Davos 2025: Cathy Li on the future of AI in business and beyond

Speaking at the World Economic Forum 2025, Cathy Li, Head of AI, Data, and Metaverse at the World Economic Forum, highlighted the profound impact of generative AI on industries, businesses, and society. In an interview with Business Today, Li described the era of generative AI as a significant platform shift akin to the Internet Age, forecasting transformative changes in the years ahead.

A new age of integration

Li explained how generative AI is reshaping human-technology interaction. "People no longer need to go to their laptops, and perhaps not even their phones in the future," she said. Generative AI offers a natural, seamless interface that could soon become an integral part of daily life, driving the next wave of technological advancement. 

The economic and sectoral impact

Citing forthcoming research by the Forum, Li revealed that industries embracing AI are outperforming their peers with a 15 per cent revenue boost, with potential contributions of $7.6 trillion to $17.6 trillion to the global economy by 2038.

AI’s applications span across sectors:

• Healthcare: Enhanced diagnostics and personalised medicine.  
• Manufacturing: Automation of 40–60 per cent of existing tasks.  
• Financial Services: Fraud detection and process efficiencies.  
• Media and Entertainment: Content creation and audience segmentation, though challenges around misinformation and intellectual property remain.  

Li emphasised the global nature of AI adoption, stating, "AI’s applications are ubiquitous; everyone can leverage this technology."

Advice for CEOs

For Indian businesses and global leaders, Li stressed two key principles: full integration of AI into business strategies and a human-centric approach. "Technology alone won’t transform a company," she cautioned. "It must be embedded in sales, HR, and all organisational functions."

Li also noted that generative AI thrives when augmenting human capabilities, not replacing them. She warned of potential disruptions to 40 per cent of global working hours within five years, underscoring the need for upskilling and governance frameworks.

Balancing innovation and regulation

On the future of AI development, Li advocated for a balanced approach between open and closed-source systems. While open architecture fosters innovation, proprietary models ensure privacy and security. "The key is adhering to principles of safety, privacy, and security," she said, highlighting the Forum’s role in shaping AI governance.

The media industry in focus

Drawing from her background in media, Li discussed AI’s significant impact on the sector. Up to 50 per cent of working hours in media could be disrupted in the next five years. However, Li reassured that synthetic content would not replace human creativity. "Humans value connection," she said, emphasising the unique role of human-produced content in maintaining authenticity and emotional resonance.