Even If AI Is a Bubble, CX Leaders Still Have to Build for It

The Gist

The AI bubble debate has gone mainstream. From Nvidia’s argument that rising GPU demand signals a durable cycle to senior AI leaders openly acknowledging bubble-like behavior, Davos made clear that uncertainty—not consensus—defines today’s AI investment landscape.
AI devices could surpass smartphones in scale. Executives see a future with billions of always-on AI devices—glasses, rings, watches, desk companions—designed to keep agents with users at all times, not locked inside apps.
Google is positioning AI glasses as a breakout category. Leaders signaled that a universal, always-available digital assistant may finally be feasible, pushing conversational AI beyond chatbots and into continuous, ambient experiences.
OpenAI shaped the narrative—even without its CEO. Despite a notable absence from Davos, OpenAI still drove headlines around its upcoming AI device and new disclosures showing revenue growth tracking closely with rising compute demand.

Regards from the train leaving Davos, a beautiful ride flanked by sharp mountains, small villages, and lots of snow. The World Economic Forum here last month brought leaders in politics, finance and technology together for conversations about the future of business and the world.

The entire event took place along one main street in the compact Swiss town, so as you made your way through you'd have a decent chance of bumping into attendees like Matt Damon, Jensen Huang, or the coupled-up Justin Trudeau and Katy Perry.

World leaders including Donald Trump, Volodymyr Zelensky, and (the much memed) Emmanuel Macron showed up at the summit, but the theme was artificial intelligence. AI and Big Tech houses lined the street, and AI lab leaders including Google DeepMind CEO Demis Hassabis and Anthropic CEO Dario Amodei made headlines throughout. In seemingly every corner of Davos, the rapidly advancing technology sparked discussions about how it would impact people's jobs, wallets, and futures.

Through the event, I spoke with attendees and watched the proceedings. Here are my main takeaways:

The Bubble Debate Is In Full Swing
The AI Device Market Could Be Very Big
Google Is About to Make a Major AI Glasses Push
Where's Sam Altman?

The Bubble Debate Is In Full Swing

Davos's major debate was whether there's an AI bubble or we're simply living through a strong tech investment cycle. Nvidia CEO Jensen Huang gave perhaps the best argument for the latter scenario, telling the Forum that the spot price for renting Nvidia GPUs is going up, including chips that are two generations old. (This tracks with Big Technology's reporting in a recent interview with CoreWeave's leadership.)

That said, even those at the top of the movement are warning of bubble-like behavior. "Are we in a bubble? Not in a bubble? I think parts of the AI industry probably are, and other parts, I think it remains to be seen," Google DeepMind CEO Demis Hassabis told me during a live recording of Big Technology Podcast.

Bret Taylor, OpenAI's board chair and CEO of Sierra, was blunter. "It probably is a bubble," he told CNBC. "I think over the next few years, you'll see a correction, you'll also see consolidation, but I don't think you can get innovation without that messy competition."

One thing that struck me in my conversations: There's still no certainty around who will get the most value out of the AI moment, whether it's chipmakers, model builders, or the application layer. That uncertainty will likely lead to major volatility in the years to come.

You can listen to my conversation with Hassabis on Apple Podcasts, Spotify, YouTube, or your app of choice.

What Davos Signals for CX Leaders

Editor’s note: Davos conversations this year went well beyond AI hype. For customer experience leaders, the signals point to a near-term shift in interfaces, expectations and accountability as AI agents move closer to customers’ daily lives.

Davos Signal	What Happened	Why It Matters for CX Leaders
AI agents go always-on	Executives described AI agents designed to stay with users continuously via devices, not just apps.	CX shifts from episodic interactions to persistent relationships, raising new demands around consent, fatigue and experience continuity.
Conversational AI leaves the chat window	Leaders framed the next phase of conversational AI as ambient assistants embedded in daily life.	Conversation design expands beyond scripts and intents into behavior, timing, and trust across real-world contexts.
New CX interfaces emerge	AI glasses, wearables, and desk-based agents were positioned as credible next interfaces.	Experience teams must design for voice-first, glanceable and interruption-aware interactions—not screens alone.
Unclear value capture in the AI stack	Debate continued over whether chips, models, or applications will capture the most value.	CX leaders may become the differentiator as interfaces commoditize and experience quality becomes the deciding factor.
Trust and governance surface quietly	Even amid hype, leaders acknowledged bubble risks, consolidation and correction.	Customer trust, explainability and human override move from “nice to have” to core CX governance requirements.
Devices redefine customer expectations	Predictions pointed to billions of AI-enabled devices accompanying users throughout the day.	Customers will expect brands to meet them in-context, instant and consistently—without friction or repetition.

The AI Device Market Could Be Very Big

Qualcomm CEO Cristiano Amon told me the market opportunity for AI devices could be larger than the smartphone market. Amon is anticipating 10 billion AI devices.

"If agents are going to be useful to you, they're going to be with you all the time," he said. These devices could be glasses, rings, bracelets, watches, or something that sits on your desk, so it might make sense to own a few as you go through your life, he said. That's a major market opportunity.

To catch on, AI devices will have to prove more useful than an app on a smartphone. And given the energy in the space — with Apple, Google, Meta and OpenAI all working on AI wearables — we'll likely get clarity on their true potential soon.

You can listen to my conversation with Amon on Apple Podcasts, Spotify, or your app of choice.

Google Is About to Make a Major AI Glasses Push

Speaking of AI devices, Hassabis indicated Google is about to make a major play in the glasses space. Past attempts at smart glasses struggled, he told me, because they lacked a killer app. But that might be changing. "I think the killer app is a universal digital assistant that's with you, helping you in your everyday life," he said. "I feel we finally got AI that is maybe powerful enough to make that a reality. And it's one of the most exciting projects we're working on."

Hassabis said Google's AI glasses might start rolling out by this summer. He's personally involved in the project, he said, signaling its importance. This type of always-on assistant represents a new frontier for conversational AI, moving beyond chatbots to become a constant companion.

Where's Sam Altman?

OpenAI CEO Sam Altman was noticeably absent from the proceedings. While OpenAI CFO Sarah Friar and chief global affairs officer Chris Lehane held court through the week, Altman didn't attend.

The OpenAI leader has been in the Middle East recently seeking funding for a reported $50 billion financing round, and perhaps that's drawn his focus. Still, OpenAI made big headlines, with Lehane saying the company's first AI device is on track to ship in the second half of this year, and Friar publishing detailed information about OpenAI's spending, showing that the company's revenue is scaling with its compute.

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