FTI Consulting News Bytes – 27 September 2024

FTI Consulting News Bytes

This week, we start by looking at Microsoft’s investment into nuclear power as tech companies seek to meet soaring AI energy demand. Next, as electric car sales plunge across the UK and Europe, we analyse the impact that the fall in demand will have on the UK Government’s EV targets. We then discuss whether Britain’s approach to tech regulation is harming innovation and investment in the sector, before addressing reports that drones may be set to dominate UK skies by 2027. Finally, we share our thoughts on Meta’s first pair of augmented reality (‘AR’) glasses.

This week’s news

US nuclear plants not Big Tech’s instant golden bullet

In its article, Reuters suggest that Microsoft’s plan to revive a Three Mile Island nuclear reactor to help power its expanding data centres reflects the tech industry’s hopes for nuclear energy to become a quick and climate-friendly answer to its vast electricity needs. However, as companies face high regulatory hurdles, potential fuel supply obstacles and sometimes stiff local and environmental opposition, it could prove difficult to swiftly meet soaring power demand from the data centres behind artificial intelligence. The piece also notes that U.S. data centre power use is expected to roughly triple between 2023 and 2030, according to Goldman Sachs estimates, which assumed natural gas, wind and solar would fill the gap.

EV demand drop harming EU manufacturing 

Sales of battery electric cars have fallen by 44% as carmakers shut down plants and consider closures, as reported by The Times this week. Crediting the three-year low to a fall in demand for electric vehicles, the European Automobile Manufacturers’ Association (‘ACEA’) warned that Europe’s electric car market is “now on a continual downward trajectory”. The ACEA also suggested that sales decreased due to diverging policies on green incentives across the EU and urged EU institutions to introduce relief measures before tough new carbon dioxide emissions targets for cars and vans come into effect in 2025. The fall in sales in Europe echoes a decline in the UK, where new electric vehicles are on course to fall short of a government target of capturing 22 per cent of sales this year. This comes as Sky News reports that Jaguar Land Rover plans to invest a further £500m in its Halewood plant to bolster future production of all-electric cars.

Drones set to dominate UK skies by 2027

The Telegraph reports that fleets of autonomous drones will become an everyday sight in Britain’s skies within the next three years, under plans recently released by the UK Civil Aviation Authority (‘CAA)’. CAA said it was preparing for “regular and routine” drone flights, which are currently only allowed in cordoned-off airspace to avoid the risk of collision with other aircraft. These trials pave the way for quicker deliveries, use by the emergency services to transport drugs to hospitals and delivery of mail to remote locations. The plan’s first milestone is set for the end of this year, with operations to be fully integrated by 2027, and come as companies such as Amazon, the National Police Air Service and Wing continue preparations to trial drone flights.

Questions surrounding UK’s tech regulatory landscape 

In a new report, think tank Onward, called for the government to create a ‘call-in’ power to overrule regulators’ decisions, warning that Britain’s approach to tech regulation is harming innovation and investment in the sector. Onward argues that tech regulation is stifling UK technology’s progress and has called for a “radical rethink” of regulation, City AM reported. A government spokesperson said: “The Government recognises regulators face increasing challenges in dealing with the dramatic development of new technologies.” However, shadow tech secretary Andrew Griffith welcomed the report, stating: “Overzealous, short-sighted regulation has already raised concern for those in the AI sector in the EU, and there is material disquiet on this side of the channel that the new Government will take a similar approach.”

Meta launches AR glasses prototype

At the Meta Connect event on Wednesday, CEO Mark Zuckerberg unveiled the Company’s first pair of augmented reality (‘AR’) glasses, which use holograms to overlay digital content onto the real world around the wearer. The prototype device called Orion can be controlled using voice, eye movement and hand gestures. Meta stated that the AR glasses “might be the most challenging consumer electronics device produced since the smartphone,” claiming that Orion was the result of “breakthrough inventions in virtually every field of modern computing.” The company’s shares rose more than 2 per cent following the announcement, reported the Financial Times 

Top Tweets of the Week 

• Sifted EU: Europe is often seen as lagging behind the US and China in the global innovation race. Entrepreneurs need help to access capital markets and talent to scale up.
• Joe Tidy, Cyber Correspondent at BBC News: James McAvoy and Tom Brady fall for ‘Goodbye Meta AI’ hoax. More than 600k people, including many celebrities, have fallen for a hoax claiming to deny Insta etc the right to use their images for training artificial intelligence (AI).
• Bloomberg Technology: OpenAI is a very different company now than it was before Sam Altman’s short-lived ouster last year.

Number of the week

3%– The percentage of 12-year-olds in the UK who do not have a smartphone, according to The Guardian.