France is aiming to become a global AI superpower — but not without help from U.S. Big Tech

The Viva Technology conference in Paris last week was buzzing with talk about how far France has come as a leader in AI. A great deal of chatter surrounded French AI firm H, which raised $220 million investors including U.S. e-commerce giant Amazon. A common theme was the boost France’s AI scene has gotten from U.S. tech firms, with Microsoft and Amazon investing billions into the country. French President Emmanuel Macron speaks during a meeting with members of the AI sector at the Elysee Presidential Palace in Paris, France, on May 21, 2024. Yoan Valat | Afp | Getty Images

PARIS — France is touting itself as the next artificial intelligence superpower. [style note: Paris stands alone in datelines]

The Viva Technology conference in Paris last week was buzzing with talk about how far France has come as a leader in AI.

A great deal of chatter surrounded the French AI firm H, previously named Holistic, which raised a $220 million seed funding round [“raised $220 million in a seed funding round”? please could you also tweak the second bullet point in the key points] from investors including U.S. tech giant Amazon and Google’s billionaire ex-CEO Eric Schmidt.

A common theme for French AI firms receiving large sums of money is that they’re adding U.S. tech heavyweights to their shareholder lists.

Earlier this month, France received a flood of new private investments, led by a commitment from Microsoft of 4 billion euros ($4.4 billion), its largest ever into France.

AI everywhere at Viva Tech

At Viva Tech, AI was everywhere. Past the large, bright pink “VIVA” sign toward the front, there was an entire alley called “AI Avenue,” which was surrounded by U.S. tech firms such as Salesforce and AWS.

Generative AI was on display everywhere — even from companies you wouldn’t expect.

For example, French beauty giant L’Oreal showed off an AI-powered beauty assistant called “BeautyGenius” at a large booth near the center of the Porte de Versailles conference venue.

The success of Viva Tech has become symbolically important for France as part of its bid to become a leading tech and AI hub that can rival the likes of the U.S. and China.

“France is the leader on artificial intelligence in Europe,” Bruno Le Maire, France’s finance minister, told CNBC’s

CNBC

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Cost of ESG is a growing challenge for some Asian fund managers

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Local Asian asset managers are finding it harder to meet the rising costs of building out environmental, social and governance teams and complying with increasingly onerous sustainable investing policies that are putting a further squeeze on profit margins.

Asset owners in the region are increasingly requiring ESG capabilities as a “minimum requirement”, but trying to keep pace with large European and US fund firms is a growing challenge for smaller firms from the region.

Lion Global Investors is the largest Singapore-based fund house with S$71bn ($52.6bn) in assets under management as of the end of March, but it is still minuscule compared with the trillion-dollar global funds giants.

Chief executive Teo Joo Wah said that while low carbon and green energy are important considerations for Lion Global, “the truth is that it’s actually adding cost to me”.

This article was previously published by Ignites Asia, a title owned by the FT Group.

The challenge is that more institutional investors expect fund managers to have ESG processes and to have the capabilities to report on carbon emissions and other measures.

“There’s no running away — you will have to incur costs in terms of hiring more people, subscribing to databases, etc,” said Teo.

But those costs have been rising and have become harder to keep on top amid ongoing challenges in regional markets, which he describes as “quite a difficult period for Asian managers”.

“If you are an Asian fund manager specialising in Asian equities, I think the last five years have been very difficult,” Teo said.

Funds executives in Asia have noted that asset managers will have to “continue to spend more” on ESG as compliance burdens increase and the competition for talent, technology and data resources grows.

In Singapore, for example, the introduction of a code of conduct for ESG rating and data providers in December raised fresh concerns around how the regulation could potentially raise sustainable investing costs further for fund firms.

Mushtaq Kapasi, managing director and chief representative for Asia Pacific at the International Capital Market Association, noted at the Financial Times Future of Asset Management Asia Conference earlier this month that Asian asset managers struggle with data acquisition and methodology.

Smaller fund companies may not have enough resources to collect data all the way down the value chain, Kapasi said.

As a result, few Asian asset managers are actually embracing

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