TCS boosts development with AI-driven engineering

Tata Consultancy Services (TCS) is harnessing generative AI to accelerate development in the rapidly growing field of engineering research and design, according to a senior executive. Sreenivasa Chakravarti, vice president of IoT and digital engineering at TCS, revealed that development cycles for clients such as Rolls Royce, Jaguar Land Rover, and Siemens have shortened by up to 20% thanks to AI integration.

Generative AI is being widely adopted by engineering-related clients to boost efficiency in code generation, testing, and quality assurance. This trend is reshaping budget allocations and product development strategies across industries. Engineering, research, and design services, which support sectors like self-driving technology and sustainability solutions, represent a significant portion of India’s $254 billion tech industry.

The engineering research and design niche is the fastest-growing sector in the Indian tech industry, with projections indicating it will quadruple in size to $170 billion by 2030. Pure-play software companies like TCS, Infosys, and Wipro are competing alongside specialised firms such as Tata Elxsi, Cyient, and L&T Technology Services in this booming sector.

As the core software services sector faces challenges, large IT firms are increasingly investing in the engineering space through acquisitions. Cognizant recently acquired Bulcan for $1.3 billion, while Infosys purchased German firm in-tech for $480 million.

Australia introduces new AI regulations

Australia’s government is advancing its AI regulation framework with new rules focusing on human oversight and transparency. Industry and Science Minister Ed Husic announced that the guidelines aim to ensure that AI systems have human intervention capabilities throughout their lifecycle to prevent unintended consequences or harm. These guidelines, though currently voluntary, are part of a broader consultation to determine if they should become mandatory in high-risk settings.

The following initiative follows rising global concerns about the role of AI in spreading misinformation and fake news, fueled by the growing use of generative AI models like OpenAI’s ChatGPT and Google’s Gemini. In response, other regions, such as the European Union, have already enacted more comprehensive AI laws to address these challenges.

Australia’s existing AI regulations, first introduced in 2019, were criticised for being insufficient for high-risk scenarios. Ed Husic emphasised that only about one-third of businesses use AI responsibly, underscoring the need for stronger measures to ensure safety, fairness, accountability, and transparency.

NTIA launches inquiry to support US data centres’ growth

The US National Telecommunications and Information Administration (NTIA) has launched an inquiry to address the challenges surrounding US data centres’ growth, resilience, and security. This initiative is crucial in light of the increasing demand for computing power driven by advancements in AI and other emerging technologies. Currently, the US has over 5,000 data centres, with demand projected to grow by approximately 9% annually through 2030, highlighting their role as foundational elements of a secure technology ecosystem.

To effectively tackle these challenges, the NTIA has issued a Request for Comment (RFC) to solicit stakeholders’ input on various data centre growth issues. Key focus areas include supply chain resilience, access to trusted equipment, energy demands, and the need for a specialised workforce. The RFC also explores the implications of data centre modernisation on society and the necessary data security practices for facilities hosting AI models. Insights from this inquiry will help develop comprehensive policy recommendations supporting sustainable and resilient data centre growth.

The inquiry is being conducted in coordination with the Department of Energy (DOE), highlighting the importance of addressing energy challenges associated with data centres. The collaboration aims to ensure the US can meet the energy demands of expanding data centre infrastructure while promoting clean energy solutions. The feedback received from the RFC will inform a report that outlines actionable recommendations for the US government, ultimately fostering a robust data centre ecosystem capable of supporting future technological advancements.

Telecom giants urge European policymakers to enhance digital competitiveness through improved connectivity

Ericsson, Nokia, and Vodafone have united in a call to action for European policymakers to enhance digital competitiveness through advanced connectivity and digitalisation. They argue that achieving a true Digital Single Market is essential for fostering innovation and ensuring Europe can compete globally. The following initiative emphasises the need for coherent implementation of existing regulations and the avoidance of unnecessary regulatory burdens that could hinder the rapid deployment of digital infrastructure.

Ericsson, Nokia, and Vodafone highlight the importance of incentivising investment in advanced connectivity solutions, such as 5G and future 6G technologies. They stress that a modernised regulatory framework is crucial for maintaining healthy telecom operators capable of making substantial investments in infrastructure. This includes advocating for longer spectrum licenses and harmonised rules across the EU member states, facilitating a more robust telecommunications landscape.

Ericsson, Nokia, and Vodafone also propose that policymakers differentiate between business-to-business (B2B) and consumer-facing technologies when crafting regulations. Tailoring regulations to these sectors’ specific needs and operational structures will help create a more level playing field and address market failures effectively. This distinction is vital for fostering an environment where trusted companies can thrive and innovate.

Ericsson, Nokia, and Vodafone highlight the need for Europe to prepare for emerging technologies like quantum computing and AI. They advocate for policies encouraging experimentation and attracting private investment, ensuring Europe can leverage these advancements while addressing security challenges.

Huawei Cloud launches AI innovations in Saudi Arabia

Huawei Cloud introduced advanced AI technologies at the Saudi Arabia 2024 Summit, aiming to accelerate the country’s digital transformation and support Vision 2030. This new infrastructure promises ultra-low latency and robust AI model training and inference capabilities, enhancing various sectors nationwide. The company is also the first cloud provider in Saudi Arabia to fully comply with local data security policies, ensuring high levels of data protection and aligning with the country’s digital sovereignty strategy.

The impact of Huawei Cloud is significant, with a tenfold increase in public cloud revenue over the past year. It serves a diverse client base, including government bodies, telecom carriers, FinTech firms, and media organisations, highlighting its role in the digital economy. Sector-specific solutions include supporting smart city projects for the government, market expansion for local e-commerce businesses like Zode, and advanced digital banking services.

Technological innovations, such as the Pangu model and CodeArts, drive industry advancements and accelerate software development. Additionally, Huawei Cloud invests in the local ecosystem by training over 3,000 university students and partnering with over 100 local businesses, fostering a thriving digital landscape in Saudi Arabia

TSMC to accelerate silicon photonics development for AI computing

Taiwan Semiconductor Manufacturing Company (TSMC), in collaboration with leading global chip designers and suppliers such as Broadcom and Nvidia, is focusing on developing advanced silicon photonics technology. This initiative has gained momentum due to the increasing demand for faster data transmission speeds driven by the rise of AI applications. TSMC has established a dedicated R&D team of over 200 employees to explore high-speed computing chips based on silicon photonics, with production expected to commence in the second half of next year.

TSMC’s efforts aim to solve critical challenges in energy efficiency and AI computing power, positioning silicon photonics as a transformative force in the semiconductor industry. The company also targets a range of chip processes, from 45 to 7 nm, with mass production anticipated by 2025.

The silicon photonics market is projected to grow substantially, with significant developments expected as early as 2024. TSMC’s partnerships with major customers are crucial for advancing this technology, and it is poised to revolutionise applications across CPUs, GPUs, and other computing processes. As the semiconductor industry continues to evolve, TSMC’s commitment to silicon photonics underscores its role as a leader in shaping the future of high-speed data communication and AI innovations.

US Department of Justice ramps up probe into Nvidia’s AI practices

The US Department of Justice has intensified its antitrust investigation into Nvidia by issuing a subpoena, according to reports from Bloomberg. The subpoena comes after previous questionnaires were sent, signalling the authorities’ increased scrutiny of the AI chipmaker’s business practices. Nvidia is accused of making it difficult for buyers to switch suppliers and potentially penalising customers who don’t exclusively use its AI chips.

The investigation reportedly stems from complaints by competitors who claim Nvidia may be abusing its market dominance. Several other companies have also received subpoenas as part of the broader probe. The escalating crackdown coincides with increased caution among investors regarding AI companies, as concerns about overspending and high expectations loom.

Despite a worldwide growth in demand for AI chips, Nvidia’s recent quarterly forecast disappointed investors, leading to a sharp drop in its share value. The company’s stock fell 2.5% in extended trading on Tuesday, following a 9.5% decline during regular market hours. This scrutiny adds further pressure to the AI giant during a sensitive period for the industry.

Nvidia declined to comment on the ongoing investigation, while the United States Department of Justice has yet to respond to requests for further information. The outcome of this probe could have significant implications for the company and the broader AI market.

Salesforce expands AI portfolio with acquisition of Tenyx

The American cloud-based software company has announced plans to acquire Tenyx, a startup specialising in AI-powered voice agents. The acquisition, set to close in the third quarter, will bring Tenyx’s co-founders and team into Salesforce as the company expands its AI-driven solutions. Founded in 2022, Tenyx provides services to various industries, including e-commerce, healthcare, and travel.

This acquisition comes after Salesforce, facing pressure from activist investors, previously shifted its focus away from large-scale mergers and acquisitions. Now, with an eye on reigniting revenue growth, the company is resuming acquisitions to boost its capabilities in AI. Salesforce’s move aligns with broader industry trends, as tech giants like Microsoft and Amazon have also been acquiring AI startups this year.

Salesforce’s focus on AI began with the launch of the first AI centre in London, and is part of a competitive race in the tech industry. Microsoft has paid $650 million in March to acquire talent from AI startup Inflection, and Amazon hired key talent from another AI startup, Adept, in June. Salesforce, meanwhile, reported better-than-expected results in its second-quarter earnings, driven by increased demand for its enterprise cloud products.

As AI becomes increasingly vital to the technology landscape, companies like Salesforce are investing heavily in innovation to stay ahead. The Tenyx acquisition marks another step in its strategy to remain a leader in the cloud and AI sectors, even as competition intensifies.

Council of Europe opens AI convention for signature

On 5 September 2024, the Council of Europe’s Framework Convention on Artificial Intelligence, Human Rights, Democracy, and the Rule of Law will be officially opened for signature during an informal Conference of the Ministers of Justice of the Council of Europe in Vilnius, Lithuania. The Convention, adopted on 17 May 2024, during the Council of Europe’s Committee of Ministers’ annual meeting, provides a global legal framework for regulating AI systems, with a focus on ensuring these technologies align with human rights, democratic integrity, and the rule of law.

The Convention is set to guide countries on how to manage the development and implementation of AI within the public sector, ensuring that AI technologies respect essential democratic values. Importantly the Convention also covers private-sector entities when they operate on behalf of public authorities, such as under government contracts, further broadening its scope of application.

Key Principles for Adoption

The Framework Convention establishes seven core principles for implementing AI governance, which signatories need to adapt to their domestic legal frameworks. These principles include:

  • Human dignity and individual autonomy: Ensuring AI does not undermine human dignity or reduce individuals to mere data points.
  • Transparency and oversight: Maintaining transparency across the AI lifecycle, ensuring users can understand AI-generated content and decisions.
  • Accountability: Clear responsibility for AI’s impact on human rights, including legal mechanisms to hold actors accountable.
  • Equality and non-discrimination: Addressing and mitigating bias throughout the AI system’s lifecycle.
  • Privacy and data protection: Safeguarding individuals’ privacy and controlling access to personal data.
  • Reliability: Ensuring AI systems are robust, secure, and trustworthy in their outputs.
  • Safe innovation: Promoting innovation that respects democratic principles and human rights, with support for regulatory sandboxes and clear guidance.

The Convention allows for national security exemptions, i.e. the Parties are allowed to not implement the treaty for activities protecting national security, provided that these comply with international law.

Global impact

The Convention has been hailed (by some) as a major achievement in global AI governance. Its goal is to harmonise the regulation of AI systems across borders and create a framework that can be adopted by both European and non-European countries. The Treaty has already garnered significant international interest, with nations outside Europe, including the US, Canada, Japan, and Australia, participating in negotiations alongside private sector and civil society observers.

Human rights and democracy

A key aspect of the Convention is its focus on safeguarding human rights and democracy against the potentially harmful effects of AI technologies. It mandates that AI systems should always maintain human autonomy, preventing the dehumanisation of individuals and ensuring their ability to exercise control over AI’s influence in their lives. The document also emphasises the importance of transparency, urging the use of content labelling, watermarking, and other methods to ensure that users can clearly distinguish between human-generated and AI-generated content.

Criticisms

Despite its historic significance, some view the treaty as falling short of its intended impact. Concerns have been raised regarding the treaty’s effectiveness, with suggestions that it primarily reaffirms existing practices rather than introducing substantive regulatory measures.

The EU data watchdog expressed concerns about potential compromises in human rights standards due to pressure from foreign business interests. The European Data Protection Supervisor (EDPS) believes that the proposal does not go far enough in addressing the risks and challenges posed by AI. The text has been significantly weakened from its original version during negotiations at the CoE’s ad hoc committee in charge of the convention. The EDPS described it as a ‘missed opportunity to lay down a strong and effective legal framework’ for protecting human rights in AI development.

Why does it matter?

The opening of the Framework Convention for signature in Vilnius marks an important moment for AI governance. While the Convention sets out an ambitious agenda, its success depends on the willingness of signatory countries to implement its principles through their own legislative and regulatory systems. If widely adopted, this could serve as a global benchmark for AI governance, potentially inspiring similar frameworks in other regions.

Dutch watchdog fines Clearview AI over illegal facial recognition use

Clearview AI has been fined €30.5 million by the Netherlands Data Protection Authority (DPA) for creating an illegal database using facial recognition technology. The DPA said the company violated privacy laws by building a highly intrusive database without consent. The penalty also includes a potential additional fine of up to €5 million if the company does not comply with the ruling.

The facial recognition company has not challenged the DPA’s decision and therefore cannot appeal against the fine. The watchdog warned that using Clearview AI’s services is also illegal under Dutch regulations, raising concerns about the misuse of facial recognition technology.

DPA Chairman Aleid Wolfsen stressed the dangers of unregulated facial recognition, describing it as a technology that cannot be ‘unleashed’ on the world without strict controls. The ruling marks another significant penalty in the European Union‘s efforts to enforce privacy regulations.

Last week, ride-hailing firm Uber was also fined by the DPA for transferring the personal data of European taxi drivers to the United States, violating EU privacy rules. Uber is appealing the fine, calling it unjustified.