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Newsletter: Signs of the Tech Revolution #8

According to Google’s “The ROI of Gen AI” report, 74% of large companies that utilize generative AI saw a return on their investment.

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Maxima Consulting

Published on

August 9, 2024

Last updated on

September 9, 2024

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Over 60% of large companies worldwide are using generative AI. 74% of those see the ROI. 86% saw their revenue increase. 77% saw their leads and customer acquisition improve. 45% saw employee productivity double. 56% improved cybersecurity. 85% increased user engagement.

All thanks to generative AI, according to new research from Google Cloud.

A total of 84% said they moved from pilot to production in six months or less. And most of the 39% of organizations that don’t have AI systems up and running are working on it. Only 5% haven’t yet started.

This data comes from Forbes CIO and the Google Cloud “The ROI of Gen AI” report.

It’s safe to say that AI is a game changer and we still haven't seen its full capabilities.

In this newsletter:

Impact of AI on India’s Outsourcing Hub
The EU AI Act is here
Nvidia antitrust scrutiny
The new role of Mainframes
Maersk seeks new M&A deals
S&P Global plan for AI training
Google loses case against the DOJ
Infrastructure spending heads for trillion-dollar
Why TSMC doesn’t sell chips manufactured in the US
and more...

News #1: AI is coming for India’s outsourcing hub

The tech landscape in India, particularly in Bengaluru, is undergoing significant changes due to the rapid rise of AI. Companies are increasingly incorporating AI into their workflows, there’s a growing shift away from labor-intensive tasks, impacting the job market for engineering graduates.

Over 80% of companies in the S&P 500 outsource some operations to India. But it’s possible that U.S. companies will stop using Indian outsourcing businesses unless they replace people with automation.

Established firms and startups alike emphasize the need for innovation and intellectual capital. You can get more done with fewer people, but you have to hire the right people with the know-how and leverage new tech. This could be a strategic pivot for many outsourcing companies that will invest in upskilling their workforce to adapt to AI technologies.

News #2: EU AI Act is here, this means…

The EU AI Act is a significant regulatory framework aimed at overseeing artificial intelligence deployment across EU borders. Its main focus is on categorizing AI into risk-based tiers, from limited, high-risk to unacceptable. The Act identifies high-risk AI applications, enforcing stringent compliance requirements and oversight measures on these systems.

The EU rules will set the global standard for how businesses treat AI systems.

CIOs operating globally should mark high-priority dates with full enforcement deadlines spread out through 2027. The Act will necessitate organizations to reevaluate and possibly revamp their AI strategies, emphasizing robust data governance, transparency, and accountability. IT leaders must work closely with their compliance, privacy, and legal C-suite counterparts to stay compliant with the act.

News #3: Mainframes find new life in AI era

Mainframes, often seen as relics of the past, are experiencing a revival in the AI era. As companies increasingly adopt artificial intelligence and machine learning, the robust computational power and reliability of mainframes come in handy.

Enterprises are discovering that mainframes can run AI algorithms quickly, handle large datasets smoothly, and ensure uninterrupted operations.

Sometimes, the most effective solutions marry the tried-and-true with cutting-edge innovations. Modernizing your mainframes can pave the way for robust AI implementations, enabling your business to harness data-driven insights while maintaining operational excellence. 🖥️

News #4: Big tech banks on AI. The next industrial revolution has begun

Amazon Web Services (AWS), Microsoft, Google, Nvidia, and AMD are spearheading a transformative wave in cloud infrastructure to support AI advancements. These tech giants are enhancing their cloud offerings because of the constantly increasing need for computational power needed for AI development and deployment.

“The reality right now is that while we’re investing a significant amount in the AI space and in infrastructure, we would like to have more capacity than we already have today,” said Andy Jassy, Amazon president and CEO.

“For every dollar spent on Nvidia AI infrastructure, cloud providers have an opportunity to earn five dollars in GPU instant hosting revenue over four years. The CSPs are consuming every GPU that’s out there,” stated Nvidia President and CEO Jensen Huang.

News #5: Nvidia facing antitrust investigations

Nvidia is now under antitrust scrutiny from regulators. This development comes as the company’s dominance in both the gaming and AI sectors continues to grow. The investigation will delve into Nvidia’s business practices, particularly looking at how it manages its industry influence and competition.

With a 90 percent share of the A.I. chip market, it’s possible that the company could lock in customers or hurt competitors. The increasing use of Nvidia’s technology has raised concerns about potential monopolistic behavior.

Regulators aim to ensure that smaller competitors can thrive and innovation is not stifled. This situation is another reminder of the critical balance between growth and regulatory compliance.

AMD Breaks $1 Billion In Datacenter GPU Sales In Q2. It is now expected to surpass $4.5 billion in sales of these devices for all of 2024 - Read more
Tech workers who adopt a “wait and see” approach to AI will be left behind in the jobs race - Read more
S&P Global launches massive AI training program for 35,000 employees. They are making a bet on artificial intelligence that could reshape how Wall Street analyzes data and makes decisions - Read more
Google lost its massive antitrust case against the DOJ regarding its monopolistic behavior. Google paid $26.3 billion to other companies, mainly Apple and Samsung, during 2021, Bloomberg reports. Those payments essentially restricted competitors’ abilities to succeed, the DOJ argued. - Read more
Maersk CEO seeks new M&A deals after dropping Schenker bid, what would have been its biggest-ever deal. - Read more
What works in Taiwan doesn’t in Arizona, chipmaking giant TSMC’s move shows that bringing the company’s complex manufacturing process to America is a bigger challenge than expected - Read more

What does Maxima Consulting do again?

Maxima Consulting helps business leaders get the most out of their tech investments through smart process and operations optimization. Tech leaders work with our project teams to tap into the global talent pool and deliver projects on time and within budget. Maxima Consulting is trusted by global banks, logistics companies, retailers, and other leading companies in the world.

Curious to see how Maxima Consulting can help you get the most out of your tech investments? Meet with one of our consultants to see how we can help.

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