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Codex Security expands OpenAI’s push into cybersecurity tools

OpenAI has launched Codex Security, an AI-powered application security agent that detects hard-to-find software vulnerabilities and proposes fixes through advanced reasoning. By providing detailed context about a system’s architecture, the tool identifies security risks that are often missed by conventional automation.

The system uses advanced models to analyse repositories, construct project-specific threat models, and prioritise vulnerabilities based on their potential real-world impact. By combining automated validation with system-level context, Codex Security aims to reduce the number of false positives that security teams must review while highlighting high-confidence findings.

Initially developed under the name Aardvark, the tool has been tested in private deployments over the past year. During early use, OpenAI said it uncovered several critical vulnerabilities, including a cross-tenant authentication flaw and a server-side request forgery issue, allowing internal teams to quickly patch affected systems.

The company says improvements during the beta phase significantly reduced noise in vulnerability reports. In some repositories, unnecessary alerts fell by 84 percent, while over-reported severity dropped by more than 90 percent, and false positives declined by more than half.

Codex Security is now rolling out in research preview for ChatGPT Pro, Enterprise, Business, and Edu customers. OpenAI also plans to expand access to open-source maintainers through a dedicated programme that offers security scanning and support to help identify and remediate vulnerabilities across widely used projects.

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Data breaches push South Korea toward stricter corporate liability rules

South Korea’s government and ruling party are advancing a second revision of the Personal Information Protection Act to strengthen corporate liability for large-scale data breaches.

The proposed amendment would make it easier for victims of major data breaches to receive compensation and relief. By removing the requirement for victims to prove a company’s ‘intent or negligence’, the amendment would increase companies’ legal liability when user data is compromised, making it more likely that affected individuals can claim damages.

Momentum for stricter rules follows several high-profile incidents, including a recent Coupang data breach that may have exposed personal information linked to numerous user accounts. The case has intensified scrutiny of how firms handle and protect customer data.

South Korea Officials at the Personal Information Protection Commission (PIPC) say victims often struggle to obtain evidence explaining how data breaches occur or how damages arise. The proposed reform would shift a greater evidentiary burden onto companies in disputes over losses.

The amendment would also introduce criminal penalties for anyone who knowingly obtains or distributes leaked personal data, closing a legal gap that currently applies only to employees who unlawfully disclose information. Authorities would gain powers to issue emergency protective orders to limit the spread of compromised data.

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EU considers stronger child protection in Digital Fairness Act

Capitals across the EU are being asked to discuss how stronger child protection measures should be incorporated into the upcoming Digital Fairness Act (DFA).

The initiative comes as policymakers attempt to address growing concerns about how online platforms expose minors to harmful content, manipulative design practices, and unsafe digital environments.

According to a document circulated during Cyprus’s Council presidency of the European Union, member states are expected to debate which concrete safeguards should be introduced as part of the broader consumer protection framework.

Officials are exploring whether new rules should require platforms to adopt stricter safeguards when designing digital services used by children.

The discussions are part of the European Union’s broader effort to strengthen digital governance and consumer protection across online platforms. Policymakers are increasingly focusing on how platform design, recommendation algorithms, and monetisation models may affect younger users.

The proposals could complement existing EU regulations targeting large digital platforms, while expanding protections specifically focused on minors.

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AI legal advice case asks whether ChatGPT crosses legal boundaries

A newly filed lawsuit against OpenAI raises a key issue: Does allowing generative AI systems like ChatGPT to provide legal advice violate laws that bar the unauthorised practice of law (UPL)? UPL means providing legal services, such as drafting filings or giving advice, without the required legal qualifications or a state licence.

The case claims an individual used ChatGPT to prepare legal filings in a dispute with Nippon Life Insurance, prompting the company to argue OpenAI should be held responsible for the outcome.

The lawsuit claims ChatGPT helped the user challenge a settled legal dispute. As a result, the company had to spend additional time and resources responding to filings produced with ChatGPT. The claim alleges tortious interference with a contract, which is the unlawful disruption of an existing agreement between two parties by causing one of the parties to breach or alter it.

Ultimately, this disrupted another party’s contractual relationship. The suit also claims unauthorised practice of law and abuse of the judicial process, which means using the legal system improperly to gain an advantage. It argues OpenAI should be liable because ChatGPT operates under its control. The dispute centres on whether AI systems should analyse disputes and offer legal advice like a lawyer.

Advocates argue the tools could widen access to legal advice. They could make legal support more accessible and affordable for those who cannot easily hire a lawyer. However, US legal frameworks restrict the provision of legal advice to licensed lawyers. The rules are designed to protect consumers and ensure professional accountability.

Critics argue that limiting legal advice to licensed lawyers preserves an expensive monopoly and hinders access to justice. AI-driven legal tools highlight this tension over the future of legal services.

The outcome of this lawsuit will likely hinge on whether AI-generated responses constitute intentional legal advice and if OpenAI can be held liable for such outputs. Even if it fails, the case foregrounds the broader debate about granting generative AI a legitimate role in legal guidance.

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ChatGPT ‘adult mode’ launch delayed as OpenAI focuses on core improvements

OpenAI has postponed the launch of ChatGPT’s ‘adult mode’, a feature designed to let verified adult users access erotica and other mature content.

Teams are focusing on improving intelligence, personality and proactive behaviour instead of releasing the feature immediately.

A feature that was first announced by Sam Altman in October, with an initial December rollout, aiming to allow adults more freedom while maintaining safety for younger users.

The project faced an earlier delay as internal teams prioritised the core ChatGPT experience.

OpenAI stated it still supports the principle of treating adults like adults but warned that achieving the right experience will require more time. No new release date has been provided.

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Pentagon AI dispute raises concerns for startups

A dispute between Anthropic and the Pentagon in the US has raised questions about whether startups will hesitate to pursue defence contracts. Negotiations over the use of Anthropic’s Claude AI technology collapsed, prompting the US administration to label the company a supply chain risk.

The situation in the US escalated as OpenAI secured its own agreement with the Pentagon. The development sparked backlash online, with reports of a surge in ChatGPT uninstalls after the defence partnership announcement.

Technology analysts in the US say the controversy highlights the unusual scrutiny facing high-profile AI firms. Companies such as OpenAI and Anthropic attract intense public attention because widely used AI products place their defence partnerships in the spotlight.

Startup founders in the US are now debating the risks of government contracts, particularly with the Pentagon. Industry observers in the US warn that defence authorities’ contract changes could make government collaboration more uncertain.

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AI copyright warning as 5 major risks outlined in UK Lords report

Concerns about AI copyright are rising after a House of Lords committee report. The report warns that unlicensed use of creative works for AI training threatens the UK’s creative industries.

Large AI systems rely on vast amounts of human-created content, often used without clear consent or compensation. Such developments have intensified debates around AI copyright protections.

The committee argues that the key issues are not the copyright framework itself, but the widespread unlicensed use of protected works and AI developers’ lack of transparency.

The lack of clarity prevents rightsholders from knowing whether their works are being used or from enforcing their rights, raising critical questions about the practical application of AI copyright rules.

The report urges the government to reject the proposed commercial text and data mining exception, introduce stronger protections against unauthorised digital replicas, and safeguard against AI outputs that imitate a creator’s style, voice, or identity.

The committee also calls for legal transparency in AI training data, backing the development of a licensing market, and standards for rights-reservation, data provenance, labelling AI-generated content, and support for UK-governed AI models within a robust AI copyright framework.

Baroness Keeley, committee chair, warned: ‘Our creative industries face a clear and present danger from uncredited and unremunerated use of copyrighted material to train AI models.

Photographers, musicians, authors, and publishers are seeing their work fed into AI models, which then produce imitations that take employment and earning opportunities from original creators.’

Keeley added: ‘AI may contribute to our future economic growth, but the UK creative industries create jobs and economic value now.

In 2023, the creative industries delivered £124 billion of economic value to the UK, and this is set to grow to £141 billion by 2030. Watering down the protections in our existing copyright regime to lure the biggest US tech companies is a race to the bottom that does not serve UK interests. We should not sacrifice our creative industries for the AI jam tomorrow.’

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EU and Canada begin negotiations on a digital trade agreement

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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Data breach hits fintech lender Figure exposing nearly 1 million accounts

Fintech lender Figure Technology Solutions has disclosed a data breach after hackers exposed personal information from nearly one million accounts. Details from 967,200 accounts, including names, email addresses, phone numbers, home addresses, and dates of birth, were compromised.

Figure Technology Solutions, founded in 2018, operates a blockchain-based lending platform built on the Provenance blockchain. The company says it has facilitated more than $22 billion in home equity transactions through partnerships with banks, credit unions, and fintech firms. Despite blockchain security claims, attackers reportedly gained access by manipulating a staff member rather than breaking the underlying technology.

‘We recently identified that an employee was socially engineered, and that allowed an actor to download a limited number of files through their account,’ a company spokesperson said. ‘We acted quickly to block the activity and retained a forensic firm to investigate what files were affected. We understand the importance of these matters and are communicating with partners and those impacted as appropriate.’

Security researchers say the data breach follows a pattern used by groups such as ShinyHunters, who impersonate IT support staff and pressure employees into revealing login credentials through convincing phishing portals.

Once access to corporate single sign-on systems, which allow users to log in to multiple internal applications with a single set of credentials, is obtained, attackers can move across multiple internal platforms, often including services linked to major providers such as Microsoft and Google.

Experts warn that the data breach highlights a wider cybersecurity problem: even advanced technologies such as blockchain cannot prevent attacks that target human behaviour. Criminals can use exposed personal information to launch convincing phishing campaigns or financial scams, reinforcing the need for stronger employee training and security awareness.

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Job losses study by Anthropic reveals 0 evidence of AI driven unemployment

A new Anthropic report finds AI has not yet caused significant job losses, introducing ‘observed exposure’ to measure actual workplace AI use.

Researchers combined language model capabilities with workplace data to identify occupations at risk of disruption. Although AI can perform many tasks, its actual adoption remains much lower across most industries, which is a main finding of the study.

Even in highly digital professions, only a fraction of potential automation results from AI use. For instance, computer and mathematics occupations rank among the most AI-exposed groups. Despite AI’s capability to assist with many tasks, it currently covers only about 33% of them in these fields.

Across the broader economy, many roles experience little or no impact from AI, which represents a key finding. About 30% of workers are in jobs such as cooking, bartending, mechanics, and lifeguarding, where physical tasks dominate, and measured AI exposure is almost zero.

The report also finds no clear evidence that AI adoption has increased unemployment or caused a spike in job losses since generative AI tools began spreading widely in 2022. Rather than triggering sudden job losses, researchers suggest labour-market effects emerge gradually, through slower hiring, shifting skill requirements, and changes in job composition.

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