What is the ROI for Gen AI?-DIGIT Tech News Roundup

Welcome to the latest edition of the DIGIT Tech News Roundup.

In this week’s newsletter, we will cover some of our top-trending tech news stories, features and op-eds from the week beginning the 5th of August.

This week, a new Google report surveys busines leaders on the benefits of gen AI adoption at enterprise level. Also, we have some good fintech investment news and some bad ransomware news.

All this and more below.

New Google Report Delves into the ‘ROI of Gen AI’

The report found that gen AI helps fuel ‘rapid financial growth,’ with 74% of enterprises using gen AI reporting ROI within the first year. Within that 74% of companies, 86% of them noted a 6% or more increase in revenue.

The report always touts gen AI’s ability to help companies ‘keep pace’. Eight-four percent of organisations can move a gen AI use from idea to production in less than six months. This enables CEOs to potentially see revenue increases within a year, and can significantly shorten the innovation cycle and enhance business agility.

With regards to enterprise-wide productivity, the report states that 45% of organisations that report improved productivity have seen employee productivity double or more as a result of gen AI, while 63% report that gen AI has directly driven business growth. Further, 85% of those who report an improved user experience also report measurable improvement to user engagement.

| To find out more, click here

Scottish First Minister Urges Tech Firms to Tackle Online Hate

Following disorder in parts of the UK, first minister John Swinney has written to X, Meta and TikTok to ask what action they are taking to combat the spread of misinformation, and to address racist and hateful material on their platforms.

In a letter addressed to the companies, Swinney emphasised the responsibility of social media platforms to protect communities from harmful content.

He wrote, “Social media platforms have a duty to take action to ensure that individuals in our society are not subjected to hate and threatening behaviour, and that communities are protected from violent disorder.”

| To see what else the FM had to say, click here

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UK Firms Are Ready to Invest in 5G Standalone, New Report Reveals

A new study, released by Vodafone, shows an appetite for investment in advanced 5G services with 39% of UK companies ready to invest in 5G Standalone.

According to the survey of 462 business customers across the UK, 89% of firms are looking to technology to improve the operational efficiency of their business, with 93% highlighting reliable data connections as critical to success.

The research also showed that 38% of businesses believe a network that can be customised to fit specific needs would help growth, while 24% said a lack of services tailored to their organisation’s needs is negatively impacting their business today.

| To read more, click here

UK Fintech Investment Has Nearly Tripled This Year

A bi-annual report on fintech investment trends has uncovered that total UK fintech investment has nearly tripled so far this year, hitting $7.3bn (￡5.7bn~) in H1 2024, compared to $2.5bn (￡2bn~) in H1 2023.

However, despite the almost threefold increase, high levels of inflation, the high interest rate environment, and geopolitical uncertainty have all contributed to more subdued levels of UK fintech investment compared to 2021’s record highs.

KPMG’s latest Pulse of Fintech report discovered that H1 24’s investment total was largely bolstered by the size of many of the deals, not least the $4bn (￡3.1bn~) buyout of financial software company IRIS Software Group by Leonard Green, and the $999m (￡800m~) VC round by Abound, the loan provider.

| To read more, click here

Ransomware Crisis Escalating Globally, New Report Shows

A new survey, which included responses from 1,100 IT and cybersecurity leaders, shows that 91% of organisations experienced ransomware incidents in the past year. Despite only 22% of respondents considering ransomware the biggest risk, the average paid for these kinds of cyber-incidents was an eyebrow-raising $2.5 million (￡1.97m).

The survey also highlighted geographic differences in the perception of ransomware risk. Nearly half of German respondents identified ransomware as the biggest threat, compared to 26.69% in the UK and 20% in Singapore (rounding out the top three). The US and Singapore reported the highest average ransom payouts, with some US organisations paying over $25 million (￡19.67m).