📰 Industry News

• Ted Baker has fallen into administration in the UK and Europe, following ongoing financial problems. Last month it was reported the chain couldn’t pay rent for its UK stores. (Independent)

• Tesco will spend £8m to change its Clubcard logo because it lost an appeal ruling that stated it had copied a design from Lidl. (BBC)

• Papa Johns pizza will shut 43 of its ‘underperforming‘ stores, to free up money and improve profitability. The stores will close by mid-May. (Metro)

  Adam Neumann has submitted a bid of more than $500 million to buy back WeWork, the office-sharing company he co-founded and propelled to a $47 billion valuation before it fell into bankruptcy. (Reuters)

• Despite recently losing its place as the 4th biggest supermarket to Aldi and struggling with £8bn worth of debt, Morrisons supermarket has recorded its strongest like-for-like sales in over three years. (City A.M)

• Elon Musk says all premium subscribers on X will gain access to his AI chatbot, Grok, this week. (TechCrunch)

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🧠 Neuralink Patient Can Play Chess With Mind

The first Neuralink patient, Noland Arbaugh, who had a chip implanted into his brain recently demonstrated his new "telekinetic" abilities.

Arbaugh, who is paralyzed from the shoulders down, received Elon Musk's Neuralink chip in January. He has been learning to control computers using only his thoughts, which is just crazy. Another clip also showed him playing Mario Kart with his dad.

The patient, who is paralysed from the neck down after a freak diving accident a few years ago said that the life-changing device 'makes being paralyzed not that bad'. Video below.

🤫 Facebook’s Secret Project Exposed In Court

Facebook has secretly been spying on user data from rival platforms like Snapchat, Amazon, and YouTube. This covert project, called "Project Ghostbusters," shows how far Facebook is willing to go to understand and possibly beat its competition.

Here are the main things we found out:

• Undercover Analytics: Unsealed documents from a lawsuit against Meta (Facebook's parent company) have revealed that Facebook secretly decrypted and examined the user data of its competitors. This operation was carried out under the direct instructions of CEO Mark Zuckerberg from 2016 to 2019.

• Technological Overreach: The essence of "Project Ghostbusters" involved deploying "incredibly aggressive technological measures" to intercept and decrypt SSL-protected traffic. Their approach has raised significant privacy and ethical concerns.

• Mixed Responses and Ethical Quandaries: While Meta downplayed the significance of these revelations, their internal communications reveal a company at odds with itself over the ethical implications of such surveillance. Notably, concerns were voiced by the head of security engineering regarding the public's understanding and consent related to these practices.

The Bottom Line: The unveiling of "Project Ghostbusters" adds to the growing dossier of cases where Facebook (now Meta) has been scrutinised for its data practices and brings to light the aggressive lengths to which tech giants may go to secure their dominance and understand their rivals.

Beyond the immediate legal and public relations ramifications for Meta, this story prompts a broader conversation about privacy, data security, and the ethical boundaries of competitive intelligence.

📦 ASOS Struggles Amid Post-Pandemic Challenges

Once hailed as an iconic fast fashion brand, ASOS, the London-based online retailer, is now navigating through turbulent waters. Launched in 2000 with the name As Seen on Screen and rebranded to ASOS in 2002, the company enjoyed years of booming sales and expanding global reach, catering to over 10 million customers in 238 countries.

However, the post-pandemic era has introduced a series of challenges that have put the retailer's resilience to the test.

Key Points

• Pandemic Prosperity: ASOS thrived during the early stages of the pandemic, with sales increasing by 24% and a 275% rise in profit in the first half of its fiscal year ending February 2021. The company's growth was strongest in the UK, at 46%, while European and US markets grew 18% and 16% respectively.

• High Hopes: The retailer's strategy to maintain momentum included personalized email marketing campaigns and an ambitious build-up of inventory, anticipating the online shopping boom would persist post-pandemic.

• A Sharp Turn: Contrary to expectations, ASOS faced difficulties in moving its large stockpile, resulting in deep discounts and eroded margins. Stock levels were reduced by 50% in the last 6 months of 2023, but the damage to financial health was already evident.

• Current Struggles: In 2024, ASOS issued a warning about its fiscal sales, projecting a decline of 5% to 15% for the year ending in September 2024. This forecast fell short of expectations, causing a 10% drop in its shares. The competitive landscape has grown more challenging, with Chinese retailers like Shein and Temu expanding rapidly.

The Bottom Line: ASOS's journey from a pandemic success story to facing significant operational and competitive challenges highlights the volatile nature of the fast fashion industry. The shift in consumer behaviour, combined with an overly optimistic stockpiling strategy, has put the retailer in a precarious position.

As ASOS grapples with declining sales and intense competition, the coming months will be crucial in determining whether it can adapt and regain its standing as a leading online fashion destination.

📕 The EU's New Artificial Intelligence Legislation 

After five years of rigorous debate and planning, the European Parliament has given the green light to an unprecedented set of regulations governing artificial intelligence (AI), expected to become law within weeks.

This new legislation, aimed at ensuring AI serves humanity and operates under strict human oversight, marks a significant milestone in the global tech landscape.

But what does this mean for AI in general and the UK?

• Risk-Based Regulation: AI systems will now be categorised based on their risk levels from low to high, affecting their regulatory scrutiny. High-risk applications, such as AI in medical devices, will face stringent oversight, whereas low-risk ones will have more leeway.

• Bans on High-Risk Uses: Certain AI applications which are considered too hazardous, are outright banned. These include AI-assisted real-time facial recognition for crowds and AI systems designed for emotion tracking in schools or workplaces. However, in some cases, such as for law enforcement by police, is allowed.

• Global Influence and Compliance: Termed the "Brussels effect," the EU's pioneering stance on AI regulation sets a benchmark for other nations, including the UK. Despite Brexit, the UK closely monitors the EU's framework, indicating a potential alignment or adoption of similar measures.

• What Do AI Companies Think: The response has been mixed. Large tech companies favour regulation but do not want to be constrained by overregulation.

• Punishments For Misuse: Fines are being reported to vary from €7.5m or 1.5% of a company's total worldwide turnover (whichever is higher) to €15m or 3% of worldwide turnover. If a company deploys or develops banned AI tools, the fine can be €35m or 7% of turnover. Smaller companies and start-ups will face fines that are more appropriate for their size.

The Bottom Line: The EU's Artificial Intelligence Act is a big deal that is directly impacting the UK AI regulations, and while practically everyone is open to the idea of AI regulation, this is something which will need to evolve to keep pace with the rapidly growing AI industry.