Yahoo Finance AI fever risks torpedoing London tech
Whether you work at a centuries-old financial institution in the Square Mile, or a brand-new tech startup in Shoreditch, your office is probably feverishly discussing little else but AI.
The city has caught the deep learning disease. Multinational corporations, like Microsoft, are the vectors, setting up shop in the capital and whipping corporate London into a frenzy over neural networks, natural language processing, and machine learning.
Tech execs are racing to roll out AI as fast as possible. But they are trying to run before they can walk. If they don’t invest in the required talent and training first, then London’s tech sector will haemorrhage capital as rushed transformations, malfunctioning tech, and shaky consumer confidence rock firms.
This knee-jerk reaction from execs is understandable. Since ChatGPT leapt onto the scene, every tech firm is part of the AI arms race – whether they like it or not. And the pressure to keep up, whether it’s from investors, consumers, or the market at large, is acute.
This AI hype virus is highly infectious and dangerous, and even the most prominent players aren’t immune. Google has been under significant pressure from investors and shareholders due to the perception that it lagged behind rivals in the AI race.
Last week, to catch its rivals, Google rolled out its AI search function to millions of users. The result was widespread ridicule as the AI recommended eating at least one small rock per day, adding glue to pizza to help the cheese stick, and using gasoline with Italian spices to create a “Fiery Fuel Spaghetti” dish..
Without the right talent behind the technology, firms are setting themselves up for wasted expenditure and PR disasters. These are highly complicated systems, and to avoid high-profile teething errors, execs need to fork out on AI talent and training.
The pressure to compete can cause even the most prominent firms to misstep. So, London’s tech execs should proceed with caution. If they want to build a sustainable, long-term AI ecosystem that drives value for their companies and ensures that the city’s tech sector stays at the head of the European pack, then they need to lay solid foundations.
This has to mean investing now in talent and training and then spending on the actual AI technology further down the line.
Without the right talent behind the technology, firms are setting themselves up for wasted expenditure and PR disasters. These are highly complicated systems, and to avoid high-profile teething errors, execs need to fork out on AI talent and training.
Specialists can be brought in externally. For firms flush with cash, this is the fastest and most efficient way of keeping up in the race. But the talent crunch for these scientists is white hot, with firms offering million-dollar compensation packages and accelerated stock-vesting schemes.
Startups, unless they’re pumped up to the gills with VC cash, will likely be outgunned here. But they don’t have to hire leading AI engineers – they can train the top AI talent of tomorrow instead. This is the best way to carve out space in the increasingly saturated AI market.
Firms should employ a skills-first approach instead of assessments based on whether candidates have past AI experience. A candidate’s ability to un-learn and re-learn is far more important than their knowledge about today’s AI landscape.
A diversity of graduates is also essential – not just those from science and tech backgrounds. For example, graduates with a background in arts and humanities will begin to play a more significant role in digital transformation as they can offer solutions about the ethics of AI implementation, AI governance, and AI business analysis.
It’s far more beneficial to invest in this talent than the latest AI systems. AI is morphing and shifting at a breakneck pace. Today’s tech will soon be yesterday’s. However, a team with years of comprehensive training behind them will be able to roll with these changes, implementing new technology and adapting to shifting regulatory frameworks.
London’s tech scene is right to be excited about AI. But leaders need to tread carefully. Swirling media hype and free-flowing VC cash can lead to knee-jerk reactions. They should invest in their talent and training now to lay the foundations for sustainable, long-term growth. London’s tech sector will then continue to flourish.
Partha Gopalakrishnan is President and Partner at Brane Group, where he spearheads Business Development and Business Transformation consulting
