FTI Consulting News Bytes – 26 July 2024

FTI Consulting News Bytes

Global regulators including the UK’s CMA and US agencies are uniting to manage AI risks and ensure fair competition. In a significant move, Informa is acquiring Ascential for £1.16 billion to boost its events portfolio. Meanwhile, Meta has warned that EU regulations might hinder access to advanced AI technologies in Europe. In client news, TEKEVER successfully conducted a test flight of its new AR3 drone at West Wales Airport. Lastly, London’s first “multibank” launches this week, distributing essentials with support from Gordon Brown and Sadiq Khan and donations led by Amazon going directly to frontline workers aiding those in need. 

This week’s news

Global Regulators Unite to Address AI Market Risks and Ensure Fair Competition 

The UK’s Competition and Markets Authority (CMA) has joined with the European Commission, US Federal Trade Commission, and US Department of Justice to address AI-related risks and ensure fair competition. According to The Independent, the regulators will collaborate on sharing information and tackling issues such as the potential concentration of market power among major AI firms. The agreement follows the CMA’s report earlier this year which raised concerns about the potential risks to open, fair and effective competition in the AI industry. Sarah Cardell, CMA chief executive, commented: “AI is a borderless technology which has the potential to drive innovation and growth, delivering transformative benefits for people, businesses, and economies around the world.”

Informa to Acquire Ascential for £1.16 Billion

Informa has agreed to acquire Ascential for £1.16 billion, marking a significant deal in the events industry. The Times reports that the acquisition is expected to leverage Informa’s global reach and data capabilities to drive further growth for the combined entity. Ascential, known for events like Cannes Lions and Money 20/20, will enhance Informa’s portfolio, which already includes major trade shows. The deal underscores a resurgence in dealmaking activity, with numerous UK and global firms engaging in significant M&A transactions this year. According to consultancy firm BCG, the value of European M&A rose by 23% to $255 billion in the first half of 2024.

Meta warns EU regulatory efforts risk bloc missing out on AI advances   

Meta has warned that the EU’s approach to regulating artificial intelligence is creating the “risk” that the continent is cut off from accessing cutting-edge services, while the bloc continues its effort to rein in the power of Big Tech. Speaking to the Financial Times, Rob Sherman, the social media group’s Deputy Privacy Officer and Vice-President of Policy, confirmed a report that it received a request from the EU’s privacy watchdog to voluntarily pause the training of its future AI models on data in the region. He warned that compliance with this request could create a technological gap between Europe and the rest of the world, hinting that Meta might not release multimodal models in Europe, impacting future AI tech availability in the region.

TEKEVER performs a successful test flight of a drone in Cardigan

TEKEVER’s AR3 drone took to the skies over West Wales Airport, marking a milestone for the company.  The Western Telegraph reports that CEO Ricardo Mendes celebrated the achievement, noting it was the first time TEKEVER built a complete system outside Portugal, showcasing the UK’s strategic importance to the company.  He also highlighted the company’s collaboration with local suppliers to build facilities and source all necessary parts. Chief of Staff Andy Pollington was also quoted in the piece, highlighting how a large proportion of TEKEVER’s staff is from the local community.

Gordon Brown launches London’s first “multibank” amid UK child poverty fears

London’s first “multibank” launches this week, providing essentials ranging from food to baby products, just as school holidays begin and poverty concerns intensify. Felix’s Multibank, supported by former Prime Minister Gordon Brown and London Mayor Sadiq Khan, is the newest addition to a growing network of initiatives. According to The Guardian, businesses have contributed supplies, with Amazon being the largest donor. These goods will be distributed directly to teachers, social workers, and other frontline workers helping those struggling to afford basic necessities.  

Top Tweets of the Week

• Amy Lewin, Editor, Sifted: “Huge news: Revolut **finally** has its UK banking licence, three years after first applying for it…” 
• Bloomberg Technology: “Bloomberg’s second-annual leaderboard of the AI startups you should know–from OpenAI to Suno to ElevenLabs.”
• Reuters: “Google scraps plan to remove cookies from Chrome.”

Number of the Week

£68bn– The total number worth of M&A deals so far in 2024, up from just £41bn in the first half of 2023. (City AM)