World Economic Forum head warns of AI, crypto bubbles
According to Børge Brende, president of the World Economic Forum, large investments in artificial intelligence and cryptocurrencies could lead to the formation of bubbles.
“There is certainly geopolitical disorder… But even in the geopolitical disorder, the global economy has been incredibly resilient, not necessarily in Europe, but also in India, China and the United States,” Brende said in Berlin. he said.
He noted that this is supported by investments in new technologies such as artificial intelligence.
“This year alone has seen $US500bn ($A762bn) investment in AI. So what we might be concerned about is that bubbles could develop, whether it’s in crypto or the AI bubble,” Brende said.
The WEF president said investors should be patient with these investments.
But he also said that advanced technologies will be the new drivers of growth.
“We will also need to ensure that new technologies and benefits flow downward. We may even see productivity growth of 10 percent in the next decade. And productivity is prosperity,” Brende said.
He called the new technologies a “major paradigm shift” and predicted breakthroughs in medicine, synthetic biology, space and energy.
“AI can speed up processes very quickly,” he said.
The Norwegian took over from WEF founder Klaus Schwab.
The Forum holds an annual conference of world political and economic leaders in Davos in the Swiss Alps.
The 56th conference is planned to be held on January 19-23, 2026.
Brende also expressed concern about global crises and conflicts.
“There is definitely geopolitical disorder; the world order we had no longer exists. What is the next world order? I hope it is not the law of the jungle,” he said.
And he said uncertainty is the highest tariff, citing current U.S. tariff policy.
“One of my concerns is the decline in global investments. We need to recreate the environment for investments,” he said.
The current rivalry between the United States and China is “fundamentally a competition for hegemony or dominance in technology,” Brende said. “The country that is a leader in new technologies such as quantum, superintelligence, artificial intelligence, autonomous vehicles or synthetic biology will also be the most powerful nation to emerge from this century,” he predicted.
He called for multilateral action to deal with “issues that cannot be traveled with a passport”, including epidemics and cybercrime.
Brende said the world has become more complex with the formation of different groups.
He pointed out the G4, which consists of the USA, China, Europe and India, followed by fast-growing economies such as Indonesia, Malaysia, Nigeria and Brazil.
“This will be a renaissance of mega-regional, so-called multilateral agreements. But the world will be more complex. There will be more suboptimal solutions, not necessarily cost-effective solutions. There will be more camaraderie,” he said.
