FTI Consulting News Bytes – 19 December 2025

FTI Consulting News Bytes

As the year draws to a close, our final newsletter of 2025 is a reflection of the trends that have defined these last twelve months in microcosm. We begin with Google DeepMind’s ambitious plans to establish a scientific lab in the UK, powered by its Gemini model, opening doors initially to fresh discoveries in chip technology. Turning to the economy, the Bank of England’s decision to cut interest rates to 3.75% highlights the delicate balance policymakers face amid the cost-of-living backdrop and inflation. Environmental concerns around AI continued to evolve, highlighting new complexities brought in large part by data centre expansion, which research shows now rivals the carbon footprint of New York City. Meanwhile, in UK-focused news, the BBC has continued to generate extreme media scrutiny, this time with government proposals to mix up its funding model. Finally, YouTube is set to air the Oscars from 2029, a landmark move that underscores how entertainment continues to adapt to the digital age. In a field once dominated by traditional broadcasters, the platform’s rise was reinforced by Ofcom’s findings earlier this year that it had become the UK’s second most-watched service.

This week’s news

Google DeepMind plans first UK automated science lab

Google DeepMind plans to open its first automated science laboratory in the UK next year, deepening its partnership with the UK government. The lab will use robotics and AI, integrated with Google’s Gemini model, to run experiments and accelerate scientific discovery, with an initial focus on developing advanced superconductor materials that could make future computer chips more efficient and cheaper to run. UK scientists will receive priority access to DeepMind’s AI tools, according to reporting by The Times. The move follows growing UK investment in AI, including a £600m funding round for Isomorphic Labs and a new memorandum of understanding committing government and DeepMind to safely capturing AI’s benefits. The partnership will also support education, cleaner energy and more efficient public services, while raising questions among critics about government ties to US tech firms.

BoE gifts Starmer & Reeves an early Christmas present

The Bank of England delivered a pre-Christmas rate cut, lowering its base interest rate to 3.75%, the lowest level in nearly three years. As per CityAM, the decision reflects signs of slowing inflation and weakening economic conditions, with inflation easing to around 3.2% in November and recent data pointing to stagnating growth. Markets reacted with volatility as investors balanced relief over lower borrowing costs against concerns about the wider economy, including a softer labour market. The rate reduction aims to support consumers and businesses by easing borrowing costs on mortgages and loans, although some policymakers remain cautious about further cuts given ongoing inflation remains above target. The move also puts focus on UK equities, with the FTSE 100 trading in reaction to the decision, as markets digest the implications for growth, spending and future Bank policy.

CO₂ emissions of AI activity in 2025 equal to that of NYC

A new study finds the AI boom in 2025 has generated as much CO₂ as New York City, highlighting the growing environmental toll of the technology. Researchers estimate that AI-related systems emitted up to 80 million tonnes of carbon dioxide this year, around 8% of global aviation emissions and consumed 765 billion litres of water, surpassing the global demand for bottled water. The figures, published in the journal Patterns and reported by The Guardian, represent the first attempt to isolate AI’s specific environmental footprint rather than general data centre use. The study’s author argues tech companies are reaping benefits from AI while society bears the environmental cost, and calls for greater transparency around emissions and resource use. The International Energy Agency warns that AI-focused data centres could double electricity demand by 2030, further challenging climate goals. Despite some reductions reported by major firms, experts say achieving climate targets will be more complex and slower than hoped without structural changes.

UK Government weighs future of BBC funding

The UK government is considering major reforms to the BBC’s funding model, potentially ending its long-standing reliance on a universal licence fee, Reuters reports. Under proposals launched by culture secretary Lisa Nandy, the broadcaster could be allowed to carry advertising, introduce subscriptions, or adopt a hybrid model to generate more commercial revenue as licence fee payments decline. Options under review include keeping news, current affairs, factual programming and children’s content universally funded, while placing more commercially attractive genres such as drama behind a subscription paywall. Advertising could also be introduced on the BBC’s online or other services, a move that would mark a significant break with tradition and may intensify competition in an already shrinking UK ad market. The review aims to “future-proof” the BBC while preserving its independence and public trust. Soon-to-be-departed BBC director general Tim Davie said the organisation welcomed reform discussions. The review comes amid ongoing political scrutiny and a high-profile legal challenge from former US president Donald Trump, which the BBC is contesting.

Oscars to land on YouTube in further shift towards new media

YouTube has secured exclusive global streaming rights to the Oscars from 2029, ending ABC’s more than six-decade run as the ceremony’s broadcast home, as reported by TechCrunch. The Google-owned platform will begin with the 101st Academy Awards in 2029, with the deal running through 2033, while ABC will continue airing the event until 2028. Financial terms were not disclosed. The move marks a prominent shift towards new media for one of television’s most established live events, underlining streaming’s growing role in premium, appointment-to-view programming. The Oscars will be streamed live and free on YouTube to more than two billion global users, alongside availability on YouTube TV in the US. With ratings falling sharply from a 1998 peak of 55 million to around 20 million in recent years, the Academy is seeking broader reach and renewed relevance. Beyond the ceremony, YouTube will host red carpet coverage, behind-the-scenes content, interviews and educational programming, signalling a more expansive, digital-first Oscars experience.

Top Tweets of the Week

• Jeremy Kahn, AI Editor at Fortune Magazine: Exclusive: Palantir alums using AI to streamline patent filing secure $20 million in Series A venture funding.
• Sal Rodriguez, Deputy Tech Editor at CNBC: Apple punted on AI this year. Next year will be critical. https://cnbc.com/2025/12/17/apple-ai-delay-siri.html by @kifleswing
• Reema Tendulkar, Anchor and Editor at CNBC: As we look ahead to 2026, the big burning question is will AI bubble burst? Here are 3 factors that can question the American exceptionalism in AI. @ShereenBhan #ArtificialInteligence #Tech #AI #TechAtWork #CNBCTV18 #chinatech #DeepSeek #FedPolicy #AIBubbe #AIBoom

Number of the week

$3bn The target valuation of Meta’s chief AI scientist’s yet-to-be-launched AI startup,  Advanced Machine Intelligence Labs (Financial Times).