This Week in AI, FinTech, & Consulting - Nov. 15, 2023

OpenAI shoots for 'superintelligence'; Ransomware attack in China affects US Treasuries;?Visa launches AI consultancy; and more...

The Canadian government shelled out well over $600,000 for a PowerPoint presentation on how to save money.?You would think this is the kind of high-level irony that could only come from the deep, Kafkaesque labyrinth of government bureaucracy, but unfortunately this is not a rare occurrence.

Last week I posted a story on LinkedIn of a McKinsey consultant gloating about recommending that oil executives should use email instead of flying a helicopter out to the middle of the Pacific Ocean. There is tremendous opportunity for upstart consulting companies to start running circles around the McKinseys of the world over the next few years, and the examples below are among of the biggest reasons why.

Enjoy the news, and my apologies for the email being late this week. The Sood household got hit hard with the flu.

-Sandeep

AI

OpenAI CEO Says ‘Superintelligence’ is the Goal for GPT5

OpenAI, guided by CEO Sam Altman, is advancing towards creating artificial general intelligence (AGI) with backing from Microsoft. Their collaboration, bolstered by Microsoft's significant investment, focuses on developing AI models despite high costs and current unprofitability. OpenAI's recent initiatives include new tools and a revenue-sharing GPT Store, aligning with its vision of offering comprehensive AI solutions. Preparations for GPT-5 are underway, requiring new data sets and advanced computational resources. Altman emphasizes the need for innovative approaches to achieve fundamental advancements in AI. Read more.

AI Pin Challenges Traditional Interfaces

Humane's new AI Pin, discussed by John Koetsier in Forbes, is a $700 AI assistant without a screen or apps, eliciting mixed reactions. Bill Gates foresees a future where AI replaces apps in computing, a concept the AI Pin embraces. Despite skepticism over its functionality and price, it represents a significant shift in AI integration, potentially signaling a new direction in computing interfaces. Read more.

Notion Debuts AI ‘Q&A’ for Simplified Access to Workplace Notes

Notion's new Q&A feature combines search and chatbot capabilities to streamline information retrieval within its platform. Priced between $8 and $10 monthly, this AI tool enhances data access while managing user permissions for security. Its effectiveness, however, is contingent on the available data in Notion. Read more.

AI Transforms Weather Forecasting Across Time Scales

AI is revolutionizing weather forecasting, offering predictions from immediate conditions to long-term climate forecasts. Google DeepMind's 'nowcasting' and MetNet-3 models provide accurate short and medium-term forecasts, while GraphCast predicts up to 10 days ahead globally. AI2's ClimSim project extends this to century-scale climate modeling, enhancing traditional methods with computational efficiency and new insights. Read more.

Atlas Secures $6M for AI-Powered 3D Worldbuilding

Atlas, a 3D generative AI platform, has raised $6 million to accelerate the future of virtual worldbuilding, affecting the worlds of gaming and architectural concepting and design. The company, which recently emerged from two years in stealth mode, collaborates with game developers and brands to create virtual worlds more efficiently. Atlas' technology, praised for its ability to scale asset development and reduce production times, has garnered support from notable investors like Square Enix and Consortium9. The funding will enhance Atlas' developer solutions and the development of a self-service 3D AI creator platform. Read more.

FinTech

Ransomware Attack on ICBC's US Unit Impacts Treasury Market

A ransomware attack on the US unit of the Industrial and Commercial Bank of China (ICBC) disrupted its systems, potentially affecting liquidity in the US Treasury market. The attack led to a brief market sell-off on Thursday. While ICBC's other domestic and international units remained unaffected, the incident has drawn attention from global financial regulators, including the US Treasury and the SEC. The attack's impact on ICBC, a major player in the Treasuries market, may have contributed to a weak 30-year bond auction and subsequent market volatility. This event highlights the growing concern around ransomware attacks and their potential to disrupt financial markets. Read more.

Alphabet Dissolves Its Stake in Robinhood

Alphabet, the parent company of Google, has dissolved its stake in the trading app Robinhood Markets. This follows Alphabet's significant reduction of its shareholding in Robinhood by nearly 90%, leaving it with about 612,214 shares after the sale. Alphabet had initially invested in Robinhood when it was a thriving unlisted startup, known for attracting retail traders with its commission-free trades. However, Robinhood's appeal has diminished recently due to economic challenges and interest rate hikes, leading to a slowdown in trading and a missed revenue estimate in its latest quarterly report. Read more.

Goldman Sachs and BNP Paribas Invest in Fnality's Blockchain-Based Payment System

Fnality, a consortium focused on blockchain-based payment systems, has raised ￡77.7 million in a Series B funding round led by Goldman Sachs and BNP Paribas. The funding will support Fnality's development of a global liquidity management ecosystem for digital payment models in financial and tokenised asset markets. Joined by several other major investors, Fnality's total capital now reaches ￡132.7 million. The company is preparing to launch its Sterling Fnality Payment System in 2023, aiming to bridge traditional finance and decentralized finance with real-time wholesale payments and improved liquidity management. Read more.

HSBC Embraces Blockchain for Tokenized Securities Custody

HSBC announced the launch of custody services for tokenized securities, digital assets representing regulated securities like bonds. Utilizing technology from Swiss crypto custody firm Metaco, this service aligns with HSBC's growing focus on digital asset management. The move follows similar initiatives by major institutions like BNY Mellon and marks a significant embrace of blockchain technology for practical banking applications, including payments, trading, and asset digitization. HSBC's integration of blockchain reflects the evolving market demand from asset managers and owners for digital asset custody and administration services. Read more.

Powder Launches AI Platform for Wealth Advisors

Powder, an AI co-pilot for wealth advisors, has launched to modernize the wealth management industry. The platform, which recently secured pre-seed funding, aims to streamline the cumbersome sales process in wealth advisory. Powder efficiently aggregates and analyzes portfolio data, builds investment models, and assists in client onboarding, transforming the lengthy sales process into a more efficient one. According to CEO Kanishk Parashar, Powder addresses the high costs and manual labor in wealth management by providing simple, actionable insights to clients, made possible by generative AI and a shift towards long-term investing. Read more.

Imprint Secures $75M Series B Funding to Enhance Co-Branded Credit Card Services

Imprint, a leader in modern co-branded credit card programs, announced a $75 million Series B funding round led by Ribbit Capital. The round saw significant contributions from Thrive Capital, Kleiner Perkins, and Moore Specialty Credit. Imprint specializes in creating custom credit card programs for major brands, offering a digital cardholder experience and proprietary technology. This funding will enable Imprint to expand its services, develop new programs, and continue providing a premium co-branded experience in a market ripe for innovation. Imprint's growth highlights its success in delivering value to both brands and customers. Read more.

Consulting

Visa Launches AI Consulting Practice

Visa has announced the launch of a global artificial intelligence advisory practice within its Visa Consulting & Analytics division. This move comes shortly after MasterCard introduced its own AI practice. Visa's AI consulting services, drawing on the company's three decades of AI experience in secure transactions, will offer services ranging from strategy assessment to model design and implementation. The initiative is part of Visa's broader investment in AI and data infrastructure, enhancing client services in areas like customer acquisition, engagement, and risk management. Visa and Mastercard have also expanded their consulting practices to include cryptocurrency. Read more.

Deloitte Acquires Asset Management Firm Nihar

Deloitte has enhanced its asset management consulting services by acquiring Nihar, a Perth-based engineering services consultancy. Nihar specializes in asset management for sectors like oil & gas, mining, and utilities. The addition of Nihar's 70-person team follows Deloitte's recent expansion in strategy and transactions. This acquisition is part of Deloitte's strategy to invest in technology-driven domains, particularly focusing on the energy sector. Deloitte's asset management team now includes 260 partners and staff. This move marks Deloitte's sixth acquisition in Australia for the year, contributing to its growth in the Australian market. Read more.

Accenture Expands Infrastructure Capabilities with Comtech Group Acquisition

Accenture has acquired Comtech Group, a Canadian engineering services consultancy specializing in asset management for infrastructure projects. This acquisition, part of Accenture's digital engineering and manufacturing service Industry X, enhances its capabilities in North America. Comtech's expertise in sectors such as transportation and utilities complements Accenture's existing services. The move follows Accenture's recent purchase of Anser Advisory and other strategic acquisitions, reinforcing its position in infrastructure project consulting and digital transformation. Read more.

Kinetic Consulting Introduces Macky AI for Business Consulting

Kinetic Consulting has launched macky.ai, an AI-based business consulting platform designed to provide affordable consulting services to SMEs. Powered by OpenAI technology, Macky AI streamlines the consulting process, requiring no training or knowledge of AI prompting. The platform addresses common business needs, from creating job descriptions to reengineering business processes. Macky AI's innovative approach enables SMEs to focus resources on high-value initiatives, blending AI and human consulting for complex needs. This development aims to democratize consulting access for businesses of all sizes, supporting them in challenging economic environments. Read more.

Canadian Government Under Fire for Seeking Cost-Savings Analysis from KPMG

The Canadian government is justifying its decision to hire KPMG, a professional services company, to identify cost-saving opportunities in its Natural Resources department, particularly in real property and information technology. The contract, awarded in July 2022 and predating the 2023 budget initiative to reduce consulting expenses, cost nearly $670,000. KPMG's analysis, combined with the department's internal review, has proposed potential annual savings of $5 million starting from 2026. This move is part of a broader government effort to tighten spending and reduce reliance on external consultants. Treasury Board President Anita Anand has issued guidelines to limit the use of outside consultants. Read more.

Software Consulting Market Expected to Grow by $207.63 Billion by 2027

The software consulting market is projected to expand by $207.63 billion from 2022 to 2027, driven primarily by the increasing adoption of cloud-based services. This growth is expected across various sectors, including BFSI, IT, telecom, manufacturing, healthcare, and government. However, the market faces challenges due to rising cyberattack activities, impacting the security of IoT and cloud solutions. The BFSI sector, in particular, is investing heavily in software consulting to enhance efficiency and security. North America, led by the US, is anticipated to contribute 35% to the market growth during this period. Read more.

This entire newsletter was composed in 21 minutes and 7?seconds by a human journalist working with an AI copilot.