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.
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:
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Funny, whenever I read "solution looking for a problem", I think of biomimicry - where human tech are inspired by solutions from nature ♻️