Pavel has extensive experience in both finance and advanced machine learning technologies, with a background in data science, analysis, and research. We asked Pavel first to describe what we mean by the phrase ‘fraud network’ and, broadly, how their activities can be counteracted.

“Fraud networks are organized groups or individuals that collaborate to carry out fraudulent activities. [They] exploit gaps where [an organization’s] infrastructure is not connected to transaction or event monitoring. Fraud networks, or fraud rings, are groups of individuals – operating globally or within the same location – who jointly participate in fraudulent activities, such as multi-accounting, money laundering, money muling, and personal data breaches. They collaborate to take advantage of a digital platform like a cryptocurrency exchange, fintech app, dating service, or online casino. By connecting who the person is (with IP addresses, payment details, and so on) to what they actually do on the platform, we can detect and act on fraudulent patterns.”

Although such groups operate globally, there is a greater instance of this type of crime in the APAC region, plus the problem is growing faster there too. Pavel told us that attack numbers are growing about eight times faster than in Europe and the Americas. The issue is not necessarily linked to national economic status: Singapore and Hong Kong are among those countries where fraud networks operate commonly. Singapore, with the highest GDP (PPP) per capita in the world, saw 4,800 people investigated for ‘money muling’ (the transfer of illegally-gained funds on behalf of others) in 2020 alone, according to Singapore Police data. There were 4,700 similar cases in Singapore in the first three months of 2023 alone.

Source: Sumsub

“In Asia, fraud rings are affecting both developed and developing markets alike. For example, Bangladesh has an average fraud network incident rate of a worrying 10.2%, with alarming rates in other growing economies such as Thailand (6.6%), Vietnam (3.7%) and Indonesia (2.2%),” Pavel said.

Of course, the problem isn’t limited to the APAC. In Estonia – arguably one of the most digitized countries in Europe –  a group of several dozen cryptocurrency exchange applicants uploaded identical Proof of Address documents from an unlicensed foreign bank in an attempt to get multiple cryptocurrency-based payment cards issued to the same address.  , Sumsub, discovered the attempt. “This is just one case of how serial fraud operates; other instances include money muling schemes, tech support scams, ransomware, and phishing attacks, and account takeovers.”

Legacy methods of combating the types of fraud we see today depended on only initial KYC (know your customer) checks. Once a new user had passed those, their activity was not monitored. Fraudsters can, in those circumstances, persuade legitimate citizens to ‘lend’ (or sell) their credentials, to then go on to use the account to perpetrate crimes. “Continuous monitoring and analysis ensure that even those applicants who’ve passed initial verification are consistently under observation,” Pavel told us. But there are significant challenges in deploying full-lifespan countermeasures. These include:

• High volumes of data mean manual identity of suspicious activity is resource-intensive,
• False positives can impact genuine users and sour relationships between customers and provider,
• Evolution of methods used by fraudsters means training and adaptation are required constantly by enforcement organizations,
• Regulatory compliance means there are boundaries that simply cannot be crossed during investigation,
• Customer experiences are easily compromised by heavy-handed anti-fraud measures,
• Costs rise and profits take a hit because of the need for fraud prevention.

Pavel Goldman-Kalaydin, Head of Artificial Intelligence & Machine Learning. Source: Sumsub

Pavel told us that today’s machine learning algorithms are a huge boon in fraud detection. “AI is a powerful tool for detecting fraud networks. Should users show signs of fraud after being onboarded, they won’t go unnoticed. Through leveraging AI, companies can implement behavioral analysis and risk scoring algorithms, which were previously challenging to implement effectively. Such advanced capabilities enable continuous monitoring of users’ activities, meaning early detection of suspicious behavior and enhancing fraud prevention measures.”

Sumsub holds an ever-evolving database that has identified and reported over 2 million fraudsters and operates a KYC platform built on over a billion identities. It analyzes more than 5,000 fraud attacks daily, building a comprehensive picture of the digital landscape that examines historical connections and relationships among entities, using ML-powered algorithms.

It’s in proactive, constant monitoring that the company’s platform excels. Its platform pre-screens service applicants using ID verification and behavioral intelligence that adds an invisible layer of fraud prevention. Verification processes detect deepfakes, suspicious device fingerprints, create risk scores, and detect the activities of today’s fraud networks. On an ongoing basis, Sumsub oversees login behavior and looks deeply into account activity using AI that ensures near-zero instances of false positives, guaranteeing a highly accurate and reliable detection of fraudulent activities in real-time.

“We adopt a multi-layered approach, offering a solution with ‘Detect & Act’ capabilities in one platform. This goes beyond traditional anti-fraud or KYC methods to ensure a fortified defense against a wide array of fraud, including account theft, romance scams, payment fraud, and many more. We provide the ability to set action alerts to automatically trigger additional checks, to simplify the decision-making process and reduce false positives.”

Given the sums of money that change hands daily over the internet, it’s perhaps no surprise that fraud networks are constantly developing new methods to launder and steal money from legitimate sources. Sumsub is the only platform that uses technologies that are in advance of those employed by these cyber criminals, preventing fraud and illegal activity in the APAC and across the world.

To find out more about Sumsub, head over to the company’s website and join over 2,000 companies that protect themselves and their customers with preventative measures that don’t impact customer experience or statutory compliance. Sign up for the free demo today.

The post The threat of fraud networks in the APAC: KYC and beyond appeared first on Tech Wire Asia.

Source: Shutterstock

The conversation around data misuse extends further than generative AI. Consumers are arguably savvier about whom they give their information to and the permissions they grant. This is a consequence of organisational data misuse in the past – individuals are fed up with spam texts and calls. Significant data breaches also frequently make the mainstream news, and word quickly spreads, tarnishing brand reputations.

In recent years, data regulations have tightened to help protect consumers and their information. However, we are only at the start of this journey with AI. While laws are being introduced elsewhere in the world to regulate the technology, like the EU’s AI Act, the Australian government has yet to reach that stage. Saying that, in September, Canberra agreed to amend the Privacy Act to give individuals the right to greater transparency over how their personal data might be used in AI. The government has been put under pressure by business groups to prevent AI causing harm and, in June 2023, a paper was published exploring potential regulatory frameworks. However, at the moment, the onus is primarily on individual organisations to handle their AI technologies responsibly. This includes where the initial training data is sourced and how user data is stored.

Using untrustworthy public data to train algorithms does have consequences. These include so-called ‘hallucinations’, where the AI generates incorrect information presented in a manner that appears accurate. Toxicity can also be an issue, where results contain inappropriate language or biases that can be offensive or discriminatory. Air Canada was recently ordered to pay damages to a passenger for misleading advice given by its customer service chatbot, resulting in them paying nearly double for their plane tickets.

On the other hand, if an organisation uses its own customer data for AI system training, it faces a distinct set of risks. Improper handling can result in the violation of data protection regulations, leading to heavy fines or other legal action. In December 2023, researchers at Google managed to trick ChatGPT into revealing some of its training material, and OpenAI is currently facing a number of lawsuits in relation to the data used to train its chatbot. In January, another data breach exposed that the Midjourney AI image generator was trained on the works of over 16,000 artists without authorisation, which could lead to significant legal action.

Source: Shutterstock

Many core business technologies, like contact centres, utilise large volumes of data, and these are often one of the first targets in a digital transformation. Continuous modernisation of CX is essential to meet the rising expectations of customers. AI instils new levels of intelligence in the platforms used by organisations, for example, anticipating customer needs, making tailored recommendations and delivering more personalised services.

Organisations need to evaluate platforms that have processes in place to ensure they safeguard data and privacy, especially if leveraging AI. So-called ‘green flags’ include compliance with the Notifiable Data Breach (NBD) scheme and the PCI Data Security Standard (PCI-DSS). Enabling consumer trust and confidence in how their sensitive data and transaction history are leveraged and stored is essential. Adherence to relevant governance means organisations are reducing the risk of fraud and security breach by improving data security and bolstering authentication methods, to name just a couple of necessary measures.

It can be easy to get in hot water when embarking on a new venture without expert guidance, and AI journeys are no exception. Partnering with a reputable organisation which understands how the technology best fits in a business can be the difference between success and failure. With Nexon’s expertise, organisations have successfully leveraged a range of AI-powered solutions, from Agent Assist and Co-Pilot tools that streamline customer support workflows, to Predictive Web Engagement strategies that deliver personalised digital experiences and increase sales.

Nexon has forged a strategic partnership with Genesys, a global cloud leader in AI-powered experience orchestration, which prioritises ethical data sourcing and customer privacy. Genesys is committed to understanding and reducing bias in generative AI models, which it uses in its software to automatically summarise conversations for support agents and auto-generate email content for leads and prospects. This is achieved through ‘privacy by design’ principles enacted from the inception of its AI development, an emphasis on transparency into how the technology is applied and the use of tools to find and mitigate possible bias.

Genesys envisions a future where ethical considerations play a central role in all AI applications. Genesys AI brings together Conversational, Predictive and Generative AI into a single foundation to enable capabilities that make CX and EX smarter and more efficient and delivers meaningful personalised conversations (digital & voice) between people and brands.

The company’s customer-centric approach ensures that its cloud platform and AI solutions meet ongoing needs and adhere to strict data, privacy and security protocols.

Source: Shutterstock

As AI elements are introduced, they are tested rigorously to ensure they do not violate the protections that its cloud platform promises. Unlike other solutions, Genesys AI was built securely from its inception. Genesys provides users with control over AI use, providing understanding of its impact on experiences and enabling continual optimisation for better outcomes. Additionally, it provides a thorough exploration of the transformative potential of AI and how to responsibly leverage its capabilities for unparalleled customer experiences. You can read more into this subject in the white paper ‘Generative AI 101‘

Genesys has named Nexon a Partner of the Year twice in a row, thanks to its proven experience and expertise in delivering integrated digital CX solutions. This partnership solidifies the two companies’ collaborative efforts to provide organisations with innovative AI-driven solutions while upholding the highest standards of data ethics and customer privacy. Through this strategic alliance, organisations can navigate the complexities of AI technology, harnessing its transformative potential and drive growth and customer satisfaction responsibly and sustainably.

Contact Nexon today to discover how its AI expertise can drive superior customer interactions and streamline your business operations.

The post Ethical AI: The renewed importance of safeguarding data and customer privacy in Generative AI applications appeared first on Tech Wire Asia.

Organizations and governments worldwide, including Japan, face the dual challenge of mitigating risks and embracing the rapid advancements in AI. This involves managing uncertainties while also accelerating innovation and adoption to reap the benefits of this transformative technology.

Japan’s unique position in AI

Although Japan is known for its cautious approach to risk, it is also renowned for its innovative contributions to technology, particularly in smart robotics and automotive AI. However, reports suggest that Japan’s prowess in AI-powered hardware does not equally extend to its software capabilities, making it reliant on foreign large language models for generative AI.

Japan faces unique AI development and adoption hurdles, including limited data availability and cultural attitudes towards business risk. These factors complicate the integration of AI technologies within traditional business frameworks.

A recent study by Barracuda, titled ‘SMB cyber resilience in Japan: Navigating through doubt to an AI-powered future,’ examines AI’s impact on small to medium-sized businesses (SMBs) in Japan. It reveals a mix of optimism about AI’s benefits and concerns about security, knowledge, and skill gaps.

The research underscores general optimism among smaller Japanese organizations about the positive effects of AI on business operations. The majority of these businesses anticipate that adopting AI solutions will lead to workforce reductions over the next two years—66% foresee fewer full-time employees, and 70% expect to rely less on freelancers and contractors. This trend is expected to lower costs and reduce the human resource demands on companies, though it also highlights a precarious future for workers in roles vulnerable to automation.

ARE YOUR WEB APPLICATIONS SECURE? BARRACUDA REPORTS HIGH INCIDENT AND BREACH INVOLVEMENT

Muhammad Zulhusni | 22 February, 2024

In addition to cost reduction, businesses expect AI to enhance operational efficiencies across various functions, including marketing and customer relations. Approximately 67% predict that AI tools will produce over half of their content soon, and 60% believe AI will become the primary interaction point for customers. Moreover, thanks to AI, 76% anticipate quicker and more accurate customer insights.

Strengthening cybersecurity through AI

On a broader scale, 65% of respondents are confident that AI tools can streamline their cybersecurity needs, reducing reliance on human security teams or third-party services. Given Japan’s acute shortage of cybersecurity professionals, integrating AI for automated threat detection and response is seen as essential for enhancing security across all business sizes.

Most organizations recognize the need for external assistance to fully leverage AI for business benefits. A significant majority of businesses surveyed—76%—indicate the necessity of partners for researching and exploring AI. The same proportion (77%) seek help with implementing AI solutions and managing these technologies on an ongoing basis. Security vendors and managed service providers in Japan are well-positioned to help smaller businesses exploit AI’s advantages.

The release of ChatGPT by OpenAI in November 2022 showcased the capabilities of generative AI tools in creating natural, engaging dialogues. Despite widespread attention, businesses exhibit cautious engagement with generative AI. Awareness does not equate to comprehensive understanding; 56% grasp the distinctions between generative AI and other AI types like machine learning, while 44% admit to limited or no understanding. Consequently, many Japanese companies impose restrictions on AI use due to potential risks.

Approximately 69% of businesses perceive risks with workplace generative AI usage. While 18% permit its use—6% broadly and 12% in limited team settings—62% do not officially sanction it, suggesting covert use that may heighten security risks. Concerns also include data protection (57% of respondents), the absence of regulatory frameworks (47%), and opaque AI decision processes (31%). Additionally, 13% fear AI systems being compromised by cyber attackers.

Risks of using generative AI (Source – Barracuda)

AI and cyber threat evolution

There’s notable uncertainty about AI’s role in evolving cyber threats. About 55% of businesses are unsure how AI could be utilized in email attacks, with similar uncertainty extending to denial-of-service (62%), malware (57%), API attacks (56%), and cyber espionage (55%).

Despite these uncertainties, email threats remain a prominent concern for Japanese small businesses, with 53% highlighting account takeover attacks as a top threat. This form of identity theft allows attackers to misuse accounts, potentially leading to phishing scams, data theft, and more. Other significant threats include phishing and social engineering (37%), with ransomware also critical (39% reported it as a top concern, predominantly initiated via email).

Cyber threats concerning businesses in Japan (Source – Barracuda)

Survey participants generally understand the role of AI in fortifying cyber defenses, especially in areas like email security and employee cybersecurity training. However, there’s some ambiguity about AI’s effectiveness in other domains, possibly due to these areas being less familiar to smaller enterprises.

When asked which AI-enhanced security measures would improve their organizational safety, 36% pointed to AI-enhanced email security, especially against sophisticated threats like deepfakes. Another 24% believed AI could support more tailored, frequent training programs. The benefits of AI in continuous threat intelligence and response, as performed by Security Operations Centers (SOCs), were not as clearly understood.

The survey reveals a deficiency in AI-specific practices and policies needed for responsible AI usage. While 52% of businesses conduct employee training on AI use and vulnerabilities, only 35% have formal policies dictating AI usage. Even fewer have comprehensive governance structures in place, such as legal frameworks. This indicates a lack of control and management over AI applications within businesses.

A YEAR OF HIGH-SEVERITY ATTACKS AND GROUNDBREAKING CYBERSECURITY STRATEGIES IN 2023

Muhammad Zulhusni | 5 March, 2024

The latest ICS2 Cybersecurity Workforce Study shows that Japan has nearly half a million cybersecurity professionals, a notable 23.8% increase from the previous year, contrasting with a global average of 8.7%. Despite this growth, the demand far exceeds supply, with a shortage of 110,254 professionals, marking a 97.6% increase year-over-year — significantly higher than the global average of 12.6%. This gap is unprecedented compared to other nations evaluated in the ICS2 study.

This macro perspective mirrors smaller businesses’ daily challenges, particularly with AI-driven cyber threats.

Makoto Suzuki, Regional Sales Director for Japan at Barracuda, highlights the survey’s findings: Japanese SMBs recognize AI’s benefits for enhancing business productivity but remain cautious about the cyber threats it poses. Suzuki notes, “This could hold businesses back from harnessing the full potential of AI to revolutionize business performance and competitiveness by optimizing processes, reducing costs, improving quality, and providing new insights and ideas.”

The post How Japan balances AI-driven opportunities with cybersecurity needs appeared first on Tech Wire Asia.

The current state of the insurance industry

TechWireAsia spoke to Nikola Djokic, the Managing Director of Insurance at SAP Fioneer, about the current state of the insurance industry and the challenges it faces. “Insurance is undergoing a revolution,” he said. “The rise of the insurtech and access to data has allowed non-insurance brands to enter the market and offer insurance as part of their offering, adding value to their customers and generating new revenue. Rather than a separate vertical industry, insurance is now taking a role in several ecosystems. This all represents significant new market opportunities for insurtechs, new players and incumbents alike, but the change is rapid, and traditional insurers need to adapt quickly to take advantage of and benefit from the new world order.”

Digitalization has traditionally been hampered in insurance due to legacy systems. Often built over decades, they have created data silos and operational inefficiencies that hinder the adoption of modern technology. Insurers have struggled to integrate new digital solutions seamlessly into their existing infrastructure, leading to fragmented customer experiences and slow response times. Moreover, the risk-averse nature of the insurance industry has contributed to a reluctance to invest in digital transformation initiatives. Insurers have been cautious about migrating sensitive data to the cloud and adopting emerging technologies like AI and machine learning due to concerns about data security, regulatory compliance, and the potential for disruption to established business processes.

Mr Djokic said: “Decisions need to run from the user interface through the middle office to the back office and back again, and these have typically been disconnected. The process of assessing a customer for a policy, or a claim for a payment, traditionally required (and in many cases still requires) a lot of manual intervention.”

Third-party data has been available to facilitate these assessments, but it is rarely integrated into the core insurance solution, making it challenging to meet customer expectations for digital immediacy. “This has allowed new players – neo-insurers – unencumbered by legacy systems or processes to leapfrog ahead in niche areas,” said Mr Djokic.

Insurance penetration in Asia, standing at around two percent in developed markets and one percent in emerging markets, presents a barrier to sector expansion despite the region’s vast population of over four billion people. TechWireAsia caught up with Chirag Shah, the Managing Director of JAPAC Digital and Core Insurance at SAP Fioneer, to try and understand the growth potential of the industry in APAC.

He said: “The Asia Pacific insurance market is experiencing shifts driven by post-COVID-19 customer perceptions, particularly in healthcare. Rising awareness of the protection gap has led to increased demand for health and life insurance products, especially in emerging markets, where insurance penetration and density are lower compared to developed markets.

“Insurers must navigate challenges such as mobility, cybersecurity, and climate change while enhancing value creation within existing operations like claims and underwriting. Challenges include slowing growth, low penetration, and rising combined ratios, particularly in emerging markets.”

Insurance everywhere

Source: SAP Fioneer

“‘Insurance everywhere’ alludes to embedded insurance,” said Mr Djokic. “Delivering insurance at the point it’s needed, as part of a purchase process, circumventing the need for a consumer or business purchaser to undertake a separate set of steps to insure their car, home, electronic item, or holiday.” By making insurance products more accessible and convenient, insurers can reach a broader audience and meet the evolving needs of modern consumers. Accessibility also opens up new opportunities for insurers to partner with other industries and platforms, expanding their reach and market presence.

Mr Djokic added: “[It] has the potential to increase the level of insurance generally, which is good news not just for the industry but society as a whole, as it becomes more protected. But it also means that non-insurance companies can take market share from the traditional players, unless those players turn the situation to their advantage, and become the ones offering insurance solutions to new industries.”

Personalization with data and AI

Traditional insurance practices rely on limited data and broad assumptions, often leading to unfair assessments of risk based on general demographics. This has sparked frustration among consumers who feel penalized for careful behavior while subsidizing riskier individuals. However, emerging technologies like telematics and IoT devices are beginning to change this dynamic by allowing personalized assessments and rewards for behaviors like safe driving and healthy lifestyles.

“We have seen examples of health insurance companies monitoring exercise levels with fitness trackers and dropping premiums accordingly,” said Mr Djokic. “There is now more data accessible to the insurer to contribute to the risk assessment, be it social media or online behavioral data, credit scores or – in the case of embedded insurance – data held or gathered by the non-insurance company.

“For the first time, we’re witnessing a ‘win-win’ in the industry, where data helps the insurer reduce their risks and pass this on in the form of reduced premiums to the customer. As consumers become accustomed to this level of tailoring, it will be essential for insurers to offer personalized insurance to stay competitive.”

Increased data availability is enhanced by AI, particularly machine learning, enabling dynamic risk assessments and tailored policy generation. Predictive analysis and risk scenario modeling help insurers proactively cover emerging risks like climate change and technological advancements. Automated policy drafting and scenario simulation improve efficiency and ensure comprehensive coverage tailored to specific customer needs.

“AI can interpret data accurately and immediately to deliver real-time claims processing and payment while mitigating risks.” Said Mr Djokic. “It delivers the speed consumers and businesses now expect while protecting the insurer.”

Mr Shah added: “Insurers in Japan and Korea may leverage AI and data analytics uniquely to cater to their distinct demographics and technological landscapes. Japan’s aging population may drive insurers to develop AI solutions for personalized services and risk management tailored to older demographics. Korea’s advanced technological infrastructure may facilitate the adoption of AI-driven underwriting and pricing models to enhance customer experiences and operational efficiency.”

The future with SAP Fioneer

On the future of insurance in APAC, Mr Shah said: “Despite challenges, Asia remains an attractive insurance market, with emerging markets expected to see higher premium growth in the next two years driven by rising economic growth, increasing risk awareness post-pandemic, and digitalization of distribution channels.

“Digitally embedded insurance is expected to grow significantly by 2030, driven by increasing digital penetration and partnerships with digital ecosystems.”

Mr Djokic says that the key to taking advantage of the new opportunities in insurance is connectivity – the ability to connect a core insurance solution to, for example, a new data source or user interface. “The secret to that is open technology,” he said.

For example, SAP Fioneer’s Engagement Hub is a tool for insurers to connect in an evolving ecosystem. With bi-directional communication, the Hub links a core insurance system with diverse digital channels, letting insurers craft tailored insurance solutions and adapt to market demands. The Cloud for Insurance cloud-native platform boasts fully managed services, ecosystem integration, and an intuitive user experience, allowing users to scale, innovate, and adapt quickly.

For more information on how insurers can embrace open technology and navigate the transformative changes in the industry, download the ‘Insurance Everywhere All at Once’ whitepaper from SAP Fioneer today.

The post Insurance everywhere all at once: the digital transformation of the APAC insurance industry appeared first on Tech Wire Asia.

EdgeConneX, a global data center operator with regional headquarters in Singapore, is firmly set on catalyzing this shift. By deploying edge data centers across key markets in the Asia-Pacific region and forming strategic partnerships with local industry leaders, the company will establish a robust network infrastructure that aligns with recent escalating data demands through cloud and Artificial Intelligence (AI).

The APAC data center market is fit to burst

Source: Shutterstock

Kelvin Fong, EdgeConneX’s Managing Director for the APAC region, said: “Cloud technology and the increasing adoption of AI, are likely to lead to significant expansion into markets beyond the traditional APAC markets of Singapore and Hong Kong.” These new markets are developing now in India and Indonesia due to burgeoning digital transformations in their economies and throughout the region.

Mr. Fong noted that governments in Southeast Asian countries are also being more proactive and supportive towards digital infrastructure development. Leaders have picked up on how digital advancement can lay the foundation for exponential economic growth in the coming years, by attracting new skill sets, creating employment opportunities, and fostering innovation and global competitiveness.

Fiber investment has also worked as a data center investment driver. Don MacNeil, EdgeConneX’s Chief Revenue Officer, said: “Investments in fiber optics hold great significance, both domestically and across the wider region. They are notably simplifying the challenge of connectivity and adding essential network diversity.”

How EdgeConneX is reaching APAC

Malaysia

Government digitalization in Malaysia has spurred interest in expanding its data center infrastructure. Mr. Fong said: “The local government is playing a catalytic role by facilitating land sales, ensuring power availability, and streamlining administrative processes. These efforts are attracting data center operators and end-users to the area.”

Malaysia was also taking advantage of the data center moratorium in Singapore, which was only lifted in 2022, and attracted much of the country’s outbound traffic. As a result, the industries in Johor and Kuala Lumpur have seen significant growth and are now key markets.

He added that there are new opportunities for “mega-campuses” in Greater Kuala Lumpur rather than just the center, where limitations on space and power availability make it expensive. Mr. Fong said: “In fact, they have already opened up some of the technology parks just to cater to the hyper-scalers.” Last year, EdgeConneX unveiled its plans to build data centers in downtown Kuala Lumpur, Bukit Jalil in Greater Kuala Lumpur, and Cyberjaya, with nearly 300 MW of total capacity. Malaysia’s dense network connectivity, power availability, multiple port cities, and connections to 22 submarine cables position it as a strategic data center destination.

Indonesia

Indonesia is Asia’s third most populous country, and its population is still growing, so data demands are likely to continue escalating in parallel. In 2022, EdgeConneX acquired the GTN data center, which allowed the company to gain an initial foothold in its ninth market in Asia. In September this year, it secured $403.8 million in investment to support the growth of a 120 MW hyper-scale data center campus in Jakarta. As well as the capital, Mr. Fong says that Eastern Java and Batam are becoming key data center markets in Indonesia. He said: “They’re not just drawing in international demand, but also experiencing substantial domestic interest. With a thriving community of e-commerce and fintech enterprises in Indonesia, there’s a significant surge in locally-driven demand.”

China

In December 2021, EdgeConneX unveiled its new strategic partnership with leading Chinese data center provider Chayora to help expand its solutions throughout the mainland, including in Tianjin and Greater Shanghai. Tech Wire Asia recently spoke with Chayora CEO James Wei, to discover his insights on how China can sustain a thriving data center landscape going into 2024.

Philippines

In 2022, EdgeConneX forged a partnership with Aboitiz InfraCapital to capitalize on its extensive local market knowledge, as well as its land and power assets in the Philippines. Presently, discussions are underway with potential customers about breaking ground.

Mr. Fong noted: “Aboitiz brings a wealth of essential components to the table for success in the market. With ownership of power resources and real estate, as well as involvement in the construction industry, they offer crucial assets. These complement our [EdgeConneX] global data center platform, build, and operational capabilities, which is why we’ve partnered with Aboitiz.”

India

EdgeConneX has partnered with Adani Enterprises, India’s largest multi-infrastructure organization, since 2021. The joint venture ‘AdaniConneX’, has already set up a data center in Chennai and aims to build out 1 GW of data center capacity by 2030.

Mr. MacNeil stated: “Adani not only brings just the local infrastructure expertise of the Adani Group but, more importantly, the infrastructure supporting power transmission and generation. Adani Group has a similar goal for renewable, sustainable energy; to be at 25 GW by 2025, and it’s well underway. So, in many cases, India has the advantage of significant, fresh investment on all aspects – not only digital infrastructure but also the broader infrastructure requirements.”

Challenges faced by the APAC data center industry

One of the main challenges of expanding the data center industry in Asia is doing so sustainably. Getting access to renewable energy directly, rather than via carbon offsetting, can be difficult in certain countries like Malaysia, Indonesia, and Singapore. Mr. Fong said: “The region’s commitment to sustainability is evident, with countries like Indonesia and Malaysia planning to significantly ramp up their renewable energy generation in the coming years. These initiatives will eventually power the burgeoning data center industry, ensuring a greener and more sustainable digital future for Southeast Asia.”

EdgeConneX is making significant strides in sustainable data center development, even in countries where it is less straightforward. For example, the deal struck for the hyper-scale data center campus in Jakarta was explicitly for ‘sustainability-linked senior facilities’, meaning it will be equipped with sustainability capabilities. Adjustments will be made to the financing terms when EdgeConneX meets certain Key Performance Indicators (KPIs) concerning the Power Usage Effectiveness (PUE) of data centers, the use of renewable electricity, and achieving safety goals.

Looking to the future

Source: Shutterstock

As Mr. MacNeil noted, “Over the next 24 months, we will see the impact of the next wave of data center expansion, driven by AI, building on the already healthy pace of growth of Cloud. All of that also driving the virtuous infrastructure expansion in connectivity through terrestrial fiber optics and submarine cable expansion – it’s exciting to be a part of this wave.”

According to the Asia-Pacific Trade and Investment Report 2023-2024, the region posted a 9 percent growth rate in digitally deliverable exports from 2015 to 2022, outpacing the global average of 6.8 percent. Now, the continuation of this growth is paired with ambitious sustainability and net-zero goals, pledged by many APAC countries including China, Japan, South Korea, and Singapore.

EdgeConneX’s strategic vision and collaborations aim not only to meet the burgeoning demands of Cloud and AI but also committed to contributing to growth in a responsible and sustainable manner across the Asia-Pacific data landscape.

Mr. Fong said: “This sets the momentum for our investments in Indonesia and Malaysia. We aim to seize this market opportunity as it begins to rise. Therefore, pinpointing the optimal locations and timing is crucial for our success in this endeavor.”

To explore EdgeConneX’s comprehensive array of cutting-edge data centers throughout the Asia-Pacific region, and to inquire about tailored data center solutions for your business, visit the EdgeConneX website today.

The post The view of APAC data centers in 2024: Trends, challenges, and EdgeConneX’s impact appeared first on Tech Wire Asia.

That’s where problems can stem from, too: most organisations use many different applications, and too many everyday tasks involve editing and moving data from application to application. Software automation can’t easily be achieved because every company’s workflow is unique and draws on data from specific sources.

Of course, there’s always the option to create software from scratch designed to automate workflows, but that’s typically slow and expensive to undertake. Off-the-shelf automation solutions also have the effect of carving into stone the company’s processes – something that goes against the need for fast adaptability and flexibility in dynamic business markets.

Source: Shutterstock

A low-code automation solution offers any organisation a way through the impasse. It allows individual line-of-business experts to create the efficient systems needed to do their work more effectively and offer customers the experiences they demand.

Answering the data questions

At the core of the modern business are the troves of information that grow daily as the company operates. In most cases, data gets stored in discrete silos defined by the software applications used in the different parts of the business (and it’s worth noting that each business function might use a single common application in very different ways).

Half the battle in automation is locating, adapting, and amalgamating information from different sources to be used in joined-up workflows. At a low level, software platforms can communicate with one another and exchange data via APIs (application programming interfaces), but negotiating APIs is usually done at the level of software code, which is not a skill in most people’s wheelhouses. API connections are also fragile due to their tendency to break when one of the platforms they belong to is updated or patched.

It’s essential, therefore, that any low-code automation platform can auto-negotiate with the low-level interfaces that each application presents, creating a reliable connection between each instance of siloed data. By doing so, the automation platform creates an up-to-date resource for its users of a unified data fabric.

Sewing with the data fabric

The technology buzzphrase of the last 18 months has been AI, which is highly relevant here but needs breaking down in this context. Platforms like ChatGPT work off public data, which has been ingested over many months. What’s much more useful in a business setting is to give an AI access to the organisation’s private data so the algorithms can produce answers that are relevant to business operations. The same dedicated algorithms will learn the company’s workflows too, and be able to suggest connections and optimisations to human operators to speed up the process of building automations.

Source: Shutterstock

Even without the help of an in-house AI, the presentation of a data fabric offers so-called ‘citizen automators’ the full choice of information available to them from even the furthest reaches of the business’s data resources.

Armed with this and tools to build automated processes, the people at the coal face can create optimised workflows that benefit them, their organisation, and the organisation’s users or customers.

Messages from the coal face

“Using low-code, businesses can deploy solutions 10 to 20 times faster than traditional coding methods,” Luke Thomas told us. He’s the Area Vice President, Asia Pacific & Japan, at Appian, a company whose low-code automation platform is transforming how private companies and public institutions run their organisations.

The public sector is, of course, particularly sensitive to data regulation and security. Appian’s platform carefully trains its AIs with built-in guardrails that protect information from being used in the wrong contexts. It’s possible, therefore, to have a line-of-business expert build an application (or series of automations) that can access a large system like a company-wide ERP but only be able to see and use data appropriate to the task and within preset constraints.

The benefits of automating workflows become quickly apparent, especially when news of the efficiency gains spreads through the organisation. “A recent partnership we’re really proud of is working with the Office of Public Prosecutions in Victoria on a new case management system that is expected to save around 66,000 hours per year through process automation,” Mr Thomas said.

It’s often in the customer-facing applications that process automation can differentiate one business from another. Lenders’ mortgage insurance company Helia automated its claims management workflows with the Appian AI Process Platform and reduced claim processing time from two days to less than 10 minutes. The dramatic improvement in customer experience gave the company a market advantage and massively reduced its internal costs for each claim.

And while the buzz around artificial intelligence continues in the mainstream media, it’s in the data sets that AI works with that will likely change how organisations work. “I’d suggest that the real value in AI will eventually lie with those who own unique and original data, not necessarily those who create AI technologies,” Mr Thomas told us. Because work processes and data resources are specific to each organisation, using a dedicated AI has the potential to drive efficiency and thereby reduce cost, as well as create the kind of agility that safeguards a business’s future.

Head over to the company’s site to learn more about low-code automation and the Appian AI Process Platform.

The post Empowering Automation with Private AI appeared first on Tech Wire Asia.

Elon Musk has declared that his artificial intelligence startup xAI will extend access to its chatbot Grok to all premium subscribers of the social media platform X. This announcement, made in a post on X, does not delve into further details but signifies a shift from the chatbot’s previous limitation to Premium+ subscribers. Amidst advertisers withdrawing from X, Musk is pivoting away from advertising revenue, focusing instead on enhancing subscription services.

In a move that critiques the profit-oriented use of technology by major tech firms such as Google, Musk plans to make Grok open-source. This follows his lawsuit against OpenAI, where he accuses the organization of straying from its non-profit roots towards profit-driven motives. By open-sourcing Grok, Musk aligns xAI with entities like Meta and France’s Mistral, which have also made their AI models publicly available, encouraging innovation and engagement from the wider community.

Elon Musk posted the availability of Grok for all premium subscribers (Source – X)

What’s going on with Elon Musk and the world of AI development?

Moreover, Musk’s legal confrontation with OpenAI, which he co-founded and eventually left, highlights his concerns about the ethical trajectory of AI development. Despite previously endorsing profit-focused strategies, including a merger proposal with Tesla, Musk’s latest initiatives and comments, especially at the AI Safety Summit in the UK, advocate for ethical AI development and the adoption of open-source principles, with the aim of developing a “maximum truth-seeking AI” at xAI.

This strategic direction not only challenges the methodologies of OpenAI and Google but also ignites a debate among technology leaders and investors about the implications of making AI technology open-source. While such transparency can foster innovation, there are concerns about its potential misuse, underscoring the balance between technological advancement and ethical considerations.

As reported by BBC, Elon Musk’s Neuralink has showcased its first patient, who, using a brain implant, controlled a computer cursor and played online chess. In a nine-minute live stream on X, viewers witnessed Noland Arbaugh, paralyzed below the shoulders due to a diving accident, using the device. Arbaugh, who received the chip in January, described the surgery as “super easy.”

A demonstration of the controlled a computer cursor and played online chess through the brain (Source – X)

Arbaugh also recounted playing the video game Civilization VI for eight hours straight, facilitated by the brain implant, though he mentioned encountering some issues with the technology. The Neuralink device, about the size of a one-pound coin, is designed to be inserted into the skull, with tiny wires that can read neuron activity and send wireless signals to a receiver.

Following trials in pigs and demonstrations of monkeys playing a basic version of Pong, the FDA approved Neuralink for human testing in May 2023. Neuralink is among a growing number of firms and academic departments pushing the boundaries of brain-computer interface (BCI) technology.

In a parallel development, the École Polytechnique Fédérale in Lausanne, Switzerland, enabled paralyzed individual Gert-Jan Oskam to walk by simply thinking about moving, using electronic implants on his brain and spine that wirelessly relay thoughts to his legs and feet, as reported in Nature.

BCIs aim to capture some of the electrical impulses generated by the brain’s approximately 86 billion neurons, which facilitate movement, sensation, and thought. These impulses can be detected by non-invasive caps or directly via implanted wires, drawing significant research investment.

Musk has boldly claimed that Neuralink’s technology can restore sight in monkeys, branding this technology as “Blindsight.” He envisions this technology, initially offering low-resolution vision akin to early video games, eventually surpassing human visual capabilities. He assures that the procedures have been safe for the animals involved.

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Neuralink’s advancements, including the “Telepathy” product enabling mind-controlled computer use, mark significant strides in the field. Following FDA approval for its first human trial, Neuralink released a video showing a quadriplegic patient playing chess through mind control, demonstrating the implant’s potential through 64 flexible threads that record and transmit brain signals.

Challenges and advances: Neuralink’s journey to human trials

According to Reuters, a U.S. health policy lawmaker has queried the FDA about its prior inspection of Neuralink, before approving it for human trials. This follows reports of issues discovered during inspections related to animal testing practices at Neuralink. These findings emerged shortly after Neuralink announced FDA clearance for human testing of its brain implants, which enable paralyzed individuals to control computers with their minds.

Representative Earl Blumenauer expressed concerns in a letter to the FDA about overlooked evidence from animal testing violations dating back to 2019. He questioned how the FDA reconciled these reports with its decision to authorize Neuralink’s human trials, amidst allegations of rushed experiments leading to unnecessary animal suffering and potential data integrity risks.

In response, the FDA indicated it would directly address Blumenauer’s inquiries, noting its post-approval inspection did not identify any significant safety concerns for the trial. Neuralink, having commenced human testing, recently demonstrated the implant’s capabilities in a live stream, highlighting the potential of brain-computer interfaces despite regulatory and ethical scrutiny.

This exploration into brain-computer interface technology, with companies like Synchron and Blackrock Neurotech also advancing in human trials, demonstrates the potential for patients to control digital interfaces solely through thought. The investigation into Neuralink’s regulatory approval underscores the critical balance between innovation in medical technology and the necessity of maintaining safety and ethical standards.

As the field progresses, the discussions around Neuralink’s practices and the FDA’s oversight reflect broader questions about the pace of technological advancement and the frameworks needed to ensure its responsible development.

The scrutiny faced by Neuralink, arising from concerns over its animal testing procedures and the subsequent approval for human trials, brings to light the challenges of pioneering medical devices within the rapidly evolving domain of brain-computer interfaces. It emphasizes the importance of rigorous regulatory processes that not only facilitate technological breakthroughs but also safeguard the welfare of both animal subjects and human participants.

The post Elon Musk takes AI and brain chips mainstream with Grok and Neuralink appeared first on Tech Wire Asia.

Generative AI’s marketing narrative has caught everyone’s attention, heralding a new era where it reshapes business strategies, particularly in learning and development. This comes at a critical juncture, where acquiring digital skills is beneficial and essential for businesses and their workforce. However, a recent study has highlighted a surprising trend: many Australians seem to underestimate the impact this technology could have on their professional lives.

A collaborative study conducted by RMIT Online and Deloitte Access Economics has shed light on an alarming gap in Australians’ understanding of generative AI’s potential to disrupt existing job roles. This lack of awareness is especially concerning, given the rapid pace of digital transformation across industries.

The skills gap in digital competencies among both employers and employees is becoming increasingly apparent. Employers have noted a particular shortage in digital skills within their organizations, with a significant emphasis on generative AI, machine learning, data science, coding, and cybersecurity. This scarcity has led businesses to offer a considerable premium for these in-demand skills. Meanwhile, employees have acknowledged an even more acute shortage of digital skills, exacerbating fears about future job security in the face of emerging technologies.

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Generative AI in the workplace: Use and relevance

This growing demand for digital skills underscores the urgency with which the Australian economy needs to address these skill shortages. Reports by Deloitte and the Australian Computer Society (ACS) project that an additional 1.3 million digital skills will be required by 2030 to keep pace with AI and data analytics advancements. This necessity is mirrored in the workforce’s sentiment, where most recognize the looming integration of technologies like generative AI into their daily tasks.

Despite the clear trajectory towards a more digitally integrated workplace, nearly half of the employees surveyed admit to having never used generative AI in their current roles, often citing its perceived irrelevance to their work. This viewpoint starkly contrasts with studies indicating that most occupations will eventually interact with these technologies. Employees do recognize the importance of digital literacy for their future success, although they underestimate the value of specific skills like data science and analytics.

The report reiterates the disconnect between employees’ current use of generative AI and their understanding of its relevance, despite widespread indications of its impending impact across various occupations. Furthermore, Deloitte’s research reveals that a mere fraction of Australian businesses feel fully equipped to adopt and utilize AI technologies effectively.

With digital skills in high demand, businesses are prepared to offer premiums for candidates proficient in data and digital competencies. This readiness highlights the critical skill gap in the Australian workforce, further magnified by the advent of AI and other pivotal technologies. RMIT Online’s CEO, Nic Cola, stresses the importance of proactive reskilling and upskilling to navigate the challenges posed by these technological shifts.

Echoing the need for a swift response to the evolving digital landscape, John O’Mahony of Deloitte Access Economics points out the unique advantages of generative AI in enhancing traditional learning and development. Its capability to produce customized content can significantly boost employee learning efficiency and knowledge retention.

Facing the future: The urgent need for strategic workforce development

Despite these insights, many employers have yet to introduce generative AI training within their organizations, underscoring a broader unawareness or hesitancy towards embracing these technologies. This reluctance occurs even as specific industries are poised for rapid and profound changes due to this revolutionary technology, emphasizing the critical need for a strategic approach to workforce development in the face of digital transformation.

Generative AI stands out from prior technological advancements with its ability to process vast amounts of unstructured data, eliminating a significant hurdle for business adoption. Its capability to generate new, multimodal content from straightforward user prompts opens up intelligence use to a wider audience, without requiring a background in computer science.

Currently, a mere 5% of Australian businesses are completely ready to integrate and utilize AI in their workflows. However, a substantial portion of the workforce and student body—32% of employees and 58% of students—already engage with generative AI, pushing its adoption across various sectors.

The main economic advantage of generative AI lies in its ability to enhance productivity by automating mundane and labor-intensive tasks. According to Deloitte’s survey on generative AI, regular users of these tools can save an average of 5.3 hours weekly. Those equipped with the skills to effectively employ the technology are at the forefront of these productivity improvements, with 59% of employees planning to enhance their generative AI skills within the following year.

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Towards a generative AI-ready Australia: Bridging the training gap

However, there’s a noticeable disparity between employees’ enthusiasm to learn about generative AI and businesses’ investment in training and adopting these tools. 78% of companies surveyed have not offered generative AI training, or are unaware of such initiatives within their organizations. Additionally, 17% do not foresee providing training on generative AI at any point.

This gap in training exacerbates potential risks associated with generative AI, such as data breaches, inaccuracies, and copyright issues, with 53% of employees expressing concerns over privacy when using the technology in their roles.

Nevertheless, investment in AI by Australian companies is expected to surge to AU$27.5 billion by 2030, a seven-fold increase. This investment aims to maximize generative AI’s benefits by training employees on tailored models that securely and responsibly incorporate the company’s data. It also seeks to enhance workplace training and experiences through AI, thereby attracting and retaining employees adept in generative AI technologies.

Generative AI’s impact on skill demand varies across roles and industries, depending on how it’s applied. For instance, generative AI could affect 98% of sales tasks but only 3% of finance-related tasks in the retail industry. In cases where generative AI augments tasks rather than fully automating them, employees with basic technical skills, like coding and prompt design, can significantly benefit.

Five key industries—financial services, ICT and media, professional services, education, and wholesale trade—are poised for rapid and transformative changes due to generative AI, representing 26% of the Australian economy or nearly AU$600 billion in economic activity.

Although coding has been a highly sought-after skill in Australia for the past decade, the rise of no-code generative AI tools is making programming skills more accessible to the broader workforce. This shift underscores the growing importance of soft skills, such as critical thinking, problem-solving, and communication, alongside technical abilities.

Top five in-demand skills for professionals from January to July 2023 (Source – RMIT Online)

Generative AI is also expected to generate new job roles, especially in managing customized AI models, necessitating specialized data skills. The demand for professionals capable of designing AI models, monitoring outputs, and ensuring training data is diverse and balanced is set to rise sharply. Projections from Deloitte and the ACS anticipate a 179% increase in demand for advanced data analytics skills and a 268% surge in high-performance computing skills by 2030.

The post Aussies don’t believe in the generative AI hype? appeared first on Tech Wire Asia.

For years, the United Arab Emirates (UAE) has stood out as the premier technology hub in the Middle East, a status bolstered by its appealing lack of personal income tax, accommodating visa policies, and enticing incentives for global businesses and professionals. However, Saudi Arabia is now positioning itself as a formidable challenger in this domain.

At this juncture, the emergence of Saudi Arabia as a contender in the tech arena should hardly come as a surprise. Last year, the country unveiled plans for the Mukaab, an ambitious cube-shaped skyscraper project. This supertall structure, envisioned to cover an area approximately one-third the size of Manhattan, aims to set a new benchmark as the world’s largest built structure.

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Saudi Arabia and its bold leap into AI investments

The latest developments from Saudi Arabia further underscore its tech ambitions, with The New York Times reporting the government’s intention to establish a US$40 billion fund dedicated to artificial intelligence investments. Informed by insiders, this significant initiative marks in the global race to harness and shape the future of AI technology.

The Mukaab is expected to be more than just an architectural marvel; it plans to house a museum, a technology and design university, and a versatile theatre. This could potentially mirror or even surpass the innovative features seen in Dubai’s Museum of the Future, which boasts a variety of AI-powered attractions, suggesting that the Mukaab’s offerings could integrate AI technology in groundbreaking ways.

Recent discussions between Saudi Arabia’s Public Investment Fund and prominent figures in the venture capital world, including Andreessen Horowitz, indicate a serious interest in forging partnerships. Despite these plans being subject to change, the ambition behind them is clear, positioning Saudi Arabia as a potential heavyweight in the global tech landscape.

By aiming to establish the world’s largest AI investment fund, Saudi Arabia not only showcases its business acumen but also signals its intent to diversify its oil-dependent economy and assert a more dominant role in international geopolitics. This move leverages the sovereign wealth fund’s substantial assets, furthering the nation’s strategic objectives.

Discussions with Andreessen Horowitz, a firm already deeply invested in AI, hint at the scale of Saudi Arabia’s ambitions. This proposed US$40 billion investment positions Saudi Arabia alongside SoftBank as one of the most significant global tech investors, eclipsing the financial efforts of most U.S. venture capital firms.

Saudi Arabia plans US$40 billion push into AI (Source – X)

The tech fund is being organized with assistance from major Wall Street banks, entering a market already flush with investment capital. This surge of investment into AI reflects a broader trend of soaring company valuations and fierce competition among investors to back the next big breakthrough in technology.

Financing AI ventures is expensive, as highlighted by OpenAI‘s CEO, Sam Altman, who sought substantial funding from the UAE to support AI chip manufacturing. Saudi Arabia’s interest in funding AI extends to supporting startups in chip manufacturing and data center operations, indicating a broad and ambitious strategy to influence the future of tech.

The future of Saudi Arabia’s tech landscape

Plans set to possibly accelerate by late 2024 could see Saudi Arabia’s investment initiative, in partnership with entities like Andreessen Horowitz, significantly impacting the tech sector. Discussions have even included the possibility of Silicon Valley firms establishing a presence in Riyadh, further solidifying the kingdom’s tech ambitions.

This venture could attract other venture capitalists, drawn by Saudi Arabia’s vast financial resources and ambitious tech strategy. The Public Investment Fund, established in 1971, continues to be a focal point for those tracking international business developments, especially given its evolving role in global investment trends.

Despite past controversies, including the murder of journalist Jamal Khashoggi and contentious investments, Saudi Arabia remains a compelling destination for technology investments. Its past financial engagements, including significant investments in companies like Uber and its contributions to SoftBank’s Vision Fund, highlight both successes and challenges in tech investing.

As Saudi Arabia reintegrates into the global business community, events like hosting Public Investment Fund officials during the Super Bowl showcase its ongoing efforts to forge connections and establish partnerships across industries, underscoring its enduring influence and ambition in the global tech landscape.

Saudi Arabia’s first AI humanoid robot (Source – YouTube)

Saudi Arabia’s economic milestones and talent attraction

Furthermore, Saudi Arabia is making strides in attracting talent, a key accelerator of its ambition to become a significant player in the AI arena. CNBC highlighted that Saudi Arabia’s economy has surpassed the US$1 trillion mark for the first time, dwarfing the UAE’s economy, which stands at just over US$500 billion according to World Bank data. Despite this, the UAE maintains a significant advantage, having invested heavily in its Advanced Research Technology Centers, which focus on areas like generative AI, cyber technology, quantum computing, and biotechnology.

However, the kingdom is also investing significantly in its aspirations to become a tech hub.

Experts at Davos mentioned to CNBC that while MBS’s construction of extravagant megacities in the desert captures public attention, the primary mission is talent attraction to sustain a value creation loop in AI.

At the helm of the King Abdullah University of Science and Technology (KAUST) is a mathematician from UCLA, who is pivotal in drawing talent to Saudi Arabia to foster innovation.

KAUST conveyed to CNBC its alignment with Saudi Arabia’s vision of becoming a global AI powerhouse by 2030, a journey supported by strategic partnerships. This includes the development of a National AI Strategy to aid startups and implement AI in government services, alongside Riyadh’s International Center for AI Research and Ethics (ICAIRE) and Saudi Aramco’s AI research hub focusing on cutting-edge oil and gas projects.

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The university also highlighted its contributions through the AI Initiative and the hosting of the SDAIA AI Center, under the guidance of the Saudi Data and Artificial Intelligence Authority.

With plans for a US$40 billion investment in AI and significant efforts to attract and cultivate talent, the kingdom aims to diversify its economy and enhance its global technological footprint by 2030. While challenges exist, including navigating past controversies and fostering international partnerships, Saudi Arabia’s proactive approach to embracing the future of technology suggests a commitment to becoming a significant player in the global AI landscape.

The post Saudi Arabia could become the largest player in the AI industry appeared first on Tech Wire Asia.

This year’s Nvidia GTC is packed with noteworthy revelations, including the introduction of the Blackwell B200 GPU. Branded as the ‘world’s most powerful chip’ for AI, it’s designed for its capacity to make AI models with trillions of parameters more accessible to a wider audience.

Jensen Huang, the CEO of Nvidia, inaugurated the company’s annual developer conference with a series of strategic announcements aimed at solidifying Nvidia’s supremacy in the AI sector.

Revolutionizing AI with the new Nvidia chip

Nvidia introduced the B200 GPU, boasting an impressive 20 petaflops of FP4 computing power, thanks to its 208 billion transistors. Additionally, Nvidia unveiled the GB200, which synergizes two B200 GPUs with a single Grace CPU, claiming it can enhance LLM inference workload performance by 30 times while also significantly boosting efficiency. This advancement is said to slash costs and energy usage by as much as 25 times compared to the H100 model.

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Previously, training a model with 1.8 trillion parameters required 8,000 Hopper GPUs and 15 megawatts of power. Now, Nvidia asserts that only 2,000 Blackwell GPUs are needed to achieve the same feat, reducing power consumption to just four megawatts.

The introduction of the GB200 “superchip” alongside the Blackwell B200 GPU marks a significant milestone. Nvidia reports that, in tests using the GPT-3 LLM with 175 billion parameters, the GB200 delivered seven times the performance and quadrupled the training speed of the H100.

A notable upgrade The Verge highlights is the second-generation transformer engine that enhances compute, bandwidth, and model capacity by utilizing four bits per neuron, halving the previous eight. The next-gen NVLink switch is a groundbreaking feature, enabling communication among up to 576 GPUs and providing 1.8 terabytes per second of bidirectional bandwidth. This innovation necessitated the creation of a new network switch chip, boasting 50 billion transistors and 3.6 teraflops of FP8 compute capability.

Bridging the gap: Nvidia’s new suite of software tools

Nvidia has also introduced a suite of software tools designed to streamline the sale and deployment of AI models for businesses, catering to a clientele that includes the globe’s tech behemoths.

These developments underscore Nvidia’s ambition to broaden its influence in the AI inference market, a segment where its chips are not yet predominant, as noted by Joel Hellermark, CEO of Sana.

Nvidia is renowned for its foundational role in training AI models, such as OpenAI’s GPT-4, a process that requires digesting vast data quantities, predominantly undertaken by AI-centric and large tech companies.

However, as businesses of various sizes strive to integrate these foundational models into their operations, Nvidia’s newly released tools aim to simplify the adaptation and execution of diverse AI models on Nvidia hardware.

According to Ben Metcalfe, a venture capitalist and founder of Monochrome Capital, Nvidia’s approach is akin to offering “ready-made meals” instead of gathering ingredients from scratch. This strategy is particularly advantageous for companies that may lack the technical prowess of giants like Google or Uber, enabling them to quickly deploy sophisticated systems.

For instance, ServiceNow used Nvidia’s toolkit to develop a “copilot” for addressing corporate IT challenges, demonstrating the practical applications of Nvidia’s innovations.

Noteworthy is Nvidia’s collaboration with major tech entities such as Microsoft, Google, and Amazon, which will incorporate Nvidia’s tools into their cloud services. However, prominent AI model providers like OpenAI and Anthropic are conspicuously absent from Nvidia’s partnership roster.

Nvidia’s toolkit could significantly bolster its revenue, as part of a software suite priced at US$4,500 annually per Nvidia chip in private data centers or US$1 per hour in cloud data centers.

Reuters suggests that the announcements made at GTC 2024 are pivotal in determining whether Nvidia can sustain its commanding 80% share in the AI chip marketplace.

These developments reflect Nvidia’s evolution from a brand favored by gaming enthusiasts to a tech titan on par with Microsoft, boasting a staggering sales increase to over US$60 billion in its latest fiscal year.

While the B200 chip promises a thirtyfold increase in efficiency for tasks like chatbot responses, Huang remained tight-lipped about its performance in extensive data training and did not disclose pricing details.

Despite the surge in Nvidia’s stock by 240% over the past year, Huang’s announcements did not ignite further enthusiasm in the market, with a slight decline in Nvidia’s stock following the presentation.

Tom Plumb, CEO and portfolio manager at Plumb Funds, a significant investor in Nvidia, remarked that the Blackwell chip’s unveiling was anticipated but reaffirmed Nvidia’s leading edge in graphics processing technology.

Nvidia has revealed that key clients, including Amazon, Google, Microsoft, OpenAI, and Oracle, are expected to incorporate the new chip into their cloud services and AI solutions.

The company is transitioning from selling individual chips to offering complete systems, with its latest model housing 72 AI chips and 36 central processors, exemplifying Nvidia’s comprehensive approach to AI technology deployment.

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Analysts predict a slight dip in Nvidia’s market share in 2024 as competition intensifies and major customers develop their chips, posing challenges to Nvidia’s dominance, especially among budget-conscious enterprise clients.

Despite these challenges, Nvidia’s extensive software offerings, particularly the new microservices, are poised to enhance operational efficiency across various applications, reinforcing its position in the tech industry.

Moreover, Nvidia is expanding into software for simulating the physical world with 3-D models, announcing collaborations with leading design software companies. This move and Nvidia’s capability to stream 3-D worlds to Apple’s Vision Pro headset marks a significant leap forward in immersive technology.

Nvidia’s automotive and industrial ventures

Nvidia also unveiled an innovative line of chips tailored for automotive use, introducing capabilities that enable chatbots to operate within vehicles. The tech giant has further solidified its partnerships with Chinese car manufacturers, announcing that electric vehicle leaders BYD and Xpeng will incorporate its latest chip technology.

Last year, BYD surpassed Tesla, becoming the top electric vehicle producer worldwide. The company plans to adopt Nvidia’s cutting-edge Drive Thor chips, which promise to enhance autonomous driving capabilities and digital functionalities. Nvidia also highlighted that BYD intends to leverage its technology to optimize manufacturing processes and supply chain efficiency.

Additionally, this collaboration will facilitate the creation of virtual showrooms, according to Danny Shapiro, Nvidia’s Vice President for Automotive, during a conference call. Shapiro indicated that BYD vehicles would integrate Drive Thor chips starting next year.

The announcement was part of a broader revelation of partnerships during Nvidia’s GTC developer conference in San Jose, California. Notably, Chinese automakers, including BYD, Xpeng, GAC Aion’s Hyper brand, and autonomous truck developers, have declared their expanded cooperation with Nvidia. Other Chinese brands like Zeekr, a subsidiary of Geely, and Li Auto have also committed to using the Drive Thor technology.

Nvidia extends partnership with BYD (Source – X)

These partnerships reflect a strategic move by Chinese auto brands to leverage advanced technology, offsetting their relatively lower global brand recognition. BYD and its competitors are keen on increasing their market presence in Europe, Southeast Asia, and other regions outside China, positioning themselves against Tesla and other established Western brands in their domestic market.

Shapiro emphasized the considerable number of Chinese automakers and highlighted the supportive regulatory environment and incentives fostering innovation and developing advanced automated driving technologies.

Nvidia also announced several other key partnerships in the automotive and industrial sectors, including a collaboration with U.S. software firm Cerence to adapt large language model AI systems for automotive computing needs. Chinese computer manufacturer Lenovo is also working with Nvidia to deploy large language model technologies.

Another development is Soundhound’s utilization of Nvidia’s technology to create a voice command system for vehicles, enabling users to access information from a virtual owner’s manual through voice commands, marking a step forward in enhancing user interaction with vehicle technology.

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