Armenian finance minister highlights AI’s economic potential and risks

Armenia’s Finance Minister Vahe Hovhannisyan said AI could support economic growth while also creating new economic and labour-market challenges. He made the comments during a parliamentary discussion on the performance of the 2025 state budget.

Hovhannisyan said the impact of AI is being widely debated internationally and that governments around the world are actively exploring its economic implications. He was responding to questions about AI’s potential effect on GDP growth and the expansion of the tax base.

The minister cited international estimates suggesting that AI adoption could add approximately 0.8 to 1 percentage point to economic growth. He said AI has the potential to generate new forms of employment while supporting productivity and economic growth.

At the same time, Hovhannisyan warned that AI could disrupt existing jobs and create adjustment challenges for labour markets. The remarks were made during discussions on Armenia‘s 2025 budget performance, as the government’s 2026 budget projects economic growth of 5,4%.

Why does it matter?

The comments reflect a broader global debate about AI’s economic impact. Policymakers increasingly view AI as a potential driver of productivity, innovation and economic growth, while also recognising the possibility of labour-market disruption and changing workforce demands.

For emerging economies such as Armenia, the challenge is not only adopting AI technologies but also ensuring that workers and businesses can benefit from them. The long-term impact of AI on growth, employment and public finances will depend on investment, skills development and the ability to adapt to technological change.

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

Canada seeks stronger privacy rights through new digital governance law

The Canadian government has introduced the Protecting Privacy and Consumer Data Act, a major legislative proposal designed to modernise the country’s private-sector privacy framework and strengthen protections in an increasingly AI-driven digital environment.

According to the government, Canada’s existing privacy legislation was developed more than 25 years ago and no longer reflects technological realities such as AI, automated decision-making systems, deepfakes and the large-scale collection of children’s data.

The proposed law seeks to address those challenges by establishing stronger rights for individuals and clearer obligations for organisations.

The legislation would recognise privacy as a fundamental right, strengthen protections for children’s data, require meaningful consent for the collection and use of personal information, and introduce greater transparency around automated decision-making.

Canadians would also gain the right to request the deletion of their personal information and benefit from enhanced safeguards when their data is transferred outside Canada.

The proposed framework would be overseen by a newly established Digital Safety and Data Protection Commission of Canada.

The regulator would have authority to issue binding orders and impose significant penalties on organisations that fail to comply with privacy requirements. The government describes the legislation as a key component of its recently launched national AI strategy, aimed at strengthening trust in digital services, data-driven innovation and emerging technologies.

Why does it matter?

The proposed legislation represents one of Canada’s most significant privacy reforms in decades and reflects a broader international trend of updating data protection frameworks for the AI era. As AI systems, automated decision-making tools and digital platforms become more deeply embedded in everyday life, governments are seeking stronger safeguards for personal data, transparency and accountability.

The bill also signals a growing convergence between privacy policy and AI governance. By introducing stronger protections for children’s data, new rights for individuals and greater oversight of automated systems, Canada is positioning privacy as a key foundation for public trust in digital services and emerging technologies.

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

OECD says governments need stronger delivery capacity for digital transformation

The OECD says governments have made progress in building the foundations of digital government, but must now focus on turning those foundations into measurable benefits for people and businesses.

In its Digital Government Outlook 2026, the OECD says governments are operating under pressure from rapid technological change, fiscal constraints, rising public expectations and the growing adoption of AI. The report argues that digital technologies and data are now essential to public-sector performance, resilience, and trust.

The Outlook draws on the 2025 OECD Digital Government Index and the Open, Useful and Re-usable Data Index. It covers 36 OECD members and eight accession candidate countries, including Argentina, Brazil, Bulgaria, Croatia, Indonesia, Peru, Thailand, and Romania.

The report finds that OECD countries have strengthened key digital foundations, including shared infrastructure, interoperable systems, digital identity, cloud services and open data frameworks. The average Digital Government Index score rose from 0.61 in 2023 to 0.70 in 2025, while the OURdata Index increased from 0.48 to 0.53.

However, the OECD says progress remains uneven. Countries tend to perform better in setting strategic direction and policy frameworks than in implementation and monitoring. The report says governments often have strategies and enabling mechanisms in place but struggle to embed them in day-to-day operations, workflows and accountability systems.

AI adoption is one of the main areas where this gap is visible. The OECD says AI is already used in at least one area of government in almost every OECD country, and most countries have strategies, oversight bodies, and training programmes. Yet only 28% of OECD countries systematically assess the financial and non-financial impacts of AI use in government.

The report also points to gaps in digital skills and investment evaluation. Only six OECD countries have a dedicated strategy for developing digital skills among civil servants, while just one in four systematically evaluates whether completed digital projects delivered their intended results.

The OECD says the next phase of digital government should focus on wider adoption of interoperable systems, stronger data governance, more strategic investment and skills development, trustworthy AI at scale, and more joined-up, user-centred public services. The OECD argues that governments must move beyond fragmented digital initiatives and embed digital technologies, data and AI into everyday public-sector operations.

Why does it matter?

The report suggests that the challenge facing digital government is no longer primarily technological. Many governments have already established digital identities, cloud infrastructure, interoperable systems and data frameworks. The next challenge is ensuring these foundations translate into better public services, greater efficiency and stronger public trust.

The findings also highlight a growing implementation gap in areas such as AI. While governments are increasingly adopting AI tools and digital technologies, many lack the skills, evaluation frameworks and governance mechanisms needed to measure outcomes and scale successful initiatives. As a result, the effectiveness of future digital government reforms may depend less on technology adoption and more on institutional capacity and execution.

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

European Commission opens applications for RAISE AI research advisory board

The European Commission has opened applications for the RAISE High-Level Academic Advisory Board, inviting leading researchers in AI and AI-enabled science to help shape Europe’s future AI research agenda.

The advisory board will support the implementation of the EU’s AI in Science Strategy and provide independent scientific guidance on the development of RAISE (Resource for AI Science in Europe).

RAISE was launched in 2025 under Horizon Europe to strengthen European leadership in both fundamental AI research and the application of AI across scientific disciplines.

The Commission is seeking academics with expertise in AI research or experience applying AI in fields such as medicine, climate science and advanced materials. Board members will provide strategic recommendations on research priorities, governance structures, benchmarks and framework conditions needed to accelerate AI-enabled scientific discovery.

Through RAISE, the EU aims to bring together leading researchers, computational resources, data and funding within a coordinated ecosystem that supports scientific excellence and strengthens Europe’s position in global AI research and innovation.

Why does it matter?

The initiative reflects growing recognition that AI is becoming a foundational tool for scientific discovery across disciplines ranging from healthcare and climate research to materials science and physics. Governments are increasingly investing in AI research infrastructure to ensure that researchers have access to the computing power, data and expertise needed to remain globally competitive.

The advisory board also highlights Europe’s ambition to play a larger role in shaping the future of AI-enabled science. By coordinating talent, infrastructure and funding through initiatives such as RAISE, the EU aims to strengthen both its scientific capacity and its position in the global race for AI innovation.

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

Humanists UK urges government to adopt human-centred AI principles

Humanists UK has urged the UK government to place human dignity, democratic oversight and human flourishing at the centre of AI governance.

The call followed a House of Lords debate on the impact of AI on human relationships and society, during which peers discussed the ethical, social and regulatory challenges raised by rapidly advancing AI systems.

Humanists UK pointed out to the government the Luxembourg Declaration on Artificial Intelligence and Human Values, adopted by Humanists International in 2025. The declaration argues that AI should support human judgement, the common good, democratic governance, transparency, autonomy and protection from harm.

Lord Michael Cashman, a patron of Humanists UK and member of the All-Party Parliamentary Humanist Group, urged the government not to ‘reinvent the wheel’ and said the declaration already sets out principles relevant to AI governance.

Liberal Democrat peer Lord Clement-Jones said the debate showed a convergence of values across different traditions, including the need for democratic oversight, transparency and safeguards to ensure AI serves human beings rather than replacing them.

Responding for the government, Digital Economy Minister Baroness Lloyd of Effra said AI is already changing the economy, public services and human relationships. She said the government’s responsibility is to ensure that the transformation strengthens rather than diminishes the fabric of society.

Humanists UK said it has written to Baroness Lloyd and shared a copy of the Luxembourg Declaration.

Why does it matter?

The story reflects the growing role of civil society, religious groups and ethical movements in AI governance debates. While it does not signal a new UK policy, it shows how discussions on AI safety are broadening beyond technical risk to include human dignity, democratic accountability, transparency, autonomy and the public interest. Such value-based frameworks may influence how governments frame future AI regulation, assurance and safeguards.

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

Yale proposal targets transparency gap in AI development

Researchers at Yale’s Digital Ethics Center have proposed a copyleft-style licensing framework intended to increase transparency around generative AI models trained on open-source software.

The proposal, called the Contextual Copyleft AI License, would adapt principles from free and open-source software licensing to generative AI. Under the model, AI systems trained on open-source code could be treated as derivative works, requiring developers to make key information about model architecture and training data freely available.

The researchers argue that such a framework could give open-source software developers more control over how their code is used in AI development. They also say it could encourage more genuinely open AI models and reduce ‘open washing’, where systems are marketed as open despite keeping important components closed.

The proposal comes amid wider debates over AI transparency, copyright and the role of open-source software in the development of generative AI. The researchers conclude that the approach may be legally feasible under current copyright law, provided that training AI models on open-source software is not treated as fair use.

The study also notes that open generative AI models can create risks because they may be used to generate deceptive or harmful content. The researchers argue that licensing approaches need to work alongside regulatory safeguards, including rules designed to limit manipulative or deceptive uses of AI.

Why does it matter?

The proposal addresses a central transparency gap in AI development: many generative AI systems rely on open-source software but do not disclose enough about how that software is used, which data is involved, or how the resulting models work. If similar licensing approaches gained traction, they could reshape debates over AI openness, developer rights, copyright and accountability. The proposal also shows how open-source governance tools are being reconsidered for AI systems whose risks and dependencies differ from traditional software.

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

Anthropic AI restrictions reignite debate over AI sovereignty

US government restriction on foreign access to Anthropic’s Fable 5 and Mythos 5 models has triggered broader concerns about AI sovereignty among American allies. The move has raised questions about whether governments and companies outside the United States can reliably depend on frontier AI systems controlled by US firms and subject to national security restrictions.

The directive reportedly required Anthropic to prevent non-American users, including foreign nationals working inside the company, from accessing the models. Anthropic responded by suspending access more broadly, stating that this was the only practical way to comply with the directive.

The immediate dispute centres on concerns that Fable 5 could be jailbroken and used beyond its intended safeguards. However, the broader impact extends beyond one company or one model. Governments, security agencies and companies that had secured access to Anthropic’s most advanced systems reportedly saw those permissions withdrawn overnight.

The Anthropic cutoff has been particularly sensitive for US allies. Reports indicate that the restrictions extended even to partners in the Five Eyes intelligence alliance, including Australia, the UK, Canada and New Zealand. The UK’s AI Security Institute, which has played a leading role in testing and evaluating advanced models, was also reportedly affected.

The episode has strengthened arguments that countries may need greater sovereign AI capabilities rather than relying heavily on frontier models controlled by foreign providers. For allies, the question is not only whether they can access advanced AI systems today, but whether that access can be withdrawn suddenly because of US policy decisions, export controls or national security interventions.

The episode also highlights a difficult policy trade-off for the United States. The United States has a strategic lead in frontier AI and may seek to prevent the most capable systems from being misused or accessed by adversaries. Yet applying broad restrictions to allies and foreign employees could damage trust, disrupt research and push other countries to accelerate domestic AI development.

For middle powers, building AI sovereignty will not be straightforward. Training frontier models requires advanced chips, large-scale compute infrastructure, talent and capital, all of which remain concentrated in a small number of countries and firms. Restrictions on chip exports could also limit the ability of allies to build independent alternatives.

The dispute, therefore, points to a wider geopolitical shift in AI governance. As frontier AI models become more capable, access to them is increasingly being treated as a matter of national security. That could force governments to rethink procurement, cloud dependence, AI testing partnerships and long-term strategies for technological sovereignty.

Why does it matter?

The episode illustrates how access to advanced AI systems is becoming a strategic issue rather than simply a commercial service. As frontier models become increasingly important for research, cybersecurity, defence, innovation and economic competitiveness, governments are beginning to view access controls through the lens of national security and geopolitical influence.

The case also highlights a growing tension between AI leadership and international trust. While countries may seek to restrict access to powerful systems to prevent misuse, abrupt limitations affecting allies can encourage efforts to build domestic AI capabilities and reduce dependence on foreign providers. As a result, debates about AI sovereignty, technological autonomy and strategic resilience are likely to become increasingly central to digital policy worldwide.

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

Japanese researchers develop interpretable AI for materials discovery

Researchers in Japan have developed an interpretable AI method to explain how AI models make predictions in materials discovery. The method analyses features learned by a trained AI model and uses them to identify relationships between atomic structure and optical spectra.

The study was led by researchers from the Institute of Science Tokyo, in collaboration with Tohoku University. The work is expected to be published in the journal Advanced Intelligent Discovery.

AI is increasingly used in materials research to predict how materials behave based on atomic structure. Such models can accelerate materials discovery and reduce reliance on trial-and-error experimentation, but many operate as black boxes, making it difficult to understand how they arrive at specific predictions.

The researchers addressed this problem by analysing a trained AI model that predicts optical absorption spectra from atomic structural data. They extracted features from the model’s internal layers and clustered materials according to shared structural and spectral characteristics.

The team used an atomistic line graph neural network trained on data from 2,681 metal oxides, chalcogenides, and related compounds. The clustering process classified materials into groups sharing structural characteristics such as elemental composition, atomic coordination, bond lengths, bond angles and similar spectral signatures.

According to the researchers, the model learned meaningful relationships between atomic structure and material properties without being explicitly provided oxidation states or electronic configurations as input. The interpretable AI method could therefore help researchers identify the factors behind desired spectral shapes and support more rational materials design.

The approach could also be applied beyond optical absorption spectra. Researchers said the approach could also help explain how atomic arrangements influence other material properties under varying conditions, such as temperature and pressure, opening new possibilities for designing materials with targeted characteristics.

Why does it matter?

One of the main challenges facing the use of AI in scientific research is explainability. While AI systems can identify patterns and generate accurate predictions, researchers often need to understand the reasoning behind those predictions before they can confidently apply them in experimental settings.

By revealing how AI models connect atomic structures with material properties, interpretable AI could make machine learning a more effective tool for scientific discovery. The approach may help accelerate the development of advanced materials for applications ranging from renewable energy and electronics to sensors and next-generation manufacturing, while improving trust in AI-assisted research.

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

Apple delays Siri AI rollout on iOS and iPadOS in EU, citing DMA requirements

Apple has announced that its new Siri AI features will not be available to users in the European Union on iOS 27 and iPadOS 27 when the software is released later this year, citing concerns related to compliance with the EU’s Digital Markets Act (DMA).

According to the company, discussions with European regulators have not resulted in an agreement on how the new AI features could be introduced while maintaining what Apple describes as necessary privacy and security protections.

Apple said the features will remain available to EU users on macOS 27 and visionOS 27. However, users in the bloc will not have access to Siri AI on iPhone, iPad, or Apple Watch, as the watchOS functionality depends on a paired iPhone with Siri AI support.

The company stated that the DMA’s interoperability requirements would require broader access for competing virtual assistants to device functionality and user data than Apple considers appropriate from a privacy and security perspective.

Apple also said it proposed a solution called Trusted System Agent, which it described as an intermediary framework intended to provide third-party virtual assistants with access to device capabilities while maintaining additional security protections. According to the company, it also proposed a phased rollout of Siri AI in the EU while this framework was being developed.

The company said the European Commission did not accept its proposals and that there is currently no timeline for the availability of Siri AI on iOS and iPadOS in the EU.

The announcement highlights ongoing discussions between major technology companies and the EU regulators on implementing the Digital Markets Act. The DMA seeks to increase competition in digital markets by requiring designated gatekeepers to provide greater interoperability and access to certain platform services.

The European Commission has previously stated that the objective of the regulation is to promote contestability and fairness in digital markets while providing users and businesses with greater choice.

Apple’s decision means that some AI features announced at the company’s Worldwide Developers Conference (WWDC26) will not initially be available to EU users on mobile devices. These include new AI-powered assistance capabilities, expanded visual intelligence features, and AI tools integrated across iOS and iPadOS.

The company said it will continue discussions with EU regulators regarding a possible future launch of the features in the European Union.

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

UAE establishes AI and Data Authority

Sheikh Mohammed bin Rashid Al Maktoum has approved the establishment of the Artificial Intelligence and Data Authority, according to the Government of Dubai Media Office. The new body will consolidate public data, AI and digital government functions under a single national framework.

The authority will report directly to the Cabinet and assume responsibilities previously held by several entities, including the Office of Artificial Intelligence, Digital Economy and Remote Work Applications, the Digital Government Regulatory Authority and the UAE Data Office.

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, has been appointed chairman of the authority. Its responsibilities include developing the national AI strategy, managing government data, overseeing digital services, and setting standards for data and AI governance.

According to the Government of Dubai Media Office, the authority will also support research, technical advisory services, cybersecurity and international cooperation on AI and digital government. The initiative forms part of the UAE’s efforts to strengthen its position in the digital economy.

Why does it matter?

The creation of the Artificial Intelligence and Data Authority reflects a growing trend among governments to centralise oversight of AI, data and digital transformation policies. Bringing these functions together under a single institution can improve coordination, support more consistent governance frameworks and accelerate the deployment of digital services.

The move also reinforces the UAE’s ambition to position itself as a regional and global leader in AI and the digital economy. By consolidating responsibilities for AI strategy, data governance, digital services and international cooperation, the new authority is expected to play a central role in shaping the country’s future digital development.

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