Insyte Weekly: EU's AI strategy, Edtech startup trains 3000 people in STEM, Africa's tourism industry embraces AI, and more

Media & Entertainment

Apple is responding to newly imposed U.S. tariffs on Chinese imports by increasing the number of iPhones manufactured in India for the American market. The tariffs place a 54% rate on goods from China, compared to 26% for those from India, prompting Apple to shift more production outside of China. Reports suggest that up to 50% of U.S. iPhone demand could be met by devices made in India. While Apple seeks an exemption from the tariffs—as it did during the previous Trump administration—it is unlikely to manufacture iPhones in the U.S. due to high costs. To mitigate immediate impacts, Apple has stocked up on inventory, potentially delaying price increases. The company may also pressure suppliers and reduce its own margins to maintain current pricing, which has held steady since 2017. Following the tariff announcement, Apple’s stock price dropped significantly, wiping out $300 billion from its market cap, as investors reacted to its heavy reliance on overseas production.

Nintendo has officially revealed details about the upcoming Switch 2, set to launch on June 5 at a price of $449.99—significantly higher than the original Switch’s $300 price tag. The new console features a larger screen, upgraded controllers, and faster performance, while maintaining its hybrid design that allows players to use it both as a handheld device and when connected to a television. The Switch 2 will debut alongside the release of Mario Kart World, with other titles like Donkey Kong Bananza, Street Fighter 6, The Duskbloods, and Kirby Air Riders also set to launch. Preorders have been delayed due to the impact of President Trump’s newly announced “reciprocal tariffs.” In a CNBC interview, Nintendo of America President Doug Bowser discussed the enhanced technology of the Switch 2, the company’s future in entertainment beyond gaming, and how tariffs could affect console pricing in the U.S.

Edtech

As reported by Boluwatife Omotayo, Stem-A-School, an initiative by Product Hub Africa, has trained over 3,000 students in science, technology, engineering, and mathematics (STEM) to prepare them for global competitiveness. Speaking at the 2025 STEM Conference held at Nile University in Abuja, founder Victoria Oladosu emphasized the urgent need for countries like Nigeria to invest in tech skills, especially amid rapid AI developments. She highlighted that STEM education is crucial for Africa’s future, advocating for more young people to pursue STEM careers to avoid being left behind in the global AI race. The conference featured experts in robotics, aerospace, and AI and underscored Nigeria’s broader goals, as outlined in its draft National AI Strategy, to equip 70% of its youth workforce with AI-related skills by 2030. With Nigeria’s youth median age around 18, the government aims to use this demographic advantage to add $15 billion to the economy through AI. Oladosu’s initiative has reached several educational institutions across the country and is expanding to six universities in Osun State in May to further upskill students. Speakers at the event, including Bosun Tijani and Nile University’s Joshua Abah, reiterated the importance of AI for national productivity and emphasized Nigeria’s role in leading Africa into the fourth industrial revolution.

According to Emma Thompson, American University has launched the Institute for Applied Artificial Intelligence (IAAI) at its Kogod School of Business to enhance AI education, research, and industry engagement through a cross-disciplinary approach. Building on its AI-focused investments since 2023, including 40 AI-integrated courses and partnerships like Perplexity AI, the IAAI will serve as a central hub for embedding AI tools into teaching and applied research across fields such as law, political science, business, and sustainability. The institute will be led by Professors Gwanhoo Lee, Angela Virtu, and Bei Xiao, along with nearly two dozen AI Fellows from various academic divisions. The initiative aims to strengthen student outcomes, foster industry collaboration, and ensure ethical AI leadership, positioning American University as a frontrunner in global AI education. University leaders emphasized that the IAAI represents a strategic move to prepare graduates for a rapidly evolving job market while promoting innovation and responsible AI use.

Fintech

A new report from Hare Strategy Group reveals that nearly 75% of fintech startups fail within their first three years, mainly due to avoidable regulatory compliance issues. Analyzing data from over 400 startups, the study found that regulatory navigation—not technical ability—is often the decisive factor for success. Startups that incorporated compliance planning at the pre-seed stage saw a 64% higher survival rate, and those with regulatory experts on founding teams raised funding nearly three times faster. Key failure points included banking partnership issues and cross-border compliance challenges. The report, Bridging the Compliance Gap: Critical Strategies for Fintech Success in 2025, offers practical frameworks such as a regulatory roadmap and partnership toolkit to help founders address these risks early. Released amid global fintech investments reaching $53 billion in 2024, the study is timely for firms planning Q2 regulatory strategies and seeking long-term viability in the sector.

Apex Fintech Solutions has partnered with Google Cloud to launch Apex Ascend™, a cloud-native trading, clearing, and custodial platform designed to modernize capital markets infrastructure. Built on Google Cloud’s AI-integrated, secure, and scalable technology stack, Ascend delivers real-time data access, advanced analytics, and robust automation tools to fintechs, wealth managers, and institutional investors. Key features include real-time account opening, a live ledger, automated trade execution, and self-service data tools. The collaboration aims to replace outdated legacy systems with a flexible, fast, and secure infrastructure that supports rapid innovation. Apex CEO Bill Capuzzi highlighted the partnership’s impact on accelerating decision-making and innovation, while Google Cloud emphasized its commitment to empowering financial firms with cutting-edge technology.

AI

Microsoft is gradually moving toward developing its own AI models to reduce its reliance on OpenAI, despite their ongoing partnership that extends through 2030. The shift comes amid concerns about the high cost and underwhelming performance of OpenAI’s GPT-4, as well as OpenAI’s expanding ventures, including its $500 billion Stargate project and a $40 billion funding round. Microsoft AI CEO Mustafa Suleyman explained that the company is pursuing an "off-frontier" strategy—developing models a few months behind industry leaders to cut costs and focus on specific use cases. While Microsoft does not aim to create the most advanced models, it is clearly working on building internal AI capabilities. This move is further supported by its integration of third-party models like DeepSeek R1 into its Azure and GitHub platforms and the addition of new features to its Microsoft 365 Copilot, reflecting a broader strategy to gain more control over its AI infrastructure.

The European Union has unveiled a €20 billion initiative to establish AI “gigafactories” across the continent, aiming to compete with global leaders like the U.S. and China in artificial intelligence development. These new sites, much larger than current AI factories, will be equipped with over 100,000 advanced AI processors to support breakthroughs in sectors such as healthcare, biotech, and robotics. The plan is part of the EU's broader strategy to transform Europe into a leading “AI continent” and enhance its technological sovereignty. However, concerns have emerged about the environmental impact of these energy-intensive facilities, particularly their reliance on electricity and water, which could challenge the EU’s climate goals. The European Commission is also considering simplifying its landmark AI Act, despite it not yet being fully in effect. While this move aims to reduce administrative burdens on businesses, consumer advocacy groups warn it may undermine efforts to protect the public from AI-related risks.

Tourism

According to TTW, South Africa is ramping up efforts to attract 15 million international tourists annually by 2030, with the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector playing a pivotal role. A key part of this strategy is a renewed focus on Asian markets, particularly India, where nearly half of the 2023 arrivals were for business, and over 20% were linked to MICE activities. South African Tourism (SAT) has introduced Asia-focused initiatives such as the Trusted Tour Operator Scheme, electronic travel authorisations, and direct flights to make travel more convenient. Cape Town will host Africa Travel Week in April 2025, featuring major events like ILTM Africa and WTM Africa, positioning the city as a global MICE destination. The shift away from traditional markets like the UK and Europe signals a push for diversification, with Asia seen as a major growth area. Industry leaders stress the importance of cultural sensitivity and personalised experiences to cater to Asian travelers, emphasizing offerings like vegan dining, safari adventures, and wellness tourism.

A new industry survey by the African Travel and Tourism Association (ATTA) reveals a growing embrace of generative AI (GenAI) among African tourism businesses, with 85% of participants either already using it or planning to adopt it soon. Conducted across East and Southern Africa, the survey shows that industry leaders—many of them owners, CEOs, and directors—view AI as a strategic asset, not just a technical tool. Among the 58% already using AI, 14.8% report extensive use, while 43.2% use it occasionally, applying it primarily in operations (46.7%), customer experience (42.7%), and strategic planning (39.7%). Interestingly, smaller companies with under 50 employees are showing strong adoption levels, though lack of technical expertise remains the biggest barrier for 81.2% of respondents. Despite this, 71.8% still plan to invest in AI within a year, highlighting a proactive mindset. Confidence in AI’s long-term impact is high, with an average significance score of 73 out of 100 for the next three to five years. According to ATTA CEO Kgomotso Ramothea, this marks a democratization of technology that could empower small tourism operators to compete globally while retaining Africa’s unique, authentic travel experiences.

Retail

Amazon’s new “Buy For Me” feature signals a major strategic shift, allowing its AI agents to purchase products directly from other brand websites when those items aren’t available on Amazon. This move breaks from Amazon’s long-standing model of keeping transactions within its own ecosystem, built on services like Prime, FBA, and in-app payments. While it may seem counterintuitive, the shift is a calculated response to the growing influence of AI shopping assistants that could disrupt how consumers discover and buy products. By enabling seamless cross-platform purchases while keeping users inside the Amazon app, the company aims to remain the primary gateway for online shopping. This strategy reflects Amazon’s broader effort to lead in AI-driven commerce through tools like Rufus and Alexa+, positioning itself as the central hub in the evolving world of AI-powered retail.

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