Morning Brew - ☕️ Cars are computers

And cybersecurity is critical.
Morning Brew September 28, 2022

Emerging Tech Brew

McKinsey & Company

Happy Wednesday. Tomorrow is the big day: We’re hosting our first-ever Emerging Tech Brew Summit in less than 24 hours.

We can’t wait to see all of you on the screen and show you everything we have in store. From the future of pharma to lab-grown fish and meat, we’ve got it all—and we want you to join the conversation.

Snag your free ticket today!

In today’s edition:

How automakers are trying to keep up with new cyber demands
🛒 Inside Instacart’s plan to digitize the grocery store
Reader poll: iPhone 14 edition

Grace Donnelly, Dan McCarthy, Erin Cabrey

CYBERSECURITY

Cars are computers now too

Cars are computers now too Grant Thomas

The digital transformation comes for us all. Just ask the auto industry.

As automakers develop smarter, more connected vehicles, the storied manufacturing companies face new technical challenges—including cybersecurity.

Zoom in: In 2020, more than 90% of all new cars in the US were connected, according to ABI Research. By 2030, the majority of new cars sold in the US could be EVs, which have even more points of connection.

Experts worry that automakers’ cybersecurity capabilities could struggle to keep pace with the explosion of connectivity.

“People want to do the right thing, but the rate at which the industry is moving toward EVs—we are in no way shape or form ready to absorb this at scale across the board,” David Chaddock, director of cybersecurity at consulting firm West Monroe, told us.

Automotive cybersecurity in 2022 is akin to where software security was around the time Bill Gates published his “Trustworthy Computing” memo at Microsoft in 2002, Chris Valasek, director of product security at the GM-owned self-driving car company Cruise, told us. The industry is aware of its importance but has not yet developed all the standards needed to mitigate risk.

Zoom out: “The runway is way too short for what we need to get it right,” Chaddock said. “It doesn’t mean that it’s not possible, but it’s going to take a big cultural, mental, financial shift to get us where we need to be at scale in the next five [years].”

Keep reading this story on-site.GD

        

TOGETHER WITH MCKINSEY & COMPANY

Digital trust is a must

McKinsey & Company

New research from McKinsey & Co. suggests that consumer faith in a company’s cybersecurity, data protections, and responsible use of AI can make or break business growth.

So, is your company actively working to earn your customers’ digital trust? You may want to ponder that for a second. Companies leading in this area are more likely to see at least 10% revenue and EBIT growth annually. Plus, they’re less likely to experience damaging data breaches + AI incidents.

Lots of companies believe they’re doing just fine when it comes to establishing digital trust...but more than two-thirds are missing digital risks that matter. 

Explore the research: “Why digital trust truly matters” to see what digital trust leaders are doing differently.

        

FOOD TECH

Instacart makes an actual shopping cart

Instacart makes an actual shopping cart Instacart

Ever since Amazon reimagined the grocery store from the ceiling down with its computer-vision-based “Just Walk Out” checkout and the pandemic gave online grocery shopping a major boost, traditional grocers have been feeling the pressure to bring high-tech experiences to IRL stores by adding things like smart carts and robots to their aisles.

With a new slate of grocery tech offerings called Connected Stores, Instacart aims to help grocers compete with the e-comm behemoth through a one-stop shop of features like electronic shelf tags and mobile self-checkout, to connect the online and brick-and-mortar experience, David McIntosh, Instacart’s VP of platform growth and technology, told Retail Brew.

  • The company is opening its first Connected Store in partnership with Good Food Holdings’ Bristol Farms store in Irvine, California, in the coming months.

While Amazon has enough $$ to outfit stores with cameras, McIntosh noted that’s not doable for most of Instacart’s grocery partners.

“We want to arm the industry with these capabilities and tools. We want to enable all of our retail partners,” he said. “We want to be the antidote to Amazon.”

Big picture: The new tech also helps Instacart—often dubbed a “pandemic darling” for cashing in on the Covid-driven online shopping surge—establish its presence in brick and mortar. The company expects 65% of all grocery purchases to continue to occur through 2026, McIntosh said.

Read the full story from Retail Brew here.—EC

        

FROM YOU

Reader poll: iPhone 14 edition

Two hands holding the latest iPhones. Apple

Ah, autumn. A time for lumpy gourds, crisp air, and new Apple device releases.

Last week, we inquired as to whether you all were planning to purchase the new iPhone 14, replete with new features including satellite connectivity capabilities in the US and Canada.

By the numbers: A little over one-fifth (21%) of you said yes, while the remaining 79% said nope. We had about 2,100 readers weigh in.

  • For its part, Apple is reportedly expecting strong demand for the device. In August, it was reported that the company bumped up its initial order volume for the phone by just under 6%, from 90 million units to 95 million.

So far, consumers seem to be opting for the more expensive Pro models. That’s contributed to an expectation of record-high average selling prices for the iPhone in the coming months, with Counterpoint Research projecting the average new iPhone selling price to hit $892 in September and $944 in December, per the Financial Times. As it stands, the record is $873.

Anyway, FWIW, here’s The Verge’s review of the new phones, which opens with this one-two punch: “The iPhone 14 is good. You probably shouldn’t buy an iPhone 14.”

This week’s poll: Would you ride in an electric vertical takeoff and landing vehicle—aka eVTOL, aka air taxi…aka flying car—if given the chance?

Yes
No
IDK

FROM THE CREW

The Crew

Candid convos with industry icons: Hosted by Brew co-founder Alex Lieberman, the Imposters podcast delves deep into the personal and mental challenges some of the biggest names in biz have faced while reaching their most resounding achievements. Listen here.

        

BITS AND BYTES

Bird scooters Bird

Stat: The valuation of the micromobility company Bird has plummeted so far that its co-founder and former CEO’s modest home $22 million mansion is now worth more than his stake in the company.

Quote: “Competition just has too much momentum, and we haven’t executed well enough. So we expect that bottoming. The business will be growing, but we do expect that there continues to be some share losses.”—Intel CEO Pat Gelsinger, speaking at a conference in early September

Read: AI could soon help smartphone cameras do to DSLRs what they did to point-and-shoot digital cameras.

Think like a CFO: Instead of panicking about what may or may not happen in the market, read Oracle NetSuite’s 7-step guide to fortifying your business against recessions and economic downturns. Get it here.*

*This is sponsored advertising content.

WHAT ELSE IS BREWING

  • The FAA released design guidelines for “vertiports,” which are essentially fancy helipads for flying cars.
  • Meta’s head of AI, Yann LeCun, is skeptical that current approaches to deep learning will result in human-level intelligence.
  • Nvidia released a new AI model that could make it easier to spin up 3D objects and characters. In the future, we will all be video-game designers. Speaking of, Stratechery just published a great essay on the current state of Nvidia’s business.
  • An artist has reportedly landed the first known US copyright for a project based on AI-generated art.

FROM THE CREW

Introducing Incrypto

Image of cell phone promoting Incrypto Morning Brew

Coming next week, the newest addition to the Morning Brew family: Incrypto. Our latest newsletter is all about helping you understand the wide world of crypto with, y’know, context. Wondering about Web3? We got you. Dwelling on DAOs or DeFi? Done. NFTs? No problem! We’ll teach you what it all means and why it matters to you.

Like all our newsletters, it’s completely free and takes only 5 minutes to read.

Subscribe now.

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Written by Grace Donnelly, Dan McCarthy, and Erin Cabrey

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