBM Consulting’s global managing partner Neil Dhar noted increased optimism among CEOs and management teams about the macro environment, attributing it partly to clarity following the election cycle. The convergence of AI innovation, political developments, and economic optimism has created a unique atmosphere at this year’s forum, positioning AI as central to discussions about the future of business and technology.
Key Quotes
I’m always reminded of the David and Goliath story, and there are many, many Davids out there today. OpenAI is, of course, one of the known Davids. But if you really watch closely, then you have Anthropic, Mistral, etc.
Abhishek Shankar, president of Tech Mahindra’s communications business in the Americas, emphasized the competitive dynamics in the AI space, suggesting that smaller players could emerge as major disruptors in the coming years.
The next few years are about watching some of these new-age players. They are going to scale up, and the velocity at which they do so will be different from the past. I’m pretty sure a new David will emerge to take that space open.
Shankar predicted rapid scaling of emerging AI companies, indicating that the pace of growth in the AI sector will exceed historical technology adoption patterns.
CEOs and management teams seem to be much more optimistic about the macro environment. I think some of that is probably that the world has gone through a massive election cycle, and I think now that people know the direction of travel.
Neil Dhar from IBM Consulting observed increased business optimism at Davos, linking it to political clarity and suggesting favorable conditions for technology investment and AI deployment.
Our Take
The Davos 2025 discussions reveal a critical inflection point for AI where practical applications are finally matching the hype. Navan’s chatbot achieving 60% automation demonstrates AI moving beyond demos into production-grade solutions. The focus on smaller AI players like Anthropic and Mistral challenging OpenAI’s dominance suggests we’re entering a more competitive and innovative phase of AI development.
What’s particularly significant is the convergence of political support and business enthusiasm. Tech CEOs expressing optimism about the Trump administration’s technology policies, combined with AI dominating conversations, creates momentum for accelerated adoption. However, the “David and Goliath” framing may be premature—OpenAI itself is backed by Microsoft’s billions. The real story is how specialized AI applications like Navan’s memory framework are solving specific problems, moving AI from general-purpose tools to industry-specific solutions that deliver measurable ROI.
Why This Matters
This coverage from Davos 2025 reveals AI’s central position in global business strategy and economic planning. The emphasis on smaller AI players challenging established giants signals a dynamic competitive landscape that could reshape the industry’s power structure. Companies like Anthropic and Mistral gaining recognition alongside OpenAI suggests the AI market is far from consolidated.
The practical AI applications discussed, particularly Navan’s memory-enhanced chatbot framework, demonstrate the industry’s focus on solving real-world problems rather than just theoretical capabilities. With 60% automation rates in customer service, AI is proving its value in tangible business metrics.
The optimistic sentiment from major tech CEOs about the Trump administration’s technology policies could accelerate AI investment and deployment across industries. The convergence of political support, business enthusiasm, and technical innovation creates favorable conditions for rapid AI advancement. For businesses, workers, and society, this signals an acceleration of AI integration into daily operations, potentially transforming customer service, enterprise software, and business processes faster than previously anticipated.
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Source: https://www.businessinsider.com/davos-world-economic-forum-ai-donald-trump-david-beckham-2025-1