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Taco Bell parent company invests $1 billion in AI-powered restaurant technology

Taco Bell is ramping up its use of AI as part of a broader $1 billion investment by parent company Yum Brands in digital and technology.

At a recent investor event in New York, executives showcased the company’s ‘Byte by Yum’ AI tools, which aim to improve labour management and inventory tracking. Taco Bell’s Chief Digital and Technology Officer, Dane Mathews, said AI is already being used to streamline operations without reducing labour costs.

Around 500 Taco Bell locations in the United States now use AI-driven voice technology to handle drive-through orders, a significant increase from 100 locations in mid-2024.

During the investor event, executives presented a video skit demonstrating how AI could assist managers by suggesting staffing adjustments and optimising inventory. Analysts found the presentation both innovative and slightly unsettling, with Yum suggesting AI would help free up employees for other tasks rather than replace them.

Fast food chains are increasingly adopting AI to modernise operations, with companies like McDonald’s and Chipotle also investing in automation and digital tools. While Yum’s AI technology is currently used in nearly 25,000 of its 61,000 global restaurants, executives acknowledged there is still a long road ahead.

Analysts believe Yum may eventually commercialise its AI software beyond its own restaurant network. Taco Bell’s AI-driven strategy comes as the chain projects an 8% rise in same-store sales for the current quarter.

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Fast-delivery firms face antitrust scrutiny in India

Fast-delivery giants Zomato, Swiggy, and Zepto are facing an antitrust investigation in India over allegations of deep discounting practices that harm smaller retailers.

The All India Consumer Products Distributors Federation (AICPDF), which represents 400,000 distributors, has filed a case with the Competition Commission of India (CCI) to examine the business practices of these companies.

They claim that the discounting strategies of these platforms result in unfair pricing models that harm traditional retailers.

The quick-commerce sector in India, where products are delivered within minutes from local warehouses, has grown rapidly in recent years. However, this growth has come at the expense of brick-and-mortar stores, which cannot match the discounts offered by online platforms.

A recent survey showed a significant shift in consumer behaviour, with many shoppers reducing their purchases from supermarkets and independent stores due to the appeal of fast-delivery options.

The filing by the AICPDF, which has reviewed the pricing of several popular products, accuses companies like Zepto, Swiggy’s Instamart, and Zomato’s Blinkit of offering products at prices significantly lower than those available in traditional stores.

However, this has raised concerns about the long-term impact on local businesses. The CCI is now set to review the case, which may result in a formal investigation.

As India’s quick-commerce market continues to grow, estimated to reach $35 billion by 2030, the regulatory scrutiny of this sector is intensifying. The outcome of this case could shape the future of the industry, especially as companies like Zepto and Swiggy prepare for further expansion.

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Indonesia approves Apple’s local content certificates

Indonesia has granted local content certificates for 20 Apple products, including the iPhone 16 after the company met requirements for locally-made components.

Apple still needs further approvals from the communications and trade ministries before it can officially sell the devices in the country.

The certification follows Apple’s recent pledge to invest over $300 million in Indonesia, including funding component manufacturing plants and a research and development centre.

Last year, the country had banned iPhone 16 sales due to non-compliance with local content rules.

Industry ministry spokesperson Febri Hendri Antoni Arief confirmed that Apple received certificates for 11 phone models and nine tablets.

However, negotiations had been ‘tricky’, according to Indonesia’s industry minister. Apple remains outside the top five smartphone brands in Indonesia, according to research firm Canalyst.

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XR headset from Samsung to challenge Apple Vision Pro

Samsung’s upcoming XR headset is expected to feature a 4K micro-OLED display from Sony, according to recent reports.

The 1.35-inch screen is slightly smaller than Apple’s Vision Pro but offers a higher resolution and a wider colour gamut.

The Vision Pro has struggled to gain mass appeal due to its high price, leaving space for rivals to introduce alternatives.

Samsung’s device is likely to be positioned as a direct competitor, offering premium features at a potentially more accessible price point.

Other companies are also preparing to challenge Apple in the XR space. Sony’s high-end model is already available, and Meta is reportedly expanding its Quest lineup. Samsung has hinted at additional smart glasses, though details remain scarce.

Apple may respond with an updated Vision Pro, adding to the competition in the XR market. With several key players developing new headsets, 2025 could be a defining year for immersive technology.

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Reddit launches new tools to improve user engagement

Reddit has introduced new tools to help users follow community rules and track content performance, aiming to boost engagement on the platform. The update comes after a slowdown in user growth due to Google’s algorithm changes, though traffic from the search engine has since recovered.

Among the new features is a ‘rules check’ tool, currently being tested on smartphones, which helps users comply with subreddit guidelines. Additionally, a post-recovery option allows users to repost content in alternative subreddits if their original submission is removed. Reddit will also suggest subreddits based on post content and clarify posting requirements for specific communities.

The company has enhanced its post insights feature, offering detailed engagement metrics to help users refine their content. This follows Reddit’s December launch of Reddit Answers, an AI-powered search tool designed to provide curated summaries of community discussions, which is still in beta testing.

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Zalando challenges EU tech rules, seeks exemption

Zalando, Europe’s leading online fashion retailer, has filed a legal challenge against the European Commission’s classification of the company under the Digital Services Act (DSA). The company argues that, unlike platforms such as Amazon and AliExpress, its business model does not fit into the “very large online platform” (VLOP) category, and it should not face the same stringent regulations.

The DSA, which came into force in 2022, requires VLOPs to take additional measures to manage harmful and illegal content or face significant fines. Zalando’s lawyer, Robert Briske, pointed out that the company operates a hybrid model, offering both its own products and those from third-party partners, making it distinct from other online platforms that purely function as marketplaces.

The European Commission contends that Zalando’s business model is similar to those of Amazon and AliExpress. The Commission’s lawyer, Liane Wildpanner, argued that Zalando is seeking to benefit from the flexibility of a hybrid model without bearing the regulatory burden of platforms like Amazon.

Zalando’s case is supported by Germany’s e-commerce association, BEVH, while other EU bodies, including the European Parliament, have sided with the Commission. The General Court is expected to deliver a ruling in the coming months.

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Microsoft to boost AI investment in South Africa

Microsoft has announced plans to invest an additional 5.4 billion rand (about $296.81 million) by 2027 to enhance its cloud and AI infrastructure in South Africa.

The investment comes in response to the increasing demand for the company’s Azure services in the region, with a particular focus on meeting the needs of businesses integrating AI technology into their operations.

Brad Smith, Vice Chair and President of Microsoft, revealed the initiative during an event in Johannesburg, confirming that the company would also fund technical certification exams for 50,000 individuals.

These exams will cover crucial digital skills, including cloud architecture, AI, and cybersecurity, aiming to address the shortage of skilled professionals in high-demand sectors.

The new investment builds on Microsoft’s previous spending of 20.4 billion rand to establish South Africa’s first enterprise-grade data centres in Johannesburg and Cape Town.

These data centres have become essential hubs for handling the computational demands of AI, as local businesses look to adopt AI-driven solutions.

The company’s broader strategy includes a global commitment to invest around $80 billion in 2025 to further develop data centres and deploy AI and cloud-based applications. South Africa, as a growing tech hub, is expected to play a key role in Microsoft’s plans for the future.

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US House subpoenas Alphabet over content moderation

The US House Judiciary Committee subpoenaed Alphabet on Thursday, demanding information on its communications with the Biden administration regarding content moderation policies. The committee, led by Republican Jim Jordan, also requested similar communications with external companies and groups.

The subpoena specifically seeks details on discussions about restricting or banning content related to US President Donald Trump, Elon Musk, COVID-19, and other conservative topics. Republicans have accused Big Tech companies of suppressing conservative viewpoints, with the Federal Trade Commission warning that coordinating policies or misleading users could breach the law.

Last year, Meta Platforms acknowledged pressure from the Biden administration to censor content, but Alphabet has not publicly distanced itself from similar claims. A Google spokesperson stated the company will demonstrate its independent approach to policy enforcement.

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AxeleraAI receives $66 million EU grant for AI chip development

AxeleraAI, a promising AI chipmaker based in Eindhoven, Netherlands, has been awarded a €61.6 million ($66 million) grant by the European Union to develop its Titania chip.

The grant, provided by EuroHPC, aims to bolster Europe’s AI capabilities by supporting the development of a chip specifically designed for “inference” computing in data centres.

However, this initiative is part of the EU’s broader strategy to enhance its AI sector and reduce its dependency on US and Chinese technologies.

Fabrizio Del Maffeo, CEO of AxeleraAI, expressed pride in the award, viewing it as a significant opportunity for the Dutch company to expand its business.

The new chip will be built on the open-source RISC-V standard, a growing alternative to more traditional chip systems like those from Intel and Arm. AxeleraAI’s existing Metis chip is already being used in edge AI applications, such as monitoring safety in factories through CCTV analysis.

While the company does not aim to compete with industry giants like Nvidia in training AI models, Del Maffeo stated that the Titania chip is designed to excel in running large AI models once they are trained.

This shift towards more affordable inference computing is expected to become increasingly important as the demand for AI solutions grows. AxeleraAI has already raised $200 million from investors, including Samsung, since its founding in 2021.

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Malaysia discusses impact of US chip tariffs with companies

Malaysia is engaging with its semiconductor industry to address the potential impact of US tariffs on chips. The US has signalled its intention to impose tariffs of up to 25% on semiconductors, which could significantly affect Malaysia, one of the top exporters of chips to the US Last year, Malaysia shipped $16.2 billion worth of chips, making up nearly 20% of US semiconductor imports.

Trade Minister Tengku Zafrul Aziz said the government is in talks with companies to see if they can absorb the higher costs caused by the tariffs. The discussions are focused on whether consumers or companies will bear the increased expenses. While the government has not yet decided whether it will provide financial support, Malaysia’s strong semiconductor sector, which includes US giants like Intel and GlobalFoundries, remains a critical part of the economy.

Despite concerns over the tariffs, Tengku Zafrul expressed confidence that Malaysia’s data centres would not be affected by new US export restrictions on advanced chips. The country has become a major hub for data centres, attracting investments from companies such as Microsoft, Google, and Amazon. The growth of AI-related demand is expected to drive further expansion, and Tengku Zafrul indicated that the sector’s trajectory is strong enough to absorb any new challenges.

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