Tech Features
Investing Megatrends – The transformative impact of AI
By: Jakob Westh Christensen, Market Analyst at eToro
The one investment megatrend to watch out for is the rollout of AI. There is no doubt that this single megatrend has the potential to reshape companies and economies – and your investments.
As AI automates tasks that workers perform today manually, we will see a significant uptick in productivity in companies and economies. Seeing the megatrend is clear, but positioning your investment is the hard part. We are still in the early stages of this revolution, and I don’t expect we will see a measurable productivity impact on companies’ and economies’ output until 2 to 3 years.
While the earnings growth (and stock price gains) so far are coming from the chip designers and manufacturers, it’s vital for the successful investor to identify the sectors and companies that eventually will benefit from a productivity boost and consequently stronger earnings.
This is likely to be found in companies where they can achieve a high degree of automation, and at the same time have a strong competitive advantage. This ensures that cost cutting results in margin expansion, and not just passing on cost cutting to end users.
For example, the taxi industry could achieve an exceptionally high level of productivity per employee with the introduction of self-driving cars. While initially, the industry could see a margin expansion with a lower employee cost base, this competitive industry could soon see price competition lowering margin to ‘normalised levels’, benefiting the consumer and, to a lesser extent, the investors.
On the other hand, insurance companies could see significant cost reductions in the underwriting process, which can be highly automated. At the same time, customer habits and customer inertia can result in less price competition, benefitting the company and its investors.
Tech Features
Securing the 5G-Driven Transformation of IoT
By Peter Adel, Regional Director at NETSCOUT
The introduction of 5G technology has transformed the Internet of Things (IoT) sector by significantly improving how devices connect and operate. With its high-speed data transfer, minimal delays, and efficient use of spectrum, 5G is projected to increase IoT connections by 45% by 2025 in the UAE. This represents a significant evolution of how devices interact and function within the IoT network, ushering in a new era of innovation and efficiency in several sectors.
The Growing Importance of 5G in IoT
Recent research shows a 7% year-over-year growth in the cellular IoT market during the first quarter of 2024, highlighting the increasing reliance on and expansion of IoT technologies. As the demand for IoT devices and applications continues to rise, 5G’s capabilities are becoming essential in supporting these advancements. While 4G long term evolution (LTE) has traditionally facilitated IoT connectivity, 5G offers significant enhancements that are set to redefine the landscape.
How 5G Enhances IoT Connectivity
5G technology brings several key benefits that enhance IoT connectivity. One of the most significant advantages is its ability to provide high-speed data transfer. This capability is crucial for handling the massive volumes of data generated by IoT devices. 5G networks can transmit data up to ten times faster than 4G, which is important for applications requiring real-time data processing and large-scale data transfers.
Another major benefit is 5G’s reduced latency, which is less than 10 milliseconds compared to 20-30 milliseconds for 4G. This reduction means that IoT devices can send and receive data with minimal delay, which is vital for applications needing immediate feedback, such as autonomous vehicles, remote surgeries, and real-time industrial monitoring. Also, 5G’s improved spectrum efficiency allows it to handle more devices per square kilometre, supporting up to 1 million devices per square kilometre. This is crucial for addressing the growing need for dense IoT deployments in urban environments and large-scale industrial applications.
Moreover, 5G introduces the concept of network slicing, which enables the creation of virtual networks tailored to specific applications or industries. This capability allows for optimised performance and improved quality of service by allocating network resources based on the unique requirements of different IoT use cases.
Challenges in Integrating 5G with IoT
Despite its advantages, integrating 5G with IoT presents several challenges. The proliferation of IoT devices increases the potential for cybersecurity threats, necessitating secure communications through robust encryption and regular software updates. Extending 5G infrastructure to rural and less populated areas involves significant investment, with the costs associated with deploying 5G base stations and related infrastructure being substantial. Transitioning to 5G may require upgrading existing devices or developing new ones, which can be a costly endeavour for organisations, especially if their current devices are not 5G-compatible. Battery-operated IoT devices may experience higher power consumption with 5G compared to 4G, making energy efficiency a crucial consideration. Additionally, 5G networks use higher-frequency millimetre waves, which can result in coverage gaps, particularly in remote or rural areas, requiring solutions to ensure comprehensive coverage.
To secure IoT networks with 5G, organisations should use strong encryption to protect data and regularly update software to fix vulnerabilities. They must also implement strong authentication methods, like multi-factor authentication, to ensure only authorised users and devices have access. Network segmentation can also help contain breaches and protect critical systems, while continuous monitoring and real-time threat detection are essential for quickly identifying and addressing security issues.
Securing the 5G-Driven Future of IoT
Looking ahead, 5G promises to secure the future of IoT connectivity, driving advancements in data transfer speed, device interaction, and network performance. Its ability to support high-speed data transfer, reduced latency, and massive device densities will enhance IoT applications across various domains, from smart cities and healthcare to industrial automation and transportation. As IoT devices evolve to meet the demands of 5G, they will need solutions that can empower communications service providers (CSPs) to achieve end-through-end visibility for any IoT device performance. The ongoing development and integration of 5G technology will be crucial in shaping the future of IoT and unlocking new possibilities for innovation and efficiency.
Features
Is AI the Key to Sustaining Growth in the UAE’s Dynamic Startup Scene?
By John Mullins, Associate Professor of Management Practice in Marketing and Entrepreneurship, London Business School.
Over the past few years, the startup ecosystem in the UAE and the wider region has demonstrated remarkable resilience. In the UAE, for instance, the ecosystem ranks 1st regionally and 27th globally in the 2023 Global Startup Ecosystem Index, underscoring its evolution into a key entrepreneurship hub. Saudi Arabia’s capital, Riyadh, now ranks among the top five ecosystems in the region, while Abu Dhabi has emerged as the fastest-growing emerging ecosystem, with a remarkable 28 percent surge in value in 2024.
A lot of this growth is fostered by AI, according to a recent report, the MENA region is projected to gain $320 billion in economic growth by 2030. As AI reshapes industries and business models globally, the question arises: will the MENA region’s startup ecosystem be able to maintain its upward trajectory, or will the adoption of AI pose new challenges?
Is AI a New Threat?
Does AI represent a new and existential threat to the skill, imagination, and flair of the entrepreneur? Does it represent the ultimate knock-out punch that will push human entrepreneurial flair and skill to the canvas floor?
The potential for businesses using AI to increase their profits is one factor that has certainly influenced the stock market these past few years. Products such as chatbots, advanced search systems, and image-generation don’t seem to have strong monetization strategies and as global stock market valuations for AI companies fell over the summer this year, there was a growing sense that the AI bubble had burst.
In the UAE, however, AI adoption is on the rise, with the government aiming to make the UAE a global leader in AI by 2031. According to a PwC report, AI is expected to contribute $96 billion to the UAE’s GDP by 2030. This proactive approach, supported by initiatives such as the National Program for Artificial Intelligence, places the country in a unique position to harness AI for entrepreneurial growth.
Booms and bubbles aside, can AI potentially transform how entrepreneurs develop and implement strategies to enable them to grow and survive, even flourish? Studies suggest that AI can facilitate innovation by automating routine tasks, enabling entrepreneurs – like anyone else – to focus on creative problem-solving and strategic thinking. Concerns have unsurprisingly been raised, however, about the possible displacement of human intuition and creativity in entrepreneurial decision-making due to a potential over-reliance on AI.
For entrepreneurs, generative AI can assist with researching ideas, coming up with marketing collateral, creating a website, and more, but the main advantage of AI should be its ability to enhance human skills. It is impossible to imagine yielding to AI the human creativity, empathy and daring so necessary for the role of the entrepreneur. No backward-looking algorithm would be able to match these forward-looking skills. But it is quite feasible to imagine AI as an enabler for entrepreneurs.
A Boost, Not a Threat
I don’t share the dystopian view of the future. We humans are too ingenious to lose our souls to science. And I don’t believe we’ll get to a point where AI-based tech will be running all our affairs for us.
What is more than likely is that AI will actually spawn many more entrepreneurs, with perhaps the majority running their own small enterprises, at least at the outset. In the UAE, startups in AI-driven sectors are expected to be major contributors to future job creation. The Dubai Future Foundation predicts AI and robotics will generate 10% of the city’s job opportunities by 2030. Perhaps those that grow fast and become bigger companies thanks to AI will, as fast-growing entrepreneurial companies have for decades, create nearly all the new jobs on the planet. And, by virtue of Moore’s law and further advances in digital technology, they’ll be running businesses with a global reach – virtual experts, able to do business anywhere.
Looking at the world in 2024 and beyond, I can see a bright future on the horizon. The UAE’s Vision 2071 encapsulates this optimism, placing entrepreneurship and AI at the center of the country’s long-term economic strategy. Our shift towards entrepreneurship and our sheer adaptability are positively inspirational.
Making the Most of AI
Marketing and Sales: In the UAE, AI is transforming marketing efforts by enhancing personalization. Entrepreneurs are using AI-driven marketing tools to segment the market and deliver personalized content.
Accelerating Product Development: AI helps startups assess product viability by analyzing consumer feedback and identifying market trends faster than traditional methods. UAE entrepreneurs, benefiting from the government’s heavy investment in AI research and development, are leveraging these tools to stay competitive and accelerate product innovation.
Cost Saving and Operational Efficiency: AI-driven solutions in the UAE are helping businesses modernize their operations, from automated workflows to predictive maintenance. With the UAE aiming to reduce business costs and attract international investments, local startups are increasingly turning to AI to streamline processes, optimize supply chains, and reduce operational expenses. A good example of this is the London Business School MENA Startup Competition 2023’s winning startup, The Surpluss that uses machine learning to helping companies match together to share their excess resources to enhance sustainability.
Predictive Analytics: In the MENA region, where economic and consumer behavior can shift rapidly, predictive analytics provides a powerful tool for navigating uncertainty and capitalizing on emerging opportunities. AI-powered predictive analytics are already being used by UAE-based entrepreneurs to understand emerging market trends. For example, sectors like retail, e-commerce, and fintech are using AI to anticipate customer behavior, allowing businesses to make better-informed decisions on product offerings, inventory management, and even marketing campaigns.
In Summary
AI is about being practical and shrewd. Instead of being daunted by the complexity of AI, entrepreneurs should focus on the low-hanging fruit it offers. Locate ways in which to unlock faster time to market solutions; and boost product value and differentiate your business more sharply by using AI-powered analysis of user feedback.
Tech Features
How Structured Cabling Powers the AI Revolution
By Ehab Kanary, CommScope Infrastructure EMEA, Emerging Markets Sales VP
Artificial intelligence (AI) is making waves across various industries, from transforming the way movies are made to revolutionizing the financial sector and beyond. This explosion in AI technology has led to a rapid rise in data centres, which are crucial for handling the massive amounts of data AI generates. But behind the scenes of these advanced AI systems, there’s an often-overlooked player making everything run smoothly: structured cabling.
So, what exactly is structured cabling? Think of it as the backbone of your data centre’s connectivity. The term “structured” emphasizes its organized and efficient nature. It refers to a standardized approach for designing and installing cabling systems that meet international standards while being adaptable enough to support future generations of AI hardware.
In an AI data centre, structured cabling typically involves connecting IT equipment using high-performance optical fibre and Cat6A copper. This setup is vital for maintaining high-speed data transmission and flexibility as technology evolves.
Now, let’s clear up any confusion: structured cabling isn’t the same as direct attach cables (DAC) or active optical cables (AOCs). These are used for point-to-point connections but don’t offer the same flexibility. They need to be replaced whenever AI hardware port speeds change, which can be costly and less eco-friendly.
As AI continues to grow and integrate with technologies like 5G, IoT, and edge computing, data centres are becoming the “factory floor” of this digital revolution. This growth highlights the need for a strong, scalable cabling system to keep up with the increasing complexity of AI networks. And that’s where structured cabling comes into play—providing the reliability and adaptability needed to support these advancements.
High-Speed Data Transmission
The sheer volume of data that AI servers produce is so large that the high-bandwidth and high-speed capabilities provided by a solid optical fiber structured cabling system becomes essential. In the Middle East, where data center capacity is expanding rapidly to support the burgeoning digital infrastructure, the high-bandwidth and high-speed capabilities provided by a solid optical fiber structured cabling system are essential. For instance, cities like Abu Dhabi, Riyadh, and Dubai are investing heavily in their data center complexes to accommodate the high-speed requirements of AI operations.
It’s not just the fiber itself, but the connectivity that connects the patch panels to the ports on the switches and servers. The type of speeds used (400G / 800G / 1.6T) are predicted to run mainly over parallel optics (where multiple fibers are presented in a single connector), with connector options like the MPO-16 connector and MMC-16 connector.
Due to these higher speeds, we are now seeing the introduction of angled physical connectors (APC) for multimode MPO connectors—in addition to those we’re used to seeing deployed on single mode MPO connectors.
Scalability, Flexibility, and Speed of Deployment
What do we know about AI? Network speeds are constantly changing, and it feels like it’s happening on a daily basis. 400G and 800G are a reality today, with 1.6T coming soon. Just a few years ago, who would have believed that it was possible?
Network speeds are constantly evolving, and the Middle East is no exception. With data center capacity in Saudi Arabia set to more than quadruple and significant investments from regional and international players, structured cabling offers the scalability and flexibility needed to adapt to these changes. This is crucial in a region where rapid deployment and adaptability are key to maintaining competitive advantage in the tech sector.
Structured cabling offers the type of scalability and flexibility needed to accommodate these speed changes and the future growth of AI networks. Being able to add new hardware to an AI network without overhauling the entire cabling brings significant advantages in saved cost and time. And in an industry where timelines are being continually squeezed, structured cabling enables speed of deployment through efficient techniques that can help the underlying infrastructure to adapt easily to meet future needs.
Minimized Downtime
AI networks are finely tuned for optimal performance. Training an AI model can take days, weeks or even months. A well-architected structured cabling network can bring the type of reliability that training requires. Understanding where your cables are running and the IT packets dependent on them can minimize AI network downtime and assist in troubleshooting.
CapEx/OpEx Efficiencies
Whilst the initial outlay for a structured cabling system may be greater than those for point-to-point or direct attach/active optical cable configurations, the structured cabling approach delivers economic advantages over the longer term by reducing the time required to perform network upgrades.
In the Middle East, where large-scale data center investments are booming, such as the $10 billion data center initiative announced by Saudi Arabia and the UAE’s focus on creating AI hubs (with a $100 billion AI fund), structured cabling can prove its worth by reducing the need for costly rip-and-replace operations. As the region positions itself as a leading player in the global data center market, efficient and cost-effective infrastructure is vital.
Ultimately, structured cabling can reduce the need for expensive rip-and-replace operations to meet the evolving challenges of the IT department.
Structured cabling might often be an overlooked component when building an AI data center, but it is crucial to the overall success of these technological endeavors. In the Middle East, where data center development is booming and technological ambitions are high, structured cabling supports the high-speed, scalable, and reliable infrastructure necessary for AI operations. As the region continues to evolve as a digital powerhouse, the foundational elements of data center design will play a key role in shaping its future.
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