Day: August 17, 2023

According to a study, global investments in artificial intelligence are anticipated to reach $200 billion by 2025 and may have a greater effect on GDP.

According to a report by Goldman Sachs Economic Research, it may take a few years for AI investments to significantly affect the economy after a rather slow start.

However, according to the US bank’s economists Joseph Briggs and Devesh Kodnani, in order for AI to spark widespread transformation, businesses must make “significant upfront investments in physical, digital, and human capital in order to acquire new technologies and reshape business processes”.

These investments, which might total $200 billion globally by 2025, will likely be made before adoption and efficiency improvements begin to drive significant productivity increases.

If the research’s growth estimates are completely realized, long-term investments in AI may reach a peak of 2.5% to 4% of gross domestic product in the US and 1.5% to 2.5% in other countries that are leaders in the technology, according to Goldman Sachs.

“The US has been established as the market leader in AI technology, and American businesses will likely be relatively early adopters,” Mr. Briggs and Mr. Kodnani said.

“Although a similar outcome could occur in other AI leaders [like China] as well, the investment effect will probably greater.

According to Goldman Sachs, generative AI in particular has “enormous” economic potential and might increase global labor productivity by more than 1% per year in the ten years following widespread adoption.

Less than a quarter of US chief executives surveyed expect generative AI to have an impact on their business or reduce their requirement for labor during the next one to three years.

However, a sizable portion of them anticipate using AI within the next three to ten years.

According to Goldman Sachs, if such timetables are accurate, adoption of AI “would likely begin to have an important effect on the US economy sometime around 2025 and 2030.”

Businesses have long employed AI in their daily operations, but generative AI has given it new life.

The system, which was developed by Microsoft-backed OpenAI and made famous by ChatGPT, can generate a variety of data types, including audio, code, photos, text, simulations, 3D models, and movies.

Following a spike in interest in 2019, investors invested more than $4.2 billion into generative AI start-ups through 215 deals in 2021 and 2022, according to latest data from CB Insights.

The market is becoming increasingly interested in AI. More than 16% of corporations in the US Russell 3000 index alone have cited the technology in their revenue calls, up from less than 1% in 2016, with over half of that rise occurring after the introduction of ChatGPT in November 2022, according to Goldman Sachs.

Other local economies are already seeing its potential. According to a report released last month by the PwC unit Strategy& Middle East, the GCC countries will profit economically by around $23.5 billion by 2030 as investment in generative AI continue to rise.

According to CB Insights, the “most promising” 50 private generative AI businesses are focusing on a variety of industries, including media and entertainment, drug discovery in the healthcare field, the creation of AI assistants, HMIs, and generation tools.

According to Goldman Sachs, “Our economists expect AI investment to be primarily driven by hardware expenditure to train AI models and run AI queries, as well as higher expenditures on AI-enabled software.”

According to the study, investments in AI are likely to be concentrated in four key business sectors: businesses that build and train AI models, businesses that provide the infrastructure (such as data centers to run AI applications), businesses that create software to run AI-enabled applications, and businesses that charge enterprise end users for the software and cloud infrastructure services.

Goldman Sachs stated that although it is difficult to predict when the AI investment cycle will begin, business surveys indicate that it is likely to start having an impact on investments in the second half of this decade, with earlier acceptance by larger firms in the information and professional, scientific, and technical services.

The emirate’s efforts to transition to a digital society will be supported by the 90% subsidy on licenses.
In order to promote these industries and draw in additional investment, Dubai will give commercial licenses to businesses that operate in Web3 and artificial intelligence.

The Dubai International Financial Centre (DIFC) announced on Monday that the licenses, which are being given by the AI and Web 3.0 Campus, will be 90% subsidized and support initiatives to promote the emirate’s ambition to become a digital society.

Services related to distributed ledger technology, specialized AI research and consulting firms, IT infrastructure builders, technological research and development, and public network services are just a few of these endeavors.

According to Mohammad Alblooshi, CEO of the DIFC Innovation Hub, “We are confident that by issuing these licenses, we will be attracting more global talent and investments to the region, while developing a culture of collaboration and innovation.”

The campus was established in June with the goal of becoming the Middle East and North Africa’s largest cluster of AI and Web3 businesses.

More than 500 high-tech companies are expected to relocate there by 2028, together with $300 million in investment capital and more than 3,000 new jobs.

“This is a significant milestone for the Dubai AI and Web3 Campus,” claims Mr. Alblooshi, “and will further cement Dubai’s status as the business location choice for technology-focused companies as well as draw more top-tier talent and diversified investors to the region.” Although businesses and society have always used AI, it has lately grown in popularity as a result of the digital economy’s rapid expansion and continued government support.

Virtual personal assistants, online shopping, search engines, data analysis, speech and facial recognition systems, machine translation, and smart homes are a few of its more noteworthy applications.

The emergence of generative AI, which was popularized by ChatGPT, the Microsoft-backed OpenAI platform that can generate diverse types of data, which includes audio, code, text, and videos has increased its popularity.

According to a recent McKinsey study, the productivity boost from generative AI for corporations might be as high as $4.4 trillion yearly. By 2030, according to PwC, AI will contribute roughly $15.7 trillion to the global economy.

By 2025, it is anticipated that AI will help create about 200,000 employment in the Middle East, according to a McKinsey projection.

Meanwhile, Web3, a fresh take on the World Wide Web, emphasizes blockchain technology together with decentralization, openness, and increased consumer value.

According to a study by PwC unit Strategy&, the technology is expected to boost the GCC economies by $15 billion annually by 2030, with Saudi Arabia leading the way.

Within the DIFC Innovation One buildings, the Dubai AI and Web 3.0 Campus offers cutting-edge physical and digital infrastructure, including R&D facilities, accelerator programs, and collaborative workplaces.

According to Mr. Alblooshi, the campus “will foster a world-class nurturing environment that facilitates business growth and development.”

Dubai has also started a number of projects in support of its aims to accelerate the growth of AI.

The Dubai Centre for Artificial Intelligence, which will serve as a training ground for 1,000 employees from more than 30 government agencies, was established in June.

The Dubai Assembly for Generative AI, an event that aspires to define the future of AI and educate governments and communities about the prospects it offers, was planned to be held in the emirate in October. This was announced in July.

Crypto platform has not paid a $2.7 million fine levied by regulator, which also fined Su Zhu, Kyle Davies, Mark Lamb, Leslie Lamb, the chief executive of Opnx, and $54,451 apiece.
Open Technology Markets (doing business as Opnx), a digital asset exchange, was fined Dh10 million ($2.7 million) by Dubai’s Virtual Assets Regulatory Authority for breaking regulations governing marketing, advertising, and promotions.

According to the emirate’s virtual asset regulator, the fine for the market offense on May 2 is still outstanding.

The creators of the unsuccessful cryptocurrency hedge fund Three Arrows Capital are connected to the exchange.

The founders of Opnx, Kyle Davies, Su Zhu, Mark Lamb, and the company’s CEO, Leslie Lamb, have all been fined Dh200,000 ($54,451) each.

The creators of Three Arrows Capital, Mr. Davies and Mr. Zhu, filed for bankruptcy last year as the value of Bitcoin fell and the UST stablecoin lost its peg to the US dollar. The agency just imposed the largest fines to date.

According to proper governance criteria, the grievance committee at Vara was referred all of the fines mentioned above. The committee examined the grievance referral and found that the enforcement actions taken should be upheld entirely, according to the regulator.

Vara will decide whether additional fines, penalties, or other actions are warranted against Opnx in order to recover payment and completely correct the behavior. These actions may include, but are not limited to, relating the matter to any law enforcement agency (ies) or competent the courts.

In March 2022, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, formed Vara in accordance with the Dubai Virtual Asset Regulation Law, the emirate’s first statute of its type.

It intends to provide a cutting-edge legal framework to safeguard investors and offer global guidelines for the regulation of the virtual asset market to promote responsible corporate expansion.

Opnx is a public marketplace for trading derivatives and crypto claims that was introduced in March. It is advertised as a marketplace for trading cryptocurrency claims linked to failed digital asset companies.

2022 was a difficult year for the cryptocurrency industry due to business failures and cybercrimes that hurt the value of digital assets and investor enthusiasm.

The collapse of FTX, which declared bankruptcy in November, was the occurrence that garnered the greatest attention. That came after the demise of the Luna cryptocurrency and the Terra stableco that it was linked to in May of last year.
The parent company of the bitcoin lending business Genesis Global Capital, Genesis Global Holdco, filed for bankruptcy protection in the US in January of this year.

According to YouGov, smartphones are used by 73% of gamers in the kingdom, giving them a huge advantage over other platforms.
According to a research, smartphones continue to be the preferred gaming device in Saudi Arabia, with around 75 percent of players choosing the platform for its portability and simplicity.

According to a report released on Wednesday by the UK-based research company YouGov, cellphones are used by almost 73% of gamers in the kingdom, giving them a major advantage over other gaming platforms.

According to the report, game consoles, which include the Microsoft Xbox, Sony PlayStation, and Nintendo Switch, came in second with 34% of the market. Following closely behind with 33% each were desktops and laptops and 14% each were high-end gaming PCs. Additionally, 25% of people still use tablets.

“Although mobile devices have greatly expanded the possibilities for casual gaming, dedicated gaming consoles like Xbox and PlayStation continue to appeal to gamers, with a third of weekly gamers utilizing them. According to YouGov analysts, men are more inclined than women to say this.

Together with viewing non-live TV, gaming is now the sixth most popular internet activity, according to YouGov.

According to YouGov, social media interaction continues to be the most popular online activity, being used by 41% of those surveyed.

According to the report, this follows by live content, non-live content like those on YouTube, streaming video like those on Netflix and Amazon Prime, and other activities like online browsing or email checking.

Globally, gaming has grown to be a significant industry, with growth spurts during the Covid-19 epidemic in 2020 and the development of new games to meet customer demand thanks to New-Age technology.

Saudi Arabia’s National Gaming and Esports Strategy calls for the development of 30 games and the creation of roughly 40,000 employment by 2030.

The plan, launched in September by Saudi Crown Prince Mohammed bin Salman, includes a thorough investment program for the sector with the ultimate objective of making the kingdom a global hub for gaming by 2030.
To speed the growth of the sector, Riyadh also founded the Saudi Esports Federation. Prince Faisal bin Bandar, the organization’s head, was named vice president of the Global Esports Federation in December.

Gamers8, one of the biggest gaming festivals in the world and one that the country started hosting last month, has a good reputation among Saudi citizens, according to statistics from YouGov.

According to the survey, “Gamers8 will strengthen the kingdom’s standing as a future global hub for the gaming industry,” about two-thirds of respondents concur.

At the Leap technology conference in Riyadh in February, it was revealed that new investment totaling $488 million had been provided to Saudi Arabia’s gaming sector by the Saudi Esports Federation, the National Development Fund, and the Social Development Bank.

Global gaming revenue is anticipated to reach $212.4 billion by 2026, with mobile devices continuing to drive growth, according to a market data platform update released last week.

According to a survey, incubation programs helped the number of gaming startups in Saudi Arabia almost quadruple to 24 in 2022 from 13 the year before.

According to the report, playing games is more popular in Saudi Arabia than other online activities like viewing live streaming video, listening to podcasts, reading blogs or books, or streaming music. According to YouGov, the majority of Saudi citizens, or 22%, indicated they spend between three and six hours a week gaming, followed by a fifth who spend only two hours.

Despite the gaming potential of VR and the gradual rise of the metaverse, the usage of virtual reality headsets remain low, with only 9% of weekly gamers utilizing these devices during their gaming sessions, the survey found.