NSA warns of AI supply chain risks in new cybersecurity guidance

The National Security Agency has released new guidance on managing risks across the AI supply chain, highlighting growing cybersecurity concerns tied to AI and machine learning systems. The joint information sheet outlines how organisations can better assess vulnerabilities when deploying or sourcing AI technologies.

The document defines the AI and machine learning supply chain as a combination of key components, including training data, models, software, infrastructure, hardware, and third-party services. Each element can introduce risks affecting confidentiality, integrity, or availability, particularly as advanced tools such as large language models and AI agents become more widely adopted.

Security risks associated with data include bias, poisoning attacks, and exposure via techniques such as model inversion and data extraction. For models, the guidance warns of hidden backdoors, malware, evasion attacks, and model manipulation. Organisations are advised to use trusted sources, perform integrity checks, and maintain verified model registries to mitigate such threats.

The paper also highlights software and infrastructure vulnerabilities, noting that AI systems often rely on complex dependencies that expand the attack surface. Recommended measures include malware scanning, testing, patching, and maintaining software bills of materials. Additional risks arise from third-party services, which may introduce weaknesses through their own supply chains or shared environments.

To manage these risks, organisations are urged to improve visibility across their AI ecosystems, identify suppliers and subcontractors, and require documentation such as AI and software bills of materials. The guidance aligns with frameworks from the National Institute of Standards and Technology and MITRE, reinforcing the need for coordinated approaches to AI supply chain security.

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Exchange Online outage affecting Outlook access resolved by Microsoft

Microsoft has addressed an Exchange Online outage that disrupted access to email and calendar services for users worldwide. The issue affected multiple connection methods, including Outlook on the web, Outlook desktop, and Exchange ActiveSync.

The company first acknowledged the problem early in the day, saying it was investigating reports of users being unable to access their mailboxes. According to a Microsoft 365 admin centre update, several Exchange Online connection protocols were impacted during the outage.

Although Microsoft later reported that telemetry indicated the issue was no longer occurring for most users, some customers continued to experience access problems. At one point, the Office.com portal also displayed an error message, preventing users from logging in.

Microsoft linked the disruption to an issue within its supporting network infrastructure, which affected how traffic was processed. Engineers implemented configuration changes to restore normal service and continue monitoring the platform to ensure stability.

In a later update, Microsoft confirmed that the Exchange Online outage had been mitigated and that services had been restored. The company said it is still investigating the root cause and will provide further details in a post-incident report, while a separate issue affecting Microsoft 365 Copilot web access remains under review.

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AI reshapes India IT services outlook

India’s $300bn outsourcing industry is facing mounting pressure as AI tools threaten to disrupt traditional business models. A recent sell-off in technology stocks reflects investor concern over automation replacing labour-intensive services.

Fears intensified after new AI tools demonstrated the ability to automate legal, compliance and data processes. Analysts warn such advances could reduce demand for routine IT services and reshape client engagements.

Industry leaders in India argue AI will also create opportunities, particularly in consulting and system modernisation. Firms expect partnerships with AI developers to drive new areas of growth despite near-term disruption.

Revenue growth may slow, and hiring could remain subdued as the sector adapts. Analysts in India expect a gradual shift towards outcome-based services while companies invest in new AI capabilities.

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Advanced AI education unlocks powerful opportunities across Africa

Advanced AI education is expanding across Africa. Google DeepMind has launched new courses to support the next generation of technical learners and reduce the gap between AI talent and opportunities on the continent.

At the same time, the initiative is supported by targeted funding. Google.org is providing $4 million to train lecturers and develop educational toolkits, aiming to strengthen local capacity and scale AI education.

Moreover, the curriculum focuses on practical and technical skills. Learners gain hands-on experience with generative AI models and transformers, including building and fine-tuning language models, moving beyond basic AI literacy.

In addition, the programme is adapted to African contexts. Developed with input from local experts and institutions, such as the African Institute for Mathematical Sciences, the courses include real-world use cases relevant to the continent.

Furthermore, the initiative aims to address Africa’s underrepresentation in AI research. By expanding access to advanced training, it seeks to increase participation and ensure more inclusive global AI development.

Finally, the programme is designed to scale through educators and institutions. Universities and NGOs can integrate the curriculum, supported by training programmes that equip educators to deliver AI courses effectively.

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EU delays tech sovereignty package with AI and Chips Act 2

The European Commission has delayed a flagship tech sovereignty package for the second time, according to its latest College agenda. The measures are now scheduled for adoption on 27 May, after previously being postponed from March to April.

The tech sovereignty package includes several major initiatives aimed at strengthening EU tech sovereignty, such as the Cloud and AI Development Act, the Chips Act 2, an open-source strategy, and a roadmap for digitalisation and AI in energy. European Commission officials have not provided a reason for the latest delay.

The Cloud and AI Development Act is expected to define what constitutes a ‘sovereign’ cloud and simplify rules for building data centres. The proposal is designed to accelerate infrastructure development as Europe seeks to compete in the global AI race.

Chips Act 2 will follow up on the EU’s earlier semiconductor strategy, which struggled to boost domestic chip production significantly. The new proposal is expected to refine industrial policy efforts to reduce reliance on foreign suppliers.

Meanwhile, the planned open source strategy aims to support European software ecosystems and reduce dependence on large US technology firms. By encouraging commercially viable open source projects, the EU hopes to strengthen its long-term digital autonomy.

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UN calls for global action against online scam networks

Online scam networks operating across Southeast Asia are defrauding victims worldwide, using AI, impersonation techniques, and complex cyber tools to steal billions of dollars.

At the Global Fraud Summit in Vienna, the UN Office on Drugs and Crime (UNODC) and INTERPOL brought together governments, law enforcement, and private-sector actors to strengthen international cooperation against these crimes.

Victims include individuals from diverse backgrounds, often highly educated and financially experienced. One Australian couple, Kim and Allan Sawyer, lost more than $2.5 million after engaging with what appeared to be a legitimate investment opportunity. ‘The scammer was extraordinarily believable,’ Kim Sawyer said. ‘He had a British accent, used all the right financial market terms and knew how to induce us by appearing credible every time.’

UNODC officials warn that these operations extend beyond fraud, forming part of a broader criminal ecosystem driven by organised scam networks, involving human trafficking, corruption, and money laundering.

‘We need to be looking into prosecuting high-level criminals, following the money through financial investigations and identifying the giant networks that operate behind these operations,’ said Delphine Schantz, UNODC’s regional representative for Southeast Asia and the Pacific.

Authorities say the scale and complexity of these crimes require a coordinated global response to dismantle scam networks effectively. ‘The complexity of these crimes requires an equally complex, whole-of-government approach and enhanced coordination among governments, financial intelligence units and digital banks,’ Schantz added.

Investigations in countries such as the Philippines and Cambodia have revealed how scam networks operate on the ground. In Manila, a former scam compound uncovered facilities used to control trafficked workers and evidence of corruption linked to local officials. ‘How do you prove a cybercrime in 36 hours? It is not possible,’ said the Philippines’ Presidential Anti-Organised Crime Commission (PAOCC) operations director, recalling the challenges investigators faced during early raids.

In Cambodia, international prosecutors and investigators have focused on improving cooperation mechanisms, including extradition, asset recovery, and the handling of digital evidence. These efforts are seen as critical in addressing the cross-border nature of scam networks.

Despite increased enforcement efforts, these networks continue to adapt and relocate, maintaining a global reach. At recent international meetings, including a summit in Bangkok involving nearly 60 countries and major technology firms, officials agreed on the need for shared intelligence, joint investigations and coordinated prosecutions.

Victims continue to call for stronger responses. ‘The scammer works twice: they take your money, and they take your soul. They really do. They take your self-worth. And then, you feel like you’re being scammed again, by the authorities’ lack of response,’ Sawyer said.

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Publishers challenge OpenAI over alleged copyright infringement

Legal pressure is increasing on OpenAI as Encyclopaedia Britannica and Merriam-Webster file a lawsuit accusing the company of large-scale copyright violations.

According to the complaint, nearly 100,000 copyrighted articles were allegedly used without authorisation to train large language models. Publishers also argue that AI-generated outputs can reproduce parts of their content, raising concerns about unauthorised distribution.

Additional claims focus on how AI systems retrieve and present information. The lawsuit argues that retrieval-augmented generation tools may rely on proprietary databases, potentially undermining publishers’ business models by reducing traffic to original sources.

Concerns are also raised about inaccurate outputs attributed to publishers, which could affect trust in established information providers. The case highlights ongoing tensions between AI development and intellectual property protections.

Growing legal disputes involving media organisations, including The New York Times, suggest that courts will play a key role in defining how copyrighted material can be used in AI training.

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ECA Digital law raises pressure on Big Tech in Brazil

Brazil is set to enforce a new law aimed at strengthening protections for children online, marking a significant shift in how digital platforms are regulated in the country. The legislation, known as ECA Digital, introduces stricter rules for technology companies and will test whether stronger oversight can translate into real-world impact.

The law, which takes effect this week, allows authorities to impose warnings and fines of up to $10 million for violations. In severe cases, courts may order the suspension or banning of platforms operating in Brazil. The measure was passed rapidly following public outrage over online content involving the sexualisation of minors.

ECA Digital builds on Brazil’s existing child protection framework and adapts it to the digital environment. It introduces obligations such as age verification, stricter content moderation, and mechanisms to remove harmful material involving minors without requiring a court order.

The law also targets platform design, requiring companies to limit features that may encourage compulsive use among children. This includes restrictions on excessive notifications, profiling for targeted advertising, and design elements that prolong user engagement.

Enforcement of ECA Digital will be led by Brazil’s data protection authority, ANPD, alongside a new screening centre within the Federal Police. However, implementation challenges remain, including limited regulatory capacity and the short timeline between the law’s approval and enforcement.

Experts say the law reflects a broader global trend, with dozens of countries considering similar measures. While technology companies have introduced tools such as age verification and parental controls, critics argue that bigger changes to platform design and content moderation are still needed.

Brazil’s experience may serve as a test case for how governments balance child protection, platform responsibility, and enforcement capacity. The effectiveness of ECA Digital will depend not only on its legal framework but also on how rigorously it is applied in practice.

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Google launches AI skills initiative to support Europe’s workforce transition

At the Future of Work Forum, Google introduced ‘AI Works for Europe’, a programme aimed at strengthening digital skills and supporting workforce adaptation to AI across the region.

Funding of $30 million will be directed through Google.org to expand training opportunities, alongside broader access to AI certification programmes designed to help individuals and businesses adopt new technologies in practical contexts.

A central focus involves preparing workers and students for labour market changes.

Partnerships with organisations such as INCO are supporting the development of targeted training programmes, particularly in sectors where demand for AI-related skills is increasing, including finance, logistics and marketing.

New educational pathways are also being introduced, including an expanded AI Professional Certificate available in multiple European languages. These initiatives aim to improve AI literacy and provide hands-on experience aligned with employer expectations.

Collaboration with local organisations and institutions remains a key element, reflecting a broader strategy to ensure access to training across different regions and communities.

Efforts to expand AI capabilities across Europe highlight the growing importance of skills development as AI becomes more integrated into economic activity.

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xAI faces lawsuit over alleged misuse of AI image generation

Legal action has been filed against xAI in a US federal court, with plaintiffs alleging that its AI system Grok was used to generate harmful and explicitly manipulated images of minors.

The lawsuit claims that xAI failed to implement adequate safeguards to prevent the creation of such content, despite similar protections adopted by other AI developers.

According to the filing, the technology enabled the transformation of real images into explicit material without sufficient restrictions.

Plaintiffs seek to establish a class action, arguing that the company should be held accountable for both direct and third-party uses of its models. Legal arguments focus on whether responsibility extends to external applications built using the same underlying AI systems.

The case also highlights broader regulatory challenges surrounding AI-generated content, particularly the difficulty of preventing misuse when systems can modify real images. Questions around platform liability, safety standards, and enforcement are likely to shape future policy discussions.

Growing scrutiny of AI developers reflects increasing concern over how generative systems are deployed, especially in contexts involving sensitive or harmful content.

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