Generative AI vs Predictive AI: Manual Intervention Remains Crucial, RBI’s Steady Repo Rate, Infosys CEO’s Pay Hike, and More.

Generative AI vs Predictive AI: Manual Intervention Remains Crucial

Generative AI creates new content based on training data, such as text, images, and music, while predictive AI forecasts outcomes using historical data for applications in finance, medicine, and marketing. Both face challenges like biases, inaccuracies, and data dependency. Despite their transformative potential, they require extensive manual training and continuous improvement to minimize errors. Human intervention in data curation, feedback loops, and validation is essential for their effective functioning.

Understanding Generative and Predictive AI

Generative AI: This type of AI is designed to create new content, such as text, images, or music, by learning patterns from existing data. For example, GPT-4 generates human-like text, while DALL-E creates images from text descriptions. These models need ongoing training and human feedback to improve accuracy and reduce biases.

Predictive AI: This AI forecasts future outcomes based on historical data, commonly used in finance for stock predictions, in medicine for diagnoses, and in marketing for customer behavior analysis. Predictive AI models require clean, comprehensive data and continuous validation to maintain accuracy and relevance.

Source: Financial Express

RBI Likely to Maintain 6.5% Repo Rate on June 7, Say Experts

The Reserve Bank of India (RBI) is expected to keep the benchmark interest rate unchanged at 6.5% during its upcoming monetary policy meeting from June 5-7. This would mark the eighth consecutive time the rate remains steady amid ongoing inflation concerns and recent economic growth. Experts highlight that the RBI’s cautious stance is influenced by inflationary pressures and the need for sustained growth.

Understanding Monetary Policy and Repo Rates

Monetary Policy: This refers to the actions taken by a central bank, like the RBI, to manage the economy by controlling the money supply and interest rates. The goal is to achieve stable prices, low unemployment, and economic growth.

Repo Rate: This is the rate at which the RBI lends money to commercial banks. A lower repo rate makes borrowing cheaper, encouraging spending and investment, while a higher rate helps control inflation by making loans more expensive.

Source: Business Standard

Infosys CEO Salil Parekh’s Pay Increases 17% to $7.9 Million in FY 2024

Infosys CEO Salil Parekh’s compensation rose 17.3% to 662.4 million rupees ($7.9 million) in FY 2024, driven by increased stock options exercised. His fixed pay was 74.7 million rupees, with 197.5 million rupees in bonuses and incentives. Despite the slowest revenue growth in Infosys’s history, Parekh remains one of the highest-paid Indian IT CEOs. In comparison, TCS CEO earned 253.6 million rupees, the lowest among top Indian IT firms.

Understanding CEO Compensation in the IT Sector

CEO Compensation: This includes fixed pay, bonuses, incentives, and stock options. Fixed pay is the base salary, while bonuses and incentives are performance-based. Stock options are benefits giving the CEO the right to buy company stock at a later date, usually at a lower price, aligning their interests with long-term company performance. The total compensation can fluctuate significantly based on company performance and stock market conditions.

Source: Reuters

Lenskart Raises $200 Million from Temasek and Fidelity, Valued at $5 Billion

Indian eyewear retailer Lenskart secured $200 million from Temasek and Fidelity Management, boosting its valuation to $5 billion. This funding adds to nearly $1 billion raised over the past 18 months. Backed by SoftBank and Abu Dhabi Investment Authority, Lenskart operates across India, Southeast Asia, and the Middle East with over 2,500 stores. The investment highlights continued confidence in Lenskart’s growth potential.

Understanding Lenskart’s Funding and Valuation

Valuation: The value of a company, often determined by investors during funding rounds, reflecting its perceived market worth. Lenskart’s $5 billion valuation indicates strong investor confidence.

Funding Rounds: Companies raise capital through various funding rounds, involving investors who provide money in exchange for equity. Lenskart’s $200 million from Temasek and Fidelity is part of a broader strategy to fuel expansion and innovation.

Investors: Key backers like Temasek, Fidelity, SoftBank, and Abu Dhabi Investment Authority provide not just capital but also strategic support, enhancing Lenskart’s market position and growth trajectory.

Source: Reuters

Mother Dairy and Amul Hike Milk Prices by Rs 2/Litre After 14 Months

Milk prices are set to rise as Mother Dairy and Amul announce a Rs 2/litre hike, the first increase in 14 months. This move comes amid flat inflation in milk, which stood at 2.97% year-on-year in April. R S Sodhi, Indian Dairy Association president, noted the hike is moderate compared to production cost increases. The revision is expected to partially pass farm price surges onto consumers, balancing interests of producers and consumers.

Milk Inflation

Milk inflation refers to the rise in milk prices over time, influenced by various factors such as production costs, supply chain disruptions, and environmental conditions. Price hikes by major suppliers like Amul and Mother Dairy can significantly impact overall inflation rates, given milk’s staple status in many households. This often reflects broader economic trends and cost pressures faced by farmers and producers.

Source: Financial Express

RBI: 97.82% of Rs 2,000 Banknotes Returned, Rs 7,755 Crore Still with Public

The Reserve Bank of India (RBI) announced that 97.82% of Rs 2,000 banknotes have been returned to the banking system, leaving Rs 7,755 crore worth of notes still with the public. Since the withdrawal announcement on May 19, 2023, the circulation of Rs 2,000 notes dropped from Rs 3.56 lakh crore to Rs 7,755 crore. Deposit and exchange facilities were available at all bank branches till October 7, 2023, and continue at 19 RBI issue offices.

Withdrawal of Rs 2,000 Banknotes

The withdrawal of Rs 2,000 banknotes refers to the process initiated by the RBI to remove these high-denomination notes from circulation. Introduced in November 2016 post-demonetisation, these notes were withdrawn to curb illicit activities and encourage digital transactions. The majority of these notes have since returned to banks, reflecting effective public compliance with the policy.

Source: Business Standard

UPI Transactions Hit Record High of Rs 20.45 Trillion in May

Unified Payment Interface (UPI) transactions soared to a record Rs 20.45 trillion in May, processing 14.04 billion transactions. This marks a 49% increase in volume and a 39% rise in value compared to May 2023. Month-on-month, volumes rose 6% and values increased 4% from April. This surge highlights UPI’s growing dominance in digital payments. Other systems like IMPS and FASTag also saw increases, while AePS transactions declined.

Unified Payment Interface (UPI)

Unified Payment Interface (UPI) is an instant real-time payment system developed by the National Payments Corporation of India (NPCI). It allows users to link multiple bank accounts to a single mobile application, facilitating seamless, secure, and quick transfers. UPI’s interoperability, combined with features like QR code payments and bill sharing, has revolutionized digital transactions in India, significantly boosting financial inclusion and cashless payments.

Source: Business Standard

Few AI Deepfakes Identified in EU Elections, Says Microsoft President

Microsoft President Brad Smith reported minimal AI-generated disinformation in the European Parliamentary elections, despite rising global concerns. Speaking in Stockholm, where Microsoft announced a $3.21 billion investment in Sweden, Smith highlighted the risks of AI in producing abusive content like deepfakes. Training for election candidates is ongoing to monitor potential threats. While the EU elections have seen limited interference, vigilance continues with a focus on other geopolitical events, including the Olympics.

AI-Generated Deepfakes

Deepfakes are realistic but fake digital images, videos, or audio created using artificial intelligence. By manipulating media to show events or statements that never occurred, deepfakes can spread misinformation, particularly during elections. These advanced fabrications pose significant challenges in discerning truth from deception, prompting increased efforts in detection and prevention to safeguard public information and democratic processes.

Source: Reuters

India’s $2 Trillion Export Ambition: New Market Body and ‘Made-in-India’ Branding Push

India plans to launch IndTrade, a dedicated body for overseas market development, and a national branding division to boost exports to $2 trillion by 2030. IndTrade will lead market expansion efforts, while the branding division will enhance the “Made in India” label. The strategy includes new Free Trade Agreements, digital trade processes, and significant infrastructure projects like the Chabahar port. This multifaceted approach aims to elevate India’s global trade presence significantly.

IndTrade and Export Promotion

IndTrade: A proposed new body aimed at developing overseas markets and promoting Indian exports across all sectors, complementing existing export councils and organizations.

Made-in-India Branding: An initiative to boost the global appeal of Indian products through targeted campaigns and enhanced branding, aligning with the government’s export growth strategy.

Source: Financial Express

Infosys Cuts Fresher Hiring by Over 75%, First Headcount Drop in 23 Years

Infosys hired 11,900 freshers in FY24, a sharp decline from 50,000 in FY23, and saw its total headcount fall by 25,994 to 317,240. CEO Salil Parekh noted the trend in the annual report, highlighting a broader industry shift amid market uncertainties. Attrition decreased to 12.6%, and Infosys is focusing on AI training and gender diversity. The company also reported a rise in sexual harassment complaints.

Generative AI at Infosys

Infosys is emphasizing the integration of generative AI, aiming to enhance productivity through automation. Nandan Nilekani, non-executive chairman, envisions AI’s transformative power in both consumer and enterprise applications, emphasizing the need for talent redeployment and leveraging diverse AI models and tools.

Source: Financial Express

Apple to Skip Hardware at WWDC 2024, Focus on iOS 18 and AI Enhancements

Apple will not unveil new hardware at WWDC 2024, focusing instead on software, per Mark Gurman. The event, from June 10-14, will showcase iOS 18 with AI enhancements. Key updates include an improved Siri with follow-up question capability and AI-driven custom emojis. Apple’s partnership with OpenAI may bring ChatGPT integration. This shift underscores Apple’s emphasis on advancing its software ecosystem.

iOS 18 and AI Enhancements

iOS 18: The upcoming update for iPhones, expected to include significant AI advancements. Features may include a more intelligent Siri capable of follow-up questions, AI-driven custom emojis, and enhanced home screen customization. These updates aim to enhance user interaction and personalization within Apple’s ecosystem.

Source: Live mint

Oil Prices Plunge 3% as OPEC+ Decision Fails to Quell Demand Fears; Brent at $78.35

Brent crude dropped 3.4% to $78.35 per barrel, and WTI fell 3.6% to $74.19, reaching multi-month lows. Despite OPEC+ extending major output cuts to 2025 and easing voluntary cuts from October, demand concerns persist. U.S. crude inventories fell by 4.2 million barrels, yet gasoline demand unexpectedly decreased. Analysts anticipate continued volatility amid economic uncertainties and potential demand uptick during the summer driving season.

OPEC+ and Oil Price Volatility

OPEC+: An alliance of oil-producing nations, including OPEC members and other major oil exporters, which coordinates production levels to manage global oil prices. Recent decisions to extend output cuts aim to stabilize prices, though demand uncertainties continue to influence market volatility.

Source: Live mint