Artificial intelligence

Most US teens use AI companion bots despite risks

A new national survey shows that roughly 72% of American teenagers, aged 13 to 17, have tried AI companion apps such as Replika, Character.AI, and Nomi, with over half interacting with them regularly.

Although some teens report benefits like practising conversation skills or emotional self-expression, significant safety concerns have emerged.

Around 34% have been left uncomfortable by the bot’s behaviour, and one-third have turned to AI for advice on serious personal issues. Worryingly, nearly a quarter of users disclosed their real names or locations in chats.

Despite frequent use, most teens still prefer real friendships—two-thirds say AI interactions are less satisfying, and 80% maintain stronger ties to human friends.

Experts warn that teens are especially vulnerable to emotional dependency, manipulative responses, and data privacy violations through these apps.

Youth advocates call for mandatory age verification, better content moderation, and expanded AI literacy education, arguing that minors should not use companionship bots until more regulations are in place and platforms become truly safe for young users.

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xAI eyes data centre deal with Humain

Elon Musk’s AI venture, xAI, has entered early discussions with Humain to secure data centre capacity instead of relying solely on existing infrastructure.

According to Bloomberg, the arrangement could involve several gigawatts of capacity, although Humain has yet to start building its facilities, meaning any deal would take years to materialise.

Humain is backed by Saudi Arabia’s Crown Prince Mohammed bin Salman and the Public Investment Fund (PIF). xAI is reportedly considering a fresh funding round where PIF might also invest.

At the same time, xAI is negotiating with a smaller company constructing a 200-megawatt data centre, offering a more immediate solution while waiting for larger projects.

Rather than operating in isolation, xAI joins AI competitors like Google, Meta and Microsoft in racing to secure vast computing power for training large AI models. The push for massive data centre capacity reflects the escalating demands of advanced AI systems.

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LEO becomes Africa’s first AI chatbot to enable remittances

United Bank for Africa (UBA) has introduced cross-border payments via its AI chatbot, LEO, enabling instant transfers across African nations in local currencies.

However, this marks the first time an AI-powered chatbot has facilitated such transactions on the continent.

The feature relies on the Pan-African Payment and Settlement System, developed by Afreximbank, which allows seamless fund transfers between African countries supported by their central banks. It eliminates the need for hard currencies and aims to reduce fees while supporting financial inclusion.

UBA said the service allows customers to send and receive money across borders within seconds through self-service channels, with zero charges for recipients.

The initiative also supports Africa’s wider economic ambitions under the African Continental Free Trade Area agreement.

The bank operates in 20 African countries and serves over 45 million customers worldwide. CEO Oliver Alawuba described the development as a bold step toward digital innovation and Pan-African integration.

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Generative AI now powers 20% of new Steam games

Nearly 20 percent of video games released on Steam in 2025 include generative AI, according to a new report by Totally Human Media.

The report, based on data gathered from Steam, states that around 7,818 games currently disclose using generative AI. The figure represents roughly 7 percent of the platform’s entire catalogue. For games launched in 2025, nearly one in five incorporate AI tools or openly disclose doing so.

Compared to 2024, this marks a nearly 700 percent increase in generative AI adoption, reflecting a broader industry trend towards automation and machine-generated content.

Among the most prominent titles is My Summer Car, a vehicle simulation game with over 2.5 million copies sold. The developers disclosed that the game includes ‘some AI generated paintings found inside the main house’.

Valve, the company behind Steam, began requiring game developers to disclose AI use in January 2024. While the company did not comment on the findings, the policy has enabled public tracking of AI adoption across the platform.

Community reaction to the trend has been mixed. On Reddit, many users said they would automatically add AI-driven games to their ignore lists. One commenter wrote, ‘We need to tag them so they can be an ignored category.’ Others expressed disappointment in indie developers turning to generative tools over human artists.

Some users acknowledged the complexity of the issue. A typical comment noted that while AI usage in minor elements like UI assets might be acceptable, reliance on AI for core content raises questions about value and originality. One post read, ‘What am I paying for if it’s all AI? I agree with that sentiment.’

Steam’s Next Fest, which showcases upcoming releases, drew criticism from some players who said they lost interest in promising titles upon discovering their use of generative AI.

Despite user backlash, industry momentum continues to build. Many developers see AI as a means to streamline asset creation and reduce production costs, though concerns about quality, ethics, and employment remain central to the debate.

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Huang says Chinese AI science is world class

NVIDIA’s CEO has praised China’s open-source AI work during a high-profile visit to Beijing, spotlighting DeepSeek as an example of world-class science and engineering.

At the International Supply Chain Expo, Huang highlighted the global value of Chinese contributions to AI research.

He told former Alibaba executive Wang Jian that Chinese researchers publish more AI papers than any other nation, calling their output A-plus in both science and engineering. Huang named DeepSeek, Alibaba, Tencent, MiniMax, and Baidu’s Ernie Bot globally significant AI leaders.

The visit coincides with a policy shift by the US government allowing Nvidia to resume H20 chip exports to China. Huang confirmed that export licenses are expected soon, potentially unlocking billions in lost revenue.

Industry watchers see this development as pivotal for Nvidia, which had paused shipments under earlier restrictions. The chipmaker’s renewed access to China’s semiconductor market could reshape global AI infrastructure over the next year.

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Google expands AI tools in Search with new subscriber perks

Google has begun rolling out new AI features in Search, introducing AI-powered phone calling to help users gather business information instead of contacting places manually.

The service, free for everyone in the US, allows people to search for businesses and have Google’s AI check pricing and availability on their behalf.

Subscribers to Google AI Pro and AI Ultra receive additional exclusive capabilities. These include access to Gemini 2.5 Pro, Google’s most advanced AI model, which supports complex queries such as coding or financial analysis.

Users can enable Gemini 2.5 Pro through the AI Mode tab instead of relying on the default model. Google is also launching Deep Research tools through Deep Search for in-depth investigations related to work, studies, or major life decisions.

Rather than rolling everything out all at once, Google is phasing in the features gradually. AI-powered calling is now available to all Search users in the US, while Gemini 2.5 Pro and Deep Research are becoming available specifically to AI Pro and AI Ultra subscribers.

With these updates, Google aims to position Search as more than a simple information tool by transforming it into an active digital assistant capable of handling everyday tasks and complex research instead of merely providing quick answers.

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Experts link Qantas data breach to AI voice impersonation

Cybersecurity experts believe criminals may have used AI-generated voice deepfakes to breach Qantas systems, potentially deceiving contact centre staff in Manila. The breach affected nearly six million customers, with links to a group known as Scattered Spider.

Qantas confirmed the breach after detecting suspicious activity on a third-party platform. Stolen data included names, phone numbers, and addresses—but no financial details. The airline has not confirmed whether voice impersonation was involved.

Experts point to Scattered Spiders’ history of using synthetic voices to trick help desk staff into handing over credentials. Former FBI agent Adam Marré said the technique, known as vishing, matches the group’s typical methods and links them to The Com, a cybercrime collective.

Other members of The Com have targeted companies like Salesforce through similar tactics. Qantas reportedly warned contact centre staff shortly before the breach, citing a threat advisory connected to Scattered Spider.

Google and CrowdStrike reported that the group frequently impersonates employees over the phone to bypass multi-factor authentication and reset passwords. The FBI has warned that Scattered Spider is now targeting airlines.

Qantas says its core systems remain secure and has not confirmed receiving a ransom demand. The airline is cooperating with authorities and urging affected customers to watch for scams using their leaked information.

Cybersecurity firm Trend Micro notes that voice deepfakes are now easy to produce, with convincing audio clips available for as little as $5. The deepfakes can mimic language, tone, and emotion, making them powerful tools for deception.

Experts recommend biometric verification, synthetic signal detection, and real-time security challenges to counter deepfakes. Employee training and multi-factor authentication remain essential defences.

Recent global cases illustrate the risk. In one instance, a deepfake mimicking US Senator Marco Rubio attempted to access sensitive systems. Other attacks involved cloned voices of US political figures Joe Biden and Susie Wiles.

As voice content becomes more publicly available, experts warn that anyone sharing audio online could become a target for AI-driven impersonation.

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OpenAI and Shopify explore product sales via ChatGPT

OpenAI is preparing to take a commission from product sales made directly through ChatGPT, signalling a significant shift in its business model. The move aims to monetise free users by embedding e-commerce checkout within the chatbot.

Currently, ChatGPT provides product links that redirect users to external sites. In April, OpenAI partnered with Shopify to support this feature. Sources say the next step is enabling purchases without leaving the platform, with merchants paying OpenAI a fee per transaction.

Until now, OpenAI has earned revenue mainly from ChatGPT Plus subscriptions and enterprise deals. Despite a $300 billion valuation, the company remains loss-making and seeks new commercial avenues tied to its conversational AI tools.

E-commerce integration would also challenge Google’s grip on product discovery and paid search, as more users turn to chatbots for recommendations.

Early prototypes have been shown to brands, and financial terms are under discussion. Shopify, which powers checkout on platforms like TikTok, may also provide the backend infrastructure for ChatGPT.

Product suggestions in ChatGPT are generated based on query relevance and user-specific context, including budgets and saved preferences. With memory upgrades, the chatbot can personalise results more effectively over time.

Currently, clicking on a product shows a list of sellers based on third-party data. Rankings rely mainly on metadata rather than price or delivery speed, though this is expected to evolve.

Marketers are already experimenting with ‘AIO’ — AI optimisation — to boost visibility in AI-generated product listings, similar to SEO for search engines.

An advertising agency executive said this shift could disrupt paid search and traditional ad models. Concerns are growing around how AI handles preferences and the fairness of its recommendations.

OpenAI has previously said it had ‘no active plans to pursue advertising’. However, CFO Sarah Friar recently confirmed that the company is open to ads in the future, using a selective approach.

CEO Sam Altman said OpenAI would not accept payments for preferential placement, but may charge small affiliate fees on purchases made through ChatGPT.

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South Korea’s new Science Minister pledges AI-led national transformation

South Korea’s new Science and ICT Minister, Bae Kyung-hoon, has pledged to turn the nation into one of the world’s top three AI powerhouses.

Instead of following outdated methods, Bae outlined a bold national strategy centred on AI, science and technology, aiming to raise Korea’s potential growth rate to 3 per cent and secure a global economic leadership position.

Bae, a leading AI expert and former president of LG AI Research, officially assumed office on Thursday.

Drawing from experience developing hyperscale AI models like LG’s Exaone, he emphasised the need to build a unique competitive advantage rooted in AI transformation, talent development and technological innovation.

Rather than focusing only on industrial growth, Bae’s policy agenda targets a broad AI ecosystem, revitalised research and development, world-class talent nurturing, and addressing issues affecting daily life.

His plans include establishing AI-centred universities, enhancing digital infrastructure, promoting AI semiconductors, restoring grassroots research funding, and expanding consumer rights in telecommunications.

With these strategies, Bae aims to make AI accessible to all citizens instead of limiting it to large corporations or research institutes. His vision is for South Korea to lead in AI development while supporting social equity, cybersecurity, and nationwide innovation.

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EU confirms AI Act rollout and releases GPAI Code of Practice

The European Commission has confirmed it will move forward with the EU AI Act exactly as scheduled, instead of granting delays requested by tech giants and businesses.

On 10 July 2025, it published the final General-Purpose AI (GPAI) Code of Practice alongside FAQs to guide organisations aiming to comply with the new law.

Rather than opting for a more flexible timetable, the Commission is standing firm on its regulatory goals. The GPAI Code of Practice, now in its final form, sets out voluntary but strongly recommended steps for companies that want reduced administrative burdens and clearer legal certainty under the AI Act.

The document covers transparency, copyright, and safety standards for advanced AI models, including a model documentation form for providers.

Key dates have already been set. From 2 August 2025, rules covering notifications, governance, and penalties will come into force. By February 2026, official guidelines on classifying high-risk AI systems are expected.

The remaining parts of the legislation will take effect by August 2026, instead of being postponed further.

With the publication of the GPAI Code of Practice, the EU takes another step towards building a unified ethical framework for AI development and deployment across Europe, focusing on transparency, accountability, and respect for fundamental rights.

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