Artificial intelligence

Hong Kong deepfake scandal exposes gaps in privacy law

The discovery of hundreds of non-consensual deepfake images on a student’s laptop at the University of Hong Kong has reignited debate about privacy, technology, and accountability. The scandal echoes the 2008 Edison Chen photo leak, which exposed gaps in law and gender double standards.

Unlike stolen private images, today’s fabrications are AI-generated composites that can tarnish reputations with a single photo scraped from social media. The dismissal that such content is ‘not real’ fails to address the damage caused by its existence.

The legal system of Hong Kong struggles to keep pace with this shift. Its privacy ordinance, drafted in the 1990s, was not designed for machine-learning fabrications, while traditional harassment and defamation laws predate the advent of AI. Victims risk harm before distribution is even proven.

The city’s privacy watchdog has launched a criminal investigation, but questions remain over whether creation or possession of deepfakes is covered by existing statutes. Critics warn that overreach could suppress legitimate uses, yet inaction leaves space for abuse.

Observers argue that just as the snapshot camera spurred the development of modern privacy law, deepfakes must drive a new legal boundary to safeguard dignity. Without reform, victims may continue facing harm without recourse.

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Google launches Gemini AI for government

Google has introduced a new version of its Gemini AI platform tailored specifically for US government use, called Gemini for Government. The platform combines features such as image generation, enterprise search, and AI agent development, with compliance to standards like Sec4 and FedRAMP.

Gemini includes pre-built AI agents for research and idea generation, while also offering tools to create custom agents. US government customers will pay $0.50 per year for basic access, undercutting rivals OpenAI and Anthropic, who each launched $1 government-focused AI packages earlier this year.

Google emphasised security, privacy, and automation in its pitch, positioning the product as an all-in-one solution for public sector institutions. The launch follows the Trump administration’s AI Action Plan, which seeks to promote AI growth.

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South Korea unveils five-year AI blueprint for ‘super-innovation economy’

South Korea’s new administration has unveiled a five-year economic plan to build what it calls a ‘super-innovation economy’ by integrating AI across all sectors of society.

The strategy, led by President Lee Jae-myung, commits 100 trillion won (approximately US$71.5 billion) to position the country among the world’s top three AI powerhouses. Private firms will drive development, with government support for nationwide adoption.

Plans include a sovereign Korean-language AI model, humanoid robots for logistics and industry, and commercialising autonomous vehicles by 2027. Unmanned ships are targeted for completion by 2030, alongside widespread use of drones in firefighting and aviation.

AI will also be introduced into drug approvals, smart factories, welfare services, and tax administration, with AI-based tax consultations expected by 2026. Education initiatives and a national AI training data cluster will nurture talent and accelerate innovation.

Five domestic firms, including Naver Cloud, SK Telecom, and LG AI Research, will receive state support to build homegrown AI foundation models. Industry reports currently rank South Korea between sixth and 10th in global AI competitiveness.

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Google enhances AI Mode with personalised dining suggestions

Google has expanded its AI Mode in Search to 180 additional countries and territories, introducing new agentic features to help users make restaurant reservations. The service remains limited to English and is not yet available in the European Union.

The update enables users to specify their dining preferences and constraints, allowing the system to scan multiple platforms and present real-time availability. Once a choice is made, users are directed to the restaurant’s booking page.

Partners supporting the service include OpenTable, Resy, SeatGeek, StubHub, Booksy, Tock, and Ticketmaster. The feature is part of Google’s Search Labs experiment, available to subscribers of Google AI Ultra in the United States.

AI Mode also tailors suggestions based on previous searches and introduces a Share function, letting users share restaurant options or planning results with others, with the option to delete links.

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Court filing details Musk’s outreach to Zuckerberg over OpenAI bid

Elon Musk attempted to bring Meta chief executive Mark Zuckerberg into his consortium’s $97.4 billion bid for OpenAI earlier this year, the company disclosed in a court filing.

According to sworn interrogations, OpenAI said Musk had discussed possible financing arrangements with Zuckerberg as part of the bid. Musk’s AI startup xAI, a competitor to OpenAI, did not respond to requests for comment.

In the filing, OpenAI asked a federal judge to order Meta to provide documents related to any bid for OpenAI, including internal communications about restructuring or recapitalisation. The firm argued these records could clarify motivations behind the bid.

Meta countered that such documents were irrelevant and suggested OpenAI seek them directly from Musk or xAI. A US judge ruled that Musk must face OpenAI’s claims of attempting to harm the company through public remarks and what it described as a sham takeover attempt.

The legal dispute follows Musk’s lawsuit against OpenAI and Sam Altman over its for-profit transition, with OpenAI filing a countersuit in April. A jury trial is scheduled for spring 2026.

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Meta strikes $10 billion cloud deal with Google

Meta has signed a cloud computing deal with Google worth more than $10 billion, marking one of the most significant agreements in the industry.

The six-year partnership will see Meta use Google Cloud’s servers, storage, networking and other services to power its massive AI projects.

The deal comes as Meta accelerates its AI infrastructure spending, with CEO Mark Zuckerberg pledging hundreds of billions of dollars for new data centres.

Last month, Meta raised its capital expenditure forecast to $72 billion and disclosed plans to offload $2 billion in data centre assets to outside partners.

The partnership highlights a growing trend of rival technology giants collaborating on AI infrastructure. Just weeks earlier, OpenAI struck a similar deal to use Google Cloud services despite being a competitor in the AI field.

These agreements have boosted Google Cloud’s performance, which saw a 32% jump in second-quarter revenue in July, surpassing market expectations.

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Google pushes agentic AI worldwide with AI Mode rollout

Google has expanded its AI Mode service to 180 additional countries, extending advanced agentic capabilities to a global audience.

Previously available only in markets such as the US, UK and India, the service allows users to search for information and carry out tasks on their behalf. The update reflects Google’s ambition to move from simple answers to action-oriented assistance.

A key rollout feature is the restaurant booking tool for AI Ultra subscribers. Using natural language requests such as ”find a romantic Italian spot for two tonight,” the system can check availability, offer personalised suggestions and confirm reservations directly within search.

The feature relies on real-time data from partners like OpenTable and highlights how Google’s AI can execute tasks instead of simply presenting options.

Further tools are expected soon, including ticketing for events and appointment scheduling. These are powered by the Gemini models, which tailor recommendations based on user behaviour and allow group planning through shared responses.

While the services could reduce reliance on third-party apps in sectors such as travel and hospitality, they also raise concerns over data privacy, inclusivity and cultural differences in an English-only rollout.

The global expansion strengthens Google’s position against rivals like Microsoft and OpenAI, who are also pushing forward in agentic AI. The company sees subscription upgrades to AI Ultra as a way to offset slower advertising growth, while early reports suggest increased user engagement.

However, the long-term impact will depend on balancing innovation with ethical safeguards as Google works to deliver more multilingual and accessible features.

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Surge in seat belt offences seen by AI monitors

AI-enabled cameras in Devon and Cornwall have detected 6,000 people failing to wear seat belts over the past year. The number caught was 50 percent higher than those penalised for using mobile phones while driving, police confirmed.

Road safety experts warn that the long-standing culture of belting up may be fading among newer generations of drivers. Geoff Collins of Acusensus noted a rise in non-compliance and said stronger legal penalties could help reverse the trend.

Current UK law imposes a £100 fine for not wearing a seat belt, with no points added to a driver’s licence. Campaigners now urge the government to make such offences endorsable, potentially adding penalty points and risking licence loss.

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Students seek emotional support from AI chatbots

College students are increasingly turning to AI chatbots for emotional support, prompting concern among mental health professionals. A 2025 report ranked ‘therapy and companionship’ as the top use case for generative AI, particularly among younger users.

Studies by MIT and OpenAI show that frequent AI use can lower social confidence and increase avoidance of face-to-face interaction. On campuses, digital mental health platforms now supplement counselling services, offering tools that identify at-risk students and provide basic support.

Experts warn that chatbot companionship may create emotional habits that lack grounding in reality and hinder social skill development. Counsellors advocate for educating students on safe AI use and suggest universities adopt tools that flag risky engagement patterns.

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Caution rises over inflated AI-driven tech valuations

US tech stocks have stumbled after a sharp rally, with investors increasingly cautious over AI-linked valuations and shifting market conditions. The S&P 500 tech sector has dropped around 2.5% this week, while the Nasdaq has slipped 2%, led by losses in Nvidia and Palantir.

The fall follows a 50% surge in tech shares since April, far outpacing the broader market and pushing valuations to year-highs. Concerns are growing that investor enthusiasm around AI has become overheated, with some funds reducing their exposure ahead of expected interest rate guidance.

US market watchers are now focused on Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, which could signal if rate cuts are on the horizon. Tech stocks, already heavily weighted in many portfolios, are particularly vulnerable to higher rates due to their stretched price-to-earnings ratios.

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