US tech giants eye Wales for major AI investment

American technology firms are increasingly looking to Wales as a destination for AI investment and data infrastructure. Strong inward investment figures and expanding growth zones are putting the nation firmly on the technology map.

Last year Wales secured £4.6bn in global investment across 65 foreign direct investment projects, marking a 23 per cent rise year on year. Thousands of jobs were created or safeguarded, outperforming many other UK regions.

Major projects underline the shift. US firm Vantage plans to transform the former Ford Bridgend plant into a large-scale data centre campus, while Microsoft is supporting another proposed scheme in Newport, both located within designated AI growth zones.

Beyond data centres, Wales offers land, connectivity and a supportive regulatory environment. Innovation clusters across Cardiff, Newport and North Wales, alongside strengths in life sciences, advanced manufacturing and renewable energy, are strengthening its appeal to global investors.

With expanding energy projects and a growing start-up pipeline, Wales is positioning itself as a competitive base for global business. Investors are increasingly encouraged to see it not as a regional outpost, but as an international platform rooted in strong economic foundations.

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OpenClaw vulnerabilities exposed by AI-powered code scanner

Researchers at Endor Labs identified six high- to critical vulnerabilities in the open-source AI agent framework OpenClaw using an AI-powered static application security testing engine to trace untrusted data flows. The flaws included server-side request forgery, authentication bypass, and path traversal.

The bugs affected multiple components of the agentic system, which integrates large language models with external tools and web services. Several SSRF issues were found in the gateway and authentication modules, potentially exposing internal services or cloud metadata depending on the deployment context.

Access control failures were also found in OpenClaw. A webhook handler lacked proper verification, enabling forged requests, while another flaw allowed unauthenticated access to protected functionality. Researchers confirmed exploitability with proof-of-concept demonstrations.

The team said that traditional static analysis tools struggle with modern AI software stacks, where inputs undergo multiple transformations before reaching sensitive operations. Their AI-based SAST engine preserved context across layers, tracing untrusted data from entry points to critical functions.

OpenClaw maintainers were notified through responsible disclosure and have since issued patches and advisories. Researchers argue that as AI agent frameworks expand into enterprise environments, security analysis must adapt to address both conventional vulnerabilities and AI-specific attack surfaces.

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Sony targets AI music copyright use

Sony Group has developed technology designed to identify the original sources of music generated by AI. The move comes amid growing concern over the unauthorised use of copyrighted works in AI training.

According to Sony Group, the system can extract data from an underlying AI model and compare generated tracks with original compositions. The process aims to quantify how much specific works contributed to the output.

Composers, songwriters and publishers could use the technology to seek compensation from AI developers if their material was used without permission. Sony said the goal is to help ensure creators are properly rewarded.

Efforts to safeguard intellectual property have intensified across the music industry. Sony Music Entertainment in the US previously filed a copyright infringement lawsuit in 2024 over AI-generated music, underscoring wider tensions around AI and creative rights.

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Romania’s job market faces structural change as AI and automation rise

A Think by ING analysis finds that Romania’s recent macroeconomic slowdown reflects more profound structural change than cyclical weakness.

After years of robust consumption-led expansion, fiscal tightening and weak domestic demand have curbed growth, while firms increasingly invest in automation and AI to boost productivity rather than expand headcount.

Industrial employment has declined; for example, manufacturing jobs fell by around 25,000 in late 2025, and labour market hiring has shifted toward defensive, replacement-only patterns.

Firms are integrating robotics, automated assembly lines and intelligent logistics systems, and service-sector work is also being reshaped by AI tools, even where formal adoption is still emerging.

A recent survey suggests that 68% of people in Romania have used AI tools, and 44% rely on them for work tasks such as administrative support and analysis, signalling rising informal use ahead of widespread enterprise deployment.

While automation and AI can raise productivity and output without proportional employment growth, they also tilt the labour market: high-skill specialised roles (e.g. AI, engineering, advanced management) are expected to remain resilient or grow, while routine roles, including some entry-level tech positions, call-centre jobs and administrative tasks, face stagnation or decline.

However, this can create a ‘barbell’ labour market with growth chiefly at the high and low ends, and limited opportunities in mid-skill roles.

Real wage erosion, tight hiring and demographic trends (including a shrinking workforce) add to short-term challenges. In the near term, employment may remain subdued even as economic output recovers modestly by 2027.

Over the longer term, the economy’s shift toward capital-intensive, productivity-driven growth could support stronger output without generating broad employment, underscoring the need for education, reskilling and policy strategies that help workers adapt to AI-driven labour demand.

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AI-generated film removed from cinemas after public backlash

A prize-winning AI-generated short film has been pulled from cinemas following criticism from audiences. Thanksgiving Day, created by filmmaker Igor Alferov, was due to screen in selected theatres before feature presentations.

Concerns emerged after news of the screening spread online, prompting complaints directed at AMC Theatres. The chain stated it had not programmed the film and that pre-show advertising partner Screenvision Media had arranged the placement.

AMC confirmed it would not participate in the initiative, meaning the AI film will no longer appear in its locations. The animated short, produced using Google’s Gemini 3.1 and Nano Banana Pro tools, had recently won an AI film festival award.

The episode comes amid broader debate about artificial intelligence in Hollywood. Industry insiders suggest studios are quietly increasing AI use in production, even as concerns grow over job losses and economic uncertainty within Los Angeles’ entertainment sector.

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Study warns AI chatbots can reinforce delusions and mania

AI chatbots may pose serious risks for people with severe mental illnesses, according to a new study from Acta Psychiatrica Scandinavica. Researchers found that tools such as ChatGPT can worsen psychiatric conditions by reinforcing users’ delusions, paranoia, mania, suicidal thoughts, and eating disorders.

The team examined health records from more than 54,000 patients and identified dozens of cases where AI interactions appeared to exacerbate symptoms. Experts warn that the actual number of affected individuals is likely far higher.

AI’s design to follow and validate a user’s input can unintentionally strengthen delusional thinking, turning digital assistants into echo chambers for psychosis.

Despite potential benefits for psychoeducation or alleviating loneliness, experts caution against using AI as a substitute for trained therapists. Chatbots should be tested in rigorous clinical trials before any therapeutic use, says Professor Søren Dinesen Østergaard.

The researchers urge healthcare providers to discuss AI chatbot use with patients, particularly those with severe mental illnesses, and call for central regulation of the technology. They argue that lessons from social media show that early oversight is essential to protect vulnerable populations.

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Commission delays high risk AI guidance

The European Commission has confirmed it will again delay publishing guidance on high-risk AI systems under the EU AI Act. The guidelines were due by 2 February 2026, but will now follow a revised timeline.

According to Euractiv, the document is intended to clarify which AI systems fall into the high-risk category and therefore face stricter obligations. Officials said more time is needed to incorporate significant stakeholder feedback.

The delay marks the second missed deadline and adds to broader implementation setbacks surrounding the EU AI Act. Several member states have yet to designate national enforcement bodies, complicating oversight preparations.

Brussels is also considering postponing the application of high-risk rules through a digital simplification package. Parliament and Council appear supportive of moving the August deadline back by more than a year, easing pressure on companies awaiting guidance.

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OpenClaw users face account suspensions under Google AI rules

Google has suspended access to its Antigravity AI platform for numerous OpenClaw users, citing violations of its terms of service. Developers had used OpenClaw’s OAuth plugin to access subsidised Gemini model tokens, triggering backend strain and service degradation.

OpenClaw, launched in November 2025, gained more than 219,000 GitHub stars by enabling local AI agents for tasks such as email management and web browsing. Users authenticated through Antigravity to access advanced Gemini models at reduced cost, bypassing official distribution channels.

Google said the third-party integration powered non-authorised products on Antigravity infrastructure, triggering usage flagged as malicious. In February 2026, AI Ultra subscribers reported 403 errors and account restrictions, with some citing temporary disruptions to Gmail and Workspace.

Varun Mohan of Google DeepMind said the surge had degraded service quality and that enforcement prioritised legitimate users. Limited reinstatement options were offered to those unaware of violations, while capacity constraints were cited as the reason.

The move follows similar restrictions by Anthropic on third-party OAuth usage. Developers are shifting to alternative forks, as debate intensifies over open tooling, platform control, and the risks of agentic AI ecosystems.

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AI-driven physics speeds up industrial innovation

PhysicsX, a London-based startup founded by former F1 engineers and AI experts, is redefining engineering with its AI-driven physics platform.

Design and testing cycles are reduced from weeks or months to seconds. Engineers can now iterate rapidly and optimise systems across multiple industries, including aerospace, automotive, semiconductors, energy, and materials.

The technology enables teams to evaluate thousands of design variations simultaneously. Semiconductor firms speed up prototype development, electronics improve thermal performance, and mining boosts copper recovery for renewable energy and AI data centres.

PhysicsX achieves this using Large Physics Models and Large Geometry Models that base design evaluation on real-world physics rather than assumptions.

Predictive reasoning lets engineers simulate multiple parameter changes before acting. The approach shifts control from reactive adjustments to proactive optimisation, helping teams make faster, better-informed decisions.

PhysicsX also bridges disciplinary divides, enabling aerodynamics, structural, and thermal considerations to be optimised together rather than in isolation.

By combining speed, system-level insight, and predictive control, PhysicsX is shrinking the gap between cutting-edge research and practical industrial impact. The platform uses physics-based AI to improve efficiency, drive innovation, and support sustainable growth.

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AI drives faster modernisation of legacy COBOL systems

Critical to finance, airlines, and government, COBOL handles about 95% of US ATM transactions. Despite its ubiquity, the pool of developers able to read and maintain COBOL is shrinking as seasoned engineers retire and universities offer limited instruction.

Institutional knowledge is now embedded in decades-old code, and documentation often lags.

Modernising COBOL differs from typical software updates. It requires untangling intricate dependencies and reverse-engineering business logic that has evolved over decades.

Traditional modernisation efforts involved large teams of consultants over the years, resulting in high costs and lengthy timelines. AI tools are changing that paradigm by automating the most labour-intensive tasks.

AI-driven solutions like Claude Code map code dependencies, trace execution paths, document workflows, and identify risks. They provide teams with actionable insights for prioritisation, risk management, and refactoring, dramatically shortening modernisation timelines from years to months.

Human experts remain essential to reviewing AI recommendations, ensuring regulatory compliance, and making strategic decisions about which components to modernise first.

Implementation follows an incremental approach. AI translates COBOL logic into modern languages, creates integration scaffolding, and supports side-by-side operation with legacy components.

Continuous validation at each step reduces risk, allowing teams to build confidence as complex parts of the system are modernised. AI automation combined with expert oversight makes large-scale COBOL modernisation feasible.

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