Big Tech has four main challenges that must be addressed

The meteoric rise of Big Tech has fundamentally changed our lives.

Big Tech has woven itself into nearly every aspect of our daily experiences, from how we communicate and shop to how we vote. Yet, amidst their massive influence, there's a growing sense of trouble brewing for Big Tech. The public's perception has shifted, and the good vibes are fading.

These are the most prominent challenges I currently see facing Big Tech:

1. Dwindling trust

Data breaches, privacy scandals, and an increasing sense that Big Tech puts profit far ahead of users have eroded public trust. People are no longer willing to take tech companies at their word—they demand transparency and genuine concern for user welfare. Big Tech's struggle for trust hinges on its ability to put people first and prioritize safeguarding user data, even if it means sacrificing some short-term gains in the process.

2. Exaggerating self-importance

Big Tech sometimes believes they are the answer to every societal ill imaginable. While technology can be transformative, there's a line between innovation and hubris. Exaggerated claims of tech-based solutions to deep-rooted human problems often lead to disappointment and foster mistrust. Big Tech needs to acknowledge the limitations of technology, focusing on its strengths as a tool for progress rather than a panacea for all social and political challenges.

3. Wrong messengers delivering the wrong messages

The image of socially awkward tech leaders or the stereotypical tech-bro culture does little to inspire public confidence. Big Tech struggles with relatability and genuine connection to the average person. Instead of showing off at SXSW in Austin, Texas, Big Tech would be better served by asking how they can make connections at Eastern Market in Detroit, Michigan. Messages about transforming the world often come across as out-of-touch when not aligned with how most people grapple with day-to-day concerns. Big Tech would be better served by diversifying their voices and crafting messaging that aligns with users' realities.

4. Overcoming the "so what" and better connecting the relevance of new Tech

New tools, dazzling features, and ever-faster product iterations risk alienating users if the "why" gets lost. Big Tech must go beyond selling the next big thing and instead focus on how their technology improves people's everyday lives. When the answer to "So what?" is fuzzy or focuses on Tech for Tech's sake, Big Tech is losing precious opportunities to connect and engage.

Big Tech's challenge is a wake-up call.

Since the 2008 economic crisis, Edelman's research has tracked a steady erosion of institutional trust, a widening divide between the masses and elites, and a concerning spread of misinformation.

This unstable environment poses a significant challenge for Big Tech as it pushes aggressively into Artificial Intelligence (AI).

Consider this: the 2024 Edelman Trust Barometer reveals that trust in traditional authorities is crumbling. Average citizens ("people like me") are now seen as equally trustworthy (74%) as scientists when it comes to information about new technologies. When change feels too rapid, regular people (72%) are deemed more trustworthy than scientists (67%). This underscores a deep public skepticism facing Tech innovation.

AI already polarizes even the most knowledgeable experts. Big Tech faces immense hurdles in gaining widespread public trust, especially as it banks its future on AI-driven solutions. Edelman's data is alarming: 43% of people will actively reject products and services using AI if they perceive this technology as poorly managed. The socioeconomic divide worsens things, with trust in AI among high-income Americans at 43% compared to a dismal 27% among low-income Americans.

To chart a path toward positivity, Big Tech must:

+ Prioritize ethics and transparency: Building systems with inherent respect for user privacy and human-focused design is paramount.

+ Demonstrate actual value: Focus on technology that solves real problems and measurably improves people's lives.

+ Champion diverse voices: Be inclusive and build a diverse network of surrogates and engaging speakers to build a community to serve.

The age of blind faith in Big Tech is coming to a close.

Addressing these core challenges will allow Big Tech to regain its footing and build a future based on genuine trust and positive impact.

Enjoy the ride + plan accordingly.

-Marc

Building Chicago's future: The Bears' new stadium

The Chicago Bears have pledged $2 billion to construct a new city stadium.

The Bear's decision is a bold strategic move encompassing various factors, from enhancing the fan experience to stimulating economic growth and revitalizing the city's infrastructure. This bold initiative not only represents a significant step forward for the franchise and the city of Chicago as a whole but also holds the potential to create numerous job opportunities during the stadium's construction phase.

First, the proposed stadium plan addresses the pressing need for a modernized sports facility that can accommodate the demands of both the team and its passionate fanbase. Soldier Field, the Bears' current home, while steeped in history, has limitations in terms of capacity, amenities, and revenue-generating potential. By investing in a new stadium, the Bears aim to create a state-of-the-art venue that offers an unparalleled game-day experience for fans while providing the team with the resources necessary to remain competitive in the NFL.

The proposed stadium plan could catalyze the revitalization of the surrounding area. Stadium developments have a track record of driving urban renewal projects and spurring investment in infrastructure, residential developments, and commercial establishments. By strategically locating the new stadium in an underdeveloped or neglected neighborhood, the Bears can contribute to the city's efforts to address socioeconomic disparities and promote inclusive economic growth.

Regarding sustainability and environmental impact, the Bears have the opportunity to design and construct a stadium that incorporates eco-friendly features and meets high energy efficiency standards. From utilizing renewable energy sources to implementing water conservation measures and green building practices, the new stadium can serve as a model for sustainable development in the global sports industry.

Additionally, a new stadium provides the Bears with increased revenue streams through naming rights, premium seating, and sponsorship opportunities. These additional revenues would enable the team to invest in player development, coaching staff, and state-of-the-art training facilities, ultimately enhancing their competitiveness on the field.

Finally, despite ranking as the country's third-largest media market, Chicago has long been excluded from hosting major events like the Super Bowl and Final Four due to the absence of a large-scale domed stadium. The team's current project seeks to address this issue, with a previous iteration of its stadium plan focusing on a $5 billion initiative featuring a domed venue alongside a mixed-use development. This potential for Chicago to become a hub for major sporting events is exciting for the city and its residents.

I can't wait to visit the new stadium and take in a game.

Enjoy the ride + plan accordingly.

-Marc

The geopolitics of TikTok

Recent estimates indicate that TikTok boasts approximately 80 million monthly active users (MAUs) in the United States alone.

Among these users, there's a demographic breakdown of 60% female and 40% male. Notably, 60% of the MAUs fall within the age bracket of 16-24, amounting to 48 million users, while 26% are aged between 25-44, totaling 21 million users.

TikTok's user base predominantly consists of the youth and those aspiring to capture a youthful vibe.

Interestingly, TikTok is under the umbrella of the Chinese internet company ByteDance.

Washington seeks to exert more influence and oversight over how TikTok engages with American users.

During the Trump administration, there was a significant move to ban the app within 45 days. However, the decision was later reconsidered, shifting towards advocating for the sale of TikTok to a US buyer, with the expectation of the US receiving a substantial share of the sale proceeds.

TikTok's leadership geared up to sell its technology to a reputable American corporation but encountered resistance from Chinese Communist Party officials who opposed any such takeover, leading to complications and regulatory hurdles.

The conflict surrounding TikTok has evolved into a major standoff between two global powers, with billions of dollars at stake, potentially shaping cultural and entertainment trends for generations to come.

For the Biden administration, TikTok serves as a significant test case for regulating popular technology while managing the intricacies of the US-China commercial relationship.

TikTok is not just another social media platform; it's akin to handheld television on steroids, offering access to a myriad of global content creators via hyper-personalized channels.

With its AI-driven recommendation engine, TikTok delivers content tailored to individual preferences and quirks. Experts like Kevin Munger from Penn State University note that snappy videos are more efficient at communicating information than traditional text-based content.

Given its television-like nature, there's a growing call for TikTok to be regulated similarly to traditional television under the Communications Act of 1934, although amendments would be necessary to adapt to the digital landscape.

Furthermore, various nations, from Canada to China, have implemented regulations governing television and communications, underscoring the need for similar oversight in the realm of platforms like TikTok.

Last week, a House committee passed legislation that bill that would give TikTok an ultimatum: Break up with the Chinese Communist Party or break up with the US.

Officials from the FBI, Justice Department, and Office of the Director of National Intelligence will brief all House lawmakers on TikTok on Tuesday at 1:00 p.m. ET.

Maeve Sheehey from Bloomberg is reporting that the House is planning to vote Wednesday on the TikTok bill.

Enjoy the ride and plan accordingly.

-Marc