Scotland sets up national AI agency

The Scottish government has launched a dedicated national agency to drive AI strategy and support local tech companies. Leaders say this effort could help boost the economy and establish the nation as a hub for AI development.

Scotland’s strategy highlights existing tech firms and data projects, including plans for major computing campuses and partnerships with global technology companies. Several research institutions and supercomputing initiatives are contributing to innovation.

Healthcare is a focus for AI adoption, with studies showing that AI tools could improve cancer detection, speed up diagnoses, and reduce workload. Academic projects also aim to develop tools to detect early signs of dementia.

Scottish government officials have acknowledged ethical, workforce and environmental concerns around AI deployment. They say policies will include responsible use, job planning and efforts to maximise renewable energy in support of data infrastructure.

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Deepfakes scandal puts Elon Musk and X under scrutiny in France

French prosecutors have escalated concerns about deepfakes linked to Elon Musk’s platform X, alerting US authorities to suspicions that manipulated content may have been used to influence the company’s valuation.

According to the Paris prosecutor’s office, the controversy surrounding sexually explicit deepfakes generated by Grok, X’s AI tool, may have been deliberately amplified to artificially boost the value of X and its associated AI entity ahead of a planned stock market listing in June 2026.

Authorities in France confirmed they had contacted the US Department of Justice and legal representatives at the Securities and Exchange Commission to share findings related to the deepfakes investigation and potential financial implications.

The case builds on an ongoing French probe into X, which initially focused on alleged algorithmic interference in domestic politics. Investigations have since expanded to include the spread of Holocaust denial content and the dissemination of sexualised deepfakes through Grok.

French regulators have taken additional steps, including summoning Musk for a voluntary interview and conducting searches at X’s local offices, actions he has described as politically motivated. Parallel investigations have also been launched in the UK and across the European Union into the use of AI tools to generate harmful deepfakes involving women and minors.

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Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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Terafab initiative from Elon Musk targets AI and space computing

Elon Musk unveiled his ambitious Terafab project in Austin, describing it as the ‘most epic chip-building exercise in history.’ The initiative, led by Tesla, xAI, and SpaceX, aims to produce 1 trillion watts of compute power annually, much of it intended for space applications.

The project will start with a state-of-the-art semiconductor manufacturing facility in Austin, supporting AI development, humanoid robotics, and space data centres. Musk highlighted current supply chain limitations, stating that building Terafab is essential to secure the chips his companies need.

Musk also shared his vision for a future shaped by ‘amazing abundance.’ Plans include launching satellites from the lunar surface and enabling civilian space travel to destinations such as Saturn, blending cutting-edge technology with long-term space ambitions.

Terafab represents a bold attempt to merge AI, robotics, and space exploration, positioning Musk’s companies at the forefront of next-generation technology and extraterrestrial innovation.

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Deepfake abuse crisis escalates worldwide

AI-generated deepfake abuse is emerging as a serious global threat, with women and girls disproportionately affected by non-consensual and harmful digital content. Advances in AI make it easy to create manipulated content that can spread across platforms within minutes and reach millions.

Data highlights the scale of the issue. The vast majority of deepfake content online consists of explicit material, overwhelmingly targeting women.

Accessible and often free tools have lowered the barrier to entry, enabling widespread misuse. At the same time, the ability to endlessly replicate and share such content makes removal nearly impossible once it is published.

Legal responses remain fragmented, with many pre-existing laws leaving gaps in addressing AI-generated deepfake abuse. Enforcement issues, such as cross-border challenges and limited digital forensics capabilities, make it unlikely that perpetrators will face consequences.

Pressure is mounting on governments and technology platforms to act. Calls for reform include clearer legislation, faster obligations to remove content, improved law enforcement capabilities, and stronger support systems for victims.

Without coordinated global action, deepfake abuse is set to expand alongside the technologies enabling it.

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Telefónica Tech moves to combine AI and quantum computing

Telefónica Tech has partnered with three European firms to bring AI and quantum computing closer together. The collaboration aims to improve how advanced models are developed and deployed across different environments.

The initiative brings together Qilimanjaro Quantum Tech, Multiverse Computing and Qcentroid. Their combined expertise is expected to support more efficient, compact and locally deployable AI systems.

Quantum computing is seen as a way to reduce the heavy processing demands of large AI models. Faster computation could yield more accurate results while reducing the time required to solve complex problems.

Each partner contributes specialised capabilities, from quantum hardware and algorithms to software platforms and orchestration tools. These technologies could support applications such as simulations, edge AI and rapid prototyping.

Telefónica Tech is also strengthening its role in integrating AI and quantum solutions for enterprise clients. The move reflects a broader push to build scalable, sovereign and next-generation digital infrastructure in Europe.

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Essex strawberry-picking robot wins national award for industry collaboration

A University of Essex robotics project designed to automate crop harvesting has won the Best Research Project (Industry Collaboration) award at the 2026 UKRI AI & Robotics Research Awards.

The Sustainable smArt Robotic Agriculture (SARA) project was developed in collaboration with industry partners Wilkin and Sons, JEPCO, and GyroPlant, and addresses three interconnected challenges: food security, labour shortages, and sustainability.

Central to the project is the development of low-cost AgriRobotics systems capable of adapting to different crops, tasks, and growing environments, automating repetitive, labour-intensive farm work whilst reducing wastage, carbon footprint, and dependence on increasingly scarce agricultural labour.

The team delivered a live strawberry-harvesting demonstration at the Innovate UK Robotics Industry Showcase in March, an event aligned with UKRI’s announcement of a £52 million competition for Robotics Adoption Hubs.

Building on the project’s success, lead researchers Professor Klaus McDonald-Maier and Dr Vishwanathan Mohan have launched a spinout company, Versatile RobotX, to accelerate the commercialisation of the technology and extend its global impact.

The SARA project previously won the Best Demonstration category at the same awards in 2025.

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AI-generated songs used in $10 million streaming fraud

A large-scale fraud scheme using AI-generated music has exposed vulnerabilities in streaming platforms and royalty systems. Billions of fake streams were used to divert payments away from legitimate artists and rights holders.

The scheme ran from 2017 to 2024 and involved uploading hundreds of thousands of AI-generated tracks. Automated programs were then used to stream the songs at scale, inflating play counts and generating revenue.

The operation relied on thousands of bot accounts, bulk email registrations and cloud-based systems. Streaming activity was spread across many tracks to reduce detection and maintain consistent earnings over time.

Michael Smith, a 54-year-old from North Carolina, has pleaded guilty to conspiracy to commit wire fraud in federal court. Prosecutors say he obtained more than $10 million and agreed to forfeit over $8 million in proceeds.

Authorities say the case highlights how AI and automation can be used to manipulate digital platforms. The court will determine the final sentence as concerns grow over similar schemes.

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Inspired Education introduces AI-driven learning for primary schools

Inspired Education has unveiled a new AI-enabled primary teaching model designed to modernise traditional learning systems. The programme aims to better align education with how children learn in a digital and fast-changing environment.

The model combines core academic subjects in the morning with applied learning in the afternoon. Students focus on life skills such as problem-solving, entrepreneurship and communication alongside standard curriculum content.

Learning is structured around mastery rather than age, allowing children to progress at their own pace. AI-powered tools are used to personalise lessons and support faster and more adaptive learning outcomes.

The first early-access programme will launch in Central London in January 2027. Further rollouts are planned across cities, including Lisbon, Milan, Madrid, Mexico City, São Paulo and Auckland.

Developers say the approach responds to growing demand from parents for AI-integrated education. The initiative reflects broader efforts to prepare students with digital, practical and future-ready skills.

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