FINTAK Weekly Newsletter.
Lelapa AI: Building AI for African Languages
Lelapa AI , a South African AI startup, is developing tools to work for Africans specifically. The company's new tool, Vulavula, converts voice to text and detects names of people and places in written text. It can currently identify four languages spoken in South Africa—isiZulu, Afrikaans, Sesotho, and English—and the team is working to include other languages across Africa.
Key takeaways:
Recommendations:
Lelapa AI is a promising startup addressing a critical need in the African market. The company's tools have the potential to make AI more accessible to Africans and to help them harness the benefits of this technology.
Charting the Global Economy: Inflation Eases in US and UK
Inflation eased in both the US and UK, prompting bets that central banks on both sides of the Atlantic will start cutting interest rates by the middle of next year.
Key highlights of the global economy this week:
Specific details:
The global economy is showing signs of improvement, with inflation easing in the US and UK and growth rebounding in the euro area. However, the recoveries in China and Japan are shaky, and the situation in emerging markets remains volatile.
Poor euro zone bank valuations seen a drag on credit growth: ECB
The European Central Bank (ECB) has warned that the low valuations of eurozone bank stocks could hinder future credit growth by making it more difficult for banks to raise capital.
In a Financial Stability Review article, the ECB said that banks' exposure to rising corporate credit risk and the perception of their shares as value stocks play a big part in stagnant valuations.
The ECB also noted that the risk of governments increasing taxes on banks and the ECB's discussions about raising unremunerated mandatory reserves could further dampen bank valuations and earnings.
These factors could lead to stricter terms and conditions for loans, which could in turn, slow economic growth.
Key takeaways:
China Keeps Lending Benchmark Rates Unchanged
China's central bank kept its benchmark lending rates unchanged on Monday, as expected, in line with its efforts to balance supporting the economy while preventing capital outflows.
Recent data shows the recovery in the world's second-largest economy remains patchy with industrial output and retail sales surprising on the upside but deflation gathering pace and few signs the struggling property market will bounce back any time soon.
While the economy still needs more policy stimulus, an escalation of monetary easing would add unwanted downside pressure on the Chinese currency.
Key Points:
Overall:
China's central bank is taking a cautious approach to monetary policy, balancing the need to support the economy with preventing capital outflows. The decision to keep lending benchmark rates unchanged aligns with this approach.
OpenAI CEO Sam Altman Removed, Joins Microsoft
On Nov. 17, the board of directors of ChatGPT maker OpenAI, Inc. announced they removed cofounder and CEO Sam Altman as the company’s CEO and from the board of directors. Altman will be replaced by interim CEO Emmett Shear , formerly CEO of live video platform Twitch. A long-term successor has not yet been named.
On Nov. 20, Microsoft CEO Satya Nadella announced Altman, OpenAI chairman of the board Greg Brockman and unnamed OpenAI “colleagues” will join Microsoft. The group will “lead a new advanced AI research team.”
The removal of Sam Altman as CEO of OpenAI is a significant event that has the potential to reshape the landscape of generative AI. Altman was a high-profile figure in the tech industry and his departure will likely have a ripple effect on the field. It remains to be seen what the future holds for OpenAI and whether the company will be able to maintain its position as a leader in generative AI.
New AI Technique Enables Continuous Learning on Edge Devices
Researchers at MIT and elsewhere have developed a new technique called PockEngine that enables artificial intelligence (AI) models to learn continuously from new data on edge devices like smartphones. This is a significant breakthrough, allowing AI models to adapt to changing user behavior and preferences without sending data to the cloud.
PockEngine identifies which parts of a large AI model need to be updated to improve accuracy and only stores and computes with those specific pieces. This significantly reduces the memory and computational power required for fine-tuning and updating an AI model with new data.
In tests, PockEngine could fine-tune AI models on edge devices up to 15 times faster than traditional methods without any loss of accuracy. AI models can now be updated more frequently and with less power, which could lead to more personalized and responsive AI experiences.
Key takeaways:
Meta Dissolves Responsible AI Division Amid Restructuring
Meta , the parent company of Facebook, has reportedly disbanded the division responsible for regulating its artificial intelligence (AI) ventures. This move comes as the company nears the end of its "year of efficiency," a period of cost-cutting measures.
Many team members of Meta's responsible AI division have transitioned to roles within other divisions, including the generative AI product division and the AI infrastructure team. The generative AI team focuses on developing products that generate language and images, while the AI infrastructure team is responsible for building and maintaining the company's AI infrastructure.
Meta's decision to dissolve its responsible AI division is likely due to a number of factors, including the company's focus on cost-cutting and its desire to streamline its AI operations. However, the company has emphasized that it remains committed to developing AI responsibly and will continue investing in this area.
some specific actions that fintech companies can take to address the concerns raised by Meta's decision:
By taking these steps, fintech companies can help to mitigate the risks associated with AI use and ensure that AI is used to benefit both businesses and consumers.
German MP Calls for Bitcoin to Be Made Legal Tender
Joana Cotar, a member of the German parliament, has called for Bitcoin to be made legal tender in Germany. Cotar said that she wants to initiate a "preliminary examination" for a legal framework to recognize Bitcoin as legal tender in the country.
Reasons for suggesting bitcoin as legal tender:
Cotar's call to make Bitcoin legal tender in Germany is a significant development. Whether Germany will follow El Salvador's lead and make Bitcoin legal tender remains to be seen, but Cotar's endorsement will fuel the ongoing debate.
Read More https://bitcoinmagazine.com/markets/german-parliament-member-wants-to-make-bitcoin-legal-tender
OpenAI's Leadership Drama Raises Concerns About GPT Model Security
The recent leadership shakeup at OpenAI, the company behind the popular ChatGPT language model, has raised concerns about the security of its GPT models. Several researchers have identified vulnerabilities in the models that could allow them to be misused for malicious purposes.
One vulnerability, discovered by Brian Roemmele, allows attackers to download or display the prompt information and the uploaded files of a given session. This could be used to steal sensitive information or to spread malware.
Another vulnerability, identified by Brown University researchers, allows attackers to bypass GPT's safety features by using less common languages like Zulu and Gaelic. This could be used to generate harmful or offensive content.
Microsoft researchers have also found that GPT models can be easily misled to generate toxic and biased outputs. This could be used to spread misinformation or to incite violence.
In addition to these vulnerabilities, GPT models are also vulnerable to prompt injection attacks. These attacks allow attackers to embed commands, malicious scripts, and code in images, which can then be used to control the model.
These security vulnerabilities highlight the need for OpenAI to improve its GPT models' security. The company needs to develop new safety features and to better educate users about the risks of using GPT models.
Key takeaways:
DeepMind Proposes New Framework for Assessing AGI Progress
DeepMind, a leading AI research company, has proposed a new framework for assessing the capabilities and behavior of artificial general intelligence (AGI) systems.
The framework, outlined in a recent paper, focuses on six key criteria:
Finally, DeepMind introduces a separate matrix for measuring autonomy and risk in AI systems. The matrix spans from Level 0 (human performs all tasks) to Level 5 (fully autonomous AI), highlighting the risks associated with AI systems at each level.
DeepMind's framework is a valuable contribution to the ongoing debate about AGI. It provides a clear and comprehensive way to assess AGI research progress and identify the challenges that remain.
Recommendations:
E-bikes and Scooters Surpass EVs in Oil Demand Reduction
Electric mopeds, scooters, motorcycles, and three-wheelers, collectively known as electric micromobility, are displacing four times as much demand for oil as all the world's electric cars.
Over 280 million electric two- and three-wheelers were on the road last year, compared to just 20 million electric vehicles and 1.3 million commercial EVs.
This widespread adoption of electric micromobility is already cutting demand for oil by a million barrels a day, about 1 percent of the world's total oil demand.
Electric micromobility is also a more affordable and convenient option for short trips, such as the school run, the grocery store run, or even the commute.
E-bikes, for example, can take roughly the same time or shorter than a car for these short trips, and they cost about $20 per year to charge.
As petrol prices increase and battery prices fall, the cheaper running costs of electric vehicles and even cheaper running costs of electric mopeds, bikes, and scooters will keep eating away at the oil demand.
Electric micromobility is a significant contributor to the global effort to reduce oil demand and emissions.
Why E-mobility :
UBA Announces $6 Billion Partnership with AfCTA to Boost Trade Across Africa
UNITED BANK FOR AFRICA (UBA) has announced a $6 billion partnership with the Africa Continental Free Trade Area (AfCFTA) to boost trade across Africa. The partnership will provide financing for SMEs operating in four sectors: agro-processing, automotive, pharmaceuticals, and transport and logistics.
Key takeaways:
Recommendations:
This partnership is a significant step forward for Africa's economic development. By providing financing and non-financial services to SMEs, UBA and AfCFTA are helping to create a more vibrant and dynamic African economy.
Read More https://nairametrics.com/2023/11/16/ubas-6bn-partnership-with-afcta-to-boost-trade-across-africa/
Africa's Pursuit of Greener Trade and Industry
Economists gathered at the African Economic Conference in Addis Ababa, Ethiopia, to discuss strategies for fostering sustainable economic growth on the continent. The key takeaways from the session on AfCFTA and industrialization in Africa are:
Services Integration for Industrialization: African countries should incorporate services into their industrial policies to enhance trade within the region and stimulate domestic industries.
Spain Establishes First EU AI Act Regulatory Sandbox
In a significant step forward for the development of artificial intelligence (AI) in Europe, Spain has created the first regulatory sandbox linked to the EU AI Act. This sandbox will provide a controlled environment for businesses to test AI products and services against the requirements of the AI Act before it comes into effect. This will help to ensure that AI systems are compliant with the law and that they are safe, trustworthy, and unbiased.
The Spanish government is also taking other steps to promote AI innovation, including the creation of a new AI advisory committee and the establishment of the Spanish Agency for the Supervision of Artificial Intelligence (AESIA). These measures reflect the government's commitment to fostering a thriving AI ecosystem in Spain.
What does this mean :
GroupM Launches Global Post-Cookie Technology Readiness Program
GroupM, a leading media investment management company, has launched the first and largest global post-cookie technology readiness program, in partnership with Google Chrome. The program will help advertisers prepare for the deprecation of third-party cookies in Google Chrome.
Key takeaways:
Recommendations:
This program is a valuable resource for advertisers as they prepare for the deprecation of third-party cookies. By providing access to testing, learning, and data, the program will help advertisers develop the strategies and tactics they need to succeed in the post-cookie era.
领英推荐
Responsible Generative AI: Four Pillars for Banking
Generative AI (gen AI) holds immense promise for the banking industry, offering potential for enhanced productivity, time savings, improved customer experiences, and greater responsiveness to regulatory demands. However, the use of gen AI in banking must be carefully considered and implemented responsibly to address concerns about accuracy, security, and privacy.
Key Building Blocks:
Conclusion:
Gen AI can transform the banking industry, but its implementation must be approached responsibly. By adhering to the principles of explainability, regulation, privacy, and security, banks can harness the power of gen AI while mitigating potential risks and upholding customer trust.
Additional Insights:
Carbon Credits: Navigating the Voluntary Carbon Market
Carbon credits, a key component of the voluntary carbon market (VCM), allow individuals and organizations to offset their emissions by purchasing credits representing an equivalent amount of greenhouse gas reductions or removals. While the VCM has gained traction, concerns about its effectiveness and potential issues with environmental integrity and social equity persist.
Key Issues :
Additional Insights:
Read More https://kenyanwallstreet.com/carbon-credits-the-climate-policy-behind-the-voluntary-carbon-market/
Carbon Credits: Restoring Confidence and Charting a Sustainable Path at COP28
Carbon credits, a key mechanism in the voluntary carbon market (VCM), have faced criticism for their effectiveness and fairness in addressing climate change. While some argue that carbon offsets allow companies to avoid taking real action to reduce their emissions, others point out the benefits of carbon credits in supporting nature-based solutions and providing revenue to frontline communities.
Key Points:
Takeaways for CEOs:
Samsung Suffers Third Data Breach in Two Years
Samsung has disclosed that hackers accessed the personal data of U.K.-based customers during a year-long breach of its systems. The breach is the third that Samsung has disclosed in the past two years.
Key takeaways:
Recommendations:
This incident is a reminder that even large companies like Samsung are not immune to data breaches. Businesses should take steps to protect their customers' data and be prepared to respond to data breaches if they occur.
Tech Companies Seal Partnership Deals at ATF 2023
The Africa Tech Festival (ATF) 2023, held in Cape Town, South Africa, brought together technology companies to sign deals aimed at expanding networks, building infrastructure, and connecting underserved communities.
Key highlights:
These deals highlight the growing importance of technology in Africa and the commitment of companies to address the continent's connectivity challenges.
Eskom Powers Ahead with Africa's Largest Battery Storage Facility
Eskom Holdings SOC Ltd , South Africa's state-owned electricity utility, has inaugurated the largest battery energy storage facility on the African continent, a significant step towards addressing the country's chronic power shortages. Located in Worcester, the Hex Battery Energy Storage System boasts large-scale utility batteries capable of storing enough energy to power a town of 100,000 for nearly five hours.
Key Highlights:
Implications for Businesses:
Overall, Eskom's launch of Africa's largest battery storage facility marks a positive step towards a more sustainable and resilient energy future for the continent.
Additional Insights:
As businesses increasingly embrace sustainability, understanding the role of battery storage technology and its implications for the energy landscape is crucial.
Alibaba Faces Challenges Amid Share Sale and Regulatory Scrutiny
阿里巴巴集团 Holdings (9988.HK ) is under the spotlight after Jack Ma's family trust announced plans to sell 10 million American Depositary Shares, worth approximately $871 million. The sale is expected to take place on November 21.
The company has been struggling since a major C-suite restructuring earlier this year. Alibaba was reportedly considering splitting into six units, but these plans were scrapped due to increased private business regulation in China. The company has also canceled its cloud spinoff and removed its supermarket listing.
Despite Alibaba's founder, Jack Ma, stepping down as CEO in 2019, the company continues to face challenges. Chairman Joe Tsai's attempt to appease investors by announcing annual bonuses has had the opposite effect. The announcement of the share sale sent shockwaves through the market, causing U.S.-listed shares to fall more than 3%, wiping out $20 billion from Alibaba's market value. Shares have continued to decline in Hong Kong trading.
Alibaba still does not have a majority shareholder. SoftBank was the only stakeholder with more than 5% beneficial ownership in the company, but it has been selling off most of its shares. With competitors investing heavily in new areas like AI, Alibaba's lack of direction is a cause for concern.
Ma's family trust's decision to sell shares at this critical time is not a good sign. Eddie Wu, who helped create Alibaba, faces a tough challenge in leading the company through these difficult times. Alibaba's upcoming quarterly results will be closely watched as the company navigates these turbulent waters.
West Africa Emerges as a Leader in Mobile Money Adoption
Mobile money, a digital payment system that uses mobile phones, is rapidly gaining popularity in West Africa, outpacing growth in East Africa, which was once considered the continent's mobile money hub.
Key takeaways:
East Africa has become where mobile money is used the most since MPesa’s quick rise to fame in Kenya created a new market for business and customer payments. Tanzania, Rwanda, and Uganda all had similar results.
Additionally, Ethiopia is just starting to experience the benefits of mobile money.
But some of the most promising mobile money markets on the continent are in West Africa, which joined the change late but is now setting the standards for it.
Recommendations:
West Africa is at the forefront of the mobile money revolution, and its success is a testament to the power of technology to transform financial inclusion and economic development. As mobile money adoption continues to grow, it is likely to play an increasingly important role in the lives of West Africans.
Germany Sees Modest Recovery in Private Equity Fundraising
German private equity (PE) funds raised €2.9 billion in the first nine months of 2023, up from €1.6 billion in the same period last year. This recovery aligns with the broader European PE market, which has also seen increased fundraising activity this year.
However, unlike the wider European PE market, where mega-funds have played a prominent role, German PE funds closing this year have been smaller on average than in 2022. The majority of funds are in the €250 million to €500 million bucket, with the Afinum 9 fund, which closed on €420 million in April, being the largest to have closed so far in 2023.
This lack of mega-fund activity in Germany suggests that investors may be more cautious in the current market environment. Despite this, the overall recovery in German PE fundraising is a positive sign for the industry.
Here are some key takeaways from the article:
Zambia's Debt Restructuring Stumbles as Official Creditors Object to Bond Deal
Zambia's efforts to restructure its $3 billion Eurobond debt have suffered a major setback due to objections from official creditors, including China. The country's official creditor committee (OCC) and the International Monetary Fund (IMF) have been at odds over the level of debt relief required from commercial lenders.
The IMF approved a revised deal with bondholders, but the OCC again rejected it, citing concerns about the comparability of treatment between official and commercial creditors. Zambia's government has expressed disappointment and frustration with the OCC's stance.
The breakdown of negotiations has sent shockwaves through the international debt restructuring community, raising questions about the effectiveness of the Common Framework, a G20-backed process designed to facilitate debt relief for countries struggling with unsustainable debt burdens.
The impasse has also had a negative impact on Zambia's international bonds, which have dropped sharply in value. Ghana and Sri Lanka, two other countries with significant debt challenges, have also seen their bonds decline in the wake of Zambia's setback.
The outcome of Zambia's debt restructuring efforts will have far-reaching implications for other countries facing similar challenges. If the OCC does not relent, sovereign debt restructuring could become more difficult and protracted, with potentially dire consequences for developing nations.
Governments Race to Regulate AI Tools
The rapid advancement of artificial intelligence (AI) is prompting governments around the world to develop regulations to ensure the safe and ethical use of this technology.
Key takeaways:
Recommendations:
The regulation of AI is a complex and evolving issue, and it is important for businesses to stay informed about the latest developments. By taking proactive steps to comply with regulations and develop responsible AI practices, businesses can avoid potential risks and ensure that they are using AI in a safe, ethical, and responsible manner.
G20 Summit Highlights Africa's Rising Economic Promise
The G20 Compact with Africa conference in Berlin underscores renewed global interest in Africa's economic potential. European leaders, including German Chancellor Olaf Scholz, French President Emmanuel Macron, and Dutch Prime Minister Mark Rutte, are joining the summit, reflecting the continent's growing importance in the global economy.
Key Takeaways:
Implications for Businesses:
Overall, the G20 summit highlights Africa's emerging status as a key player in the global economy, offering promising avenues for businesses seeking growth and expansion.