ChatGPT’s growing influence: Claire Trachet comments on the latest news emerging from the UK’s tech sector
In this synopsis, our CEO and founder Claire Trachet comments on the wave of excitement brought by ChatGPT and the impact that generative AI will have on the tech sector in 2023. We also delve into whether the UK is losing its position as a hub for tech investment, with reference to the British Business Bank’s aim to become a sovereign growth fund.
The role AI plays in supporting M&A activity
Although the economic outlook appeared less positive in 2023, with tech valuations suffering in both public and private markets, this year has brought a wave of excitement with ChatGPT dominating headlines and launching a new era in the way people interact with AI technology. But how will this affect the future of M&A deals?
Claire explained to CNBC, that in a rather gloomy economic time, generative AI, like ChatGPT, promotes a positive outlook for investment. This opens up short and long-term innovations that revive interest and confidence for investors to complete deals, and helps to present various exit strategies for companies. This renewed positive outlook amongst investors is synonymous with an optimistic future for the M&A sector.
The customisation of ChatGPT
ChatGPT remains a trending topic, but the discussion is extending now to what the most significant developments of the technology will be.
Considering the need to eliminate bias within ChatGPT for enterprise use, Claire spoke to Tech Monitor about how the ability to customise ChatGPT will be the most significant development in technology since search engines.
Claire stated that customisation would go far to enhance the customer experience, streamline business processes and improve data analysis whilst helping to reduce costs at a heavy rate. This presents an exciting future for companies and brands who will be given a great level of creativity and control to direct ChatGPT to the needs of their business. This is crucial as it ensures a consistent customer experience is provided across the board.
Will the UK remain as a leading hub for tech investment?
Although earlier this year it was reported that the UK had been named the third most valuable tech industry in the world after the US and China, there remains scepticism around whether the nation can continue to attract foreign investors and champion tech startups.
In a conversation with Sifted, Claire explained that as the European tech scene is growing in strength, the UK is placed in a position where it needs to actively boost the tech sector to support it and compete with other countries. This is crucial in helping the UK build on its innovation plans, otherwise it risks losing all the momentum that has been built over decades. As a result, the nation is now in a position where it needs the government to invest time, money, and education to ensure that the sector is still prosperous in the next 10 years.
In light of this, the British Business Bank recently announced it wanted greater independence to become a UK sovereign growth fund, which would allow them to reinvest proceeds from its venture capital investments. The BBB invests capital funds that provide financing for companies in industries such as technology – this allows the government to support policy choices commercially. However, Louis Taylor – the BBB’s new Chief Executive – called on the government to make key decisions on the future of the state-owned economic development investor, as it has grown to a size where it can now be self-sufficient.
In addition to this, the government has recently announced a £370mn investment into a Science and Technology Framework, with the aim to make the UK a leading innovation country. This includes investment into technology areas such as AI, quantum computing, semiconductors, engineering biology, and future telecoms.
The decision comes at a crucial time for the nation, with tech startups and scale-ups in desperate need of government support and funding and after the recent downfall of scale-ups like Britishvolt and Tech Nation.
However, the announcement raises some concerns amongst industry experts who view the investment as too small compared to the efforts of other countries. For example, Germany just announced a €1bn investment into deep tech and climate tech companies. While BPIfrance pledged an additional €500m to deep tech startups. This reaffirms how crucial it is that the UK government provides adequate support and funding for the tech sector to ensure that the UK does not lose its spot as a leading place for technological innovation.