Time For A Rethink? China Leads in 90% of Tech, GenAI's 80% Fail Rate
CBDCs: a solution looking for a problem? Not if you look at the numbers.
Artwork of the week: Squisito al seltz, 1926, Fortunato Depero
Fortunato Depero and Campari are connected through the world of art and design. Depero, an Italian futurist artist and designer, created the famous "Campari Soda", which radically changed the image of the Campari brand, making it one of the most iconic and recognizable in Italy and around the world.
The partnership between the two marked an important moment in the history of Italian art and advertising, giving life to a brand image that has stood the test of time and continues to represent the excellence of Made in Italy.
Depero used red and black as the dominant colors in his advertisements, along with color shape and typography, creating a strong visual impact and an iconic image for the Campari brand.
If you’ve ever gazed at a bottle of Campari, you’re looking at the artwork of the Italian futurism movement. The point is that icons are made by more than just what's inside the bottle; they are made by what’s on the outside as well. That theme of becoming iconic will serve us well for today’s stories!
We’re going to start with China and two stories that show how China’s technical prowess in AI and in “critical technologies” is not something to trifle with. What China has in the bottle is impressive, even if some don’t like the label.
First, we lead with a shocking story about how, according to an Australian think tank, China is now the world leader in some 90% of 64 critical technologies. China has in effect traded places with the US who held a similar lead 20 years ago.
As if that weren’t enough, a US think tank shows how the AI tech war is far from won and that chip bans won’t stop China’s AI rise. Moreover, chip bans hurt US interests and help China.
AI will be iconic, but getting there will take a while. Campari didn’t become iconic overnight. Corporate AI projects have an 80% fail rate, which may seem shocking. AI projects are, by definition, pushing boundaries, so a high fail rate is expected.
We then turn to embedded finance, which banks thought was too bitter to imbibe when they first met. Now, banks that use embedding are profiting handsomely. Perhaps they needed a splash of soda?
Finally, there are two articles on CBDC and Stablecoins. First, I try to deal a singular death blow to the comment, “CBDCs are a solution looking for a problem.” That comment is callous when faced with a demonstrably broken cash transfer system.
As to stablecoins, they will be iconic someday, but the hype from crypto supporters and their use in fraud is intolerable. What’s inside the bottle needs refinement.
China Now Global Leader in 90% of Critical Tech
China and the United States have traded places in the past 20 years with China now the leader in 57 of 64 (89%) critical technologies.
China May Overtake The US's Early Lead In AI
“China’s relentless drive and strategic investments in AI suggest it is only a matter of time before it catches up—if not surpasses—the United States’ early lead in AI.”
Bottom Line: 80% Of AI Projects Fail. But is That Bad?
This fabulous read strives to find the “root causes of failure” for AI projects and surveys 65 AI/ML experts to find out what’s going wrong!
Embedded Finance's Remarkable Revenue Boom For US Banks
Embedded finance is a money maker and sponsor US banks are raking in some 51% of revenue and deposits from their embedded partnerships. That’s a shocker!
CBDCs: Breaking Free from Bank's Hypnotic Spell and Stockholm Syndrome
This is a great overview of the state of CBDCs, including a solid overview of the digital yuan, rupee, and euro programs, notwithstanding the rather unenthusiastic title.
Stablecoins: Separating Facts From Hype, and Dirty Money
Stablecoins to the rescue with new economic efficiency? Don’t count on it. This report is a great read, but I warn you that it has a mix of great research, hype, and hopium. I’ll do my best to separate them out below!
More great reads that shape your view of Asia and fintech.
Finally, a quick survey. I can’t tell how many people click on these links, so I have to ask: Do you like this section? I worry that it is getting lost down here at the bottom.
Please let me know!
The Innovation Fallacy: In the U.S.-Chinese Tech Race, Diffusion Matters More Than Invention HERE
The World Bank Is Failing and Needs a Restart: Global poverty and income divergence are set to rise again—a brutal indictment of the institution’s work. HERE
The first credible hint of a BRICS currency: BRICS: India may consider proposal to use national currencies if ‘non-binding’ HERE
BNPL is not all its cracked up to be. Buy-now-pay-later plans lead to rampant scams and bad debt across Southeast Asia HERE
Finally, could the US get the humble QR code? Shockingly, this paper is from the US, which traditionally is not a fan of them! Maybe there has been a change of heart? QR payments tied to FedNow could help the US avoid expensive card payments. See the PDF below:
You made it this far, so subscribe! Here are the six benefits waiting for you when you subscribe:
Save time: Get the expert insights on Central Bank Digital Currencies (CBDC), AI, Payments, and Financial Inclusion that you need to stay ahead of the curve, all delivered directly to your inbox weekly;
Know the future and profit: Get real payback from a unique point of view directly from Asia that focuses on how the region is “leapfrogging” the West and showing you the future;
Be prepared: CBDCs are no longer theoretical but coming soon, so keep up with the latest developments on the digital euro, yuan, sterling and dollar;
Manage your personal AI risk: Don’t be disrupted; be the disruptor. In-depth analysis of how our AI revolution impacts finance so that you can be in front of this great transformation, not behind it;
Stay objective, avoid hype: My writing doesn’t follow corporate diktats. It’s a message that doesn’t conform with mainstream media and is gritty, practical, hype-free, and, on occasion, controversial;
Stay safe: My writing is trusted by nearly 60,000 executives, innovators, investors, policymakers, journalists, academics, and open-minded crypto hodlers daily.
Readers like you make my work possible! Subscribing is free, but I am honored when readers opt for a paid subscription to recognize my high-quality writing and help keep it flowing. Thank you!
Sponsor Cashless and reach a targeted audience of over 50,000 fintech and CBDC aficionados who would love to know more about what you do!
Funny, whenever I read "solution looking for a problem", I think of biomimicry - where human tech are inspired by solutions from nature ♻️