Davos 2026: AI Hype Fades as Business Leaders Prioritize ROI

The 2026 World Economic Forum in Davos marked a shift in the narrative surrounding artificial intelligence, as business leaders moved away from the hype of previous years to focus on the practical challenges of implementing AI at scale and driving measurable returns on investment. While AI remains a dominant topic, the conversations this year were notably more grounded, with CEOs and executives emphasizing the need for top-down strategies, data optimization, and cross-enterprise integration to unlock AI’s potential.

In contrast to the experimental and bottom-up approaches popularized during the early generative AI boom, this year’s discussions highlighted the importance of CEO-led initiatives in identifying where AI can deliver the most value. Jim Hagemann Snabe, chairman of Siemens, argued that CEOs must act as 'dictators' in pushing AI deployment forward, a sentiment echoed by executives from companies like LogicMonitor and Celonis, who stressed the need for board-level sponsorship and the establishment of AI centers of excellence.

The Shift from Hype to ROI

The promenade in Davos, often transformed into a tech showcase during the forum, reflected this year’s more pragmatic tone. While logos of major software and consulting firms still adorned shopfronts, the focus was less on AI’s theoretical promise and more on its tangible business applications. CEOs acknowledged that the era of imagining AI’s possibilities is over, replaced by a focus on practical advice for enterprise-wide impact.

Research commissioned by Celonis found that companies establishing AI centers of excellence achieved an 8x better return compared to those that did not. This underscores the growing recognition that AI implementation requires structured, data-driven strategies rather than ad hoc experimentation.

Bastian Nominacher, cofounder and co-CEO of Celonis, emphasized that having data in the right place is critical for successful AI deployment. This aligns with the broader trend of companies investing in data infrastructure to support AI initiatives, as seen in the growing traction of products like Microsoft’s Data Fabric and Agent 365.

The Race for AI Orchestration

A key trend emerging from Davos is the competition among SaaS companies to become the orchestration layer for enterprise AI agents. Workday CEO Carl Eschenbach positioned his company as the 'front door to work,' leveraging its existing HR and financial data to manage AI agents. Meanwhile, Salesforce is using forward-deployed engineers to develop industry-specific AI agents for its customers.

Snowflake CEO Sridhar Ramaswamy highlighted his company’s expertise in cloud-based data management as a competitive advantage in the race to become the AI agent orchestrator. However, Ramaswamy acknowledged the threat posed by AI labs like OpenAI and Anthropic, which could move down the stack into data storage, potentially displacing existing players.

Microsoft’s Judson Althof also emphasized the importance of an orchestration layer, noting that Microsoft’s Data Fabric and Agent 365 products are gaining traction among large enterprises. The ability to integrate AI agents across different systems and silos without migrating data is seen as a critical advantage.

Despite the focus on ROI, there remains a tinge of idealism in the AI conversations at Davos. Siemens chairman Jim Hagemann Snabe argued that governments should mandate that AI adhere to human values and proposed banning ad-based AI business models to prevent the negative consequences seen in social media. This reflects a broader debate about how AI should be regulated and whether ad-based models risk compromising user well-being and societal values.

The 2026 Davos forum underscored that while AI’s potential remains vast, realizing its benefits requires a disciplined, strategic approach. As companies move beyond the hype, the focus on ROI and practical implementation will likely shape the future of AI in business.