AI Takes The Spotlight, Pushing Crypto To The Background

Artificial intelligence (AI) has dethroned cryptocurrency as the main attraction at the 2024 World Economic Forum (WEF) annual meeting, marking a significant shift in the tech landscape. The rise of AI, fueled by the popularity of tools like ChatGPT and Google Bard, has pushed crypto firms, which dominated past meetings, to the sidelines.

This year’s Davos Promenade, the main strip in the Swiss ski resort town, features prominent tech companies showcasing their AI products and services. Notably, several firms have joined forces to create “AI House,” a dedicated space for discussing and exploring the technology’s potential.

Davos 2024: Crypto Gives Way To AI

Image: AI House

According to AI House’s website, artificial intelligence was a prominent issue in Davos last year. The discussion has only grown larger and more intricate since then. There is an urgent need for legislators, academics, and business leaders to come together to talk, ask questions, and provide solutions as the potential of this new technology becomes more widely recognized worldwide.

The shift away from crypto is evident in investment trends as well. According to PitchBook data, AI and machine learning startups attracted $600 million in investments over the past three months, compared to just $100 million for Web3 and decentralized finance companies. Additionally, Nvidia, a leading AI player, saw its stock price surge 240% in 2023.

Total crypto market cap at $1.639 trillion on the daily chart: TradingView.com

Crypto’s Evolution: From Fringe To Mainstream

Dante Disparte, Chief Strategy Officer at Circle, a prominent stablecoin issuer, expresses optimism about this trend. According to him, there are currently few crypto houses along the Promenade, with most being AI houses. He sees this as a positive development, indicating that cryptocurrency is becoming “a background technology.” Disparte draws a parallel to the dotcom bubble and the subsequent integration of the internet into everyday life.

Image: Robotics & Automation News

Despite its diminished presence at Davos, the cryptocurrency industry shows signs of resilience. Bitcoin’s value jumped 150% in 2023, and the US Securities and Exchange Commission’s recent approval of a Bitcoin ETF further legitimizes the asset class.

Moreover, Web3 innovators are actively exploring ways to combine AI and crypto, with initiatives like Cardano’s AI chatbot Girolamo and Shiba Inu’s Bad Idea AI showcasing the potential of such integrations.

While AI dominates the headlines at Davos 2024, the future of technology appears to lie in the convergence of these two powerful forces. In the long term, more direct integrations of AI and crypto are expected in the drive for the ultimate goal, which is to elevate human evolution.

In the spotlight at Davos 2024, AI emerges as a focal point, relegating cryptocurrency to a secondary role. This shift underscores the evolving landscape of technology and innovation, with AI taking center stage.

Featured image from Laurent Gillieron