Tech News : Autumn Statement Suggests IT Spending Boost
The announcement of measures intended to boost investment in innovation and technology in UK Chancellor Jeremy Hunt’s Autumn Statement could mean increased spending on IT and AI.
Measures To Boost The Tech Sector
The UK Chancellor’s Autumn Statement introduced a range of measures aimed at boosting the tech sector, with potentially significant implications for tech spending and investment in innovation. Some tech commentators have suggested that this could mean that private-sector IT buyers will see a long-term boost. Here we take a look at how the measures announced could affect tech spending, their potential overall impact, and any negative effects they might have.
Positive Impacts on Tech Spending
Some of the key announcements in the Autumn Statement that could have a positive effect on tech spending include :
– A permanent full expensing policy. Mr Hunt’s decision to make the full expensing policy permanent allows private sector IT buyers to write off the cost of IT equipment against tax. This policy, therefore, looks likely to encourage more investment in IT infrastructure, as companies can deduct these expenses from taxable profits.
– Enhanced R&D tax credits. The merger of the R&D Expenditure Credit and SME schemes from April 2024 will make more companies eligible for claims supporting innovation. It’s thought that around 5,000 additional small businesses may benefit, thereby helping to foster a more innovative environment in the UK tech sector.
– Investment in AI and quantum technologies. The government’s commitment of £500 million over two years to establish additional ‘compute innovation centres’ and the funding being part of a larger £1.5 billion investment is intended to enhance the UK’s capabilities in AI. The Statement also outlined five quantum missions as part of the ‘National Quantum Strategy.’ These missions focus on establishing advanced quantum computing capabilities and networks and incorporating quantum technologies in various sectors such as healthcare, transportation, and defence by 2030 and 2035. One key benefit of quantum computing being made available to healthcare could of course be breakthroughs in areas like drug discovery. Thinking back to the pandemic, many peopel may remember how quantum computing was something that was being used to help speed the way to developing effective vaccines.
– Skills development Initiatives. It’s long been known that the UK has a tech skills gap which is something that threatens to hamper its ambition to become an international technology superpower. Therefore, a £50 million investment to pilot ways to increase apprenticeships in key growth sectors (including engineering) aligns with the need for a skilled workforce to sustain tech advancements. Mr Hunt also announced three more investment zones (on top of the 12 announced in March) in order to boost advanced manufacturing in the West Midlands, East Midlands, and Greater Manchester.
– Support for clean energy and infrastructure. The outlined efforts to cut grid access delays and provide financial incentives for clean energy businesses will likely accelerate the UK’s transition to a low-carbon economy, benefiting green tech initiatives. For example, a £960m Green Industries Growth Accelerator fund may help to support emerging technologies in clean energy and the transition to net-zero.
Not All Positive
Some of the Autumn Statement announcements, however, may not be such good news for the UK’s tech sector. For example, some of the potential challenges and negative effects include:
– Negative economic forecasts and tight public spending: Despite some of the ambitious measures announced, their success is essentially contingent on economic forecasts, which are currently revised downwards. A significant squeeze on public spending due to inflation may also hamper the plans for digital transformation, especially if budget constraints affect public sector investments.
– Implementation and collaboration needs. The effectiveness of the many potentially positive measures announced depends on the government’s ability to implement them quickly and efficiently. Also, government collaboration with the tech sector is crucial to ensure these policies translate into tangible growth and innovation. For example, the government will need to work alongside tech companies, startups, and industry experts to understand their needs, address potential challenges, and ensure that the policies are actually practical and beneficial.
– A reliance on estimates and uncertainties. Some reforms, like those to the energy grid and pension and capital market reforms, are unfortunately based on estimates that may not actually materialise as expected. If these projections fall short, it could limit the overall impact of the statement’s measures on tech investment and growth.
What Does This Mean For Your Business?
The Autumn Statement’s initiatives offer a promising landscape for businesses beyond just IT buyers, possibly signalling a transformative shift in the UK’s approach to technological advancement and innovation. The decision to make full expensing permanent, coupled with enhanced R&D tax credits, may help present a financially viable path for businesses across various sectors to invest more boldly in new technology and innovation projects. This change not only eases the financial burden of such investments but may also go some way to encouraging a culture of continuous innovation.
The substantial investments in AI, quantum computing, and compute infrastructure could open up new avenues for businesses to access and leverage advanced technologies. These technologies, for example, have the potential to revolutionise product development and operational efficiency across a wide range of industries. As a result, organisations can look forward to not only improved business-processes but also the possibility of developing groundbreaking new products and services.
The focus on developing much-needed tech skills in the UK workforce through apprenticeships and training initiatives is another critical aspect. This approach could help give UK businesses access to employees equipped with the necessary skills to navigate and contribute to an increasingly complex technological landscape. This is particularly crucial at a time when technology is evolving rapidly, and the demand for skilled professionals is at an all-time high.
Businesses with a focus on green technologies or those looking to transition to more sustainable practices may get support through initiatives aimed at reducing grid access delays and promoting clean energy. This not only aligns with global trends toward sustainability but also offers a competitive edge to businesses that prioritise environmental responsibility.
However, businesses in what are challenging economic times are likely to see the announcements in the broader economic context. The success of these measures is not guaranteed and is contingent upon effective implementation amidst economic uncertainties and potential public spending constraints. Therefore, businesses need to stay informed and agile, ready to adapt to changing regulations and economic conditions.
Looking on the bright side, this year’s Autumn Statement generally appears to present a multifaceted opportunity for businesses to grow, innovate, and adapt in a rapidly evolving technological environment. If UK businesses can capitalise on the initiatives announced and navigate the associated challenges, they may be better positioned to make the most of new technologies like AI.
An Apple Byte : ChatGPT Voice Free To All iOS Users
OpenAI’s president and co-founder, Greg Brockman, has announced that ‘ChatGPT Voice’ in its ChatGPT app, previously only available to Plus and Enterprise subscribers, is now available free to all iOS and Android users.
ChatGPT Voice (originally introduced in September) integrates voice capabilities with the existing ChatGPT text-based model. This allows users to have a conversation with it and ask the ChatGPT chatbot questions and be given answers, all by voice, i.e. talking to the app on your device. Greg Brockman said on X that the feature “totally changes the ChatGPT experience.”
iOS users who want to try ChatGPT Voice can access it in their ChatGPT app now. An example video of what ChatGPT Voice can do has been posted by Greg Brockman on X here.
Security Stop Press : Snapchat Photo Scam Targeting Teen Boys
Police and the US Charity National Center for Missing and Exploited Children have warned of a nude photo Snapchat scam targeting teen boys that could cause emotional trauma.
The Snapchat ‘online sextortion’ scam involves scammers befriending teenage boys online by posing as teenage girls, sharing nude photos of a girl with them, and asking for nude photos in return. Those teen boys who reciprocate are then sent a demand for money with the threat of sharing the boy’s photos with his social media followers if he doesn’t pay (via a peer-to-peer payment app). However, even if the scammers are paid, they don’t go away.
The advice to young victims of a sextortion scheme is first tell their parents, to block bad actors, and to report any instances of this crime to police and Action Fraud.
In September, Snapchat announced new safety features in its app to enhance protections and safeguards for teenage users, which include educational resources highlighting risks, and in-app warnings when a teenager receives a friend request from someone with whom they have no mutual contacts.
Sustainability-in-Tech : Friendlier Alternatives To Lithium-Ion Batteries
In this article, we look at what the issues around lithium-ion batteries are, why we need more sustainable alternatives, then we’ll look at some examples of the latest, environmentally-friendly alternatives.
What Are Lithium-Ion Batteries?
Lithium-ion batteries (LIBs) are a type of rechargeable battery which function by moving lithium ions between the battery’s positive and negative electrodes during charging and discharging. This movement of ions allows the battery to store and release energy.
These batteries are commonly used in a wide array of electronic devices including smartphones, laptops, tablets, power tools, portable speakers, drones, smartwatches, and backup power supplies. However, one particularly important (and growing) use for them is within electronic vehicles.
What’s So Good About Them?
Some of the main advantages of lithium-ion batteries are:
– High energy density, meaning they can store a large amount of energy in a relatively small and lightweight package.
– Longer lifespan compared to many other types of rechargeable batteries.
– The fact that they don’t suffer significantly from the memory effect, which is where batteries lose their maximum energy capacity if they are repeatedly recharged after being only partially discharged.
Why Do We Need So Many Lithium-Ion Batteries?
LIBs are integral to modern technology and the global shift towards renewable energy and electrification. Their widespread use in consumer electronics, electric vehicles, and energy storage systems, combined with their high energy density and efficiency, plus their wide range of applications and pivotal role in clean energy transition are reasons why we now seem to be so reliant on them. Other reasons why LIBs are so essential in today’s world include:
– Their versatility. Originally commercialised in the 1990s, their versatility means they have been adopted to become integral to so many consumer electronics. This versatility has also led them to become increasingly central to electric vehicles (EVs), also thanks to their high energy density and lightweight design.
– Their importance for the clean energy transition, such as decarbonising the transportation and electricity sectors. For example, they enable high-performance EVs and are critical for energy storage, supporting the grid’s shift towards renewable sources like solar and wind.
Why The Need For Alternatives To Lithium-Ion Batteries?
The escalating demand for batteries (primarily driven by the global push towards electrification and renewable energy) has highlighted the critical need for more sustainable battery technologies. As the world gradually moves away from fossil fuels, the role of batteries becomes increasingly vital, especially for storing energy from intermittent renewable sources like solar and wind.
Environmental, Ethical And Other Concerns
Although LIBs are currently the backbone of energy storage and electric vehicles, producing them is not without its problems. For example:
– Environmental and geopolitical concerns. The production of these batteries involves mining to extract lithium and cobalt, often in environmentally sensitive or politically unstable regions. About 60 per cent of today’s lithium (expected to rise to 95 per cent by 2030) is used for batteries. The extraction, mainly in Argentina, Australia, Chile, and China, is water-intensive and energy-consuming, posing environmental concerns. Also, Lithium batteries contain a variety of chemicals, compounds, and toxic and harmful substances such as mercury, cadmium, lead and of course lithium itself.
– High production costs. These batteries are expensive to produce due to the high costs of raw materials like lithium, cobalt, and nickel. These materials are in limited supply and high demand, making mining operations costly. This is why transitioning to non-cobalt batteries could reduce electric car costs significantly. For example, it’s estimated that non-cobalt batteries could enable electric car manufacturers to reduce the cost of their cars by 30 per cent (Berkeley Law Centre for Law, Energy, and Environment).
– Surging global demand. The demand for LIBs is projected to grow to 4.7 TWh by 2030 (it was 2.6 TWh in 2019), increasing the market value to over $400 billion. This growth highlights the need for more sustainable and ethically sourced materials.
– Supply chain and R&D expenses: Supply chain constraints, especially China’s dominance in the lithium and graphite market, impact prices. Additionally, ongoing research and development efforts to enhance battery performance and safety contribute to the high overall costs.
– Their significant weight (in EVs). LIB packs in electric cars can weigh several hundred kilograms, constituting a substantial part of the vehicle’s total weight. This weight impacts vehicle design, including aspects like structure, handling and efficiency. This has recently flagged other concerns, e.g. The Institution of Structural Engineers calling for car park designs to evolve to cope with bigger, heavier electric cars (fuelling fears that car parks could collapse if we all switch to electric cars).
The Alternatives
The environmental and ethical concerns around LIBs have led to the search for more sustainable alternatives. Examples of the alternatives being explored so far include:
– Sodium-ion Batteries. Sodium has properties like lithium and although sodium-ion batteries are larger than their lithium counterparts, they are easier to source (e.g. from seawater) and are more sustainable. This makes them a viable option for non-portable applications such as storing electricity from solar panels.
– Calcium-ion Batteries. Research at New York’s Rensselaer Polytechnic Institute has proposed calcium ions as an alternative to lithium in batteries. Calcium is abundant and inexpensive, making it a promising candidate for sustainable energy storage. Despite challenges like the larger size and higher charge density of calcium ions (which affect diffusion kinetics and cyclic stability), researchers have developed special materials to accommodate calcium ions effectively.
– Organic rechargeable batteries. These batteries are transition-metal-free, eco-friendly, and cost-effective. They represent a significant shift from current lithium-ion technologies and could potentially address the environmental and economic concerns associated with the widespread use of transition metals in batteries.
What Does This Mean For Your Organisation?
As the search for sustainable alternatives to lithium-ion batteries gains momentum, its implications for organisations, especially in the electric vehicle (EV) manufacturing sector, may be profound. Transitioning to alternative battery technologies (e.g. non-cobalt, sodium-ion, calcium-ion, or organic rechargeable batteries) could significantly reduce production costs and address many of the environmental and ethical concerns at the same time. This would align with the rising environmental consciousness and presents an opportunity for EV manufacturers to decrease vehicle prices, potentially widening their market reach and consumer base.
Embracing alternatives would also show a commitment to sustainability, thereby enhancing an organisation’s environmental credentials, and could position companies at the forefront of innovation, offering a competitive edge in an industry increasingly geared towards eco-friendly solutions. Additionally, diversifying battery technology addresses vulnerabilities in the lithium and cobalt supply chain, mitigating risks associated with supply disruptions and price volatility.
Also, the move towards more sustainable batteries aligns with regulatory demands and consumer expectations for environmentally responsible practices and while alternatives to LIBs might introduce new design and efficiency challenges, they may also provide opportunities for innovative vehicle designs and improved performance.
That said, however, we’re still some way off from finding a viable single alternative and it will take something very special to cause a shift away from the economy that’s grown up around lithium and the commitment of countries and industries to it so long as cheap, abundant supply is around. Even at this stage in a climate emergency, economic and political (rather than environmental) aspects appear to have more sway over decisions, e.g. the US Biden administration’s support for a huge lithium mine, now under construction in northern Nevada. Also, it’s worth remembering that building EV’s, never mind the batteries, is a major source of carbon production in itself. For example, to make an EV produces an average of eight tons of CO2, plus two additional tons of CO2 per year to run it (from the energy used to produce the electricity).
In essence, therefore, a real shift in battery technology won’t just be about environmental goals but will also be about addressing economic and political factors and finding ways to drive forward-thinking business strategies in the evolving landscape of EV manufacturing.
Tech Tip – Silence Distracting Website Notifications Using Chrome’s ‘Mute Site’
If you’re often overwhelmed by notifications such as customer service chats or discount alerts when you arrive on a website, Google Chrome has an in-built feature to instantly mute these. Here’s how it works:
– When using Chrome and visiting a website / having different tabs open for different websites, right click on the browser tab (at the top) for the website you’d like to mute the notifications for.
– Select ‘Mute site’.
– Now you can view the website without all the distractions.
Featured Article : OpenAI’s CEO Sam Altman Fired (But Will Return)
Following the shock announcement that the boss of OpenAI (which created ChatGPT) has been quickly ousted by the board and replaced by an interim CEO, we look at what happened, why, and what may be next.
Ousted
38-year-old Sam Altman, who helped launch OpenAI back in 2015, firstly as a non-profit before its restructuring and investment from Microsoft, has become widely known as the face of OpenAI’s incredible rise. However, it’s been reported that following some video conference calls with OpenAI’s board of 6 members, Mr Altman was removed from his role as CEO, and from the board of directors. Also, OpenAI’s co-founder, Greg Brockman, was removed from his position as chairman of the board of directors, after which he resigned from the company. Both men were reportedly shocked by the speed of their dismissal.
Why?
The reason given in a statement by OpenAI for removing Mr Altman was: “Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.”
The company also said: “We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward.”
Sam Altman Says …
Mr Altman, who since the introduction of ChatGPT and his many public appearances (most recently at the UK’s AI Safety Summit), interviews, and statements, many people see as the generally well-liked, public face of AI, has not publicly elaborated on what he may not have been candid about.
He commented on Elon Musk’s X platform (Musk was one of the founding co-chairs of OpenAI) that: “I loved my time at OpenAI. it was transformative for me personally, and hopefully the world a little bit. most of all I loved working with such talented people. Will have more to say about what’s next later.”
Intriguingly, there were also reports at the time that Mr Altman and Mr Brockman may have been willing to return if the board members who ousted Altman stepped down – chief scientist Ilya Sutskever has been singled out in some reports as person who led the move to oust Altman.
Theories
The sudden nature of the sacking and the vagueness of OpenAI’s statement, plus some of the events afterwards have led to speculation by many commentators about the real cause/reason for ousting Mr Altman. Leading theories include.
Mr Altman may have either told the board about something they didn’t like, not told something important (and perhaps been caught out), or may have been outed about something in comments made by other parties. Although this is the board’s version, no clear evidence has been made public. However, just prior to his ousting, in TV interviews, Microsoft’s CEO Satya Nadella is reported to say that whether Altman and OpenAI staffers would become Microsoft employees was “for the OpenAI board and management and employees to choose” and that Microsoft expected governance changes at OpenAI. He’s also quoted as saying that the partnership between Microsoft and OpenAI “depends on the people at OpenAI staying there or coming to Microsoft, so I’m open to both options.”
It’s also been reported that two senior OpenAI researchers had resigned and that they (and possibly hundreds of OpenAI employees) may join Microsoft, or that Altman may have been planning to start a new company with the open OpenAI employees who’d already left (which the board may have discovered).
Also, shortly after the whole indecent, Microsoft announced that it had hired Altman and Brockman to launch a new advanced-AI research team with Altman as CEO, which may indicate that Altman had already been in talks with Microsoft’s CEO Satya Nadella about it, which may have been discovered by OpenAI’s board.
As hinted at in the board’s statement, i.e. the part about “OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity,” that there was an unresolved issue over bad feelings that the company had strayed from its initial ‘non-profit’ status. Some commentators have pointed to Elon Musk taking this view and his apparent silence over Altman’s ousting as possible evidence of this.
Another possible reason for ousting Altman is a board power struggle. Evidence that this may be the case includes:
– Mr Altman and Mr Brockman saying they’d be wiling to return if board members who ousted Altman stepped down.
– Following his sacking, OpenAI investors trying to get Altman reinstated.
– Altman and leading shareholders in OpenAI (Microsoft and Thrive Capital) reportedly wanting the entire board to be replaced.
– Reported huge support for Altman among employees.
Interim CEOs
Shortly after Altman’s ousting, OpenAI replaced him with two interim CEOs within a short space of time. These were/are:
– Firstly, OpenAI’s CTO Mira Murati. With previous experience in working at Goldman Sachs, Zodiac Aerospace, Tesla, and Leap Motion, Murati was seen as a strong leader who sees multimodal models as he future of the company’s AI.
– Secondly (the current interim CEO) is Emmett Shear, the former CEO of game streaming platform Twitch. Mr Shear said on X about his appointment: “It’s clear that the process and communications around Sam’s removal has been handled very badly, which has seriously damaged our trust,” adding that: “I took this job because I believe that OpenAI is one of the most important companies currently in existence.”
Mr Shear’s Plans
It’s been reported that Mr Shear plans to hire an independent investigator to examine who ousted Altman and why, speak with OpenAI’s company stakeholders, and reform the company’s management team as needed.
Mr Shear said: “Depending on the results everything we learn from these, I will drive changes in the organisation – up to and including pushing strongly for significant governance changes if necessary.”
What Does This Mean For Your Business?
Sam Altman has become known as the broadly well-liked face of AI since the introduction of OpenAI’s hugely popular ChatGPT chatbot one year ago. He’s extremely popular too with OpenAI employees, and other major tech industry figures, including Emmett Shear, who is now OpenAI’s interim CEO and Google boss Eric Schmidt who’s described Mr Altman “a hero of mine”. Also, Mr Altman is very close to OpenAI’s major investors Microsoft, and has already been snapped up by Microsoft (along with Brockman) as head of a new AI research team there.
Altman’s rapid ousting from OpenAI has not gone down well and all eyes appear to be focused on some of the other members of OpenAI’s board, plus the power struggle that appears to have been fought, and what kind of management and governance is needed at the top of OpenAI now to take it forward. It’s still early and it remains to be seen what happens at the top following the investigation by interim CEO Shears. Microsoft will doubtless be very happy about having Altman on board which could see them make their own gains in the now highly competitive generative AI market.
With Altman gone, it remains to be seen how/if OpenAI’s products and rapid progress and success is ultimately affected.
Update: 22.11.23 – It’s been announced that Sam Altman will soon return to OpenAI following changes to the board.