Artificial intelligence

Pakistan launches AI customs system to tackle tax evasion

Pakistan has launched its first AI-powered Customs Clearance and Risk Management System (RMS) to cut tax evasion, reduce corruption, and modernise port operations by automating inspections and declarations.

The initiative, part of broader digital reforms, is led by the Federal Board of Revenue (FBR) with support from the Intelligence Bureau.

By minimising human involvement in customs procedures, the system enables faster, fairer, and more transparent processing. It uses AI and automated bots to assess goods’ value and classification, improve risk profiling, and streamline green channel clearances.

Early trials showed a 92% boost in system performance and more than double the efficiency in identifying compliant cargo.

Prime Minister Shehbaz Sharif praised the collaboration between the FBR and IB, calling the initiative a key pillar of national economic reform. He urged full integration of the system into the country’s digital infrastructure and reaffirmed tax reform as a government priority.

The AI system is also expected to close loopholes in under-invoicing and misdeclaration, which have long been used to avoid duties.

Meanwhile, video analytics technology is trialled to detect factory tax fraud, with early tests showing 98% accuracy. In recent enforcement efforts, authorities recovered Rs178 billion, highlighting the potential of data-driven approaches in tackling fiscal losses.

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Samsung profits slump as US chip ban hits AI exports

Samsung Electronics expects its second-quarter operating profits to exceed half, citing Washington’s export controls on advanced AI chips to China.

The company announced a projected 56% year-on-year drop in operating profit, falling to 4.6 trillion won ($3.3 billion), with revenue down 6.5% from the previous quarter.

The semiconductor division, a core part of Samsung’s business, suffered due to reduced utilisation and inventory value adjustments.

US restrictions have made it difficult for South Korea’s largest conglomerate to ship high-end chips to China, forcing some of its production lines to run below capacity.

Despite weak performance in the foundry sector, the memory business remained relatively stable. Analysts pointed to weaker-than-expected sales of HBM chips used for AI and a drop in NAND storage prices, while a declining won-dollar exchange rate further pressured earnings.

Looking ahead, Samsung expects a modest recovery as demand for memory chips, mainly from AI-driven data centres, improves in the year’s second half.

The company is also facing political pressure from Washington, with threats of new tariffs prompting talks between Seoul and the US administration.

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Wimbledon faces backlash over AI line judges after tech errors spark outrage

Wimbledon’s decision to fully replace human line judges with an AI-powered system has sparked growing discontent among players and fans.

Although designed for precision, the Hawk-Eye Live system has made questionable calls, been difficult to hear during matches, and even shut down unexpectedly, raising concerns about its reliability.

British players Jack Draper and Emma Raducanu both expressed frustration over key points lost due to what they believed were inaccurate calls. Sonay Kartal’s match was interrupted in a particularly disruptive incident when the AI system crashed mid-game, prompting organisers to apologise.

The All England Club defends the system as more impartial than human officials, but not everyone agrees. Over 300 line judges lost their jobs, and some staged protests outside the grounds.

With no way to challenge calls made by the machine, players say the system removes accountability and human judgement from the sport.

While Wimbledon continues to market the move as progress, critics argue that the tournament has sacrificed tradition and clarity for automation.

As other Grand Slams like the French Open retain human officials, questions remain over whether AI is improving the sport or changing it for the worse.

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Meta hires Apple’s top AI executive amid tech talent war

Apple has lost a key AI executive to Meta, dealing a fresh blow to the tech giant’s internal AI ambitions.

Ruoming Pang, who led Apple’s foundation models team, is joining Meta’s newly formed superintelligence group, according to people familiar with the matter.

Meta reportedly offered Pang a lucrative package worth tens of millions annually, continuing its aggressive hiring streak.

The company, led by Mark Zuckerberg, has already brought in several high-profile AI experts from Scale AI, OpenAI, Anthropic and elsewhere, with Zuckerberg personally involved in recruitment efforts.

Pang’s team at Apple had been responsible for the core language models behind Apple Intelligence and Siri.

However, internal dissatisfaction has been mounting as the company considered shifting to third-party models, including from OpenAI and Anthropic.

That shift, combined with recent leadership changes and reduced responsibilities for Apple’s AI chief John Giannandrea, has weakened morale across the team.

Following Pang’s exit, the team will now be managed by Zhifeng Chen under a new multi-tier structure.

Several engineers are also reportedly planning to leave, raising concerns about Apple’s ability to retain AI talent as Meta increases its investment and influence in the race for advanced AI development.

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Experts gather in Malta to address digital risks in insurance

Malta is leading in the insurance sector’s response to digital transformation and emerging global risks.

At the centre of this push was a high-level forum, Innovating Insurance: Malta’s Digital Shift and Emerging Risks, hosted by FinanceMalta and the University of Malta’s Department of Insurance and Risk Management.

The event gathered regulators, professionals, academics, and students from across Europe and beyond to examine the future of insurance.

Two panel sessions addressed how technological innovations are reshaping the insurance landscape, focusing on the role of AI, cyber threats, and climate-related risks.

Speakers praised AI’s ability to enhance fairness and transparency by processing large data sets, warning of the need to retain human oversight for accountability.

Cyber insurance was highlighted as a fast-growing necessity, though panellists underlined it should complement—not replace—strong internal risk management and resilience strategies.

Regulatory authorities welcomed a growing cultural shift towards more proactive risk governance, encouraging businesses to match their investment in digital tools with equal commitment to cybersecurity.

Discussions also explored new digital models’ legal and regulatory consequences, reaffirming Malta’s role as a serious contributor to global insurance dialogue.

The event formed part of an international course on insurance regulation, underlining Malta’s strong academic–industry–regulator collaboration.

Organisers and speakers expressed confidence that Malta, despite its size, is playing a meaningful part in shaping a resilient and future-oriented insurance ecosystem.

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Mental health support is evolving with AI

AI is beginning to play a growing role in the mental health space, offering personalised and consistent support for those experiencing stress, anxiety or depression.

Tools like Woebot use natural language processing to engage individuals in conversations based on evidence-based techniques, such as cognitive behavioural therapy.

These digital companions are not designed to replace therapists but to complement their work by providing timely interventions and ongoing monitoring.

One of the key benefits of AI mental health agents is their accessibility. They can offer round-the-clock support, especially in regions or communities with limited professional mental health services.

By helping users identify emotional patterns and offering practical coping strategies, AI agents may serve as a first step toward care or help bridge the gap between sessions.

Despite their potential, AI tools also raise important ethical questions. Ensuring user privacy, avoiding algorithmic bias, and maintaining emotional safety are essential for earning public trust.

Experts suggest that the future of AI in mental health lies in the thoughtful integration of AI with human-led care, guided by rigorous standards and ethical safeguards.

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Reliance set for $50 billion growth with AI and green energy

According to analysts at Morgan Stanley, Reliance Industries is set to grow its market value by $50 billion through large-scale investments in AI infrastructure and new energy. The conglomerate, led by Mukesh Ambani, is retooling its energy and digital units as part of a long-term transformation strategy.

Central to this growth is constructing a generative AI data centre in Jamnagar, India, which will feature 1GW of capacity powered by 1.3GW of green energy. Reliance plans to source this power from its rapidly scaling renewable ecosystem, including solar and green hydrogen.

The firm aims to integrate 10GW of solar capacity by 2026 and has launched lithium battery and green hydrogen projects on a 2,000-acre site in Gujarat. Nvidia’s Blackwell chips will power the upcoming data centres, signalling Reliance’s ambition to make India a hub for next-gen digital infrastructure.

Morgan Stanley estimates up to $60 billion in value creation from the clean energy vertical alone, as Reliance uses electricity to drive data centres, refineries, and chemical facilities. The strategy reflects a broader vision to replace traditional operations with AI-driven, sustainable systems at a global scale.

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Capgemini invests in AI-driven operations with WNS

Capgemini has announced it will acquire Indian IT firm WNS for $3.3 billion to accelerate its leadership in agentic AI. The acquisition will significantly enhance Capgemini’s business process services (BPS) by integrating advanced AI capabilities into core operations.

The boards of both companies have approved the deal, which offers WNS shareholders a 28% premium over the 90-day average share price. Completion is expected by the end of 2025, pending regulatory approvals.

The company sees strong potential in embedding AI into enterprise operations, with BPS becoming a key showcase. The integration will strengthen Capgemini’s US presence and unlock cross-selling opportunities across the combined client networks.

Both firms emphasised a shared vision of intelligent operations powered by agentic AI, aiming to help clients shift from automation to AI-driven autonomy. Capgemini’s existing partnerships with tech giants like Microsoft, Google and NVIDIA will support this vision.

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Inside Visa’s war room: How AI battles $15 trillion in threats

In Virginia’s Data Centre Alley, Visa operates a high-security fraud command centre to protect $15 trillion in annual transactions — nearly 15% of the global economy. With cybercrime growing more sophisticated, the company has spent $12 billion in five years to bolster its AI-powered defences.

‘From lone hackers to criminal syndicates generating hundreds of millions, fraud today is highly structured,’ said Michael Jabbara, Visa’s global head of fraud solutions. Some groups now operate like corporations, with risk managers and customer support.

Much of today’s fraud preys on emotions. Scammers trick people into making payments by posing as romantic interests or sellers. Victims are often lured into schemes run by trafficked workers in scam centres in Myanmar.

Once card details are stolen, criminals test them across websites using recurring micro-charges. These fly under the radar for months, draining money slowly but steadily. Some operations mimic tech firms, offering fraud-as-a-service tools on the dark web.

‘You can buy a full toolkit — the software, instructions, bot access and even a mule network,’ Jabbara said. Brute-force payment attacks are now industrial in scale, enabled by the same cloud infrastructure that powers startups.

Visa’s defence includes round-the-clock global monitoring centres in Virginia, London and Singapore. Inside its Cyber Fusion Centre, teams handle millions of threats daily, mostly stopped automatically. But it’s an arms race — one that never sleeps.

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Ukraine strengthens cybersecurity ties with EU

Ukraine participated for the first time in the EU National Cybersecurity Coordination Centers meeting and the European Cybersecurity Competence Centre (ECCC) Steering Board in Rome.

The event, supported by Italy’s National Agency for Cybersecurity, focused on enhancing cooperation among EU member states and fostering a unified cyber community.

Natalia Tkachuk, Secretary of Ukraine’s National Coordination Center for Cybersecurity, highlighted the nation’s challenges and experiences in countering cyber threats amidst ongoing conflict.

She emphasized Ukraine’s role in both receiving and sharing cybersecurity knowledge to strengthen collective European security.

Discussions included the establishment of a joint Center of Competence for Cyber Resilience in Ukraine, aiming to counter Russian cyberattacks, disinformation, and sabotage.

The center will utilize artificial intelligence trained on unique Ukrainian data to enhance response capabilities.

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