OECD paper examines competition effects of AI adoption in downstream markets

The OECD has published a competition policy paper examining how AI adoption, including generative and agentic systems, may affect competition in downstream markets.

The paper focuses on how firms use AI as an input into production, service delivery, logistics, and customer engagement, rather than on competition in AI infrastructure or foundation model development. The paper states that AI may support competition by lowering barriers to entry, reducing minimum efficient scale, and supporting product differentiation and innovation.

Generative AI can automate or accelerate cognitive tasks such as writing, coding, summarisation, translation, planning, image generation, and customer support. According to the paper, these tools may allow smaller firms and start-ups to operate with lower staffing and operational costs.

The paper identifies potential gains from AI-enabled personalisation, predictive analytics, and cost reduction. AI tools can help firms offer tailored services, reduce operating costs, and improve matching between consumers and suppliers.

The OECD said the effects of AI adoption may vary depending on factors such as firm size, sector exposure, access to data, and computing resources. Adoption costs, integration challenges, access to data and compute, firm size, and sector exposure can all shape whether AI strengthens competition or reinforces existing market advantages.

The paper identifies competition concerns, including algorithmic collusion, personalised pricing, bundling, and dependence on large model providers or cloud platforms. It also warns that dependence on a small number of model providers, cloud platforms, or proprietary data sources could limit downstream contestability.

The paper describes agentic AI as an emerging issue for competition authorities. Systems made up of multiple coordinated AI agents could reshape search, workflow automation, customer engagement, and consumer choice, while raising new questions about liability, auditability, oversight, and market structure.

The OECD said competition authorities may require a combination of enforcement, market monitoring, regulation, and cooperation to address AI-related market developments. It also identifies areas for further research, including sector-specific impacts in health, finance, professional services, platform services, search, logistics, and creative industries.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Council of Europe highlights role of democracy and AI governance in security

The Council of Europe has called for a legal and democratic framework for European security in its 2026 annual report, warning that the continent cannot separate security from democracy, human rights, and the rule of law.

Secretary General Alain Berset presented his 2026 annual report, titled ‘The New Democratic Pact for Europe in times of rupture’, to foreign ministers from the Council of Europe’s 46 member states during the Committee of Ministers session in Chişinău on 15 May.

The report states that Europe is increasing defence spending and argues that military measures alone cannot provide lasting security. Berset said democratic security depends on legal safeguards, resilient institutions, and public trust.

The report links Europe’s security challenges to Russia’s invasion of Ukraine, foreign information manipulation, and declining trust in democratic systems. It also stresses that safeguards for human rights and democratic principles must keep pace with rapid technological change, including digital technology and AI.

Berset argues that social rights, health, education, and institutional trust have too often been treated as ‘soft security’. He said security depends on public trust in institutions and resilient democratic systems.

The report presents the state of play of the New Democratic Pact for Europe, launched in 2025 to identify integrated responses to democratic backsliding and renew democratic governance across the continent. Its first consultation phase runs until December 2026.

The annual report is structured around six areas: countering information manipulation and disinformation; promoting social rights; defending equal rights and inclusion; safeguarding elections and democratic processes; supporting civic space and fundamental freedoms; and promoting positive use of digital technology and AI, including action against cyber-enabled threats.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

WEF highlights cybersecurity as a strategic economic priority in the AI era

The World Economic Forum said cybersecurity is rapidly evolving into a strategic economic and national security priority as AI systems, geopolitical tensions, and increasingly interconnected digital ecosystems reshape global cyber risks.

During the Annual Meeting on Cybersecurity 2026 held in Geneva, participants discussed how cyber threats are increasingly affecting economic activity, supply chains, financial systems, and critical infrastructure.

The forum said large-scale cyber incidents can disrupt national economies and critical infrastructure. The report referenced a major 2025 cyberattack that disrupted UK automotive production and reportedly contributed to weaker GDP growth, with estimated economic losses reaching approximately £1.9 billion.

WEF argued that organisations are increasingly abandoning compliance-driven cybersecurity models in favour of measurable resilience strategies focused on rapid recovery, operational continuity, incident response readiness, and stronger governance structures.

AI featured heavily throughout the discussions. The forum warned that attackers are using AI almost universally, allowing cyber operations to become faster, more autonomous, and more scalable. Leaders also highlighted emerging risks linked to agentic AI systems, software supply chain vulnerabilities, and quantum computing developments.

Participants stressed that cyber resilience now requires far broader coordination between governments, regulators, businesses, insurers, and infrastructure operators. Public-private cooperation, information-sharing systems, interoperable intelligence frameworks, and cross-border regulatory coordination were described as increasingly necessary to manage systemic cyber risks.

The discussions also focused on cyber-enabled fraud, scams, and online criminal operations that increasingly target both institutions and ordinary citizens across digital ecosystems. Experts argued that cybersecurity strategies must combine technological protection, digital literacy, public awareness, and platform-level safeguards instead of relying solely on reactive responses.

WEF concluded that cybersecurity is becoming inseparable from economic security and strategic stability in the AI era, with future resilience depending heavily on how effectively governments and industries align incentives, quantify cyber risk, and strengthen cooperation across interconnected systems.

Would you like to learn more about AI, tech and digital diplomacyIf so, ask our Diplo chatbot!

YouTube expands AI likeness detection tool to more creators

YouTube said it is expanding its AI likeness detection tool to all eligible creators over 18, allowing more users to identify and request the removal of unauthorised AI-generated videos that use their facial likeness.

The company said the feature, available through YouTube Studio, is intended to detect altered or synthetic videos that may depict a user’s face. Once enrolled, users can review detected matches and request the removal of content that violates YouTube’s Privacy Guidelines.

The platform said likeness detection had recently been introduced as a pilot for creators in the YouTube Partner Program and will now roll out gradually over the coming weeks to all eligible creators aged 18 or older.

YouTube said the tool is intended to help users understand where their likeness appears, safeguard their identity, and protect audiences from being misled by AI-generated depictions.

To enrol, users must grant the platform permission to use likeness-detection technology and complete a one-time verification process. According to YouTube, the tool works only on facial likeness and does not cover other identifying features such as voice.

YouTube said removal requests will be assessed under YouTube’s privacy policy, including whether the content is realistic, whether it is labelled as AI-generated, and whether the person can be uniquely identified. The company also provides exceptions for content such as parody or satire.

YouTube spokesperson Jack Malon said:

‘With this expansion, we’re making clear that whether creators have been uploading to YouTube for a decade or are just starting, they’ll have access to the same level of protection.’

The expansion follows earlier testing with creators and broader availability for groups including public officials, politicians, journalists, and the entertainment industry. It comes amid growing concern about deepfakes affecting both public figures and private individuals.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Vatican establishes commission on AI under Pope Leo XIV

The Vatican has established an Inter-Dicasterial Commission on Artificial Intelligence, approved by Pope Leo XIV, to coordinate work on the implications of rapidly advancing AI technologies.

The decision was formalised in a rescript dated 12 May and published by the Holy See Press Office on 16 May. The document refers to the acceleration of AI development and its widespread use, as well as its potential effects on human beings and humanity as a whole.

The rescript links the initiative to the Church’s concern for the dignity of every human being, especially in relation to integral human development. It says the commission was established by the Cardinal Prefect of the Dicastery for Promoting Integral Human Development, with the approval of Pope Leo XIV.

The commission will include representatives from the Dicastery for Promoting Integral Human Development, the Dicastery for the Doctrine of the Faith, the Dicastery for Culture and Education, the Dicastery for Communication, the Pontifical Academy for Life, the Pontifical Academy of Sciences and the Pontifical Academy of Social Sciences.

Coordination will initially be entrusted to the Dicastery for Promoting Integral Human Development for one year, renewable if necessary. The coordinating institution will facilitate collaboration and information exchange among participating bodies on AI-related activities and projects, including policies on AI use within the Holy See.

Why does it matter?

The commission shows that the Vatican is treating AI as a cross-cutting institutional issue linked to human dignity, social responsibility and internal governance. By involving several dicasteries and pontifical academies, the Holy See is positioning AI not only as a technological matter, but as a question affecting doctrine, communication, education, science, life ethics and integral human development.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!  

UNESCO report warns AI-driven abuse threatens women journalists globally

UNESCO, in partnership with Information Integrity Initiative (III) for UN Women and the International Center for Journalists, has published a new global report warning that online violence against women journalists is intensifying in the AI era, contributing to psychological harm, professional withdrawal, and growing levels of self-censorship.

The report, titled ‘Tipping Point: Online Violence Impacts, Manifestations and Redress in the AI Age’, was released ahead of World Press Freedom Day 2026, and the report examines how digital harassment affects participation in journalism and online public debate.

Researchers found that 45% of surveyed women journalists and media workers reported self-censoring on social media because of online violence, compared with 30% recorded in UNESCO’s 2020 study. Around 22% also reported self-censorship within professional environments.

The study additionally identified severe mental health impacts linked to sustained online abuse. Approximately one quarter of respondents reported being diagnosed with or treated for anxiety or depression associated with online violence, while 13% reported post-traumatic stress disorder.

AI-enabled abuse emerged as a major concern throughout the report. Researchers documented increasing use of deepfakes, manipulated sexual imagery, non-consensual intimate content, cyberflashing, and synthetic media targeting women journalists.

According to the findings, 5% of surveyed participants experienced deepfake or manipulated visual content, while nearly one quarter reported receiving unwanted sexual advances or explicit material through digital messaging systems.

The report also highlighted increasing attempts by journalists to pursue legal accountability. Around 22% reported incidents to police, while 14% initiated legal action against perpetrators, facilitators, or employers. Despite those increases, UNESCO warned that significant barriers to justice remain, including reluctance by authorities to investigate online abuse cases and victim-blaming responses.

These findings align with broader warnings contained in UNESCO’s World Trends in Freedom of Expression and Media Development report, which documented rising attacks against journalists, growing self-censorship, and expanding digital threats to media freedom worldwide.

Why does it matter?

AI systems are lowering the cost and increasing the scale of harassment campaigns, enabling synthetic media, impersonation, and coordinated abuse to spread more rapidly across digital platforms. UNESCO suggests that protecting press freedom increasingly requires stronger platform accountability, digital safety mechanisms, AI governance frameworks, and support systems for journalists facing technology-facilitated abuse.

Would you like to learn more about AI, tech and digital diplomacyIf so, ask our Diplo chatbot!

Malta offers free ChatGPT Plus through AI literacy initiative

OpenAI and the Government of Malta have announced a partnership to provide Maltese citizens with access to ChatGPT Plus through a national AI literacy initiative.

The programme, called AI for All, will require participants to complete a course developed by the University of Malta before receiving one year of ChatGPT Plus at no cost. The course is designed to explain what AI is, what it can and cannot do, and how it can be used responsibly at home and at work.

The first phase is scheduled to launch in May, with distribution managed by the Malta Digital Innovation Authority. OpenAI said the programme will scale as more Maltese residents and citizens abroad complete the course.

OpenAI framed the partnership within its OpenAI for Countries initiative, which supports governments and institutions developing national AI adoption strategies. The company said the Malta model combines a locally designed course, access to ChatGPT Plus and a national programme intended to help citizens use AI for learning, work, creativity and public participation.

George Osborne, Head of OpenAI for Countries, said the partnership reflects a model in which national AI access is paired with skills development. Malta’s Minister for Economy, Enterprise and Strategic Projects, Silvio Schembri, said the initiative is intended to help citizens build confidence and practical skills for a digital economy.

Why does it matter?

Malta’s initiative links access to advanced AI tools with structured AI literacy, rather than treating adoption as a matter of availability alone. By requiring citizens to complete training before receiving ChatGPT Plus, the programme addresses both access and responsible use. It also shows how governments may increasingly shape AI adoption through national skills programmes, partnerships with AI companies and public-facing digital capability initiatives.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Ghana launches WHO-UNDP programme on AI-driven health system resilience

Ghana has launched an AI-driven health programme aimed at strengthening its healthcare system, improving resilience and protecting vulnerable communities.

The initiative is a joint programme by the World Health Organization and the UN Development Programme, funded by the Government of Japan through the UN Trust Fund for Human Security. It is being implemented in collaboration with Ghana’s Ministry of Health.

The programme focuses on integrating AI into Ghana’s health systems in an ethical, inclusive and people-centred way. It aims to strengthen AI governance, protect health data, build institutional and workforce capacity, and expand digital literacy among healthcare workers and communities.

A key component includes the deployment of AI-enabled early warning systems for climate-sensitive diseases, integrated into national platforms such as DHIS2. The programme will also support responsible private-sector engagement in digital health.

Speaking at the launch, WHO Representative to Ghana said the programme would strengthen the country’s digital health ecosystem by advancing AI governance, safeguarding health data and preparing a workforce able to deliver people-centred care.

UNDP Resident Representative Niloy Bernejee said strengthening health systems and responsible digital innovation could reinforce stability, build resilience and support sustainable development.

The initiative is grounded in a human security approach, focusing on protecting and empowering vulnerable and marginalised populations while improving equitable access to digital health solutions.

Why does it matter?

The programme shows how AI is being integrated into health systems not only as a technical tool, but as part of broader governance, resilience and equity planning. By combining early warning systems for climate-sensitive diseases with data protection, workforce training and digital literacy, Ghana is addressing both immediate healthcare needs and longer-term capacity gaps in responsible digital health.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!  

Global experts gather for CPDP 2026

The CPDP Conference 2026 has released its detailed programme, outlining a multi-day agenda of panels, workshops and cultural sessions focused on AI, data protection and digital governance. The conference will run from 19 to 22 May 2026, bringing together global experts across policy, academia and industry.

Across the programme, a wide range of panels and debates will explore key themes including AI regulation, digital governance, workplace data rights and platform power. Alongside panels and discussions, there will also be short movies and workshops offering conference topics in different formats.

Workshops are scheduled throughout each day, with structured breaks including coffee sessions and lunch intervals offering networking moments for participants. Topics range from AI in healthcare and advertising to digital conflict, governance under pressure and privacy-preserving technologies.

The programme also includes specialised tracks and cultural sessions, such as film screenings and artistic discussions on algorithmic systems, alongside academic panels and policy debates. The event will conclude after a final series of workshops and sessions on 22 May in Brussels, Belgium.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

OpenAI responds to TanStack supply chain cyber attack

OpenAI has confirmed that two employee devices were affected during the wider ‘Mini Shai-Hulud’ supply chain attack linked to the compromised TanStack npm package. The AI giant said there is no evidence that user data, production systems, intellectual property or deployed software were compromised.

According to OpenAI, attackers gained limited access to internal source code repositories through credential-focused malware activity, but only a small amount of credential material was successfully exfiltrated, and no customer information or code repositories were altered.

As part of its response, the company isolated affected systems, revoked sessions, rotated credentials and restricted parts of its deployment workflows. OpenAI also launched a precautionary rotation of software signing certificates across products, including ChatGPT Desktop, Codex App, Codex CLI and Atlas. macOS users must update their applications before 12 June 2026, when older certificates will be revoked, and unsupported versions may stop functioning.

The incident reflects growing concern across the technology sector about software supply chain attacks targeting open-source dependencies and CI/CD infrastructure instead of direct attacks against individual firms.

OpenAI said it accelerated new protections after a previous cyberattack, including stricter package verification controls and provenance validation mechanisms designed to reduce risks from compromised upstream libraries.

Would you like to learn more about AI, tech and digital diplomacyIf so, ask our Diplo chatbot!