Artificial intelligence Archives | Digital Watch Observatory

MIT method tackles AI overconfidence problem

Researchers at MIT’s Computer Science and Artificial Intelligence Laboratory (CSAIL) have developed a new training approach designed to address a persistent issue in AI systems: excessive confidence in uncertain answers.

The study identifies overconfidence as a by-product of standard reinforcement learning methods, which reward correct outputs without accounting for how those answers are reached.

The proposed method, known as RLCR (Reinforcement Learning with Calibration Rewards), enables models to generate both answers and associated confidence estimates.

By introducing a calibration-based reward mechanism, the system penalises incorrect high-confidence responses and unnecessary uncertainty in correct ones. Across multiple benchmarks, the approach reduced calibration error by up to 90 percent while maintaining or improving accuracy.

Findings suggest that conventional reinforcement learning frameworks unintentionally encourage models to guess confidently, even in the absence of sufficient evidence.

Researchers argue that this behaviour poses risks in applied settings, particularly in sectors such as healthcare, law, and finance, where users may rely heavily on perceived certainty in AI outputs.

Results also indicate that improved confidence calibration enhances practical performance during inference. Selecting answers based on model-reported confidence improves accuracy, suggesting uncertainty-aware reasoning can deliver measurable benefits in deployment.

Why does it matter?

Improving how AI systems express uncertainty directly affects their reliability in real-world use. Models that distinguish between strong and weak answers reduce the risk of users over-relying on incorrect outputs presented with undue confidence.

Better-calibrated systems also enable more informed decision-making, as confidence signals can be used to filter, rank or combine responses. Overall, uncertainty-aware reasoning strengthens trust, safety and practical performance as AI becomes more widely integrated into critical decision processes.

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Australia targets three million learners under AI workforce strategy

Three million people in Australia will be trained in workforce-ready AI skills under Microsoft’s largest AI skilling commitment, set to run through the end of 2028.

The initiative is delivered in partnership with government, industry, education providers and community organisations. It aligns with Australia’s National AI Plan to strengthen national capability and ensure the responsible adoption of emerging technologies.

The programme builds on earlier skilling targets that exceeded expectations, including milestones of one million and 300,000 learners achieved ahead of schedule.

It is supported by Microsoft’s broader A$25 billion (USD 18 billion) investment in digital infrastructure, cybersecurity and workforce development, strengthening long-term national AI capability.

Training will focus on three core areas:

Future workforce development through education systems;
Upskilling of the current workforce;
Expanded access for community groups.

Partnerships with institutions such as TAFE NSW, universities, employers and trade organisations are designed to scale practical AI learning, while also addressing productivity pressures and evolving labour market demands.

Community-focused initiatives aim to reduce digital inequality and broaden access to AI skills, particularly among underrepresented groups. Programmes supporting Indigenous-led organisations and social impact groups aim to widen participation in the digital economy and promote inclusive, responsible AI adoption.

Why does it matter?

The initiative reflects a broader shift towards system-wide AI capability building across education, industry and communities.

Expanding AI skills is intended to support productivity, reduce workforce fragmentation and ensure more balanced access to emerging technologies. It also addresses risks of uneven adoption and widening digital inequality as AI becomes central to economic development.

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OpenAI introduces ChatGPT for Clinicians and HealthBench Professional

OpenAI has launched ChatGPT for Clinicians, a version of ChatGPT designed to support clinical tasks such as documentation, medical research, evidence review, and care consults. The company says the product is now available free to verified physicians, nurse practitioners, physician associates, and pharmacists in the United States.

According to OpenAI, ChatGPT for Clinicians includes trusted clinical search with cited answers, reusable skills for repeatable workflows, deep research across medical literature, optional HIPAA support through a Business Associate Agreement for eligible accounts, and the ability for eligible evidence review to count towards continuing medical education credits. OpenAI also says conversations in the product are not used to train models.

The launch builds on OpenAI’s earlier ChatGPT for Healthcare offering for organisations. OpenAI says clinicians across US health systems are already using that product for administrative work such as medical research and documentation, and describes the free clinician version as the next step in expanding access.

Alongside the launch, OpenAI has introduced HealthBench Professional, which it describes as an open benchmark for real-world clinician chat tasks across care consultation, writing, documentation, and medical research. The company says the benchmark is based on physician-authored conversations, multi-stage physician adjudication, and filtered examples selected for quality, representativeness, and difficulty.

OpenAI also says physician advisers reviewed more than 700,000 model responses in health scenarios, and that before release, clinicians tested 6,924 conversations across clinical care, documentation, and research.

According to the company, physicians rated 99.6% of those responses as safe and accurate, while GPT-5.4 in the ChatGPT for Clinicians workspace outperformed base GPT-5.4, other OpenAI and external models, and human physicians on HealthBench Professional. OpenAI adds that the tool is designed to support clinicians with information rather than replace their judgement or expertise.

The company says the free version is currently limited to verified US clinicians, with plans to expand access to additional countries and groups over time. OpenAI also says it will begin by working with the Better Evidence Network to pilot access for verified clinicians outside the United States, subject to local regulations, and has released a Health Blueprint with recommendations for responsible AI integration in US healthcare.

Why does it matter?

The launch of ChatGPT for Clinicians reflects a shift from general-purpose AI use in healthcare towards clinician-specific products tied to workflow, benchmarking, and compliance. It also shows that competition in medical AI is increasingly centred not only on model capability, but on safety evaluation, evidence retrieval, privacy controls, and integration into real clinical practice.

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Microsoft commits A$25 billion to expand AI and cloud in Australia

Microsoft has announced its largest-ever investment in Australia, committing A$25 billion by the end of 2029 to expand AI and cloud infrastructure, strengthen cyber defence collaboration, and train three million Australians in AI skills by 2028.

The announcement was made alongside Australian Prime Minister Anthony Albanese during Microsoft chief executive Satya Nadella’s visit to Sydney. The company said the investment will expand Azure AI supercomputing and cloud capacity in Australia and increase its local cloud and AI infrastructure footprint by more than 140% by the end of 2029.

The announcement also includes collaboration with the Australian AI Safety Institute, an extension of the Microsoft-Australian Signals Directorate Cyber Shield to additional government agencies, and deeper work on national resilience with the Department of Home Affairs.

Albanese said:

‘We want to make sure all Australians benefit from AI. Our National AI Plan is all about capturing the economic opportunities of this transformative technology while protecting Australians from the risks.’ He added: ‘Microsoft’s long-term investment in our national capability will help deliver on that plan – strengthening our cyber defences and creating opportunity for Australian workers and businesses.’

Nadella added:

‘Australia has an enormous opportunity to translate AI into real economic growth and societal benefit.’ He added: ‘That is why we are making our largest investment in Australia to date, committing A$25 billion to expand AI and cloud capacity, strengthen cybersecurity, and expand access to digital skills across the country.‘

Microsoft said the investment is underpinned by a memorandum of understanding with the Australian Government, tied to national expectations for data center and AI infrastructure developers. It also said it will work with the Australian AI Safety Institute to monitor, test, and evaluate advanced AI systems, including human-AI interaction risks in companion chatbots and conversational AI systems.

Why does it matter?

The scale of the investment links infrastructure, skills, safety, and cyber resilience in a single package aligned with Australia’s AI Action Plan. It also signals that competition over AI capacity is increasingly tied not only to datacentres and compute, but to workforce readiness, regulatory cooperation, and national capability in areas such as cybersecurity and resilience.

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OpenAI privacy model sets new standard for AI-data protection

The US R&D company, OpenAI, has introduced OpenAI Privacy Filter, a specialised AI system designed to detect and redact personally identifiable information in text with high accuracy.

A model that is part of broader efforts to strengthen privacy-by-design practices in AI development, offering developers a practical tool to embed data protection directly into workflows rather than relying on external processing systems.

Unlike traditional rule-based systems, the model applies contextual language understanding to identify sensitive information in unstructured text. It processes inputs in a single pass and supports long-context analysis, enabling efficient handling of large documents.

Local deployment further reduces exposure risks, allowing sensitive data to remain on-device rather than being transmitted to external servers.

Performance benchmarks indicate near frontier-level capability, with strong precision and recall scores across standard evaluation datasets.

The system detects multiple categories of private data, including personal identifiers, financial information, and confidential credentials, while allowing developers to fine-tune detection thresholds according to operational requirements.

Despite its capabilities, the model is positioned as one component within a wider privacy framework instead of a standalone compliance solution.

Human oversight remains necessary in high-risk domains such as legal or financial processing.

Such a release by OpenAI reflects a shift towards smaller, specialised AI systems designed to address targeted challenges in real-world deployments while maintaining adaptability and transparency.

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UK government seeks industry cooperation to strengthen AI-driven cyber resilience

The UK government has called on leading AI companies to collaborate on building advanced cyber defence capabilities, as threats grow in scale and sophistication.

Speaking ahead of CYBERUK, Security Minister Dan Jarvis emphasised that AI-driven security will become a defining challenge, requiring innovation at unprecedented speed and scale.

Government officials warn that AI is already reshaping the threat landscape, with hostile states and criminal groups increasingly deploying automated systems to identify vulnerabilities.

The number of nationally significant cyber incidents handled by authorities more than doubled in 2025, highlighting the urgency of strengthening national resilience.

To address these risks, businesses are being encouraged to sign a voluntary Cyber Resilience Pledge, committing to stronger governance, early warning systems, and supply chain security standards.

Alongside this initiative, the UK government will invest £90 million over the next three years to support cyber defences, particularly for small and medium-sized enterprises.

A strategy that forms part of a broader National Cyber Action Plan, reflecting a shift towards integrating AI into national security infrastructure.

Officials argue that effective cooperation between government and industry will be essential to protect critical systems and maintain economic stability in an increasingly automated threat environment.

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Online safety agreement signed by eSafety and OAIC in Australia

Australia’s eSafety Commissioner and the Office of the Australian Information Commissioner have signed a memorandum of understanding to strengthen cooperation on issues where online safety and privacy intersect.

The agreement formalises communication pathways between the two regulators and builds on existing collaboration. It covers matters including age-assurance requirements under Australia’s online industry codes and standards, as well as compliance by age-restricted platforms with Social Media Minimum Age obligations.

eSafety Commissioner Julie Inman Grant stated: ‘Both regulators have always recognised that combatting certain harms requires privacy and safety to go hand in hand. For example, at eSafety we knew from the outset our implementation of the Social Media Minimum Age would need to recognise important rights, including the right to privacy.’

She added: ‘Our commitment to continue working collaboratively with the OAIC gives formal recognition to that principle and sets out how we will balance and promote privacy and safety for everyone.’

Inman Grant also linked the agreement to emerging risks associated with new technologies and wider regulatory requirements around age assurance. Grant expanded: ‘It comes at an important time, when the proliferation of new technologies like artificial intelligence is amplifying risks and we are increasingly requiring industry to deploy age-assurance technologies that meet their regulatory obligations and respect privacy in the Australian context.’

Australian Information Commissioner Elizabeth Tydd said the memorandum would support the OAIC’s work in monitoring and responding to emerging online privacy risks and help both agencies deliver their statutory functions under the Online Safety Act.

Tydd added: ‘With this memorandum, we’re not only formalising cooperation, but building a foundation where privacy protections and online safety initiatives can better address specific harms side by side, ensuring Australians can be protected when interacting online.’

Why does it matter?

A growing number of online safety measures now depend on systems that also raise privacy questions, especially age-assurance tools and other platform controls involving personal data. The agreement gives both regulators a clearer basis for coordinating oversight as Australia expands enforcement around child safety, platform obligations, and emerging technologies such as AI.

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AI governance debate intensifies amid rapid global expansion

Growing concerns over the pace of AI development have prompted renewed calls for stronger regulatory oversight. Geoffrey Hinton, an AI pioneer and Nobel laureate often referred to as the ‘godfather of AI’, has warned that current systems are advancing without adequate control mechanisms.

Speaking at a United Nations-supported conference, he cautioned that the absence of effective safeguards could expose societies to significant systemic risks.

International policy discussions have intensified alongside the rapid expansion of the sector. Estimates from UNCTAD indicate that the global AI market could increase from $189 billion in 2023 to $4.8 trillion by 2033.

Despite this growth trajectory, the capacity to develop and govern such technologies remains concentrated within a limited number of jurisdictions and corporate actors. Distributional disparities continue to shape the global AI landscape.

Doreen Bogdan-Martin, Secretary-General of the International Telecommunication Union, highlighted that adoption rates in developed economies significantly outpace those in developing regions. She warned, ‘Left unaddressed, this is a second great divergence – widening the gap between countries shaping artificial intelligence and those merely consuming it’.

Structural gaps in infrastructure, investment, and technical expertise remain central to this imbalance.

Ongoing UN processes are seeking to establish a more coherent governance framework grounded in scientific evidence and multilateral cooperation.

Maria Ressa, a journalist and Nobel Peace Prize laureate, cautioned that increasingly sophisticated AI systems may facilitate ‘narrative warfare‘, contributing to institutional erosion and the spread of disinformation.

Findings from the UN’s scientific panel are expected to inform upcoming global discussions aimed at advancing transparent, accountable, and rights-based AI governance.

Why does it matter?

The pace and concentration of AI development are beginning to shape economic power, information ecosystems, and institutional stability at a global scale.

Without coordinated governance, the widening gap between advanced and developing economies risks reinforcing inequality, while misuse of AI systems may weaken trust in democratic processes through disinformation and opaque decision-making.

At the same time, the absence of shared regulatory standards increases systemic uncertainty for governments, businesses, and citizens as AI becomes embedded in essential sectors such as labour markets, education, and public services.

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UNIDIR highlights role of women in AI governance and international security

The United Nations Institute for Disarmament Research highlights the role of women in shaping the digital future, particularly in AI and international security. The organisation stresses the importance of increasing female participation in decision-making.

According to the research Institute, women remain underrepresented in AI and related policy spaces, including diplomacy and security forums. This imbalance risks limiting perspectives in global technology governance.

The organisation’s Women in AI Fellowship programme aims to address this gap by providing training and expertise to women diplomats. Participants gain knowledge across technical, legal and policy aspects of AI.

The research Institute positions inclusion as essential to effective AI governance and security policy, emphasising the need for diverse voices in shaping digital futures globally.

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Ukraine highlights AI strategic shifts

The National Security and Defense Council of Ukraine has published an overview of global AI developments for March 2026, highlighting a shift towards infrastructure and strategic realignment. The report is part of its ‘AI Frontiers’ analytical series.

According to the Council, growing investment and expansion of data centres to fuel AI demands are increasing pressure on energy resources. This is creating new competition not only for computing power but also for energy stability.

The analysis also points to intensifying competition between the US, China and the European Union, extending beyond AI models to supply chains, semiconductors and infrastructure. At the same time, AI is becoming more integrated into defence, cyberspace and information operations.

The Council highlights rising risks linked to disinformation, synthetic content and legal challenges, alongside growing demand for clearer regulation and content labelling as AI adoption expands in Ukraine.

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