AI and autos at CES, and Panasonic’s US plans

Hello from Las Vegas. This is Cissy, your #techAsia host for this week.

When I was going through customs in Los Angeles, where I changed flights on Saturday, the immigration officer saw my journalist visa and asked if I was here for the CES. I chuckled and nodded. Every year around this time, not only journalists but also numerous Asian attendees from Big Tech companies and start-ups converge on the West Coast for the world’s largest consumer electronics exhibition. The event is not open to the general public but lets businesses connect with each other.

Some attendees come to keep up on the latest tech trends and see how they can apply them to their products. Others view the trade show as a chance to move into the US market. Several Chinese and South Korean start-ups told me that the US is the first overseas market they are aiming for, not only due to its vast size, but also because American consumers are more willing to try new products compared to their Asian counterparts.

Unsurprisingly, AI is everywhere at this year’s show, especially in the healthcare area. Several companies are showcasing products that can detect the mood not only of humans but also of their pets. LG showcased an AI-powered robot companion that can call an ambulance if a person has a fall at home.

Companies embracing AI stress that security and privacy are their top priority, as these devices run the gamut from cameras that scan your home to sensors that detect the most personal of health indicators. Consultants and even some tech executives expressed their concerns over privacy, but the consensus seems to be that AI will transform our lives in every aspect.

Welcome to the future

After two media-only days, CES officially kicked off on Tuesday in Las Vegas. The tech event, which wraps up on Friday, has a strong Asian presence, including big names from South Korea and Japan, as well as numerous start-ups from China and elsewhere in the region. As in past years, bigger China names are largely missing, although ByteDance and subsidiary TikTok are making a low-profile appearance, report Nikkei Asia’s staff writers.

AI is undoubtedly the biggest buzzword this year. Companies are keen to show off their latest artificial intelligence products, even if some are still in the concept stage. And it is not only electronic giants like Samsung and Siemens — smaller exhibitors are also joining the AI craze. Startups from around the world are leveraging AI for everything from workplace collaboration and healthcare to logistics and beauty products.

The world’s biggest tech show is also a major auto expo, with South Korea’s Kia and Hyundai, Honda of Japan and Mercedes-Benz of Germany all taking part along with numerous suppliers. Autonomous driving, public transportation with a futuristic spin and flying cars were just some of the items and ideas on display.

Stayed tuned to Nikkei Asia throughout the rest of this week for more coverage from Las Vegas!

Pressing reset

China has moved to ease fears of tighter controls in its video game industry, convening at short notice consultations on new measures and firing a prominent official.

Feng Shixin, a veteran official responsible for China’s gaming regulatory body, was ousted for failing to consult top economic supervisors or incorporate the opinions of key companies before drafting industry guidelines, according to two people familiar with the situation. The National Press and Publication Administration’s release in December of proposed regulations sparked concerns over a crackdown, writes the Financial Times’ Qianer Liu.

Meanwhile, Beijing and provincial regulators have summoned leading game developers to take part in closed-door seminars to discuss the feasibility and impact of the draft regulations, said four people close to the regulators. The process normally takes three to six months, but this one is expected to be completed as early as the end of January, they added.

The government’s handling of the situation has been criticised after the release of the controversial draft, which aimed to curb spending and engagement on online games and caused an $80bn stock market sell-off.

Tencent and NetEase shares have been hit, falling 6 per cent and 8 per cent, respectively, compared with immediately before last month’s announcement.

Generating trouble

Generative AI tools promise to make work more efficient but experts say they are also contributing to an increase in online fraud and cyber attacks. Tackling the issue is becoming increasingly urgent, writes Nikkei’s Atsushi Teraoka.

Globally, the number of fraudulent business emails increased 89 per cent in the first six months of last year compared to the same period the previous year, according to Abnormal Security, an American email security platform.

AI has reached a point where it can generate fake emails and even websites automatically. In a recent experiment conducted by Takashi Matsumoto, a cyber security expert at Japanese internet company DeNA, an AI program was able to compose a business email in typical Japanese style. Surprisingly, the AI not only replicated the language normally used, but also simulated the unique Japanese practice of automatically sending a password to access attached data.

Still keen

Panasonic Energy still plans to build a third electric vehicle battery plant in the US despite scrapping a tentative plan last year to construct a facility in Oklahoma, writes Nikkei Asia’s Ryohtaroh Satoh.

Allan Swan, president of Panasonic Energy of North America, told Nikkei on the sidelines of CES that the Tesla supplier still needs “more plants” to reach its goal of increasing annual production capacity from 50 gigawatt-hours currently to 200 gigawatt-hours by 2031. The company has a plant in Nevada and is building a second one in Kansas.

Panasonic recently ended its talks with the Oklahoma government about investing in the state. The company did not explain in detail the reasons for the decision, but it came amid speculation that the EV market might not be growing as quickly as automakers initially hoped, with high interest rates and inflation cooling consumer sentiment.

Panasonic has been trying to diversify its customers to reduce its reliance on Tesla for some years. One of the Panasonic group’s top executives recently told Nikkei Asia that the reason for dropping the Oklahoma plan was not due to shrinking demand from Tesla, but because the Japanese company was prioritising “searching for promising second or third new customers”.

Suggested reads

1. Vietnam’s VinFast to spend up to $2bn on India car, battery plant (Nikkei Asia)

2. Chinese companies resort to repurposing Nvidia gaming chips for AI (FT)

3. Baidu’s bet on AI could make or break China’s fallen tech group (FT)

4. SK Hynix banking on AI-driven memory demand to double market cap (Nikkei Asia)

5. Huawei cuts North America PR staff as hopes for US breakthrough fade (Nikkei Asia)

6. Inside the crisis at Alibaba: how China’s best-known tech group lost its way (FT)

7. Smartphone makers bet on foldables to revive lacklustre market (FT)

8. Alibaba-backed lidar maker RoboSense dips in Hong Kong debut (Nikkei Asia)

9. SoftBank’s Gen Z social media bust: was IRL the next Facebook or a fraud? (FT)

10. Japan to require Big Tech to respond to online defamation (Nikkei Asia)

#techAsia is co-ordinated by Nikkei Asia’s Katherine Creel in Tokyo, with assistance from the FT tech desk in London.

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