WTO highlights AI opportunities for small businesses

The WTO’s Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) has highlighted AI as a key tool for helping small businesses compete in international trade.

During meetings on 29 and 30 June, WTO members explored how AI could strengthen supply chains, reduce trade barriers and help smaller firms navigate an increasingly uncertain global trading environment. The group also welcomed Ghana as its 106th member.

One of the highlights was the announcement of the 2026 Small Business Champions, recognising organisations using AI to support international trade.

Zambia’s Rinato Space was selected to apply satellite technology and AI to provide climate monitoring, early warning systems and capacity-building services for smallholder farmers, helping improve agricultural productivity and export opportunities.

France-based Koaloo.FI was also recognised for using generative AI to automate environmental, social and governance compliance, assess supply chain risks and improve access to financing for small suppliers.

The competition also recognised Colombia’s Cámara Colombiana de Informática y Telecomunicaciones and the Center for International Private Enterprise for developing an AI governance roadmap for Latin America that includes affordable AI tools for MSMEs.

Türkiye’s Globby was honoured for creating an AI-powered trade intelligence platform that helps small businesses identify international market opportunities and participate more effectively in global commerce.

WTO members acknowledged persistent barriers to AI adoption, including limited digital infrastructure, fragmented international standards, shortages of technical expertise, constrained access to finance and the need for supportive legal and regulatory frameworks.

WTO officials also presented ongoing initiatives, including preparations for the upcoming World Trade and Tech Day, alongside new AI-related learning tools and digital trade resources.

The meeting also focused on broader trade uncertainty affecting small businesses worldwide.

The meeting also addressed broader trade uncertainty affecting MSMEs. Representatives from organisations including World Intellectual Property Organization, the International Finance Corporation, the International Telecommunication Union, the Food and Agriculture Organization and the Pan African Alliance of Small and Medium Industries presented initiatives to improve market access, trade finance, intellectual property protection and digital trade participation.

Why does it matter?

The discussions reflect a growing recognition that AI is becoming an important enabler of international trade, particularly for smaller businesses that often lack the resources to compete with larger firms. By helping automate compliance, improve supply chain management and identify export opportunities, AI could reduce longstanding barriers to global market participation.

At the same time, the meeting highlighted that technology alone is not enough. Expanding the benefits of AI for MSMEs will depend on investment in digital infrastructure, skills, financing and interoperable regulatory frameworks, making international cooperation an increasingly important component of digital trade policy.

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Vietnam’s new e-commerce law takes effect

Vietnam’s Law on E-commerce came into effect on 1 July 2026, modernising the country’s digital economy framework after more than a decade of rapid growth in online commerce. The law addresses gaps that previous regulations failed to close, particularly around intermediary platforms, cross-border e-commerce, counterfeit goods, commercial fraud, and consumer rights infringements.

Under the new law, e-commerce platforms must verify sellers’ identities, disclose information about sellers, products and transaction terms, proactively identify violations, and establish effective complaint-handling mechanisms. They are also required to retain transaction data, provide it to authorities on request, and strengthen product information requirements, particularly for sensitive goods.

The legislation also promotes greener e-commerce through more efficient logistics and environmentally friendly packaging, while creating new opportunities for SMEs, household businesses and startups. Consumer protections have been strengthened through clearer rules on complaints, refunds, compensation and personal data, with experts expecting consistent enforcement to improve market confidence over time.

Major e-commerce platforms operating in Vietnam have already begun adapting, including by expanding the use of near-field communication (NFC) technology for seller verification and AI to detect counterfeit and intellectual property-infringing products. Although compliance costs may initially increase, the reforms are expected to reward businesses that invest in higher standards and strengthen the long-term development of Vietnam’s digital marketplace.

Why does it matter?

Vietnam’s new law reflects a broader shift towards platform accountability in digital commerce. By requiring marketplaces to verify sellers, retain transaction data and proactively tackle fraud and counterfeit goods, the government is placing greater responsibility on intermediaries to ensure the integrity of online marketplaces.

The legislation also illustrates how digital economy regulation is evolving beyond consumer protection alone. Combining AI-enabled enforcement, stronger data governance and sustainability measures, the framework aims to support long-term growth in e-commerce while increasing trust in Vietnam’s rapidly expanding digital economy.

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US House of Representatives passes Kids Internet and Digital Safety Act

The US House of Representatives has passed the Kids Internet and Digital Safety Act in a bipartisan 267-117 vote, advancing a broad package that combines 14 online child safety proposals into a single piece of legislation.

The legislation includes provisions requiring AI chatbots to remind users they are not human, provide mental health resources, encourage regular breaks and avoid promoting potentially harmful topics. Lawmakers also removed the original Kids Online Safety Act’s proposed ‘duty of care’ provision after concerns it could lead to censorship, a decision criticised by several senators who co-authored the earlier bill.

Critics, including digital rights organisations and several lawmakers, argue the legislation weakens existing protections and does not go far enough in holding technology companies accountable. The Electronic Frontier Foundation warned that compliance could encourage widespread age verification, potentially requiring users to submit personal information and raising concerns about privacy and freedom of expression.

Supporters reject those criticisms, arguing that the bill does not explicitly require age verification but instead strengthens safeguards for minors and expands parental controls. The legislation now moves to the Senate, where it is expected to face further scrutiny.

Why does it matter?

The legislation represents one of the most comprehensive federal efforts to strengthen online child safety in the United States. Its inclusion of AI chatbot requirements reflects growing recognition that conversational AI introduces new risks for younger users that existing online safety frameworks were not designed to address.

At the same time, the bill highlights the continuing challenge of balancing child protection with privacy and freedom of expression. As it moves to the Senate, debate is likely to focus on whether stronger platform accountability can be achieved without expanding age verification requirements or creating incentives for broader online censorship.

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Singapore proposes Digital Infrastructure Bill to strengthen cloud security

Singapore has launched a public consultation on a proposed Digital Infrastructure Bill that would establish a comprehensive regulatory framework for major cloud computing services and data centres.

Published jointly by the Ministry of Digital Development and Information and the Infocomm Media Development Authority (IMDA), the draft legislation aims to strengthen the resilience and security of critical digital infrastructure while introducing mandatory environmental sustainability standards for data centre operations.

The Bill recognises digital infrastructure as a foundation of Singapore’s digital economy, supporting services ranging from digital banking and e-commerce to cloud platforms and public administration. Unlike earlier amendments to the Cybersecurity Act, which focused primarily on cyber risks, the proposal extends regulatory oversight to operational resilience, business continuity, disaster recovery and environmental sustainability.

A central feature is a new licensing regime for major foundational digital infrastructure (FDI) providers. Cloud providers generating at least S$100 million annually from Singapore-based customers through Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) offerings would require a major FDI licence.

Cloud and colocation data centres with a critical IT load of at least 10 megawatts serving third parties would also fall within the regime. Licensed providers will be required to implement robust physical security and cybersecurity measures, maintain business continuity and disaster recovery plans, and report cybersecurity incidents and service disruptions to IMDA.

The Bill also establishes a separate licensing regime for data centres with a critical IT load of at least 3 megawatts. In addition to operational capability, applicants would be assessed against energy efficiency, water efficiency and broader sustainability criteria.

Beyond operational capability, applicants will be assessed on energy efficiency, water efficiency and broader sustainability considerations. Licensed operators will initially need to comply with facility-level Power Usage Effectiveness (PUE) requirements, while the legislation enables future regulations covering IT equipment efficiency and water consumption.

Singapore’s Green Data Centre Roadmap and previous voluntary industry standards will therefore evolve into legally enforceable baseline requirements across the sector.

IMDA would receive broad enforcement powers, including the authority to grant, suspend and revoke licences, issue binding codes of practice, conduct investigations and impose financial penalties. The Bill also proposes amendments to Singapore’s Cybersecurity Act to ensure consistency across the country’s digital infrastructure framework. Public consultation remains open until 22 July 2026.

Why does it matter?

The proposed legislation reflects a growing shift in how governments view digital infrastructure. As cloud computing and data centres become increasingly critical to AI, financial services and public administration, policymakers are expanding regulation beyond cybersecurity to include operational resilience, business continuity and environmental sustainability.

Singapore’s approach could also serve as a model for other digital hubs. By combining resilience requirements, licensing, cyber oversight and sustainability obligations within a single regulatory framework, the Bill illustrates how governments are adapting infrastructure governance to support the rapid growth of cloud services and AI-driven computing.

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UN scientific panel publishes first global AI assessment ahead of Geneva governance dialogue

The United Nations’ Independent International Scientific Panel on Artificial Intelligence has published its first preliminary report, providing an evidence-based assessment of AI’s opportunities, risks, and societal impacts ahead of next week’s inaugural Global Dialogue on AI Governance in Geneva. Rather than prescribing specific policies, the report aims to inform international discussions by providing an independent scientific foundation for AI governance decision-making.

Established by the UN General Assembly in August 2025 following commitments made in the Global Digital Compact, the panel brings together 40 independent experts from academia, civil society, the private sector, and the technical community. It is the first permanent UN scientific body dedicated exclusively to assessing the development and societal implications of AI. The report will serve as a key input to the Global Dialogue on AI Governance, which takes place on 6–7 July alongside the World Summit on the Information Society (WSIS) Forum and the AI for Good Global Summit in Geneva.

The preliminary report examines AI through four broad dimensions:

  • Scientific and technological developments;
  • Opportunities for sustainable development;
  • Emerging risks;
  • Approaches to international governance.

Instead of advocating a particular regulatory model, the panel seeks to establish a shared evidence base that can support future policymaking and international cooperation on AI.

Rather than focusing solely on risks, the report examines AI’s growing role across sectors, including healthcare, education, agriculture, scientific research, and public administration. It describes AI as a general-purpose technology with the potential to accelerate innovation, improve productivity, and expand access to knowledge and public services. At the same time, the panel notes that these benefits remain unevenly distributed across countries and regions, with significant disparities in access to computing infrastructure, technical expertise, and digital resources.

The report estimates that more than one billion people now use AI-powered services each week, while frontier AI capabilities remain concentrated among a relatively small number of companies and countries. According to the panel, this concentration extends beyond AI models themselves to include computing infrastructure, specialised hardware, large-scale datasets, and technical talent, raising broader questions about equitable access to AI and the distribution of its benefits.

The panel also highlights the challenges facing developing countries, warning that many risk becoming primarily consumers rather than producers of AI technologies if investment in local infrastructure, research ecosystems, digital skills, and governance capacity does not keep pace with global developments. It identifies multilingual AI, locally relevant datasets, and stronger scientific capabilities as important factors in ensuring that AI systems better reflect diverse societies and languages rather than reinforcing existing global disparities.

Alongside these opportunities, the report identifies a range of emerging risks associated with increasingly capable AI systems. These include the use of AI for cyberattacks, fraud, disinformation, election interference, and other malicious activities, as well as broader concerns related to market concentration, transparency, and the growing dependence of many countries on a limited number of AI providers. The panel also notes that many governments currently lack the technical capacity to evaluate the most advanced frontier AI models independently.

Beyond security-related concerns, the report identifies environmental sustainability as an increasingly important governance issue. It notes that the rapid expansion of AI requires increasing amounts of computing power, electricity, water, and specialised hardware, and argues that future AI development should balance technological progress with efficient resource use and broader sustainable development objectives.

Speaking at the report’s launch, UN Secretary-General António Guterres said that the pace of AI development requires stronger international cooperation grounded in scientific evidence and inclusive dialogue.

Panel co-chair Maria Ressa described the publication as an independent scientific assessment designed to inform, rather than replace, intergovernmental decision-making. The report itself states that ‘effective AI governance requires international cooperation,’ while recognising that governance approaches will continue to reflect different national circumstances and policy priorities.

The publication marks the first major output of the Independent International Scientific Panel on AI since its establishment under the Global Digital Compact. Future reports are expected to provide regular scientific assessments of AI capabilities, impacts, and governance challenges as the technology continues to evolve.

Why does it matter?

As governments, international organisations, researchers, and industry representatives gather in Geneva next week for the inaugural Global Dialogue on AI Governance, the preliminary report is expected to provide an important reference point for discussions on the future of AI. By combining scientific evidence with a broad assessment of opportunities, risks, and governance considerations, it seeks to support a more informed international conversation on how AI can contribute to sustainable development, human rights, and shared global prosperity.

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France and WHO call for stronger safeguards for children online

French President Emmanuel Macron and World Health Organization Director-General Tedros Adhanom Ghebreyesus have called for stronger governance of digital environments to protect children’s health and well-being.

In a joint statement, they argued that social media, gaming platforms, AI and other digital services are increasingly shaping children’s physical, mental and social development.

The authors said digital technologies can support education, healthcare access, creativity and social inclusion, especially for children in remote or disadvantaged communities. However, they argued that these benefits depend on how digital services are designed, regulated and governed.

The statement warns that excessive or poorly governed digital exposure can be linked to anxiety, depression, sleep disruption, sedentary behaviour, online exploitation, harmful content and misinformation amplified by recommendation systems.

Macron and Tedros also describe generative AI as a force multiplier for both opportunity and risk. They said AI could support education, accessibility and healthcare, but warned that its long-term effects on children’s emotional development, relationships and well-being remain uncertain.

The authors pointed to growing international momentum behind child online safety measures, including age restrictions, stronger age assurance and safety-by-design standards.

They called on governments, technology companies, researchers, educators and civil society to build healthier digital ecosystems through regulation, transparency, independent research and stronger safeguards for children.

Why does it matter?

The intervention places child online safety within the language of public health. That broadens the debate beyond content moderation and screen-time advice to include platform design, recommendation systems, business models, AI deployment and digital governance. It also reflects growing international pressure for age-appropriate design, stronger age assurance and safety-by-design rules, while leaving open difficult questions about privacy, enforcement and children’s access to beneficial digital services.

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UK and Germany deepen AI safety cooperation

The United Kingdom and Germany have agreed to strengthen cooperation on AI safety and security, expanding collaboration on advanced AI evaluation, cybersecurity risks and research into frontier AI systems.

Both governments described AI as one of the most consequential technologies of the era, offering significant economic and societal benefits while creating new security risks that require closer international cooperation.

The cooperation builds on the UKGermany Strategic Science and Technology Partnership, a priority initiative under the UK-Germany Friendship and Bilateral Cooperation Treaty signed last year.

Under the partnership, the UK’s Department for Science, Innovation and Technology and AI Security Institute will work alongside Germany’s Federal Ministry for Digital Transformation and Government Modernisation, the Federal Ministry of the Interior and the German AI Safety and Security Institute.

The partners will deepen institutional cooperation by sharing best practices in AI evaluation, aligning research priorities and exchanging expertise. The collaboration will also examine the cybersecurity implications of advanced AI systems and contribute to the international evidence base on AI safety.

Germany’s Minister Dr Wildberger said the cooperation is open by design and reflects Germany’s position as an EU member state, including the role of the EU AI Office under the EU AI Act. He said the work is intended to be consistent with each country’s engagement with other partners.

UK Secretary Liz Kendall said the UK and Germany are natural partners on AI safety and security because their scientific communities are connected and their security interests are closely aligned.

She said the statement reflects a shared determination to ensure the public benefits from advanced AI while risks are rigorously understood and managed.

The partnership adds to a growing international network of public-sector AI safety institutions. Both governments said their work is intended to complement broader international initiatives while contributing new research and practical experience.

Why does it matter?

The agreement reflects a broader shift in AI governance from national initiatives to international cooperation. As advanced AI systems become more capable, governments are increasingly pooling expertise to improve model evaluation, understand emerging risks and develop common approaches to AI safety and security.

The partnership also reinforces the growing connection between AI governance and cybersecurity. By coordinating research, sharing technical expertise and aligning institutional capabilities, the UK and Germany aim to strengthen preparedness for frontier AI risks while supporting the responsible development and deployment of advanced AI technologies.

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UNICEF warns millions of children rely on AI for advice and learning

Millions of children worldwide are already using AI for learning, problem-solving and personal guidance, according to UNICEF, which warns that safeguards are not keeping pace with adoption. Data collected across 10 countries suggests that at least 20 million children have used AI tools, with adoption rates significantly higher than among adults.

UNICEF estimates that around 13 million children use AI to support schoolwork, while approximately two million turn to it for advice on personal concerns. The organisation warns that AI is becoming embedded in children’s lives faster than safeguards and oversight mechanisms are being developed.

Young users also reported concerns about misinformation, scams and AI-generated deepfakes. UNICEF is calling on governments and technology companies to strengthen regulation, improve digital literacy and ensure AI systems are designed with children’s rights and safety in mind.

Why does it matter? 

The findings suggest that AI is already becoming part of children’s everyday lives, influencing how they learn, seek information and even look for personal support. As adoption accelerates, the gap between technological use and effective safeguards could expose young users to misinformation, manipulation, privacy risks and other online harms.

The report also highlights the growing importance of child-centred AI governance. Decisions made now on regulation, digital literacy and safety-by-design are likely to shape how future generations interact with AI, making children’s rights an increasingly important consideration in global AI policy.

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Claude Science launches AI workbench for researchers

Claude Science has been launched as an AI workbench designed to streamline scientific research by bringing data analysis, coding and research tools into a single integrated environment. The platform is designed to help researchers analyse data, run multi-step workflows, and generate publication-ready outputs with full transparency.

The platform consolidates research tools such as databases, coding environments and analysis software, enabling scientists to work across disciplines without switching between applications. Outputs are fully auditable, with embedded code, workflow histories and documentation to support validation and reproducibility.

Claude Science also uses a multi-agent architecture comprising specialist agents and a reviewer agent that verifies calculations and citations. It can be deployed on local infrastructure or high-performance computing systems, allowing institutions to scale AI-assisted research while keeping sensitive data within their own environments.

Why does it matter? 

Claude Science reflects a broader evolution of AI from a standalone assistant to an integrated research platform. By combining specialised AI agents, computational tools and transparent workflows in a single environment, it aims to simplify scientific research while improving reproducibility and collaboration.

The platform also raises broader questions about the future of AI in science. As researchers increasingly rely on AI to support data analysis and experimentation, ensuring transparency, validation and institutional control over sensitive research data will be essential to maintaining scientific integrity and trust.

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Saudi Arabia leads world in digital connectivity

Saudi Arabia has ranked first globally in the International Telecommunication Union’s 2025 ICT Development Index, which measures progress towards universal and meaningful connectivity.

The index assessed 164 economies using indicators grouped around universal and effective connectivity. Saudi Arabia’s Communications, Space and Technology Commission said the result reflects sustained investment in digital infrastructure and the country’s efforts to strengthen the competitiveness of its technology sector.

CST said advanced telecommunications networks have helped support digital economic growth, attract investment and expand the role of technology across the economy.

According to the regulator, Saudi Arabia’s digital economy reached SAR 495 billion in 2024, accounting for 15% of the national GDP. The country’s ICT market was valued at SAR 180 billion in 2024, according to CST, which described it as the largest and fastest-growing in the MENA region.

The regulator also said mobile subscriptions reached 212% of the population, while average monthly data use per person was more than three times the global average.

The ranking supports Saudi Arabia’s broader digital transformation agenda, which links connectivity investment to economic diversification, emerging technology adoption and the growth of digital services.

Why does it matter?

Connectivity is a foundation for digital transformation. High-performing broadband and mobile networks can support cloud services, AI adoption, digital public services and new business models. Saudi Arabia’s ranking also shows how Gulf states are using telecommunications infrastructure as part of wider economic diversification strategies, with digital markets increasingly tied to competitiveness, investment and technological sovereignty.

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