Latest news with #PwC
Times
12 hours ago
- Business
- Times
AI has barely begun, but there are already winners and losers
The artificial intelligence revolution may one day prove a boon for all mankind but for the moment it is creating winners and losers. The handful of US tech firms whose market value has risen by hundreds of billions of dollars are clearly the big winners. Companies that make the kit for data centres have also enjoyed a boom in their business and their share prices. The losers are less obvious, but more broadly spread. Even those most bullish about the long-term benefits of AI admit that it will eliminate huge numbers of jobs, though most say (and perhaps believe) it will create more than it destroys. We are starting to see the first signs. It is clear that some of the 6,000 job cuts announced by Microsoft recently were due to AI. Many of the cuts were in software engineering, which is unsurprising given that Microsoft says nearly a third of its code is already written by AI. Most tech experts say that AI will soon take over the bulk of routine software development and job adverts for software engineers in the US are at a five-year low. But the picture is mixed. AI is also generating new jobs and in PwC's latest CEO survey more bosses said they had increased headcount because of AI than had cut it. At least one firm that saw AI as a replacement for human staff has had second thoughts. Sebastian Siemiatkowski, chief executive of 'buy now, pay later' firm Klarna, has been outspoken about the cost-saving potential of AI and introduced a hiring freeze last year. But he recently admitted that this had affected customer service and Klarna has started hiring again. One area of the job market that has been hit by AI is graduate recruitment. Competition for graduate jobs has increased sharply in the past couple of years for a number of reasons. During the post-Covid economic bounce many companies, particularly in financial and professional services, went on a hiring spree. When activity slowed they found themselves overstaffed. At the same time, fewer employees were leaving for other jobs. But recruiters say technology is also a factor behind the drop in graduate hiring, with employers believing they will need fewer junior staff because of AI. Competition for jobs is said to be particularly fierce in IT and consulting. There is hot demand for graduates with AI skills but those with more traditional technology backgrounds are finding things much tougher. A wide range of companies are already seeing business suffer due to AI. Technology suppliers say that customers are shifting budgets towards AI investment and away from more conventional spending. According to a recent survey by Boston Consulting Group, companies are planning to fund increased spending on AI by reducing investment in traditional software areas and by extending the life of hardware. Some manufacturing companies are said to be delaying investment as they wait to see whether current systems will be overtaken by rapid advances in AI. Yet overall capital spending in the UK is still showing reasonable growth. • Silicon Valley's techies are building the AI that could replace them Shifting patterns of spending are also being felt in services. Sir Martin Sorrell, the veteran advertising mogul who now heads S4 Capital, says that clients are prioritising capital investment in AI over operating expenditure, such as marketing. This partly explains the 11 per cent fall in the company's first quarter revenues, he says. Advertising is one field that is already being transformed by AI, which can dramatically reduce the cost of producing advertising text and images. Industry insiders say this is causing uncertainty among clients, prompting some to pull-back on placing new contracts. It seems to be a similar story in professional services, including management consulting. US technology giant IBM has blamed slowing growth in its consulting arm on clients prioritising AI projects. In the past couple of years there have been job cuts at many of the leading consultants including the Big Four accounting firms. McKinsey has reduced its workforce by more than a tenth in 18 months. There are other pressures on these firms and their leaders dismiss the idea that their business model is fundamentally challenged by AI. They point out that there has been huge growth in demand from clients for their advice on AI. But consultants at other firms say that clients are showing the same uncertainty as they are over their marketing budgets. 'Clients are trying to figure out what AI means for them, how much they should be paying for what sort of advice from which consultants and how much they could do themselves,' said the head of one firm. At the same time, consultancy firms are investing heavily in AI capacity forcing them to look for savings elsewhere, including in headcount. All the big consultancies have staffed up with AI expertise and are winning increasing amounts of AI-related work. But they are also losing some contracts to firms that are seen as specialists in AI, insiders say. Fiona Czerniawska, chief executive of professional services consultancy Source Global Research, says some firms are making the mistake of emphasising to clients how much the use of AI can reduce their fees. This makes clients nervous about quality and reluctant to give them more business, she said. The more successful firms tell clients they can now do a better job, more quickly thanks to AI — and it can be a bit cheaper, too. But she adds that even the best firms are losing some business as clients find that AI allows them to do more of the work themselves. Company bosses who are seeing soft demand tend to blame acute geopolitical uncertainty, including the impossible to predict outcome of Donald Trump's tariff obsession. Yet many businesses are also suffering from the impact of AI. The hope is that the uncertainty surrounding US trade policy will peak before long. But for the winners and losers from AI, the revolution has barely begun. David Wighton, a former business editor of The Times, is a Dow Jones columnist
The Citizen
14 hours ago
- Business
- The Citizen
Challenges and opportunities for SMEs in 2025
2025 may offer more innovative and forward-thinking business owners the chance to transform ongoing challenges into opportunities. South African Small and Medium enterprises (SMEs) have been negatively affected by political and economic issues of the past months. SMEs play a crucial role in the country's economic growth and job creation. However, many owners managed to keep their businesses afloat, while some have found opportunities for growth. Before finding these opportunities, entrepreneurs had to devise a proactive plan to address the challenges they encountered over time. Jeremy Lang, Managing Director at Business Partners Limited, unpacks four challenges that business owners might encounter this year and how to navigate them. ALSO READ: Five tips for SMEs to build resilience in 2025 1. Supply chain disruptions 'The 2024 national general election results were portrayed as a democratic milestone, but they have brought, and continue to bring, uncertainty and fears of political instability. 'Geopolitical conflict also continues to impact supply chains, affecting global sentiment and eroding confidence levels among local SMEs,' said Lang. According to the PwC 2023 Global Risk Survey, supply chain disruptions were identified as the primary external contributor to company risk, a trend that persisted in 2024. The backlog at the Port of Durban, a key logistics hub, serves as a notable example of the significant delays affecting local rail and port operations. The recent increase in tariffs on South African exports to the United States will affect many South African SMEs in that value chain. 2. Load shedding He added that, despite South Africans enjoying long periods of uninterrupted power supply, the second quarter of 2024 was marked by frequent power outages, with a daily average of 2.5 hours without power. 'With recent, sporadic blackouts being implemented by Eskom in quarter one of 2025, there are concerns that the ability to meet the energy demand is still very much in doubt. 'Persistent rolling blackouts last year contributed to a reduced growth forecast by the International Monetary Fund (IMF). The South African Reserve Bank estimated that load shedding reduced GDP growth by between 0.6 and 2% between 2023 and 2024.' ALSO READ: Here are the dangers of loan stacking for SMEs 3. Rising inflation Lang said rising food and fuel prices, coupled with a weakening rand and increased debt-servicing costs, pushed inflation to a high of 5.6% in February 2024. These conditions, combined with a prime lending rate of 11.75%, meant rising operational costs and reduced profitability. 'Many SMEs had to choose between passing on price hikes to customers and risking losing market share or absorbing increased costs and eradicating profit margins. 'Although the interest rate is currently on a decline, it will still take a while until it is at pre-COVID-19 levels.' 4. Limited access to funding He said only one in five SMEs manages to secure the financial support they need to grow their businesses. 'In South Africa, 87% of small businesses have never accessed credit due to traditional lending practices like reliance on collateral and rigid credit scoring systems, creating financial exclusion. 'This exclusion is particularly pronounced among small and early-stage enterprises, which make up the missing middle of SMEs and don't fit traditional financiers' one-size-fits-all requirements.' Lang said funding is available, SMEs need to demonstrate that they are well-managed businesses with growth potential. 'SMEs must approach funders aligned to their funding needs. Funders want to invest in operations that show viability, scalability and a good return on investment for both the SME and the financier.' ALSO READ: Political uncertainties that will impact SMEs in the coming months Turning obstacles into opportunities He believes that 2025 may offer more innovative and forward-thinking business owners the chance to transform some of these ongoing challenges into opportunities. 1. Love local Lang said that as geopolitical tensions persist globally, businesses are increasingly sourcing materials and products locally. SMEs can capitalise on this shift by integrating into the local supply chains of larger corporations. 'The South African Revenue Service (Sars) also strengthened this incentive by placing a 15% VAT as of 1 September 2024 in addition to its existing flat 20% customs rate on imports from foreign e-commerce retailers like Shein and Temu.' These retailers have reportedly exploited tax loopholes and the de minimis tax rule, which used to allow small online purchases under R500 to be taxed only at a flat 20% customs duty, without VAT. This initiative is designed to protect local industries and increase revenue. 2. Leverage green tech He added that the growing demand for sustainable alternatives presents an opportunity for SMEs in the renewable energy sector. Businesses can adopt renewable energy to reduce costs and minimise operational disruptions in the event of load shedding resurfacing, as well as provide affordable and reliable solar solutions, battery storage systems, or energy-efficient appliances. Either of these approaches would make an operation attractive to green-conscious customers and investors. ALSO READ: How SMEs can leverage cross-border e-commerce opportunities 3. Inflate value Lang added that when costs go up, customers tend to seek out products and services that are cost-effective. 'SMEs can capture market share by addressing inflation-driven concerns and providing high-quality, affordable solutions to their customers. 'To address these issues, SMEs may need to conduct research or implement technological solutions, such as artificial intelligence, in their operations to enhance internal processes, resolve customer issues, and reduce production costs.' According to the 2024 Business Partners Limited SME Confidence Index in the fourth quarter, when asked if their businesses had ever collaborated with other small businesses to cross-sell each other's products or services, 42.56% of SMEs responded that they had not, while 37.57% indicated that they had successfully collaborated. 'Partnering with other SMEs is another effective way to provide value for customers.' 4. Get funding-ready Lang added that both the challenge and the key to financial resilience during challenging economic times are gaining and maintaining access to capital. 'Funding enables SMEs to overcome the impact of inflation, load shedding, and supply chain disruptions, and to invest in alternative energy solutions. 'It supports cash flow, which in turn allows entrepreneurs to invest in initiatives that help them to manage rising costs and maintain competitive pricing strategies.' NOW READ: SMEs' growth absent in Budget 3.0. Here's what entrepreneurs expected
Fast Company
15 hours ago
- Business
- Fast Company
4 strategic reputation moves that attract investors to blue-chip brands
In the investment world, perception is reality. For blue-chip brands and market leaders alike, a strong reputation is both a matter of pride and a strategic asset that can attract capital, maintain shareholder trust, and drive long-term growth. A company's reputation affects everything from stock price stability to investor relations, yet many companies overlook the direct link between digital reputation and a company's investment value. At Status Labs, we've seen firsthand how a proactive approach to online reputation management can make a measurable difference in investor confidence. Here are four strategic reputation moves that blue-chip brands use to attract—and retain—investors in today's reputation-driven economy. 1. CULTIVATE TRUST WITH TRANSPARENT AND TIMELY COMMUNICATION For investors, trust is paramount. Market volatility, economic uncertainty, and the 24-hour news cycle have intensified scrutiny on high-profile brands, making transparency and responsiveness essential to maintaining investor confidence. A 2024 PwC Trust Survey reveals that 93% of business executives believe that building and maintaining trust improves a business's bottom line. Simply put, investors are more likely to place their capital in companies that provide timely, clear information, particularly during times of turbulence. That transparency extends to how a brand manages its online presence and responds to news and social issues. When companies proactively address public issues or clarify complex situations with consistent and clear communication, they reinforce investor trust. Whether it's providing updates on social media or issuing public statements to address misinformation, clear communication reassures investors that a company values its integrity and accountability. 2. OPTIMIZE SEARCH PRESENCE AND DIGITAL REPUTATION FOR INVESTOR RESEARCH Investors conduct extensive research before making decisions, and often turn to search engines and social media to gauge a brand's public image. A recent study from the Financial Industry Regulatory Authority found that 67% of investors aged 18 to 34 and 53% of investors aged 35 to 54 use 'six or more different sources of investment information,' including social media such as YouTube, Reddit, Facebook, and Twitter. That same study found that while 47% of investors admitted to relying on research and tools provided by their financial firm, slightly more investors—48%—said they relied on business and finance articles found on the internet. This makes a company's search presence as important as its financial statements. Investors look for credibility, stability, and positive sentiment in the top search results. One way to optimize online presence is through a well-crafted SEO strategy that promotes favorable content and timely and informative thought leadership, while also addressing any potentially damaging information. At Status Labs, we work with companies to build search resilience by boosting positive content and suppressing misleading or outdated information. By actively managing search visibility, blue-chip brands can shape the narrative that investors see by establishing an online presence that reflects stability, thought leadership, and forward thinking. 3. DEMONSTRATE THOUGHT LEADERSHIP TO STRENGTHEN BRAND VALUE A brand's digital reputation may be a reflection of its past, but it's also a predictor of future growth and innovation. For this reason, investors are drawn to brands that are proactive leaders in their industries. Research from Edelman Trust Barometer (Investor Edition) shows that industry leadership—which can be cultivated through thought leadership-style content—accounts for 59% of a brand's reputation and market value. Thought leadership can be expressed through content that highlights company innovation, executive insights, and industry expertise. Regularly publishing articles, participating in reputable media interviews, and contributing to industry conversations all build investor confidence by positioning a company as a trusted authority. Companies that take control of their narrative and actively engage in discussions about their industry's future attract investors looking for steady, visionary leadership. 4. ESTABLISH A CRISIS MANAGEMENT PLAN TO PROTECT INVESTOR INTERESTS A single crisis can severely impact a brand's reputation—and its stock price. Investors are acutely aware of this, which is why companies that show preparedness in crisis management are more attractive as investment opportunities. A Deloitte survey of 300 executives on reputation risk found that nearly 90% ranked reputational risk as a top concern. Establishing a robust crisis management plan signals to investors that a company is prepared to handle unforeseen events without compromising its values or public image. Proactive monitoring, rapid response protocols, and media-trained executives ensure that a brand can respond effectively to challenges, thereby reducing the chance of reputation damage and financial fallout. For blue-chip brands and industry leaders, reputation is an asset that directly influences investor interest and market stability. By building and maintaining trust, optimizing digital presence, showcasing thought leadership, and preparing for crises, companies can create a resilient reputation that strengthens investor confidence and attracts capital. In a market where reputation increasingly drives valuation, these strategic moves can help companies secure investor loyalty and build a foundation for sustainable growth. In today's economy, where trust and transparency define corporate success, a well-managed reputation is one of the smartest investments a company can make.
Trade Arabia
20 hours ago
- Business
- Trade Arabia
Middle East leads air connectivity growth with 28% jump
Air connectivity witnessed a remarkable 14% year-on-year increase in both Asia-Pacific and Middle East regions, driven by strong international demand, robust network recovery, and the return of major travel corridors, according to a new report. The ACI Asia-Pacific & Middle East Air Connectivity Ranking is a comprehensive, passenger-centric analytical tool developed in collaboration with PwC in 2023 and refined for its third edition in 2025. The Ranking evaluates the overall level of air passenger connectivity offered by airports across the Asia-Pacific and Middle East regions. It assesses performance through three fundamental building blocks: network scale and frequency, economic weight of destinations, and connection quality and efficiency. The Asia-Pacific region witnessed a remarkable 13% jump in overall connectivity compared to 2023, while the Middle East posted an impressive 28% increase, surpassing all post-Covid recovery forecasts. On average, connectivity across all airports rose in both Asia-Pacific and the Middle East by +14%, a strong testament to the resilience and dynamism of the aviation sector. In Asia-Pacific, intra-regional connections are nearly back to pre-pandemic levels, trailing by just 0.2%. At the same time, intercontinental connectivity is on the rise, showing a solid 4% increase. The Middle East, however, isn't just recovering – it's setting a new pace. Both intra-regional and inter-continent connectivity have not only bounced back but have exceeded pre-pandemic levels by a significant margin of 18% and 16%, respectively. Key findings • Airports in the region saw an average connectivity increase of +14% compared to 2023, indicating a strong industry recovery. • Airports in Asia-Pacific and the Middle East experienced across-the-board connectivity growth in 2024, driven by China's reopening and route expansions. • 80% of the top 300 airports have fully recovered connectivity levels, with larger hubs leading due to the resurgence of international travel. • Domestic city pairs decreased by an average of -1% compared to 2023, suggesting a post-COVID emphasis on international expansion. • International city pairs across all airport categories rose by an average of 17%, highlighting the strong return to cross-border travel. • While intra-APAC passenger travel in 2024 is nearing 2019 levels, travel to Europe, the Middle East, and Africa has surpassed them, driven by Gulf hubs. Passenger traffic from Asia-Pacific to the Americas still trails 2019 levels. • Passenger traffic in the Middle East recovered faster than APAC, showing robust 2024 vs. 2019 traffic, with passenger traffic to Africa and APAC significantly exceeding pre-pandemic levels. Traffic to the Americas remains below 2019. • Despite increased competition, Dubai maintained its position as the leading airport in APAC and the Middle East. • Major Asian hubs like Incheon, Singapore Changi, Shanghai Pudong, and Beijing Capital saw improved rankings and indices, reflecting strong outbound tourism and network adjustments. Stefano Baronci, Director General of ACI Asia-Pacific and Middle East, said: 'Air connectivity is not only relevant for passengers seeking more travel options and convenience; it is equally crucial for supporting global trade and economic resilience, particularly through belly hold cargo capacity.' 'While we celebrate this growth, we must remain forward-looking to ensure the momentum is sustained. Investment in airport infrastructure and technological upgrades is a prerequisite for enhancing connectivity, and airports across the region are undertaking significant investments to make this possible. In the face of growing geopolitical and trade tensions, we urge governments to prioritise air service liberalisation, streamlined visa policies, and transparent slot allocation frameworks. Lastly, we must not lose sight of the needs of small island and remote communities-- air connectivity remains their lifeline,' Baronci added. Rise of Airport City Clusters The 2025 edition introduces a fresh dimension: an analysis of airport city clusters. Larger urban agglomerations like Shenzhen–Hong Kong–Macau, Tokyo, Shanghai, and Beijing dominate the new City Connectivity Index, demonstrating that the presence of multiple large airports enables higher flight frequencies and diversified routing options. Clusters such as Beijing and Shenzhen–Hong Kong-Macau have seen a substantial enhancement of connectivity through effective use of secondary airports. Seoul, Bangkok, and Taipei lead in per capita accessibility, offering exceptional connectivity relative to population size.
Zawya
20 hours ago
- Business
- Zawya
Middle East leads air connectivity growth with 28% jump
Air connectivity witnessed a remarkable 14% year-on-year increase in both Asia-Pacific and Middle East regions, driven by strong international demand, robust network recovery, and the return of major travel corridors, according to a new report. The ACI Asia-Pacific & Middle East Air Connectivity Ranking is a comprehensive, passenger-centric analytical tool developed in collaboration with PwC in 2023 and refined for its third edition in 2025. The Ranking evaluates the overall level of air passenger connectivity offered by airports across the Asia-Pacific and Middle East regions. It assesses performance through three fundamental building blocks: network scale and frequency, economic weight of destinations, and connection quality and efficiency. The Asia-Pacific region witnessed a remarkable 13% jump in overall connectivity compared to 2023, while the Middle East posted an impressive 28% increase, surpassing all post-Covid recovery forecasts. On average, connectivity across all airports rose in both Asia-Pacific and the Middle East by +14%, a strong testament to the resilience and dynamism of the aviation sector. In Asia-Pacific, intra-regional connections are nearly back to pre-pandemic levels, trailing by just 0.2%. At the same time, intercontinental connectivity is on the rise, showing a solid 4% increase. The Middle East, however, isn't just recovering – it's setting a new pace. Both intra-regional and inter-continent connectivity have not only bounced back but have exceeded pre-pandemic levels by a significant margin of 18% and 16%, respectively. Key findings • Airports in the region saw an average connectivity increase of +14% compared to 2023, indicating a strong industry recovery. • Airports in Asia-Pacific and the Middle East experienced across-the-board connectivity growth in 2024, driven by China's reopening and route expansions. • 80% of the top 300 airports have fully recovered connectivity levels, with larger hubs leading due to the resurgence of international travel. • Domestic city pairs decreased by an average of -1% compared to 2023, suggesting a post-COVID emphasis on international expansion. • International city pairs across all airport categories rose by an average of 17%, highlighting the strong return to cross-border travel. • While intra-APAC passenger travel in 2024 is nearing 2019 levels, travel to Europe, the Middle East, and Africa has surpassed them, driven by Gulf hubs. Passenger traffic from Asia-Pacific to the Americas still trails 2019 levels. • Passenger traffic in the Middle East recovered faster than APAC, showing robust 2024 vs. 2019 traffic, with passenger traffic to Africa and APAC significantly exceeding pre-pandemic levels. Traffic to the Americas remains below 2019. • Despite increased competition, Dubai maintained its position as the leading airport in APAC and the Middle East. • Major Asian hubs like Incheon, Singapore Changi, Shanghai Pudong, and Beijing Capital saw improved rankings and indices, reflecting strong outbound tourism and network adjustments. Stefano Baronci, Director General of ACI Asia-Pacific and Middle East, said: 'Air connectivity is not only relevant for passengers seeking more travel options and convenience; it is equally crucial for supporting global trade and economic resilience, particularly through belly hold cargo capacity.' 'While we celebrate this growth, we must remain forward-looking to ensure the momentum is sustained. Investment in airport infrastructure and technological upgrades is a prerequisite for enhancing connectivity, and airports across the region are undertaking significant investments to make this possible. In the face of growing geopolitical and trade tensions, we urge governments to prioritise air service liberalisation, streamlined visa policies, and transparent slot allocation frameworks. Lastly, we must not lose sight of the needs of small island and remote communities-- air connectivity remains their lifeline,' Baronci added. Rise of Airport City Clusters The 2025 edition introduces a fresh dimension: an analysis of airport city clusters. Larger urban agglomerations like Shenzhen–Hong Kong–Macau, Tokyo, Shanghai, and Beijing dominate the new City Connectivity Index, demonstrating that the presence of multiple large airports enables higher flight frequencies and diversified routing options. Clusters such as Beijing and Shenzhen–Hong Kong-Macau have seen a substantial enhancement of connectivity through effective use of secondary airports. Seoul, Bangkok, and Taipei lead in per capita accessibility, offering exceptional connectivity relative to population size. Hub Airports with Connectivity Leadership The 2025 edition features a newly introduced 'Hub Connectivity Index,' which evaluates each airport based on the quality and effectiveness of its hub operations. Dubai International Airport emerged as the top hub, followed by Shanghai Pudong International Airport and Hamad International Airport in Doha. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
