Artificial intelligence

EPO reports record patent demand as AI and digital services boost innovation

The European Patent Office (EPO) has published its Annual Review 2025, revealing that European patent applications exceeded 200,000 for the first time in the organisation’s history.

The milestone reflects growing confidence in the European patent system, supported by continued investment in digital transformation, AI and more efficient patent examination processes under the Strategic Plan 2028.

The Office processed a record 418,868 patent dossiers during 2025, increasing productivity by 4% while maintaining high quality standards and improving the speed of patent searches, grants and opposition proceedings.

User satisfaction also remained high following the EPO’s largest-ever satisfaction survey, involving more than 8,000 participants. Innovation activity continued to grow across strategic sectors including digital technologies, healthcare, advanced materials and battery technologies.

AI played an increasingly important role throughout the patent granting process. The EPO expanded AI-powered tools for patent examiners, including a large language model-based enhancement to its PreSearch system, designed to improve prior art discovery while ensuring examiners retain full control over decision-making.

Additional AI-supported capabilities now assist with document analysis, advanced searches, file allocation and oral proceedings. At the same time, MyEPO continued evolving as the organisation’s central digital platform, while Online Filing 2.0 became the standard filing tool ahead of broader DOCX filing deployment.

The report also highlights the growing success of the Unitary Patent system, with SMEs, universities and public research organisations accounting for nearly half of all Unitary Patents granted to European innovators.

Alongside new innovation intelligence tools such as the Patent Standards Explorer, Digital Library and expanded Deep Tech Finder, the EPO says it is strengthening Europe’s innovation ecosystem through greater transparency, digital services and data-driven patent intelligence.

Why does it matter?

The Annual Review demonstrates how AI is becoming embedded within one of Europe’s most important innovation institutions. Rather than replacing patent examiners, AI is being deployed to improve search quality, accelerate administrative processes and strengthen decision-making while maintaining human oversight.

It also illustrates Europe’s broader strategy of combining AI adoption with digital public services, intellectual property protection and innovation policy.

Record patent demand, expanding use of the Unitary Patent and new digital tools suggest the EPO is positioning itself as a key pillar of Europe’s competitiveness in emerging technologies, particularly as global competition intensifies in AI, semiconductors, advanced manufacturing and deep tech.

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EU launches three new digital skills academies

The European Commission has launched three new Digital Skills Academies focused on AI, quantum technologies and virtual worlds.

The academies were announced during Digital Skills EU Days, an annual event bringing together digital skills projects, national coalitions, policymakers, industry representatives and education organisations from across the EU.

Funded under the Digital Europe Programme, the academies are intended to establish specialised training in critical technology areas and help the EU meet its Digital Decade targets.

The Commission said Europe’s competitiveness and leadership depend on digital talent, linking the initiative to the Union of Skills, the AI Continent Action Plan, the Apply AI Strategy and the Digital Decade Policy Programme.

The new academies add to wider Digital Europe Programme investments in skilling, upskilling and reskilling. The programme has invested more than €294 million in the EU digital skills initiatives covering areas such as data, cloud, cybersecurity and AI.

During the event, the Commission also presented the 2026 European Digital Skills Awards, recognising projects focused on AI literacy, cybersecurity education, digital inclusion, research data management and women’s participation in ICT.

Why does it matter?

The new academies show that the EU is treating digital skills as part of its strategic technology agenda, alongside regulation, infrastructure and industrial policy. AI, quantum technologies and virtual worlds all require specialised expertise, and shortages in these areas could slow deployment across businesses, research institutions and public services. The initiative also supports the EU’s broader goal of strengthening technological competitiveness and reducing dependence on external talent and capabilities.

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South Korea and Japan expand AI and defence cooperation

South Korea and Japan have agreed to expand defence cooperation, including collaboration on AI and other advanced technologies, following talks between South Korean Defence Minister Ahn Gyu-Back and Japanese Defence Minister Shinjiro Koizumi in Seoul. The agreement was reached during a bilateral summit held in Seoul that day.

The ministers agreed to establish regular high-level visits and meetings, resume bilateral naval search and rescue exercises for the first time in nine years, and continue trilateral security cooperation with the United States to support regional peace and stability.

They also agreed to expand exchanges between South Korea’s Black Eagles and Japan’s Blue Impulse aerobatic teams to support search and rescue training. The agreement also included a commitment to strengthen ties in state-of-the-art science and technology, including AI, with the summit taking place at the Ministry of National Defence’s parade ground in Seoul.

Why does it matter?

The agreement marks a further improvement in defence relations between South Korea and Japan, whose security cooperation has often been constrained by historical and political tensions. The resumption of joint search and rescue exercises after nine years reflects growing alignment on shared regional security priorities.

The inclusion of AI and advanced technology cooperation also illustrates how emerging technologies are becoming integral to defence partnerships. As countries increasingly integrate AI into military planning, logistics and operational capabilities, technological collaboration is becoming a strategic component of broader security relationships, particularly within the Indo-Pacific.

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Canada’s CSE expands cyber defence amid growing threats

The Communications Security Establishment Canada (CSE) has published its 2025-2026 Annual Report, detailing the activities of the agency and the Canadian Centre for Cyber Security between April 2025 and March 2026 as cyber threats continued to grow in scale and complexity.

During the reporting period, the Canadian Centre for Cyber Security responded to more than 3,200 cybersecurity incidents affecting federal institutions and critical infrastructure. It also issued 25 alerts, 995 advisories and more than 97,000 notifications through the National Cyber Threat Notification System to 1,363 subscribed organisations.

CSE also took direct action against ten of the ransomware groups causing the greatest harm to Canada and its allies, while completing 1,772 supply chain risk assessments to strengthen cyber resilience across government. During the year, the agency received 13 ministerial authorisations, including four supporting foreign cyber operations.

The report highlights how recent defence investments are supporting work on secure digital infrastructure, stronger cyber defence capabilities, AI, post-quantum cryptography and deeper collaboration with trusted international partners.

Minister of National Defence David J. McGuinty said the report demonstrates the importance of CSE’s work to Canada’s security and economic well-being. Chief of CSE Caroline Xavier noted that the agency will mark its 80th anniversary in 2026 and said recent investments are providing the tools needed to address an increasingly complex threat environment.

Why does it matter?

The report illustrates how national cybersecurity agencies are shifting from responding to isolated incidents to maintaining continuous operations against increasingly sophisticated digital threats. Activities ranging from ransomware disruption to supply chain assessments demonstrate the expanding role of cyber defence in protecting governments and critical infrastructure.

The emphasis on AI, post-quantum cryptography and secure digital infrastructure also signals Canada’s long-term approach to cybersecurity. By investing in emerging technologies while strengthening cooperation with allies, CSE is preparing for a threat environment in which cyber resilience is closely tied to national security, economic stability and technological competitiveness.

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Google says AI power users drive UK productivity gains

Workplace AI adoption in the UK has more than doubled over the past year, reaching 73%, according to a new Google report. However, the benefits remain uneven, with a small group of advanced users seeing significantly stronger career outcomes than the wider workforce.

The report categorises workers into four groups: AI Spectators, who have not yet engaged with the technology; Experimenters, who use basic AI functions; Practitioners, who use AI regularly; and AI Trailblazers, who apply it in advanced and innovative ways.

Although AI Trailblazers account for just 15% of users, they report significantly better outcomes, including faster promotions, larger pay increases and substantial weekly time savings.

The report found that advanced users outperform other workers across several indicators, including promotions, performance reviews and salary growth. However, differences in adoption across age, gender and geography suggest that unequal access to AI skills could widen existing labour market disparities.

Google argues that closing this gap will require greater investment in AI literacy, organisational support and workplace culture. Initiatives such as national upskilling programmes and diagnostic tools are intended to help workers progress from basic experimentation to more advanced AI use, supporting broader productivity growth.

Why does it matter? 

The findings suggest that simply adopting AI is not enough to generate widespread economic benefits. The greatest productivity and career gains are concentrated among workers who integrate AI deeply into their daily work, highlighting the importance of skills development and organisational support.

The report also points to a growing policy challenge. If access to advanced AI skills continues to vary across demographic groups and regions, AI could widen existing inequalities in the labour market. Expanding AI literacy and helping more workers move beyond basic use may therefore be as important as increasing adoption itself.

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UNESCO expands digital literacy training for educators

Around 10,000 literacy educators worldwide have completed a UNESCO Institute for Lifelong Learning digital skills course designed to strengthen the use of technology in literacy education.

The multilingual course was launched in December 2025 by the Secretariat of the Global Alliance for Literacy, in collaboration with Huawei. It is available in Arabic, English, French and Spanish.

The programme focuses on practical digital skills that educators can apply in literacy classrooms. It also encourages participants to use digital tools responsibly, evaluate online information critically and understand how technologies, including AI, shape learning and information use.

UNESCO said literacy today goes beyond reading and writing, requiring learners and educators to navigate digital environments and participate confidently in societies increasingly mediated by technology.

The course is delivered through 11 self-paced sessions and encourages educators to reflect on their teaching practice while developing new skills.

Participants from countries including Mexico, Pakistan and Togo reported stronger confidence in using digital tools, more learner-centred teaching approaches and greater use of collaboration and assessment technologies.

UNESCO said national and municipal adult education agencies, adult learning providers and UNESCO Learning Cities are helping expand the course across countries.

Why does it matter?

Digital literacy is becoming essential for both educators and learners, especially as AI and online platforms reshape access to information. Training literacy educators first can create a multiplier effect, helping adult learners and underserved communities build practical digital skills, critical thinking and confidence in online environments. The programme also shows how international education initiatives are moving beyond access to focus on effective and responsible use of technology.

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South Korea boosts AI funding to strengthen global competitiveness

South Korea’s National Assembly has approved a supplementary budget of 1.9067 trillion won for the AI sector, increasing the government’s original proposal by 61.8 billion won to strengthen the country’s global AI competitiveness. The Ministry of Science and ICT said the funding would be used to swiftly advance initiatives aimed at strengthening national AI competitiveness and positioning the country among the world’s top three AI leaders.

The funding is focused on three priorities: expanding AI computing infrastructure, advancing next-generation AI models and developing world-class talent. The largest allocation, 1.6341 trillion won, will be used to secure 10,000 advanced GPUs by the end of the year, alongside the leasing of a further 3,000 GPUs from the private sector to expand access.

A further 213.6 billion has been allocated to the proposed World Best LLM Project, under which five leading domestic AI teams will receive up to three years of support, including access to GPUs, high-quality datasets and specialist personnel. The Ministry will also launch the AI Pathfinder Project, offering grants of up to 2 billion won annually to attract leading international AI researchers.

Science and ICT Minister Yoo Sang-im said the funding comes at a pivotal moment as countries intensify competition for AI leadership. He said the government would pursue an all-out effort spanning advanced technology, talent development and AI adoption to establish South Korea among the world’s top three AI powers.

Why does it matter?

The supplementary budget demonstrates how governments are increasingly treating AI as strategic national infrastructure rather than simply an innovation policy issue. By investing simultaneously in computing capacity, foundation models and talent, South Korea is seeking to strengthen its long-term competitiveness in a global race increasingly defined by access to GPUs and skilled researchers.

The initiative also highlights that leadership in AI depends on more than financial investment alone. Competition for advanced chips and world-class talent has become increasingly intense, meaning the success of South Korea’s strategy will depend on how quickly it can translate funding into deployable infrastructure, cutting-edge research and commercial innovation.

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Japan backs domestic AI model for robotics

Japan’s industry ministry has approved ¥387.3 billion in funding for a domestic AI project to develop a multimodal foundation model for physical AI systems that control robots. The initiative is part of a broader effort to strengthen Japan’s position in advanced AI technologies.

The project aims to develop a foundation model that can be widely adopted by Japanese companies to support industrial automation and robotics. Officials see the initiative as a strategic effort to narrow the technology gap with the United States and China in next-generation AI.

The programme is being led by Noetra Corp., a consortium that includes SoftBank Corp. Engineers from SoftBank and Preferred Networks Inc. will contribute to development alongside researchers from the National Institute of Advanced Industrial Science and Technology and other partners.

Over the next five years, the consortium plans to release an initial version of the foundation model during the current fiscal year, followed by annual upgrades incorporating industrial data from manufacturers and other participating companies.

Why does it matter? 

Japan’s investment reflects the growing importance of sovereign AI capabilities as countries seek greater control over the foundation models that will power future industries. By developing a domestic model tailored to robotics and industrial automation, Japan aims to strengthen its manufacturing sector while reducing reliance on foreign AI platforms.

The initiative also highlights the shift towards physical AI as the next frontier of AI development. As foundation models increasingly move beyond text and images to control robots and other autonomous systems, advances in multimodal AI could reshape manufacturing, logistics and other industrial sectors where Japan has long been a global leader.

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EU approves simplified AI rules under Omnibus VII

The Council of the European Union has given its final approval to a regulation that simplifies parts of the EU’s AI framework as part of the broader ‘Omnibus VII’ package to reduce regulatory complexity.

The updated rules revise the implementation timeline for high-risk AI systems, postponing full application until December 2027 for standalone systems and August 2028 for AI systems integrated into regulated products. The regulation also strengthens safeguards by explicitly prohibiting AI-generated non-consensual sexual content, including manipulated intimate imagery and AI-generated child sexual abuse material.

Additional changes aim to reduce administrative burdens and improve legal clarity. Deadlines for establishing AI regulatory sandboxes have been extended to August 2027, transparency obligations for AI-generated content have been streamlined, and the regulation clarifies the division of responsibilities between EU and national authorities while reducing overlap with sector-specific legislation.

The framework also clarifies the division of responsibilities between EU and national authorities and introduces mechanisms to avoid overlap with sector-specific legislation.

EU officials said the reforms will improve legal certainty, support innovation and promote more consistent implementation across member states while preserving safeguards for fundamental rights in the development and deployment of AI systems.

Why does it matter? 

The reforms illustrate the EU’s effort to move from adopting AI legislation to making it easier to implement in practice. By extending compliance deadlines, reducing administrative complexity and clarifying supervisory responsibilities, the Union aims to encourage AI innovation without weakening protections for fundamental rights.

The package also reflects a more pragmatic phase of EU AI governance. Rather than rewriting the AI Act, policymakers are refining its implementation to improve legal certainty for developers and users while maintaining strict rules for high-risk and harmful AI applications.

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AI could reorganise 27% of EU jobs, OpenAI says

OpenAI Economic Research has published a report mapping how AI could reshape the European labour market across occupations and countries.

The report extends OpenAI’s AI Jobs Transition Framework to the EU, using Eurostat employment data and the European Skills, Competences, Qualifications and Occupations taxonomy to examine where AI may create growth, increase automation pressure, or change work organisation.

The framework identifies four occupational groups: roles that may grow with AI, occupations with higher near-term automation potential, occupations likely to reorganise and occupations with less immediate change.

Applied to the EU, the framework suggests that about 12% of employment is in occupations that may grow with AI, while about 14% is in roles with relatively higher near-term automation potential. Another 27% is in occupations likely to undergo workflow and skills changes, while 47% is in roles with less immediate change.

OpenAI said country-level differences are significant. Luxembourg, Sweden and the Netherlands have larger shares of occupations that may grow with AI, while Germany, Greece and Italy have larger employment shares in occupations with higher automation potential.

The company said the framework should not be read as a job-loss forecast, but as a planning tool for policymakers, employers, educators and researchers.

OpenAI said stronger labour-market monitoring, national readiness planning and better links between skills systems and AI adoption data could help Europe prepare for occupational transitions before they appear in headline employment statistics.

Why does it matter?

The report frames AI’s labour-market impact as uneven and occupation-specific, rather than a single economy-wide shock. That matters for policymakers because reskilling, education reform and labour-market support need to be targeted where transition pressure is likely to appear. The country differences also show that AI policy in Europe may need to reflect national labour-market structures rather than EU-wide rules.

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