Eddie Hammerman
Appearances
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
It sounds like in this case, they discovered the issue, which I think they're in a better position because they're in more control of the narrative and they can therefore be on the front foot. There are other cases where they could be alerted by a third party. And in that case, if the news gets out before they have a considered response, then that could be more of an issue.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
But they will have a plan in place for things like this. I would say that brands globally... Product recalls happen all the time. In most cases, they are not damaging to the customer, but sometimes they are. In this case, Coca-Cola says it doesn't sound like there's a serious health issue, but clearly it's not a good thing for them.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
And there will be some reputational damage, but there are certain things that brands can do. in cases like this where they can minimise the reputational damage, they need to really rebuild that consumer confidence, and they could ultimately emerge stronger if they do it right.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
So I think in many different cases, but I think you've highlighted the fact that the first step is make sure that the issue is fixed. The first thing you need to do before, even before you go out, is highlight to the regulators, there'll be a regulatory process, but also then clear comms. And that needs to be open, transparent, clear, which it sounds like they're doing now. And it's not easy.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
I mean, I'm looking at the, they've issued a batch codes. I don't know if as a consumer, you've ever looked at the codes on a product or of a can of anything or food.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
No, exactly. They're there for a reason. But most consumers don't have a look at the batch codes. I imagine if it went to a distributor, they would know what to look for and they could highlight them. But for most consumers, it's not easy. They might not even know they're consuming the product. What they will have to do next is prioritise the consumer safety. That's the first thing they will do.
Global News Podcast
Nvidia shares sink as Chinese AI app spooks markets
Regulatory, there's an issue. but also they'll lose trust if they don't and they need to prove that the issue is fixed.