IBM’s 2025 Cost of a Data Breach Report revealed a sharp gap between rapid AI adoption and the oversight needed to secure it.
Although the global average data breach cost fell slightly to $4.44 million, security incidents involving AI systems remain more severe and disruptive.
Around 13% of organisations reported breaches involving AI models or applications, while 8% were unsure whether they had been compromised.
Alarmingly, nearly all AI-related breaches occurred without access controls, leading to data leaks in 60% of cases and operational disruption in almost one-third. Shadow AI (unsanctioned or unmanaged systems) played a central role, with one in five breaches traced back to it.
Organisations without AI governance policies or detection systems faced significantly higher costs, especially when personally identifiable information or intellectual property was exposed.
Attackers increasingly used AI tools such as deepfakes and phishing, with 16% of studied breaches involving AI-assisted threats.
Healthcare remained the costliest sector, with an average breach price of $7.42 million and the most extended recovery timeline of 279 days.
Despite the risks, fewer organisations plan to invest in post-breach security. Only 49% intend to strengthen defences, down from 63% last year.
Even fewer will prioritise AI-driven security tools. With many organisations also passing costs on to consumers, recovery now often includes long-term financial and reputational fallout, not just restoring systems.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.
The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.
The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.
China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.
In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.
Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.
The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.
Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Apple is quietly developing its own AI-powered ‘answer engine‘ as part of a push to compete in the growing intelligent search field. The initiative is led by a new team called ‘Answers, Knowledge, and Information’.
The project aims to create a system that can respond to user questions by pulling from web-based content.
The tool may be launched as a standalone app or integrated into existing Apple platforms such as Siri and Safari. Although Apple has added ChatGPT support to Siri, plans for a more advanced, personalised AI assistant have faced repeated delays.
Apple is hiring engineers with search expertise, signalling a long-term plan to reshape how users access information across its products.
The company may also need to revise its longstanding search partnership with Google following the tech giant’s antitrust defeat, further pushing Apple towards building its solution.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Mark Zuckerberg is boldly pushing to replace the smartphone with smartglasses powered by superintelligent AI. The Meta CEO described a future where wearable devices replace phones, using sight and sound to assist users throughout the day.
Meta is heavily investing, offering up to $100 million to attract top AI talent. Zuckerberg’s idea of ‘personal superintelligence’ merges AI and hardware to offer personalised help and build an Apple-style ecosystem under Meta’s control.
The company’s smartglasses already feature cameras, microphones and speakers, and future models could include built-in screens and AI-generated interfaces.
Other major players are also chasing the next computing shift. Amazon is acquiring a startup that builds AI wearables, while OpenAI’s Sam Altman and former Apple designer Jony Ive are working on a new physical AI device.
These efforts all point to a changing landscape in which mobile screens might no longer dominate.
Apple CEO Tim Cook responded by defending the iPhone’s central role in modern life, though he acknowledged complementary technologies may emerge. While Apple remains dominant, Meta’s advances signal that the competition to define the next computing platform is wide open.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
At a recent Atlanta concert, Rod Stewart honoured the late Ozzy Osbourne in a strikingly unconventional way, by showing an AI-generated video of Ozzy taking selfies in heaven with late music icons. The tribute played on a giant screen behind Stewart as he performed ‘Forever Young,’ depicting a cartoonish Ozzy grinning alongside legends like Kurt Cobain, Prince, Michael Jackson, and Bob Marley, all united by a floating selfie stick among the clouds.
The video, originally captured by a concertgoer on TikTok, featured Ozzy smiling and posing with other departed stars like Tina Turner and Freddie Mercury, turning heaven into an eternal celebrity photo op. Instead of a traditional photo montage, Stewart’s new approach created a digital afterlife where jam sessions and selfies with rock’s finest never end, implying perhaps that Ozzy has already joined them.
That marks a notable shift from Stewart’s earlier tributes to Osbourne, which relied on simple archival photographs. The AI animation, however strange, seems to reflect a deeper attempt to celebrate Ozzy’s spirit in a uniquely modern way, courtesy, presumably, of a tech-savvy relative.
Following Ozzy’s death on 22 July, Stewart shared a heartfelt farewell on Instagram: ‘Bye, Ozzy. Sleep well, my friend. I’ll see you up there, later rather than sooner.’ Judging by this tribute, he’s already imagining what that reunion might look like.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
UK Justice Secretary Shabana Mahmood has rolled out an AI-driven violence prediction tool across prisons and probation services. One system evaluates inmates’ profiles, factoring in age, past behaviour, and gang ties, to flag those likely to become violent. Matching prisoners to tighter supervision or relocation aims to reduce attacks on staff and fellow inmates.
Another feature actively scans content from seized mobile phones. AI algorithms sift through over 33,000 devices and 8.6 million messages, detecting coded language tied to contraband, violence, or escape plans. When suspicious content is flagged, staff receive alerts for preventive action.
Rising prison violence and self-harm underscore the urgency of such interventions. Assaults on staff recently reached over 10,500 a year, the highest on record, while self-harm incidents reached nearly 78,000. Overcrowding and drug infiltration have intensified operational challenges.
Analysts compare the approach to ‘pre‑crime’ models, drawing parallels with sci-fi narratives, raising concerns around civil liberties. Without robust governance, predictive tools may replicate biases or punish potential rather than actual behaviour. Transparency, independent audit, and appeals processes are essential to uphold inmate rights.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Microsoft Research released a comprehensive AI impact assessment, ranking 80 occupations by exposure to generative AI tools such as Copilot and ChatGPT. Roles heavily involved in language, writing, client communication, and routine digital tasks showed the highest AI overlap. Notable examples include translators, historians, customer service agents, political scientists, and data scientists.
By contrast, jobs requiring hands-on work, empathy, real-time physical or emotional engagement, such as nurses, phlebotomists, construction trades, embalmers, and housekeeping staff, were classified as low risk under current AI capabilities. Experts suggest that these kinds of positions remain essential because they involve physical presence, human interaction, and complex real-time decision making.
Although certain professions scored high for AI exposure, Microsoft and independent analysts emphasise that most jobs won’t disappear entirely. Instead, generative AI tools are expected to augment workflows, creating hybrid roles where human judgement and oversight remain critical, especially in sectors such as financial services, healthcare, and creative industries.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
July witnessed a significant surge in cybersecurity mergers and acquisitions (M&A), spearheaded by Palo Alto Networks’ announcement of its definitive agreement to acquire identity security firm CyberArk for an estimated $25 billion.
The transaction, set to be the second-largest cybersecurity acquisition on record, signals Palo Alto’s strategic entry into identity security.
Beyond this significant deal, Palo Alto Networks also completed its purchase of AI security specialist Protect AI. The month saw widespread activity across the sector, including LevelBlue’s acquisition of Trustwave to create the industry’s largest pureplay managed security services provider.
Zurich Insurance Group, Signicat, Limerston Capital, Darktrace, Orange Cyberdefense, SecurityBridge, Commvault, and Axonius all announced or finalised strategic cybersecurity acquisitions.
The deals highlight a strong market focus on AI security, identity management, and expanding service capabilities across various regions.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Amazon is exploring ways to insert ads into conversations with its AI assistant Alexa+, according to CEO Andy Jassy. Speaking during the company’s latest earnings call, he described the feature as a potential tool for product discovery and future revenue.
Alexa+ is Amazon’s upgraded digital assistant designed to support more natural, multi-step conversations using generative AI. It is already available to millions of users through Prime subscriptions or as a standalone service.
Jassy said longer interactions open the door for embedded advertising, although the approach has not yet been fully developed. Industry observers see this as part of a wider trend, with companies like Google and OpenAI also weighing ad-based business models.
Alexa+ has received mixed reviews so far, with delays in feature delivery and technical challenges like hallucinations raising concerns. Privacy advocates have warned that ad targeting within personal conversations may worry users, given the data involved.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Apple is ramping up its AI efforts, with CEO Tim Cook confirming that the company is significantly increasing its investments in the technology. During the Q3 2025 earnings call, Cook said AI would be embedded across Apple’s devices, platforms and internal operations.
The firm has reallocated staff to focus on AI and continues to acquire smaller companies to accelerate progress, completing seven acquisitions this year alone. Capital expenditure has also risen, partly due to the growing focus on AI.
Despite criticism that Apple has lagged behind in the AI race, the company insists it will not rush features to market. More than 20 Apple Intelligence tools have already been released, with additional features like live translation and an AI fitness assistant expected by year-end.
The updated version of Siri, which promises greater personalisation, has been pushed to 2026. Cook dismissed suggestions that AI-powered hardware, like glasses, would replace the iPhone, instead positioning future devices as complementary.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
