Friday Wrap-Up: Lessons from Google’s Former CEO and Europe’s AI Regulation Problem

Hi everyone and welcome back to our Friday wrap up. I'm Stille Matyskaard. I'm Nicola Tanen. This week you spoke to Eric Schmidt, he's former CEO of Google and I would say one of the loudest voices on AI. Absolutely, I mean he was very important at Google but he remains very important in the tech society, extremely well plugged in and very, very knowledgeable and having seen the whole development and continues to be involved in AI also within weapon production and weapon development and very involved also in Ukraine. A new AI model takes about six months to build and then it might be out of date in five months. How should we as an investor think about a business model like that? Well, that's the really big question when these companies come to the market. What's the sustainability of the business model? How long time does it take to depreciate the costs they put into it? How long is the model valid for? And I guess the same goes for the chips companies, what's the length of time one can use these chips for and how do you depreciate? It's really one of the biggest questions when it comes to valuing these companies. What do you think about the changes to the labor markets we might see here? Well, think it's very interesting. You know, we have always said that we are not going to lay off people in the fund due to AI use. We rather use it to make the company more competitive, better, we can do more with the same amount of people and so that's how we are looking at it. And some other companies are doing that too, for instance IKEA are saying they're not going to lay off people, they're going to reskill whoever is not needed in their current jobs and that's an interesting way of doing it. And then you've got other companies again which are going to lay off people. I think the jury's out, we really don't know how this is going to pan out, we really don't. So it's one of the biggest societal questions we are facing just now. Yeah, and then he also talked about how we should think about this when it comes to regulation. He says Europe regulates before it innovates and it's something we heard other people say as well. What do you think about that? Well, think that's for sure a fact. We regulate a lot in Europe. For instance in this country, we were the first country to regulate away meta glasses in public places. So we do regulate a lot, we have more regulations than AI whilst in The US they have more AI than regulations. I think over regulating AI in Europe is a potentially very unfortunate thing because you can really stop the development before it started and if there is one thing we need in Europe now, it's really implementation of AI. Draghi mentioned it …