FTI Consulting News Bytes – 15 September 2023

FTI Consulting News Bytes

Think the world is an increasingly dangerous place? We lead this week with the first-ever World Security Report commissioned by Allied Universal, the world’s leading security and facility services provider, and its international business, G4S, which found Physical Security Incidents cost companies USD$1 trillion in 2022. That certainly had us wanting to read more. We then look at Apple’s new iPhone 15, which will no longer feature its traditional lightning charging as a result of EU sanctions. Elsewhere, Washington DC hosted tech leaders for AI Week to discuss regulation and UK chip makers Arm confirmed their return to Nasdaq with a $54.5 billion valuation. Last but not least, one of Europe’s leading drone companies announced the opening of a new site in Wales which will generate 200 new engineering jobs. 

This week’s news

G4S research highlights $1 trillion cost of security breaches

‘Economic unrest is the number one hazard’ for company security over the next year, said G4S Executive Chairman, Ashley Almanza on CNBC’s Squark Box Europe, launching its first-ever World Security Report this week. Physical Security Incidents cost companies USD$1 trillion in 2022. Large global companies surveyed have combined 2022 annual revenue of more than $20 trillion – that’s a quarter of the world’s gross domestic product. The report also found that companies anticipate a surge in threats and hazards like social unrest, climate change, fraud and theft. Reuters outlined global companies are set to hike security spending as threats rise to keep people, property and assets safe. Asked about future spending, 42% of respondents said they intended to invest in artificial intelligence (AI) and AI-powered surveillance to spot threats more quickly. UK figures show violent criminals pose a greater threat to UK companies than any other in Europe – more than four out of 10 (42%) of major British firms reported their biggest concern was the risk from crooks using force to carry out crime. The Sun noted workers at UK companies ‘more likely to get attacked’ as Tesco and Primark offer staff body cams to protect themselves. According to Bloomberg, increased theft is prompting a rise in demand for security guards as Britain’s shoplifting frenzy sees shops resort to dummy detergent and secret guards. Be vigilant and stay safe!

Apple bids farewell to Lightning connector 

On Tuesday, Apple announced its new iPhone 15 range with a USB-C charging port, ditching its lightning standard to comply with EU rules, which according to Sky News is the first time since 2012 that the tech giant has changed its connector on its flagship device. Apple said it would use a USB-C cable as the “universally accepted standard,” following the European Union passing a rule requiring USB-C charging across electronic devices such as phones, headphones and handsets, among other things. Ben Wood, Chief Analyst at CCS Insight is quoted in Sky News, arguing that the switch to USB-C would prove to be a “victory for common sense” in the longer term. However, some experts have expressed concern about the number of cables that could become obsolete in the short term, with Ed Hoppitt of cloud computing firm VMWare saying it could create “mountains and mountains of waste.”

Tech leaders gather for AI Week in Washington

Tech leaders including Elon Musk, Mark Zuckerberg and Sam Altman gathered for an AI Week in Washington, organised by Senate Majority Leader Chuck Schumer to discuss how to regulate the fast-growing technology. According to CNN, this was the first of nine sessions aiming to develop a consensus as the Senate prepares to draft legislation to regulate the AI industry. Speaking with reporters following the summit, Elon Musk called for a federal department for AI to ensure the safe use of the technology, highlighting the need for a US “referee”, whilst inside the summit, Bill Gates spoke about AI’s potential to feed the hungry. The article also highlighted how despite attendees raising their hands when asked whether the federal government should oversee AI – on the role of what it should be and the specifics of legislation they remained “elusive.”

Arm Holdings secures US flotation 

UK chip designers Arm Holdings floated on Nasdaq this with a $54.5 billion valuation at $51 per share. The BBC article revealed 95.5 million shares were sold to raise $4.87 billion for owners SoftBank Group and make it the biggest initial public offering so far this year. The formerly UK-listed firm boasts a client roster of Nvidia, Google, Apple and Samsung and plans to pivot its influence more to the cloud computing and AI markets in the coming months. Although Prime Minster Rishi Sunak had made attempts to convince the firm to list in the UK, those efforts proved unsuccessful and adds to a growing concern around the lack of IPOs in the UK.  

TEKEVER opens second UK site in Wales, creating 200 skilled jobs in the next 3 years

Finally, Business Live reports that Europe’s leading drone-based surveillance company, TEKEVER, has this week announced the opening of a new site at West Wales Airport, Aberporth, which will create more than 200 skilled engineering jobs over the next three years. In what TEKEVER CEO Ricardo Mendes has described as “ambitious growth plans”, the new site will be used to conduct R&D and test flights. Ricardo added, “TEKEVER is proof that tech companies can thrive in the UK, beyond London and Silicon Fen.” TEKEVER’s current customers include the UK Home Office, Royal Airforce and Royal Navy. 

Top Tweets of the Week

• Mark Gurman, Chief Correspondent at Bloomberg: “Apple’s event this week brought the iPhone 15 and new Apple watches. But something more important happened subtly: the company began pivoting away from the iPhone to an ecosystem built around the Vision Pro.”
• Tim Bradshaw, Global Tech Correspondent at the Financial Times: “UK gov concedes it will not use Online Safety bill powers to scan encrypted messaging apps for harmful content until it is “technically feasible” to do so (i.e. maybe never), thus avoiding WhatsApp shutdown – FT SCOOP by @CristinaCriddle & @AnnaSophieGross.”
• Reuters Tech News: Meta is developing a new, more powerful AI system, Wall Street Journal reports. 

Number of the Week

89% – The percentage of people that have given Rory Cellan-Jones’ (Senior Advisor to FTI) newly launched memoir Ruskin Park a 5* rating on Amazon.