"I would rather overspend by $200 billion than be on the wrong side of that bet." — Mark Zuckerberg on AI infrastructure. Professor Vijay Gurbaxani argues we are at the dawn of the next industrial revolution — and most companies are approaching it myopically.

**WHAT THIS PANEL COVERS** → Why AI is not just another efficiency tool — it is a general purpose technology that shifts the entire production frontier, transforming what companies can do with the people and machines they already have → The AI Transformation Flywheel: a comprehensive framework linking vision, value proposition, technology ecosystem, talent, culture, and operating model into a self-reinforcing cycle → How Reuters uses AI to write first-draft financial news for speed, then reinvests savings into hiring original news reporters worldwide — competitive differentiation through AI, not cost-cutting → Dr. Treat: a two-clinic veterinary startup that used AI-assisted consultations and an insurance database to deliver superior care, earning acquisition by a 700-location private equity firm → Why data and proprietary know-how are becoming the primary competitive moat when all companies have access to the same AI platforms → The winner-takes-most dynamic in AI markets — not winner-takes-all, but consolidation toward two or three dominant players per segment

**PANELISTS**

• **PANELISTS**
• Stephan Balzer — Keynote Speaker, Host & Moderator; Managing Director, red onion *(Moderator)*
• Prof. Vijay Gurbaxani — Taco Bell Endowed Professor of Technology Management & Computer Science; Founding Director, Center for Digital Transformation, UC Irvine

**KEY QUOTES** "Every single job in our company is going to be affected by AI." — Doug McMillon, CEO of Walmart "This is not an efficiency tool. This thing is going to transform the world for better and for worse." — Prof. Vijay Gurbaxani "I would rather overspend by $200 billion than be on the wrong side of that bet." — Mark Zuckerberg

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Tags: AI transformation, AI flywheel, digital transformation, AI strategy, competitive advantage, Reuters AI, Dr Treat veterinary AI, AI first company, AI intensive, value proposition, data moat, AI investment, production frontier, general purpose technology, UC Irvine, Vijay Gurbaxani, Davos 2026, unDavos, REWIRE, next industrial revolution, McKinsey AI, winner takes most

TRANSCRIPT

So, here we are back, welcome, I hope you were able to refresh in the break and we want to continue with a different format, we call this the fireside chat, that you know we don't have a fire behind us, but hopefully we need it, yes we need the fire in Switzerland, right? So, first, give a warm welcome to our guest, and I will start and you can stop if I talk about you too long, Vijay Gorbaksani is the Taco Bell Endowed Professor of Technology Management and the founding director of the Center of Digital Transformation at UC Irvine, and you're specializing in digital transformation? Correct. Like one of the key things we're discussing here, AI strategy and the economics of technology, which is a great combination, looking back to the panel we had before, and it says here that you're blending rigorous academic research with practical insights to guide business leaders and boards, so also the topic we just touched upon, into adopting AI, so there's more to talk with you about, but maybe you want to take it from there and share your first thoughts. You want me to, just to make it clear, so first of all, good afternoon to everybody, it's lovely to meet all of you, and the last panel was absolutely fantastic, and I hope to be able to add something beyond that, but you want me to talk for about five min