Issue 103: The Tech World is Changing
Welcome to Backstory, a weekly newsletter turning global technology shifts into a three-minute read. This week, we’re thinking about the global economy – Mary Ames, Director of Strategy
THE BIG TAKE
The Tech World is Changing
Tech is changing. You would be right to point out that it’s constantly evolving but what is happening right now is more of a shift. Major technology companies such as Google, Facebook, Amazon, and Apple have become some of the world’s most profitable private companies. As such, they are deeply connected to the global economy. With spiking inflation and fears of a recession on the horizon, technology companies have had to learn that they aren’t immune to the winds of economic change. They have to adapt to maintain their profits and growth.
A significant shift: What does this mean in practice? For one thing, there is less interest in some of the most recently popular sectors in tech. The Atlantic recently published an article claiming that the “millennial economy” is ending. This includes things like Ubers, Peletons, and WeWorks. With rising labor costs and surging inflation, the business models of some of these tech startups just don’t make sense like they used to. Don’t expect these companies to disappear, but a serious rethink is taking place. Consider the pivot at Netflix spurred on by declining user growth now that many of us don’t have to endure pandemic lockdowns.
Easy does it. While individual companies must rethink their business models to deal with a global recession, countries investing in their knowledge economies have different concerns. Technology still provides incredible innovation, and small states, in particular, are benefiting from new developments. Ultimately, major technology companies will have to adapt, but countries riding the tide of innovation will be able to continue their ascendance. If you need proof of these trends in action, just look at what is happening in the UAE and Saudi Arabia. Is the Era of “Big Tech” coming to an end? Not in the slightest. It’s just undergoing some changes like the rest of the economy.
QUOTE OF THE WEEK
“The word ‘female,’ when inserted in front of something, is always with a note of surprise. Female COO, female pilot, female surgeon — as if the gender implies surprise … One day, there won’t be female leaders. There will just be leaders.”
– Sheryl Sandberg, Former COO at Facebook
OUR VIEWS THIS WEEK
NFT explainer: An NFT, or a non-fungible token, is a unique digital item traded on a blockchain. The NFT market has cooled dramatically with the general downturn in markets. While the technology powering NFTs and blockchains is revolutionary, the fact is that NFTs have become asset classes just like stocks. They go up and down according to prevailing market conditions. They might be down now, but they will undoubtedly spike back up during the next rally. In this piece published by Xische, we take a deep dive into NFTs. It’s a vital explainer of this fascinating technology.
Fresh approaches: Sticking with the technology theme this week, Xische recently published a piece looking at all the new and existing digital legislation passed in the UAE in recent months. Fresh off the heels of the World Expo 2020 and the World Government Summit, Dubai has announced a slew of new laws aimed at digital assets and quality of living updates. These laws once again demonstrate how the Emirate is pushing forward with profound changes designed to ensure that Dubai is one of the most innovative cities in the world.
SPOTTED ELSEWHERE
Are you afraid of sentient AI? There has been a lot of discussion about conscious artificial intelligence lately. A former Google engineer went public with conversations he had with an AI, which he claimed showed that the software had gone sentient. Some technology analysts refute the claims, but the question of sentience in AI is pressing. The Guardian put together an excellent primer that starts with a simple question: should we be afraid of thinking AI? The answer is clear, but the debate will only grow in intensity.
Problems at Wikipedia. The online encyclopedia Wikipedia is an incredible resource we all count on daily. But how much do we know about how content is created on Wikipedia? Not that much. The Sixth Tone, a publication focused on China, published an incredible story about a Chinese woman who created over 200 fictional articles on Chinese Wikipedia. She wrote millions of words of imagined history that went unnoticed for over ten years. The internet can be fascinating, but don’t believe everything you read on Wikipedia.