FTI Consulting News Bytes – 1 March 2024

FTI Consulting News Bytes

Mobile World Congress (MWC) dominated telecom and tech news this week as companies both large and small launched new gadgets, announced technological developments and made new pledges on AI and net zero targets in Barcelona. Apple has pulled the plug on its electric car project with a reported 2,000 workers shifting to AI-focused work instead. Meanwhile, Dyson has said it is investing £9 million a week after bringing in record revenues last year. A super merger involving Reliance and Disney India will capture 85% of the country’s on-demand streaming service audience and half its TV viewers. Lastly, UK ministers are piloting the use of generative AI to analyse responses to government consultations to help reduce headcount.

There is still time to sign up to attend our lunchtime fireside chat on Tuesday 5th March with Rory Cellan-Jones, former BBC Technology Correspondent, and Nigel Toon, CEO & Co-Founder of Graphcore, to discuss Nigel’s new book and how we can ensure better understanding of how AI thinks and work with intelligent machines to produce innovations that are beyond human capacity. You can sign up via this link.

Additionally, on Thursday 11th April, we are hosting a breakfast event with Madhumita Murgia, AI Editor, Financial Times, to discuss her new book on AI. Do get in touch if you would like to attend.

This week’s news

Gadgets, gizmos and 5.5G at MWC 

The great and the good from the connectivity industry descended upon Barcelona this week for MWC 2024. Lenovo debuted a new transparent laptop, Xiaomi released the latest version of its CyberDog which can do backflips off skateboards and Samsung launched a new Galaxy Ring which can measure heart rate, movement and breathing. Beyond gadgets, Capacity reported that 5G-advanced was a key theme this year with companies like Huawei setting out how it will advance the 5.5G opportunity. Unsurprisingly, AI was talk of the town, with tech giant Microsoft unveiling new guiding principles as well as a multi-year deal with Mistral AI, writes Euronews. Finally, Wall Street Journal reported on Nokia’s commitment to bring forward its net zero target by 10 years to 2040, putting it ahead of the Paris Agreement.  

Apple pulls plug on EV project

Bloomberg reported that Apple appears to have abandoned its ten-year effort to build an electric car. Those working on the project, reportedly around 2,000 people, will move to work on AI. The shift to AI highlights industry trends and the Company’s moves to diversify from its more familiar products. Vision Pro is an example of how Apple is also increasing spend on new computer chips and employees as it prepares to integrate AI more deeply into its devices. 

Dyson plans biggest range of product launches to date

The Times reports that Dyson is investing £9 million a week worldwide after bringing in record revenues of just over £7.1 billion last year. Over the year the Company has increased its research and development spending by more than 40% with a focus on AI, robotics and proprietary new battery technology. The Company is planning its biggest range of product launches to date this year and speaking at an event to launch the Dyson Airstrait in Paris, Sir James Dyson, 76, said: “despite all the headwinds…we are ahead of our investment plan and have launched radical new products. We are excited to get these products into people’s hands in 2024.”

Reliance–Disney India merger will control 85% of streaming audience

As TechCrunch reports, media analysts are predicting that the merger of the Indian media assets of Reliance, its portfolio Viacom18 and Disney will create an entity that captures 85% of the country’s on-demand streaming service audience and about half of TV viewers. It adds that it will pose challenges for streaming competitors. “Scheduled to complete by March of 2025, the merger will capture both the digital and TV rights of key cricket sporting events in India, like IPL and ICC matches,” Morgan Stanley analysts wrote in a note. The merged unit will also entail exclusive India access to Disney’s movies and productions as well as the Company’s wide catalogue of 30,000 pieces of content. 

UK government to trial ‘red box’ AI tools

According to the Financial Times, UK ministers are piloting the use of generative AI to analyse responses to government consultations and write draft answers to parliamentary questions. UK Deputy Prime Minister Oliver Dowden is set to unveil a “red box” tool that can allegedly absorb and summarise information from reputable sources, like the parliamentary record. A separate instrument is also being trialled that should work similarly but with individual responses to public consultations. The Telegraph quoted Dowden arguing that implementing AI technology is critical to cutting civil service jobs — something he wants to do. “It really is the only way, I think, if we want to get on a sustainable path to headcount reduction.”

Top Tweets of the Week

• Zoe Kleinman, Tech Reporter, BBC: I’m in Westminster today to talk to various folks about all things AI. Important to start with a visit to this lady – the only female statue here. There are still too many occasions when I know how she feels
• Tanay Jaipuria, Partner, Wing Venture Capital: Wow Klarna’s AI customer support agent is able to handle 2/3rd of the requests by itself in its first month and is doing the job of an equivalent of 700 agents.
• Luca Bertuzzi, Independent Tech Journalist: #AIAct: The European Parliament’s plenary vote to adopt the text is scheduled for 13 March at 12:00, almost one month earlier than initially anticipated. I wonder whether the lawyer-linguists were exceptionally efficient in this case or didn’t have more capacity to work on it.

Number of the Week

$675mn – The amount that Figure AI, a Silicon Valley startup that aims to introduce AI-powered humanoid robots to the workforce, has raised from some of the world’s leading AI companies including Microsoft, OpenAI and Nvidia. The company which seeks to transform the global labour market is now valued at $2.6 bn. (Financial Times)