Artificial intelligence Archives | Page 6 of 679

AI reshapes capital markets as efficiency gains meet governance challenges

AI is rapidly transforming capital markets, moving beyond experimental pilots and into core financial infrastructure. Trading systems, cloud-native platforms and machine-learning tools are reshaping liquidity formation, price discovery and operational workflows.

International institutions increasingly view AI adoption not only as a driver of productivity but also as a governance challenge affecting market integrity, transparency, and trust.

The European Stability Mechanism reports a sharp rise in electronic trading across sovereign and supranational bond markets, with electronic volumes reaching around 60% and executed trades accounting for up to 80% of activity. The European Securities and Markets Authority (ESMA) highlights AI’s role in enhancing market intelligence through the analysis of unstructured data, including news flows and market sentiment signals.

Meanwhile, the European Central Bank (ECB) estimates that AI could reduce trading execution costs by 20% to 30%. Despite efficiency gains, risks persist, including amplified volatility, reduced explainability of trading decisions, and increased exposure to cybersecurity threats.

The World Bank Group demonstrates how AI can be embedded across treasury functions through in-house systems such as SHASTRA and ASTRA, which automate bond data processing, investor targeting, and validation workflows.

Developed using existing infrastructure, these tools reduce operational costs, improve accuracy and allow staff to focus on higher-value activities. The approach also reflects a broader institutional preference for maintaining human oversight in all high-impact decisions.

Looking ahead, capital markets are expected to become increasingly automated, with AI-driven trading, distributed ledger technologies and advanced compliance systems operating within more stringent regulatory frameworks. Frameworks such as the European Union AI Act are reinforcing expectations around data governance and model transparency.

Why does it matter?

AI is becoming a foundational technology in financial markets, influencing how assets are traded, priced and monitored. By improving data analysis, automating workflows and reducing transaction costs, AI has the potential to increase market efficiency and liquidity while helping institutions process growing volumes of information.

However, the shift also creates new governance challenges. As financial decisions become more dependent on complex AI models, regulators and market participants must address issues related to transparency, explainability, cybersecurity and systemic risk. The evolution of AI in capital markets therefore raises broader questions about how innovation can be balanced with financial stability, accountability and trust in increasingly automated financial systems.

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New task automation tools arrive in ChatGPT

ChatGPT has expanded its Scheduled Tasks functionality with a dedicated management page and improved task creation and editing workflows. Users can now create both one-time and recurring tasks, including requests for notifications when relevant updates or changes occur.

Tasks can be created directly through conversation or via the sidebar’s Scheduled page, offering greater flexibility in how automated reminders are set. Notifications can be delivered through push alerts and email across supported web and mobile platforms, subject to user permissions and device settings.

Some limitations remain, including restricted access to project-stored files and certain workspace environments.

Users can view, edit, pause or delete scheduled tasks either through settings or directly within conversations. The number of active tasks available depends on subscription tier, ranging from three on entry-level plans to fifteen on higher-tier subscriptions.

Feature constraints also apply, with voice chats and GPT-based workflows not supported in task creation, while availability extends across supported models and platforms globally.

Why does it matter?

The expansion of scheduled tasks accelerates the integration of AI chatbots into everyday digital infrastructure, shifting them from on-demand assistants to continuous workflow tools embedded in personal and professional routines.

It also reinforces the broader trend of automation in knowledge work, where AI systems increasingly handle monitoring, reminders, and information tracking at scale, reshaping expectations around productivity and real-time decision support.

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Spain’s data protection authority issues privacy guidance for video game industry

The Spanish Data Protection Agency (AEPD) has published a new guide outlining data protection recommendations for the video game industry, urging companies to embed privacy safeguards throughout the entire game lifecycle.

According to the AEPD, modern video games have evolved into complex digital ecosystems that collect, analyse and process significant volumes of personal data. This may include account information, gameplay activity, behavioural data and other user-generated information, creating potential privacy and security risks.

The guide notes that AI-enabled and online gaming services increasingly rely on data-driven business models, making compliance with the General Data Protection Regulation (GDPR) particularly important. The agency emphasised that privacy protections are especially important for children and other vulnerable groups, given their significant participation in online gaming environments.

The recommendations span the entire development process, from pre-production and design to post-launch operations, covering transparency obligations, data minimisation, profiling controls and cybersecurity measures. Privacy and responsible data practices should be integrated into games from design through to end-of-life in Spain.

Why does it matter?

The guidance reflects the growing importance of data protection in the gaming industry as video games increasingly function as connected digital platforms rather than standalone entertainment products. Online services, in-game economies, AI-powered features and behavioural analytics have expanded the volume and sensitivity of personal data processed by game developers and publishers.

The recommendations also highlight broader regulatory concerns around children’s privacy and responsible data use. As gaming platforms become more immersive and data-driven, regulators are placing greater emphasis on privacy-by-design principles, transparency and user control. The AEPD’s guidance signals that compliance with data protection rules is becoming an integral part of game development, not simply a legal requirement applied after products are launched.

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Anthropic and South Korea partner on AI safety and cybersecurity

Anthropic has opened an office in Seoul and announced a series of partnerships across South Korea’s AI ecosystem, alongside a memorandum of understanding (MoU) with the Ministry of Science and ICT on AI safety.

The company said the Seoul office will serve as a long-term hub for collaboration with South Korean enterprises, startups, researchers and developers using Claude. Senior Anthropic leaders travelled to Seoul this week to open the office and meet partners, customers, and developers.

Anthropic said the MOU with South Korea’s Ministry of Science and ICT will support the safe and responsible adoption of AI across the public sector. The cooperation will focus on AI safety and cybersecurity, including Korean-language model safety evaluations with the Korea AI Safety Institute and information sharing on AI-enabled cyber threats.

KiYoung Choi, Representative Director of South Korea at Anthropic, said South Korean organisations understand that innovation and safety are linked. He said the Seoul office provides a long-term base for collaboration with organisations helping shape South Korea’s AI leadership.

Anthropic also highlighted broader adoption of Claude among South Korean companies. NAVER has deployed Claude Code across its engineering organisation, while Nexon engineering teams are using Claude Code to write, review, and ship code for live-service games.

Large South Korean business groups are also using Claude. LG CNS plans to deploy it across LG Group, Hanwha Solutions is using Claude through AWS Bedrock to meet in-region data residency and security requirements, and Samsung SDS is deploying Claude across Samsung Electronics for knowledge work, agentic workflows, and software development.

South Korean startups are also integrating Claude into products. Channel Corp uses Claude to power Channel Talk, a customer AI platform used by more than 230,000 companies across South Korea, Japan, and the United States.

Anthropic said it will also work with the National AI Research Lab, a consortium spanning KAIST, South Korea University, Yonsei University, and POSTECH. Anthropic will provide Claude access to up to 60 affiliated researchers to support work on AI safety, model evaluation, alignment, robustness and frontier AI research.

In the nonprofit sector, Good Neighbors Korea is deploying Claude to help staff analyse programme outcomes, navigate social welfare law and internal guidelines, and reduce administrative work for frontline social workers.

Anthropic said South Korea ranks among the top dozen countries globally for Claude.ai usage, with activity concentrated in technical and creative work. The company has launched Claude for Startups in South Korea and has held Claude Meetups for South Korean developers since September 2025.

The company also co-hosted Claude Build Day with BASS Ventures, bringing together more than 100 South Korean founders and developers. Anthropic will also co-host a Push to Prod hackathon with Replit, Korea Investment Partners, and Korea Investment Accelerator.

Why does it matter?

The announcement highlights South Korea’s growing importance in the global AI landscape. Beyond being a major market for AI products, the country is increasingly positioning itself as a centre for AI research, safety evaluation, enterprise adoption and public-sector deployment.

The expansion also illustrates how frontier AI companies are combining commercial growth with governance initiatives. Anthropic’s cooperation with the Ministry of Science and ICT and the Korea AI Safety Institute suggests that AI safety, cybersecurity and model evaluation are becoming integrated into broader ecosystem-building efforts. As competition among leading AI companies intensifies, partnerships that combine research, regulation, enterprise adoption and developer engagement are likely to play an increasingly important role in shaping national AI ecosystems.

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Spain backs AI gigafactory to boost European technological sovereignty

Spain has approved a €719 million investment in a national AI gigafactory project aimed at expanding advanced computing capacity and strengthening European technological sovereignty.

The investment was authorised by Spain’s Council of Ministers through the Ministry for Digital Transformation and Public Service. The investment will be channelled through the Spanish Society for Technological Transformation (SETT), which will establish a public-private consortium to develop the project and submit a bid under a forthcoming European Commission call for AI gigafactories.

The government said the project is intended to expand European access to advanced computing resources, reduce technological dependencies and support AI development under European regulatory frameworks.

The planned Spanish bid will use a multi-site model, with locations in Móra la Nova in Tarragona and San Fernando de Henares in Madrid. The government said the AI gigafactory is designed as a large-scale industrial initiative and could become part of one of Europe’s main AI infrastructures.

Spain’s Minister for Digital Transformation and Public Service, Óscar López, said the investment supports technological sovereignty, reindustrialisation and leadership in reliable and sustainable AI. He argued that greater European access to advanced computing resources would accelerate innovation, support scientific research and enable public administrations to develop more advanced and secure digital services.

According to the government, AI gigafactories are specialised data centres designed to host hundreds of thousands of GPUs required to train and deploy advanced AI models. These include large language models and advanced computer vision systems.

The ministry said such facilities differ from conventional data centres because they are specialised for the large-scale computing capacity required by the next generation of AI. The ministry noted that infrastructure for training frontier AI models is currently dominated by US hyperscalers and, to a lesser extent, China’s domestic AI ecosystem.

Spain said the AI gigafactory project would support European efforts to build sovereign supercomputing hubs through EuroHPC, which includes the MareNostrum 5 supercomputer at the Barcelona Supercomputing Center, and programmes such as PERTE Chip.

The government said an AI gigafactory would benefit startups, SMEs, large companies, universities, research centres and public administrations that need significant computing capacity to develop advanced AI. It would also allow the European ecosystem to train, test, and deploy AI models without depending entirely on foreign providers.

The project is structured through a public-private consortium whose composition is still being finalised. Spain said the scale of the initiative requires a combination of public leadership, industrial capabilities, financing and technological expertise.

The ministry said SETT’s participation will provide public strategic direction, coordination, and execution capacity. The operation also builds on Spain’s existing AI infrastructure ecosystem, including two AI Factories linked to EuroHPC: the Barcelona Supercomputing Center and the Galician Supercomputing Center, both supported by Spanish government funding.

Why does it matter?

The announcement reflects the growing importance of computing infrastructure in the global AI race. Access to large-scale compute resources has become a strategic requirement for training and deploying advanced AI systems, yet much of that capacity remains concentrated among a small number of US technology companies and, increasingly, Chinese providers.

Spain’s investment, therefore, goes beyond digital infrastructure. It forms part of a broader European effort to strengthen technological sovereignty, support domestic innovation ecosystems and reduce dependence on foreign AI platforms. If successful, the project could provide startups, research institutions, public administrations and businesses with greater access to advanced computing resources while reinforcing the EU’s ambitions to build a more competitive and autonomous AI ecosystem.

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UK cyber agency warns of growing vulnerability risks from Frontier AI

The UK’s National Cyber Security Centre (NCSC) has issued guidance for network defenders on managing the growing risk associated with software vulnerabilities discovered using Frontier AI.

The guidance states that Frontier AI models represent the most advanced AI systems and have already demonstrated the ability to identify vulnerabilities in software products. According to the NCSC, this has significant implications for the threat landscape because Frontier AI can help both defenders and threat actors identify weaknesses at greater speed and scale. The UK’s National Cyber Security Centre has issued guidance for network defenders on managing the growing risk from software vulnerabilities discovered with Frontier AI.

The guidance states that Frontier AI models represent the most advanced AI systems and have demonstrated the ability to discover vulnerabilities in software products. The NCSC says this has implications for the threat landscape because Frontier AI can help both defenders and threat actors identify weaknesses more quickly.

The NCSC emphasises that organisations using AI for vulnerability discovery should do so within secure and controlled environments. It recommends limiting what the AI system can access, ideally using it only in testing or development environments, running it through a service account with only necessary permissions, and placing it in a sandboxed environment.

Organisations should also consider legal, contractual, and security obligations before using AI-as-a-service tools for vulnerability discovery. Sending source code, intellectual property or other sensitive information to external AI providers could introduce additional security, confidentiality and compliance risks.

The NCSC notes that AI-assisted vulnerability discovery is only effective if organisations have the processes and resources needed to manage the findings. That means having processes for patch management, vulnerability identification, prioritisation, validation, remediation, and reporting, as well as the ability to filter false positives and address root causes rather than only individual flaws.

The NCSC stresses that Frontier AI should complement, rather than replace, human cybersecurity expertise. Staff with experience in cybersecurity or the relevant IT systems should guide and validate AI-based vulnerability discovery to improve speed and accuracy.

The NCSC also warns that threat actors are increasingly using Frontier AI to identify and exploit vulnerabilities, potentially accelerating cyberattack timelines. Frontier AI may reduce the time between discovery and exploitation of newly published vulnerabilities, leaving organisations with less time to patch. The guidance says organisations should therefore adopt an assume-compromised mindset.

The NCSC recommends that organisations meet minimum cybersecurity standards, apply defence-in-depth principles, monitor networks and endpoints for suspicious behaviour and maintain a strong incident response plan.

The guidance also urges organisations to reduce the number of systems exposed to the internet, especially high-risk systems such as admin login panels, legacy systems, and operational technology. Organisations should identify internet-accessible systems and assess whether they need to remain exposed.

The guidance also highlights the growing importance of software supply chain security. Organisations should understand the commercial software, cloud services, open-source software, and dependencies they use, review supplier security and AI assurance policies, apply updates quickly, and use software bills of materials or similar tools to identify vulnerable dependencies.

The NCSC says Frontier AI is likely to be used extensively to discover vulnerabilities in open-source software because source code is accessible. It also notes that open-source supply chains have already been targeted through malware campaigns affecting major packages.

Why does it matter?

The guidance reflects a growing shift in cybersecurity as advanced AI systems become capable of identifying software vulnerabilities at unprecedented speed. While these capabilities can help defenders improve security testing and vulnerability management, they can also enable attackers to discover and exploit weaknesses more quickly, potentially reducing the time organisations have to respond.

The NCSC’s recommendations also point to a broader governance challenge surrounding AI adoption in cybersecurity. Organisations must not only defend against AI-enabled threats but also ensure that their own use of AI tools does not introduce new risks related to sensitive data, software supply chains or overreliance on automated systems. As Frontier AI capabilities continue to improve, cyber resilience will increasingly depend on combining AI-driven analysis with strong human oversight, secure development practices and effective incident response.

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EU’s 2026 State of the Digital Decade report highlights progress and remaining challenges

The European Commission’s 2026 State of the Digital Decade report shows that the EU continues to make progress towards its digital transformation goals, although significant structural challenges remain on the path to its 2030 targets.

The report highlights progress in digital infrastructure, business digitalisation and public services. Basic 5G coverage now reaches 96.8% of households, while nearly one in five businesses uses AI.

AI adoption accelerated significantly during 2025, increasing by 48% compared with the previous year. More than 60% of Europeans now possess at least basic digital skills.

Despite the progress, the Commission identified several areas requiring urgent attention. However, the EU currently accounts for only 9% of the global semiconductor market, well below its target of reaching 20% by 2030.

Europe also remains heavily dependent on non-EU cybersecurity suppliers and continues to face shortages of ICT specialists, particularly women in digital professions.

The report also revealed strong public support for digital sovereignty and technological self-reliance. According to a new Eurobarometer survey, most citizens support greater investment in local digital infrastructure, reduced dependence on foreign technologies and stronger regulation of AI.

Citizens also identified digital health, green technologies, connectivity and AI as areas likely to deliver the greatest benefits over the next decade.

Why does it matter?

The report provides one of the most comprehensive assessments of Europe’s progress towards its 2030 Digital Decade objectives and offers insight into the EU’s broader competitiveness agenda. Strong growth in AI adoption, connectivity and digital public services suggests that digital transformation is accelerating across the Union.

At the same time, the findings highlight persistent challenges related to technological sovereignty. Europe’s limited share of the global semiconductor market, continued dependence on foreign technology suppliers, and ongoing digital skills shortages could constrain its long-term competitiveness. As the EU increasingly links economic resilience, security and digital policy, addressing these gaps will be critical to achieving its 2030 ambitions and strengthening strategic autonomy in key technologies.

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IWF backs Pope Leo XIV call for responsible AI development

The Internet Watch Foundation has welcomed Pope Leo XIV’s reflections on AI, arguing that AI systems must be developed with stronger safeguards to protect children from abuse.

In a blog post, the IWF said the Pope’s message that technology should serve the common good and remain subject to human judgement and accountability reflects the risks its analysts are already seeing online.

The organisation warned that AI is being used to generate highly realistic child sexual abuse images and videos at scale. It said the number of AI-generated child sexual abuse videos identified by the IWF in 2025 increased by more than 260%, with nearly two-thirds falling into the most severe category of abuse.

The IWF also raised concerns about AI-nudification tools, which can generate realistic sexualised images of children and other individuals. Following the Child Dignity in the Artificial Intelligence Era conference in Rome, the organisation joined more than 100 organisations and individuals in supporting calls for a global ban on such tools.

The IWF said AI safety should be built into products from the earliest stages of development. Through its Safety by Design work, the organisation is calling for companies to assess, test and mitigate risks before AI systems reach the public.

It also called for stronger regulation, global alignment and enforceable safety-by-design standards to prevent the creation and spread of AI-generated child sexual abuse material.

Why does it matter?

The IWF’s warning shows how generative AI is creating urgent child protection risks, especially through realistic synthetic abuse material and nudification tools. The issue is no longer only content moderation after harm occurs; it increasingly concerns model design, testing, deployment and accountability before AI systems reach users. That makes safety by design, developer responsibility and international coordination central to AI governance.

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EPO and Jio discuss AI, 5G and 6G patent strategy

The European Patent Office held a high-level online meeting with Jio Platforms to discuss patent quality, innovation and developments in the European patent system.

The meeting formed part of the EPO’s 2026 Quality Action Plan and wider user engagement with companies using the European patent system. Jio Platforms, India’s largest mobile network operator, is described by the EPO as an increasingly active user of the system.

Discussions covered AI, 5G, future 6G technologies, satellite communications and automation. Jio highlighted Europe’s growing importance for its patent strategy and outlined a global patent portfolio covering India, Europe, the United States and other jurisdictions.

A significant part of the exchange focused on standards and standard-essential patents. The EPO said the discussion explored developments in 5G and future 6G standards, as well as the Office’s recent work and research in the field.

The meeting also covered the Unitary Patent and Unified Patent Court. Jio does not currently use the Unitary Patent system, but the company expressed interest in assessing it as a possible option for future European patent protection.

Why does it matter?

The meeting highlights how patent strategy is becoming part of global competition in AI, 5G, 6G and digital infrastructure. For companies active in next-generation networks, standard-essential patents can shape market access, licensing power and participation in technical standards. Jio’s engagement with the EPO also reflects the growing internationalisation of Indian technology firms as they seek protection for innovation in European markets.

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US backs photonics expansion for AI data centres under CHIPS Act

The Department of Commerce’s CHIPS Program Office has signed a letter of intent to provide up to $50 million in direct funding to Coherent Corp. under the CHIPS and Science Act.

According to the CHIPS Program Office, the proposed funding would support the expansion of Coherent’s facility in Sherman, Texas, which it describes as the first and largest high-volume 150mm indium phosphide semiconductor manufacturing facility in the United States.

The expansion would add wafer fabrication equipment and cleanroom capacity to increase production of indium phosphide-based photonic components. These components are used in high-speed optical interconnects that enable rapid data transfer within advanced AI data centres.

The Department of Commerce said the project would create high-skilled manufacturing jobs and strengthen domestic supply chains for critical photonics technologies that support next-generation computing and AI infrastructure.

Why does it matter?

The announcement highlights the growing importance of photonics technologies in the AI economy. As demand for AI computing continues to rise, data centres require increasingly efficient methods for transferring vast amounts of information between processors, servers and storage systems. Optical interconnect technologies based on indium phosphide semiconductors are becoming a critical part of that infrastructure.

The investment also reflects broader US industrial policy goals under the CHIPS and Science Act. Beyond traditional semiconductor manufacturing, policymakers are increasingly targeting specialised components and supply chains considered strategically important for AI competitiveness, economic security and technological resilience.

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