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.
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.
In Nairobi, Kenya’s bustling tech hub, a new attraction draws crowds: the Robot Cafe, where robots deliver meals to diners. This innovative eatery, the first of its kind in East Africa, features three robots—Claire, R24, and Nadia—gliding between tables with food trays, captivating customers who come to witness this futuristic service. The cafe’s owner, Mohammed Abbas, was inspired to bring robot waiters to Kenya after experiencing them in Asia and Europe despite the high cost of importing the technology.
While the robots add a unique, entertaining element to the dining experience, they don’t replace human staff. Waiters still play a crucial role in taking orders and serving drinks, with the robots primarily handling food delivery. The technology highlights the potential for automation in the hospitality industry, but cafe manager John Kariuki notes that robots aren’t a cost-saving replacement for human workers. Instead, they complement the service, showing how human and robotic labour coexist.
Industry experts believe robotic and human service can thrive together, catering to different customer preferences. While some diners may enjoy the novelty of robot service, others still value the warmth and personal touch that only human waitstaff can provide. As Nairobi continues to grow as a tech hub, the Robot Cafe symbolizes the city’s embrace of innovation while recognizing the enduring importance of human interaction in hospitality.
Meta Platforms has announced plans to shut down its augmented reality studio, Meta Spark, which allowed third-party creators to design custom effects for Instagram and Facebook. The platform will close on 14 January, removing third-party AR effects such as filters, masks, and 3D objects created using the studio. However, their first-party AR effects will remain on its platforms, including Instagram, Facebook, and Messenger.
The decision aligns with Meta’s broader strategy to prioritise investments in AI and the metaverse, a virtual environment the company views as the future of the internet. In a blog post, the company confirmed that resources would now focus on developing the next generation of experiences, particularly in new factors like AR glasses. The shift in strategy has left many third-party creators, who relied on Meta Spark, searching for alternatives.
Many creators have expressed disappointment at the platform’s closure, with some considering moving to other AR creation tools like Snapchat’s Lens Studio or Unity. Despite the discontinuation, the tech giant reassured users that existing reels and stories featuring third-party AR effects will remain accessible. However, the Meta Spark Hub and studio files will no longer be available after the shutdown.
In recent months, the company has also announced the phasing out of other projects, such as its work-focused Workplace app, which will cease customer operation by June 2026. The company’s strategic focus on AI and emerging technologies reflects its ongoing efforts to redefine its core business in an increasingly competitive tech landscape.
BigCommerce is bolstering its AI capabilities through collaboration with Google, aiming to enhance online store performance and drive customer growth. The Austin-based company introduced a suite of new AI-focused solutions during its recent product launch, including tools for personalised product recommendations and AI-generated quote proposal emails, with plans for more features like semantic search and predictive analytics.
These enhancements build on BigCommerce’s partnership with GoogleCloud’s AI technology, which was formed about a year ago. The company is positioning itself against competitors like Shopify and Amazon, which have also integrated AI to improve their platforms. BigCommerce believes these updates will benefit merchants significantly, particularly in terms of efficiency and customer experience.
Despite a challenging journey since going public in 2020, BigCommerce is making substantial investments in AI, and it is already showing positive results. Recent earnings reports indicate an 11% increase in revenue, driven partly by the success of these AI tools, and a reduction in net losses compared to the previous year.
The company remains optimistic that its AI strategy will pay off, helping it compete more effectively in e-commerce. BigCommerce is committed to providing merchants with various AI-powered tools, enabling them to choose the best solutions for their unique needs.
American multinational transportation company Uber faces a significant penalty of €290 million in the Netherlands for transferring the personal data of European taxi drivers to the United States. The Dutch Data Protection Authority (DPA) ruled that the ride-hailing company violated the General Data Protection Regulation (GDPR) by failing to safeguard the data appropriately. Data transfer to the US was deemed a serious breach of the EU privacy laws.
Uber, which has halted the practice, plans to appeal the fine, arguing that its data transfer process complied with GDPR during legal uncertainty between the EU and the US. The appeal process could extend over four years, during which any fines will be suspended.
The case originated from a complaint by a French human rights organisation on behalf of over 170 taxi drivers in France. Although the complaint was initially filed with France’s national data protection regulator, CNIL, it was forwarded to the Dutch DPA because Uber’s European headquarters is in the Netherlands.
Earlier this year, Uber was also fined €10 million by the DPA for other privacy infringements involving its drivers’ data. These fines reflect increasing scrutiny over how global tech companies handle sensitive data across borders.
Google has entered a $250 million deal with the state of California to support local newsrooms, which have been struggling with widespread layoffs and declining revenues. The decision comes in the wake of proposed legislation that would have required tech companies to pay news providers when they run ads alongside news content. By securing this deal, Google has managed to sidestep such bills.
The Media Guild of the West, a local journalism union, has criticised the deal, calling it a ‘shakedown’ that fails to address the real issues plaguing the industry. They argue that the deal’s financial commitments are minimal compared to the wealth tech giants have allegedly ‘stolen’ from newsrooms.
The deal includes the creation of the News Transformation Fund, supported by Google and taxpayers, which will distribute funds to news organisations in California over five years. Additionally, the National AI Innovation Accelerator, funded by Google, will support various industries, including journalism, by exploring the use of AI in their work.
While some, including California Governor Gavin Newsom, have praised the initiative, others remain sceptical. Critics argue that the deal needs to be revised, pointing out that only Google contributes financially, with other tech giants like Meta and Amazon absent from the agreement.
The news industry’s challenges are significant, with California seeing a sharp decline in publishers and journalists over the past two decades. Big Tech’s dominance in the advertising market and its impact on publisher traffic have exacerbated these challenges, leading to calls for more robust solutions to sustain local journalism.
Apple is reportedly exploring generative AI to develop a new ‘personality’ for future robotic devices, potentially replacing Siri. Innovation like this could introduce a more natural and capable conversational interface in forthcoming products, echoing Amazon’s Astro. Mark Gurman from Bloomberg suggests that Apple’s tabletop robot could be priced under $1,000, though it’s still in the early stages of development with no guarantee of a release.
One vital piece of Apple’s robotic work is the creation of a personality. While Siri is the digital assistant on Apple’s current devices, the company is working on another humanlike interface based on GenAI. It could run on the tabletop and other future Apple robotics devices.
Apple’s broader focus on generative AI is evident in its upcoming Apple Intelligence suite, which will soon bring advanced AI features like text creation, summaries, and image generation to iPhones, iPads, and Macs. The new direction underscores the company’s commitment to next-gen AI, positioning it to compete with other tech giants already invested in the space.
Despite the potential, Apple remains cautious, with Gurman noting uncertainty about the company’s dedication to launching a home robot. As the tech world awaits the iPhone 16 launch, Apple’s AI ambitions hint at a significant shift in its approach to consumer technology.
Apple’s work on generative AI is powered by ChatGPT, highlighting the challenges before it can independently launch its AI chatbot. Whether or not Apple’s robotic ambitions materialise, the development marks a significant evolution in its AI strategy.
Despite its declining quarterly revenue, Baidu, in its statement, assured people that its leading position in AI in China will position it to navigate the increasingly competitive market. The comment comes from an AI price war in China, where companies are increasingly lowering the prices of large language models powering generative AI technologies.
Ernie, Baidu’s large language model, has been integrated into various applications to enhance user experience and is touted to be a competitor to OpenAI’s GPT. According to Baidu CEO Robin Li, the company’s Ernie platform processes over 600 million AI requests daily, the highest volume among Chinese firms. Li added, ‘Competition will be fierce over the next 2 to 3 years.’
As China’s dominant search engine, most revenue comes from ads. However, the company has strategically pivoted to AI by investing significantly in the sector to position itself as an ‘AI company’. The company has expanded its AI offerings by introducing a paid version of its Ernie-powered chatbot for public use and offering API services to developers via cloud computing. “Our advertising business is currently facing pressure caused by a combination of external factors and our proactive efforts to accelerate the AI-driven renovation of search,” Li said during a conference call with analysts.
Why does this matter?
The dipped revenue indicates Baidu’s difficulty in transitioning from search ads to AI as China faces an economic slump. Baidu’s news of prioritising AI as its search revenue stalls can be located as a part of the broader tech trend where, with the AI gold rush, companies increasingly look to increase their AI portfolios to ensure they retain their competitiveness and don’t fall behind in the AI market that is expected to accrue massive business value.
Perplexity AI, backed by Jeff Bezos and Nvidia, has announced its intention to initiate advertisement on its AI-based search engine platform by the fourth quarter of the year. Last month, the company rolled out a publisher’s program with partners comprising IME, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune, and WordPress.
The AI-powered search engine space is still in its infancy, opening a massive market for new players. Among the big tech giants, Google has integrated AI in its search by providing AI-generated summaries or overviews for each search request. Meanwhile, its rival Microsoft has integrated OpenAI technology and launched the AI-powered Bing.
Why does it matter?
This move can potentially threaten Google’s dominant position in the industry. Through its search engine supremacy for two decades, Google became one of the world’s most valuable companies through its ad-based revenue model. Since ChatGPT launched, existing and upcoming search engines have attempted to integrate AI into web search and bring about a new business model in the search engine space.
