E-commerce and trade

Canada’s Shopify boosts merchant growth with AI-powered e-commerce tools

Merchants in North America are increasingly turning to Shopify for e-commerce operations, drawn by its AI-driven automation tools. Businesses like Klatch Coffee and Daily Harvest have migrated to the platform, benefiting from features that streamline discount creation, product descriptions, and sales tracking. Shopify’s AI suite, ‘Shopify Magic’, is levelling the playing field for smaller businesses by offering capabilities once exclusive to major retailers.

Revenue for Shopify is projected to rise by 27.3% in the holiday quarter, outpacing global e-commerce growth, which is estimated at 8.4% for the year. The company is recovering from a post-pandemic slowdown, with the number of stores registered on its platform increasing by 20% in the July-September period. Analysts note that Shopify is attracting sellers at a rate approaching its pandemic-era surge.

Subscription plans, ranging from $39 to $2,000 per month, offer businesses full control over their online operations. Merchants switching from smaller rivals cite Shopify’s ease of use, integrated payment processing, and AI-powered content generation as key advantages. AI-generated product images have helped businesses cut costs, while automation tools have saved time on marketing and customer engagement.

Despite rapid growth, analysts are cautious about Shopify’s profit margins. Although earnings have more than doubled in recent quarters, projections indicate a slowdown in profit growth. Partnerships with payment providers like PayPal could also limit transaction fee revenue. However, Shopify’s focus on innovation and automation continues to strengthen its position in the competitive e-commerce sector.

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EU seeks private investment for AI gigafactories

The European Union is looking to the private sector to help fund large-scale AI computing infrastructure, known as ‘AI Gigafactories,’ to support the development of advanced AI models. Speaking at the AI Action Summit in Paris, EU President Ursula von der Leyen emphasised the need for powerful computing resources to enable European startups to compete globally.

To accelerate AI adoption, the EU has pledged €50 billion in funding, adding to a €150 billion commitment from private sector companies under the EU AI Champions initiative. The goal is to mobilise €200 billion in total investment, making it the largest public-private partnership for AI development in the world.

With the US and China heavily investing in AI infrastructure, Europe is under pressure to keep pace. Von der Leyen argued that Europe’s collaborative approach to AI, focused on shared computing resources and federated data, could provide a competitive advantage. She stressed that AI Gigafactories would be accessible to researchers, startups, and industries, ensuring that Europe remains a key player in the AI race.

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French antitrust agency looks into Microsoft’s Bing deals

France‘s antitrust agency has launched an investigation into Microsoft over concerns that the company may be degrading search results for smaller rivals using Bing technology in their search-engine products. Microsoft has confirmed its full cooperation with the French regulator, the Autorité de la concurrence, but has not commented further. Although Microsoft does not dominate the general search market, it holds a significant share in the search-engine syndication sector.

The investigation, which was first reported by Bloomberg, could lead to formal charges and a potential fine for the US tech giant if the regulator determines that Microsoft’s actions are anti-competitive. The French competition authority has yet to provide any additional details about the probe. The case could have broader implications for the way major tech firms, including Microsoft, operate in the digital advertising and search-engine markets, potentially influencing how they collaborate with smaller companies.

If the investigation results in a fine or any form of penalty, it would further highlight the ongoing scrutiny of the practices of big tech companies in Europe. With regulators across the continent taking a closer look at the competitive dynamics of the tech sector, the outcome of this case could set a precedent for future antitrust actions within the industry.

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JD Vance takes on Europe’s AI regulations in Paris

US Vice President JD Vance is set to speak at the Paris AI summit on Tuesday, where he is expected to address Europe’s regulation of artificial intelligence and the moderation of content on major tech platforms. As AI continues to grow, the global discussion has shifted from safety concerns to intense geopolitical competition, with nations vying to lead the technology’s development. On the first day of the summit, French President Emmanuel Macron emphasised the need for Europe to reduce regulatory barriers to foster AI growth, in contrast to the regulatory divergence between the US, China, and Europe.

Vance, a vocal critic of content moderation on tech platforms, has voiced concerns over Europe’s approach, particularly in relation to Elon Musk’s platform X. Ahead of his trip, he stressed that free speech should be a priority for the US under President Trump, suggesting that European content moderation could harm these values. While Vance’s main focus in Paris is expected to be Russia’s invasion of Ukraine, he will lead the American delegation in discussions with nearly 100 countries, including China and India, to navigate competing national interests in the AI sector.

Macron and European Commission President Ursula von der Leyen are also expected to present a new AI strategy, aimed at simplifying regulations and accelerating Europe’s progress. At the summit, Macron highlighted the region’s shift to carbon-free nuclear energy to meet the growing energy demands of AI. German Chancellor Olaf Scholz called on European companies to unite in strengthening AI efforts within the continent. Meanwhile, OpenAI CEO Sam Altman is scheduled to speak, following a significant bid from a consortium led by Musk to purchase OpenAI.

The summit also anticipates discussions on a draft statement proposing an inclusive, human rights-based approach to AI, with an emphasis on avoiding market concentration and ensuring sustainability for both people and the planet. However, it remains unclear whether nations will support this approach as they align their strategies.

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Canadian firm MDA space wins major satellite contract

Canadian space technology firm MDA Space has expanded its contract with Globalstar to develop next-generation low Earth orbit satellites, bringing the total value of the deal to C$1.1 billion. The agreement will see MDA manufacture over 50 advanced digital satellites, reinforcing Globalstar’s position in the competitive satellite communications market.

The US Louisiana-based Globalstar, partly owned by Apple, provides satellite-based phone and data transmission services. This contract expansion adds approximately C$750 million to Canadian MDA’s order backlog for early 2025, following an initial C$350 million commitment in late 2023.

With demand for satellite connectivity rising, companies like Globalstar are competing with major players such as SpaceX’s Starlink. MDA Space CEO Mike Greenley confirmed that the company is now moving ‘full speed ahead’ with production, highlighting the growing importance of satellite infrastructure in global communications.

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Microsoft offers price change to avoid EU antitrust fine

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft’s practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less and a standalone Teams subscription for €5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft €2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft’s proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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South Korea reviews trade response as Trump plans new tariffs

South Korea’s acting President Choi Sang-mok held discussions on Monday regarding the US plan to impose new 25 percent tariffs on steel and aluminium imports. The government meeting, attended by senior officials, also covered last week’s US-Japan summit and broader trade issues in the digital sector, according to the finance ministry.

Concerns have emerged over whether the US might seek to renegotiate the South Korea-US free trade agreement. Under the existing deal, agreed in 2007, South Korea avoided previous US steel tariffs by limiting exports to 70 percent of the average volume traded between 2015 and 2017. The finance ministry has yet to disclose any specific countermeasures.

During his first term in 2018, Donald Trump imposed a similar 25 percent tariff on all steel imports. The latest announcement signals a continuation of protectionist trade policies, with Trump also hinting at new reciprocal tariffs to address what he describes as unfair trade practices.

While the United States sources most of its steel from Canada, Brazil, and Mexico, South Korea remains a significant exporter. Seoul is now assessing its options as it prepares for potential economic and diplomatic challenges posed by Washington’s latest trade measures.

Scottish poet calls for AI-free literature

Scotland’s Makar, Peter Mackay, has voiced concerns about the growing role of artificial intelligence in literature, warning that it could threaten the livelihoods of new writers. With AI tools capable of generating dialogue, plot ideas, and entire narratives, Mackay fears that competing with machine-created content may become increasingly difficult for human authors.

To address these challenges, he has proposed clearer distinctions between human and AI-generated work. Ideas discussed include a certification system similar to the Harris Tweed Orb, ensuring books are marked as ‘100% AI-free.’ Another suggestion is an ingredient-style label outlining an AI-generated book’s influences, listing percentages of various literary styles.

Mackay also believes literary prizes, such as the Highland Book Prize, can play a role in safeguarding human creativity by celebrating originality and unique writing styles and qualities that AI struggles to replicate. He warns of the day an AI-generated book wins a major award, questioning what it would mean for writers who spend years perfecting their craft.

Nokia appoints Justin Hotard as new CEO

Nokia has announced that Pekka Lundmark will step down as CEO, with Justin Hotard, currently EVP and GM of Intel’s Data Center & AI Group, set to take over the role on April 1. This leadership change is seen as part of Nokia’s strategic shift towards expanding into areas like AI and data centres, where the company is positioning itself for future growth. Hotard’s strong background in AI and technology is expected to drive Nokia’s focus on these emerging sectors.

The news has led to a 1.6% rise in Nokia’s shares, reflecting positive investor sentiment despite the surprise announcement. Analysts note that the appointment of Hotard suggests Nokia’s commitment to strengthening its network infrastructure unit, particularly as it looks to benefit from the surge in AI investments. This follows Nokia’s $2.3 billion acquisition of US optical networking firm Infinera, aimed at tapping into the growing data centre market.

Lundmark, who has been CEO since 2020, will remain with Nokia as an advisor to Hotard until the end of the year. Despite some initial denials about leadership changes, the company confirmed that the transition plan had been in place for some time, with Lundmark signalling his intention to step down once the business repositioning was more advanced.

Nokia’s infrastructure business, which includes AI-integrated systems for communication, and its mobile networks division, focusing on 5G technology, are both seen as key to the company’s future. While shares are up 27.85% over the past year, they remain significantly lower than their peak in 2000.

EU AI regulations making it harder for global firms, Ezzat says

Aiman Ezzat, CEO of Capgemini, has criticised the European Union’s AI regulations, claiming they are overly restrictive and hinder the ability of global companies to deploy AI technology in the region. His comments come ahead of the AI Action summit in Paris and reflect increasing frustration from private sector players with EU laws. Ezzat highlighted the complexity of navigating different regulations across countries, especially in the absence of global AI standards, and argued that the EU’s AI Act hailed as the most comprehensive worldwide, could stifle innovation.

As one of Europe’s largest IT services firms, Capgemini works with major players like Microsoft, Google Cloud, and Amazon Web Services. The company is concerned about the implementation of AI regulations in various countries and how they affect business operations. Ezzat is hopeful that the AI summit will provide an opportunity for regulators and industry leaders to align on AI policies moving forward.

Despite the regulatory challenges, Ezzat spoke positively about DeepSeek, a Chinese AI firm gaining traction by offering cost-effective, open-source models that compete with US tech giants. However, he pointed out that while DeepSeek shares its models, it is not entirely open source, as there is limited access to the data used for training the models. Capgemini is in the early stages of exploring the use of DeepSeek’s technology with clients.

As concerns about AI’s impact on privacy grow, European data protection authorities have begun investigating AI companies, including DeepSeek, to ensure compliance with privacy laws. Ezzat’s comments underscore the ongoing tension between innovation and regulation in the rapidly evolving AI landscape.