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The UK labour market feels a sharper impact from AI use

Companies are reporting net job losses linked to AI adoption, with research showing a sharper impact than in other major economies. A Morgan Stanley survey found that firms using the technology for at least a year cut more roles than they created, particularly across the UK labour market.

The study covered sectors including retail, real estate, transport, healthcare equipment and automotive manufacturing, showing an average productivity increase of 11.5% among UK businesses. Comparable firms in the United States reported similar efficiency gains but continued to expand employment overall.

Researchers pointed to higher operating costs and tax pressures as factors amplifying the employment impact in Britain. Unemployment has reached a four-year high, while increases in the minimum wage and employer national insurance contributions have tightened hiring across industries.

Public concern over AI-driven displacement is also rising, with more than a quarter of UK workers fearing their roles could disappear within five years, according to recruitment firm Randstad. Younger workers expressed the highest anxiety, while older generations showed greater confidence in adapting.

Political leaders warn that unmanaged AI-driven change could disrupt labour markets. London mayor Sadiq Khan said the technology may cut many white-collar jobs, calling for action to create replacement roles.

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Nova ransomware claims breach of KPMG Netherlands

KPMG Netherlands has allegedly become the latest target of the Nova ransomware group, following claims that sensitive data was accessed and exfiltrated.

The incident was reported by ransomware monitoring services on 23 January 2026, with attackers claiming the breach occurred on the same day.

Nova has reportedly issued a ten-day deadline for contact and ransom negotiations, a tactic commonly used by ransomware groups to pressure large organisations.

The group has established a reputation for targeting professional services firms and financial sector entities that manage high-value and confidential client information.

Threat intelligence sources indicate that Nova operates a distributed command and control infrastructure across the Tor network, alongside multiple leak platforms used to publish stolen data. Analysis suggests a standardised backend deployment, pointing to a mature and organised ransomware operation.

KPMG has not publicly confirmed the alleged breach at the time of writing. Clients and stakeholders are advised to follow official communications for clarity on potential exposure, response measures and remediation steps as investigations continue.

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EU classifies WhatsApp as Very Large Online Platform

WhatsApp has been formally designated a Very Large Online Platform under the EU Digital Services Act, triggering the bloc’s most stringent digital oversight regime.

The classification follows confirmation that the messaging service has exceeded 51 million monthly users in the EU, triggering enhanced regulatory scrutiny.

As a VLOP, WhatsApp must take active steps to limit the spread of disinformation and reduce risks linked to the manipulation of public debate. The platform is also expected to strengthen safeguards for users’ mental health, with particular attention placed on the protection of minors and younger audiences.

The European Commission will oversee compliance directly and may impose financial penalties of up to 6 percent of WhatsApp’s global annual turnover if violations are identified. The company has until mid-May to align its systems, policies and risk assessments with the DSA’s requirements.

WhatsApp joins a growing list of major platforms already subject to similar obligations, including Facebook, Instagram, YouTube and X. The move reflects the Commission’s broader effort to apply the Digital Services Act across social media, messaging services and content platforms linked to systemic online risks.

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France proposes EU tools to map foreign tech dependence

France has unveiled a new push to reduce Europe’s dependence on US and Chinese technology suppliers, placing digital sovereignty back at the centre of the EU policy debates.

Speaking in Paris, France’s minister for AI and digital affairs, Anne Le Hénanff, presented initiatives to expose and address the structural reliance on non-EU technologies across public administrations and private companies.

Central to the strategy is the creation of a Digital Sovereignty Observatory, which will map foreign technology dependencies and assess organisational exposure to geopolitical and supply-chain risks.

The body, led by former Europe minister Clément Beaune, is intended to provide the evidence base needed for coordinated action rather than symbolic declarations of autonomy.

France is also advancing a Digital Resilience Index, expected to publish its first findings in early 2026. The index will measure reliance on foreign digital services and products, identifying vulnerabilities linked to cloud infrastructure, AI, cybersecurity and emerging technologies.

Industry data suggests Europe’s dependence on external tech providers costs the continent hundreds of billions of euros annually.

Paris is using the initiative to renew calls for a European preference in public-sector digital procurement and for a standard EU definition of European digital services.

Such proposals remain contentious among member states, yet France argues they are essential for restoring strategic control over critical digital infrastructure.

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TikTok outages spark fears over data control and censorship in the US

Widespread TikTok disruptions affected users across the US as snowstorms triggered power outages and technical failures, with reports of malfunctioning algorithms and missing content features.

Problems persisted for some users beyond the initial incident, adding to uncertainty surrounding the platform’s stability.

The outage coincided with the creation of a new US-based TikTok joint venture following government concerns over potential Chinese access to user data. TikTok stated that a power failure at a domestic data centre caused the disruption, rather than ownership restructuring or policy changes.

Suspicion grew among users due to overlapping political events, including large-scale protests in Minneapolis and reports of difficulties searching for related content. Fears of censorship spread online, although TikTok attributed all disruptions to infrastructure failure.

The incident also resurfaced concerns over TikTok’s privacy policy, which outlines the collection of sensitive personal data. While some disclosures predated the ownership deal, the timing reinforced broader anxieties over social media surveillance during periods of political tension.

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Siri set for major AI overhaul through Google’s Gemini partnership

Apple is preparing a major AI upgrade for Siri powered by Google’s Gemini models, expected in the second half of February, according to Bloomberg. The update will run on Apple’s Private Cloud Compute infrastructure using high-end Mac chips.

The iOS 26.4 release is set to introduce ‘World Knowledge Answers’, enabling Siri to provide web-based summaries with citations similar to ChatGPT and Perplexity. Deeper integration across core apps such as Mail, Photos, Music, TV, and Xcode is also planned.

Expanded voice controls are expected to let users search for and edit photos by spoken description, as well as generate emails based on calendar activity. Bloomberg also reported Apple is paying Google around $1 billion annually to access Gemini’s underlying AI technology.

Market reaction to the news pushed Apple shares higher, while Alphabet stock also rose following confirmation of the partnership. A spokesperson for Apple declined to comment on the reported developments.

Looking ahead, Apple is developing a chatbot-style assistant known internally as ‘Campos’ to eventually replace the current Siri interface. The system would analyse on-screen activity, suggest actions, and expand device control across future operating systems.

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AI Overviews leans heavily on YouTube for health information

Google’s health-related search results increasingly draw on YouTube rather than hospitals, government agencies, or academic institutions, as new research reveals how AI Overviews select citation sources in automated results.

An analysis by SEO platform SE Ranking reviewed more than 50,000 German-language health queries and found AI Overviews appeared on over 82% of searches, making healthcare one of the most AI-influenced information categories on Google.

Across all cited sources, YouTube ranked first by a wide margin, accounting for more than 20,000 references and surpassing medical publishers, hospital websites, and public health authorities.

Academic journals and research institutions accounted for less than 1% of citations, while national and international government health bodies accounted for under 0.5%, highlighting a sharp imbalance in source authority.

Researchers warn that when platform-scale content outweighs evidence-based medical sources, the risk extends beyond misinformation to long-term erosion of trust in AI-powered search systems.

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Google fixes Gmail bug that sent spam into primary inboxes

Gmail experienced widespread email filtering issues on Saturday, sending spam into primary inboxes and mislabelling legitimate messages as suspicious, according to Google’s Workspace status dashboard.

Problems began around 5 a.m. Pacific time, with users reporting disrupted inbox categories, unexpected spam warnings and delays in email delivery. Many said promotional and social emails appeared in primary folders, while trusted senders were flagged as potential threats.

Google acknowledged the malfunction throughout the day, noting ongoing efforts to restore normal service as complaints spread across social media platforms.

By Saturday evening, the company confirmed the issue had been fully resolved for all users, although some misclassified messages and spam warnings may remain visible for emails received before the fix.

Google said it is conducting an internal investigation and will publish a detailed incident analysis to explain what caused the disruption.

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Meta pauses teen access to AI characters

Meta Platforms has announced a temporary pause on teenagers’ access to AI characters across its platforms, including Instagram and WhatsApp. Meta disclosed the decision to review and rebuild the feature for younger users.

In San Francisco, Meta said the restriction will apply to users identified as minors based on declared ages or internal age-prediction systems. Teenagers will still be able to use Meta’s core AI assistant, though interactive AI characters will be unavailable.

The move comes ahead of a major child safety trial in Los Angeles involving Meta, TikTok and YouTube. The Los Angeles case focuses on allegations that social media platforms cause harm to children through addictive and unsafe digital features.

Concerns about AI chatbots and minors have grown across the US, prompting similar action by other companies. In Los Angeles and San Francisco, regulators and courts are increasingly scrutinising how AI interactions affect young users.

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Australia’s social media ban raises concern for social media companies

Australia’s social media ban for under-16s is worrying social media companies. According to the country’s eSafety Commissioner, these companies fear a global trend of banning such apps. In Australia, regulators say major platforms reluctantly resisted the policy, fearing that similar rules could spread internationally.

In Australia, the ban has already led to the closure of 4.7 million child-linked accounts across platforms, including Instagram, TikTok and Snapchat. Authorities argue the measures are necessary to protect children from harmful algorithms and addictive design.

Social media companies operating in Australia, including Meta, say stronger safeguards are needed but oppose a blanket ban. Critics have warned about privacy risks, while regulators insist early data shows limited migration to alternative platforms.

Australia is now working with partners such as the UK to push tougher global standards on online child safety. In Australia, fines of up to A$49.5m may be imposed on companies failing to enforce the rules effectively.

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