FTI Consulting News Bytes – 8 December 2023

FTI Consulting News Bytes

As the festive season sleighs in, TMT news continues to hit the headlines. AI was a major topic of conversation at the COP28 conference, with its potential to help solve climate crisis issues. All eyes turn to the EU as negotiators attempt to iron out details of the highly-anticipated AI Act, while Spotify announced plans to trim its global workforce by 17% as part of a cost cutting drive. Genetic testing company 23andMe suffered a significant data breach this week, with an estimated 14,000 user accounts said to be compromised. On a happier note, a startup has launched the first ever test to identify IVF embryo genetic defects; a significant advancement in IVF technology. 

Drum roll….watch this space as our TMT elves here at FTI are currently producing a ’12 days of Christmas’ video series, interviewing key tech players on their reflections on 2023 and predictions for 2024 and generally spreading tech cheer! 

This week’s news

AI looms large at COP28 in Dubai   

As COP28 kicked off last week, the Collins Dictionary word of the year remained on the tip of every tongue. While scientists warned of five catastrophic climate tipping points, global tech companies Google, Microsoft and IBM struck a more optimistic tone about the potential of AI to address climate change, according to The National. Google’s chief sustainability officer Kate Brandt described how AI was already helping cities to improve traffic flow and air quality. Microsoft announced a partnership with the UN to launch a new AI-powered global climate hub to measure and analyse progress, while IBM has partnered with NASA to develop a new artificial weather model to accurately predict future weather events. The optimism has been somewhat dented by critics who point to the significant carbon footprint of AI data centres.

EU facing pressure to pass AI regulation bill before the new year 

The European Union, widely hailed as the first to implement AI regulation, is facing a “make-or-break” moment this week as negotiators attempt to iron out final details of the highly-anticipated “AI Act,” first proposed in 2019. Last minute battles over how to govern systems that underpin generalist services such as OpenAI’s ChatGPT and Google’s Bard chatbot has stalled the process. Nick Reiners, a tech policy analyst at Eurasia Group, commented that there is “simply so much to nail down” so it will possibly be finished in the new year. ABC News reported that Big Tech firms have been vehemently rallying against “overregulation” which, they believe, could lead to a stifling of innovation. Meanwhile, the US, UK, China and other global coalitions have been racing to draft up their own guidelines.

Spotify to cut 17% of workforce

Spotify announced its intention to axe almost a fifth of its workforce as part of an efficiency drive. Sky News made sure to point out that Spotify had recorded profits of $55m last quarter, and significant subscriber growth. Despite its recent performance, chief executive Daniel Ek said in a memo to staff on Monday that the Company would cut 17 per cent of its workforce, about 1,500 people, after warning that economic growth had slowed dramatically. Ek said that cost saving measures were needed to turn subscriber growth into consistent profitability. Spotify shares jumped 8 per cent in morning trade in New York, the Financial Times reported. According to layoffs.fyi over 255,000 tech workers have been let go in 2023 to date, once you factor in the latest Spotify cuts as outlined in Shares Magazine.

Genetic Testing company leaks personal data

A tough week for genetic testing company 23andMe and 6.9 million of their users whose personal information was exposed in a data breach which first came to light in October. At the time, 23andMe claimed they could not say how many other users were impacted by the breach beyond the 14,000 compromised accounts. This week, TechCrunch revealed that hackers accessed the personal information of 6.9 million users who opted into the company’s DNA Relatives feature, which allows users to automatically share their data with others. Hackers used emails and passwords leaked in other hacks to log into the 14,000 accounts and access profile information including family trees, birth years and geographic locations.

Startup launches first-ever test to identify an embryo’s genetic defects before IVF begins  

Reproductive technology startup Orchid said its new test will help couples identify whether their embryos present genetic risks such as birth defects, neurodevelopmental disorders, chromosomal abnormalities, or pediatric and adult-onset cancers that were previously only detectable after birth. The technological development majorly advances the amount of information parents can have ahead of IVF treatment, allowing greater control and confidence in a process that has historically relied on chance, according to CNBC. This technology will be available at IVF clinics in major cities in the US such as Los Angeles, Chicago, Miami and Austin and additional clinics at the request of patients. Orchid has secured $12 million in funding from investors such as Prometheus Fund and Refactor Capital. Backers include Anne Wojcicki, the co-founder and CEO of 23andMe; Dylan Field, the co-founder and CEO of Figma; Fidji Simo, the CEO of Instacart; and Brian Armstrong, co-founder CEO of Coinbase.

Top Tweets of the Week

• The Guardian: “Samir Shah to be appointed as next chair of BBC”
• Mollie Hemingway, Editor in Chief at the FDRLST: “Thrilled to announce we are suing the federal government for its work funding the infrastructure, development, and marketing and promotion of censorship technology and private censorship enterprises in order to unconstitutionally demonetize and suppress The Federalist.”
• TIME: “Taylor Swift is TIME’s 2023 Person of the Year”

Number of the Week

£6.7bn – The price Sky paid to acquire its biggest package of games since the start of the Premier League, according to the FT.