FTI Consulting News Bytes – 18 August 2023

FTI Consulting News Bytes

Step aside generative AI because this week, we witnessed the extraordinary use of AI to help a man walk again. Swiss researchers have created a new artificial intelligence implant using this transformative technology, pushing the boundaries of science as we know it. The hype around AI continues as Gulf nations are buying thousands of Nvidia chips to power AI software ambitions and Rishi Sunak announces the UK’s AI Summit will take place in early November which intends to open a discussion around global AI safety and regulations. Additionally, we dive into why a new wave of tech flotations risks leaving London high and dry. Lastly, we turn our attention to the gaming industry as it was revealed this week that revenues gained from in-game goods and services now account for half of console software spending.

This week’s news

How AI helped one man to walk again

The Times this week reports that following a catastrophic cycling accident that left Gert-Jan Oskam confined to a wheelchair, a new artificial intelligence implant has helped defy the prognosis that concluded he would never walk again. Swiss researchers have spent the last decade creating an implant that uses AI to monitor and decode Oskam’s nerve cells and translate them into a series of signals that then relay messages from his brain to his hips, thighs, and ankles. This “digital bridge” is a glimpse of a hopeful future where injuries previously considered irreversible can be treated. Those involved in the project praised Oskam’s “extraordinary will” to walk and argued that without his mental fortitude, as well as his physical endurance, the technology would not have succeeded. The digital bridge has also improved Oskam’s coordination and the condition of his muscles and nerves which have led to his ability to stand and make steps without the implant.

Games console industry tries to out-play free titles

The revenues gained from in-game goods and services in popular free-to-play titles like Fortnite now make up for half of console software spending, according to the Financial Times. The outlet argues that cost-of-living pressures and gamer’s changing tastes account for the shift within the gaming industry, with console players expected to spend $21bn on virtual goods and services in the coming year. The change represents a particular challenge for Sony due to its reliance on exclusive gaming titles, with Piers Harding-Rolls, Head of Games Research at Ampere, commenting that the premium Hogwarts Legacy game, which generated $1bn in sales in its opening months, ultimately witnessed a decrease in player participation. This was unlike Fortnite, a “live service game”, which despite a debut six years ago, still holds the crown for the highest number of active monthly users. Whilst Sony does have a subscription service, it heavily relies on its high-cost hardware and premium content, with analysts like Gareth Sutcliffe arguing that the world has “moved on” from this particular model of gaming.

Sunak pioneers trek to AI Summit

After much anticipation, the UK government has announced that it will host its AI Summit in early November, which aims to bring together leading academics and executives from AI companies to discuss AI regulation and drive international action around the responsible development and use of AI. According to Bloomberg, the $40 billion generative AI market could increase 30-fold over the next 10 years. This has led to governments and tech companies alike voicing concerns about the dangers and risks of AI to society from the impact on the workforce to the repercussions for democracy. The AI Summit presents an opportunity for the UK to make a mark on the global stage in the development of this transformative new technology.

Global IPOs rumour resuming roadshows

After a long and dry IPO season, investor confidence in the UK market appears to be on the up as rumours around Cambridge-headquartered Arm Holdings’ public launch swarm. Despite the 60% drop in the number of global IPOs last year marked by a vicious cycle of tech layoffs and slashed valuations, Nasdaq has been pointing upward this year, gaining over 30% since January and renewing interest in public listings. Alongside Arm, rumours of Stripe, Bytedance, Klaviyo, and Databricks’ potential public listings are adding to the excitement and optimism. However, despite the market turnaround, The Times reports that very little of this IPO activity seems to be centred in London – dealing a continued blow to Sunak’s ambitions to make London the first choice for tech company flotations.

The race for Nvidia chips to power AI ambitions

The Financial Times reports that Gulf nations including Saudi Arabia and the United Arab Emirates are buying thousands of high-performance Nvidia critical to building AI Software. According to sources, Saudi Arabia has bought at least 3,000 of Nvidia’s H100 chips, whilst the UAE has secured access to “thousands” of Nvidia chips and has already developed its own open-source large language model, known as Falcon. In referencing both countries’ “ambitious plans” to “turbocharge their economies” by becoming leaders in the field, the article highlights concerns about the potential misuse of the technology, citing fears that the software may lack “ethical guardrails and safety features.”

Top Tweets of the Week

• Zoe Kleinman, Technology Editor at BBC News: I’ve definitely noticed a change in tone with the US firms I talk to about their UK operations. A US tech giant pulling out would be a *huge* and dramatic option. But the UK isn’t backing down on its new rules. Who will blink first…? https://t.co/pfDIym3bpo
• Fast Company: Some dark possibilities lie ahead for humanity and AI. Still, at least in the realm of musical AI, there is cause for some optimism—assuming the pitfalls are avoided. https://t.co/8MiNZ42YRq

Number of the Week

79% – The number of students who gained a place at their first-choice university upon receiving their A-level results this week, according to Sky News.

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