Highlights §
- Satya Nadella – “Inflation adjusted, there is no economic growth in the world…the developed world may have negative economic growth.” (View Highlight)
- Nadella is optimistic about AI being a new input that spurs economic growth. In the past, he has said that technology is a deflationary force. This time, his message is that AI will create new value. (View Highlight)
- The AI story sounds like a light at the end of the tunnel, but few in the Davos crowd understand how AI will create value. Intelligent people like Nadella and NVIDIA’s CEO are saying the same thing. “AI drives revenues and is the differentiator businesses need to stay ahead of competitors.” (View Highlight)
- Qualcomm’s System on a Chip (SoC) is closer to shipping and about to get a boost from Windows supporting its chips. Apple uses similar ARM technology and runs machine learning workloads on devices, even on its watches. Both companies are a generation or two ahead of Intel. (View Highlight)
- Google’s search results appear to have gotten worse in 2023. It exacerbates the issues Google faces, from over-optimizing for ads and losing the community’s trust. Perplexity is making a solid case for its interface as a Google competitor. If it gets traction, more competition will follow. (View Highlight)
- Companies like Intel and Google face legitimate competitive threats from businesses that got to the AI goldmine first. The Davos crowd knows they face similar threats and aren’t as prepared as Big Tech companies that are struggling to respond. (View Highlight)
- Companies are being more intentional and thoughtful about what they build and how. Zero Percent Interest Policy (ZIRP) was a rising tide that lifted all ships. There was so much money that investors punished companies that didn’t invest in as many opportunities as possible. Budgets felt unlimited. (View Highlight)
- The Davos crowd is rattled because most executive leaders weren’t in leadership roles the last time competition was this hot. It’s been over 12 years since the last period of heavy competition and even longer since the last period of tight monetary policy. I have heard CxOs and founders say it’s nice to have a few grey hairs in senior leadership right now. (View Highlight)
- Investors aren’t pressured to put their money into as many bets as possible. The strategy has moved back to best-in-class. In response, companies are winding down unprofitable business units and cutting unprofitable product lines. (View Highlight)
- I spent the end of 2022 and early 2023 telling people I coach to move their careers closer to revenue and core business lines. I advised CDOs and newly titled CAIOs to move their teams and initiatives closer to revenue growth, supporting the core, and preserving margins. Tracking and evangelizing the data team’s or individual impacts are imperative. (View Highlight)
- Sam Altman said, “Status is a myth.” He believes that companies are either managing transformation to monetize technology or managing a slow decline. (View Highlight)