Business leaders predict no recession in 2024, but are hesitant to discuss Israel at Davos.

• The annual World Economic Forum is wrapping up Friday in Davos, Switzerland.
• Business leaders and experts at the conference were of the opinion that the U.S. will avoid a recession this year.
• Many attendees downplayed the risks of AI technology while companies showcased their AI products throughout the week.

The 2024 World Economic Forum in Davos, Switzerland will conclude on Friday. Billionaires and world leaders are returning to Zurich or heading to the Swiss Alps for a long weekend of skiing.

The annual gathering's conversations mirrored the topics circulating in the corporate sphere, including the advantages and disadvantages of AI and the political dangers affecting the worldwide economy.

We learned valuable insights from our discussions with business leaders and government officials at Davos.

Experts see no U.S. recession in 2024

According to private conversations with economic experts and executives, there is a high level of confidence that the US will avoid a recession in 2024. The Fed's potential interest rate cuts and increasing consumer confidence contribute to this optimism, although the possibility of a major geopolitical crisis remains a concern.

Little talk about Israel-Hamas

Despite its significance, the Middle East crisis was not discussed extensively in breakout panels or planned corporate events at Davos. Possible reasons include the lack of obvious solutions or the reluctance of many attendees to address the conflict in Gaza due to fear of irritating others or starting a rhetorical firestorm.

Few U.S. executives spoke up on the potential dangers of another Donald Trump presidency because staying cautious may not be courageous, but it's just better for business.

The conference lacked discussions on the global rise of antisemitism, as Andrew Ross Sorkin pointed out in The New York Times.

Goodbye crypto, hello AI

This year at Davos, AI has become the hot topic of discussion, surpassing crypto as the center of attention.

Along the main street in Davos, numerous companies showcased their AI technology. Tech leaders, bank executives, and musicians such as Wyclef Jean and Will.i.am spoke about the potential of AI. Will.i.am also announced his upcoming SiriusXM radio show, which will feature an AI co-host.

AI won’t kill us

The tone of discussions about AI was optimistic rather than dystopian, with OpenAI CEO Sam Altman stating that AI will change the world less than expected.

AGI, which is technology that allows AI systems to perform tasks at the same level or better than humans, was the topic of discussion when Altman spoke.

Indeed.com reports that about 20% of job postings are "highly exposed" to AGI, which may ease the concerns of workers after a busy year for labor unions.

Despite significant advancements in AI, job listings continue to exceed pre-pandemic levels in many countries, as reported by Recruit Holdings, the parent company of Indeed and Glassdoor. Altman has revised his views on AGI: while he previously believed that robots would replace us all, he is now impressed by how companies are utilizing it to enhance human work.

China fighting for cash

Li Qiang, the Chinese Premier, spoke to a Davos crowd on Wednesday about China's slower GDP growth of 5.2% in 2023 compared to its pre-pandemic growth. The country is facing a semiconductor trade war with the U.S., losing foreign direct investment, and has been surpassed in population by India. There are concerns in China about how to sustain growth as the U.S. seeks to isolate Beijing.

Ian Bremmer, president and founder of Eurasia Group, stated in an interview that Li's decision to reveal the figure publicly to an international crowd seeking investment opportunities may have been prompted by the need to attract investment.

According to Bremmer, China is facing major economic challenges, with many Western companies cutting back on investments and changing their growth strategies.

Even though China's growth rate is only 3% to 4%, it is still significant for many companies attending the World Economic Forum this year, according to Bremmer. He believes that China's reduced growth is a long-term challenge, and it is forcing the Chinese government to engage more constructively with the private sector.

Davos is still popular — creating headaches

The Davos conference has become so popular that the city's infrastructure is struggling to accommodate it. Shuttles and Ubers were packed during the day, and hotel rooms were in high demand, with prices exceeding the accepted expense threshold for Swiss government officials.

The World Economic Forum saw a decrease in time spent in the Congress Center, the main event space, due to the numerous satellite events taking place around it.

Maybe generative AI can create new roads and accommodations to handle the increased traffic.