Microsoft's president and vice chairman Brad Smith on Thursday praised Abu Dhabi's AI initiatives and apps, which he said empower residents.
"We need to bring it to America," he told a US Senate commerce, science and transport committee hearing, referring to the need for apps that simplify the process of renewing driver licences, reporting potholes, obtaining various forms and other services.
"You can do all these things with your phone, by the way and you can do this today in Abu Dhabi."
Mr Smith did not specify what app he was referring to, but in February at a UAE event, Charles Lamanna, Microsoft's corporate vice president of business and industry, witnessed how the company's AI products were being used in various UAE-made apps.
At one point, he was shown Abu Dhabi's TAMM government services AI assistant, which acts as a one-stop shop for government services including transport, health care, housing and police services.
“We are moving away from large language models to large action models,” Wael AbuRizq, AI and advanced analytics adviser with the Department of Government Enablement, said at the demonstration of the app, which uses Microsoft technology.
Mr Lamanna told The National that TAMM's demonstration was among some of the most impressive he had seen in his travels throughout the world.
Microsoft has been a proponent of the UAE's AI aspirations in recent years. The company made a $1.5 billion investment in UAE AI and cloud company G42 in 2024, and later announced that it would open its research-based 'AI for Good Lab' in Abu Dhabi, a first in the Middle East.
Mr Smith was joined at the Senate hearing by OpenAI chief executive Sam Altman, Advanced Micro Devices chief Lisa Su and CoreWeave boss Michael Intrator.
US President Donald Trump is preparing to visit the UAE during a trip to the Gulf.
On Wednesday, he told reporters that his administration might soon change a controversial chip export policy that some say could stifle AI aspirations in the UAE and other countries in the region.
"We might be doing that, and it’ll be announced soon," Mr Trump said in the Oval Office.
The policy, referred to as the AI diffusion rule, was drafted during the final months of former president Joe Biden's administration as it sought to protect the US lead on AI development by preventing highly powerful central processing units and graphic processing units from being obtained by rival countries, such as China.
Under the chip export rules, countries and territories would be split into tiers that would determine how many powerful chips and GPUs they could buy.
Falling into the first tier and unaffected by the rules are Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan and the UK.
Other countries, such as Switzerland, Poland, Greece, Singapore, India, Indonesia, Israel, the UAE and Saudi Arabia, would fall into a second-tier category, making it more difficult – although not impossible – to obtain the chips needed for AI research and development.
Microsoft has openly criticised the proposed policy. “Left unchanged, the Biden rule will give China a strategic advantage in spreading over time its own AI technology, echoing its rapid ascent in 5G telecoms a decade ago,” Mr Smith said in February.
“This tier-two status is undermining one of the essential requirements needed for a business to succeed – namely, confidence by our customers that they will be able to buy from us the AI computing capacity that they will need in the future."
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Started: 2019
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Sector: FinTech
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Current number of staff: More than 150
Funds raised: $22 million
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The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
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Who's who in Yemen conflict
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Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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