Artificial intelligence Archives | Page 8 of 695

FTC seeks comment on AI accuracy policy for model outputs

The US Federal Trade Commission (FTC) is seeking public comment on a proposed policy statement examining whether AI companies may violate consumer protection law by manipulating model outputs in ways that conflict with users’ expectations of objectivity and accuracy.

The proposed statement says AI companies could violate Section 5 of the FTC Act if they deliberately distort AI outputs to pursue undisclosed ideological objectives while marketing their systems as accurate, objective or suitable for specific purposes. Section 5 prohibits unfair or deceptive business practices.

The FTC also questions whether certain state AI laws, specifically Colorado’s Artificial Intelligence Act, could be preempted if they conflict with a federal regulatory framework. According to the Commission, state requirements that compel changes to AI outputs may be incompatible with federal policy.

The proposal follows a December executive order issued by President Donald Trump directing the FTC to examine the legal implications of state laws requiring changes to what the order described as the ‘truthful outputs of AI models.’

The proposed policy statement will be published in the Federal Register, with public comments accepted until 31 July 2026. The Commission approved the notice in a 2–0 vote.

Why does it matter?

The proposal reframes AI output accuracy as a consumer protection issue rather than solely a question of content moderation or AI governance. If adopted, it could expose companies to regulatory scrutiny when they market AI systems as objective or reliable while modifying outputs in ways users are not informed about.

The consultation also highlights growing tension between federal and state approaches to AI regulation in the United States. By questioning whether state laws could be overridden by a federal framework, the FTC is signalling that AI governance may increasingly become the subject of broader legal and constitutional debates over regulatory authority.

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Microsoft launches $2.5 billion AI implementation business

Microsoft has announced a $2.5 billion investment to create Microsoft Frontier Company, a new operating business focused on helping organisations deploy AI systems at scale.

The company said the unit will embed 6,000 engineers, consultants, support specialists and industry experts with customers to design, deploy and continuously improve AI systems linked to measurable business outcomes.

Microsoft said the initiative responds to a shift in enterprise AI adoption, as companies move from experimentation to implementation, return on investment, and the protection of proprietary knowledge.

A central part of the approach is model choice. Microsoft said customers should be able to use different models for different scenarios, including models from OpenAI, Anthropic, Microsoft AI, open-source communities and specialised industry developers.

The company also said customer data, intellectual property, workflows and competitive knowledge should remain protected and should not be used to train models in ways that reduce customers’ market advantages.

Microsoft said early projects with organisations including the London Stock Exchange Group, Land O’Lakes, Unilever and Novo Nordisk have already delivered measurable outcomes through AI integration.

Rodrigo Kede Lima will serve as president of Microsoft Frontier Company. Microsoft said the new business will work with global systems integration partners, including Accenture, Capgemini, EY, KPMG and PwC.

Why does it matter?

The announcement shows how the enterprise AI market is shifting from access to models towards implementation, integration and measurable business outcomes. Many organisations already have AI tools, but struggle to embed them into workflows, protect proprietary data and show returns on investment. Microsoft’s new unit positions the company as an AI engineering and services partner across models, cloud infrastructure and enterprise operations, while also reflecting growing demand for multi-model AI ecosystems rather than single-provider dependency.

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India marks 11 years of Digital India initiative

India has marked the 11th anniversary of the Digital India initiative, with Prime Minister Narendra Modi highlighting its role in transforming governance, public service delivery and access to digital services.

In a statement issued by the Prime Minister’s Office, Modi said the Digital India initiative had made governance more transparent, efficient and citizen-centric. He highlighted digital payments, Direct Benefit Transfers and the expansion of digital public infrastructure as key examples of technology improving public service delivery.

The government also linked the Digital India initiative to broader innovation across the country, including in villages and Tier-2 and Tier-3 cities. Modi said entrepreneurs, startups and innovators were developing technology-based solutions for sectors including education, healthcare, agriculture, commerce and public services.

The statement also highlighted India’s ambitions in emerging technologies. Modi said advances in AI, semiconductors and quantum computing would create new opportunities for economic growth, while reaffirming the government’s commitment to using technology to empower citizens and support sustainable development.

Why does it matter?

The anniversary highlights how Digital India has evolved from a digital government programme into a broader strategy for economic development and technological innovation. By linking digital public infrastructure with AI, semiconductors and quantum computing, the government is positioning digital transformation as a foundation for India’s long-term competitiveness.

The initiative also illustrates the growing role of digital public infrastructure in national development. India’s experience with digital payments, identity systems and public services is increasingly influencing international discussions on digital governance and technology-enabled public service delivery.

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IWF warns under-16 social media ban is not enough to stop online abuse

The Internet Watch Foundation (IWF) has welcomed the UK government’s decision to restrict social media access for under-16s but argues that the measure alone will not significantly reduce online child sexual exploitation and abuse.

In a new blog, IWF Chief Executive Kerry Smith describes the proposed ban as a major policy milestone while warning that it must be accompanied by broader reforms if it is to deliver lasting improvements in children’s online safety.

According to the IWF, children continue to face a rapidly evolving range of online threats, including grooming, financial sextortion, commercial child sexual abuse and the growing exploitation of young people across digital platforms.

While limiting access to social media may reduce exposure to some risks, the organisation argues that determined offenders will continue to exploit encrypted messaging services, gaming platforms and other online environments if wider safeguards are not introduced.

The charity therefore calls for a more comprehensive regulatory approach centred on safety by design. Its recommendations include stronger safeguards for end-to-end encrypted services, tougher enforcement of the UK’s Online Safety Act, greater accountability for technology companies, and platform design that prevents harmful products and features from reaching users before risks are identified.

The IWF also highlights the need to regulate emerging technologies such as AI chatbots and strengthen device-level protections for children.

Why does it matter?

The IWF’s position reflects a growing international consensus that age restrictions alone cannot address the complex ecosystem of online child exploitation. As abuse increasingly migrates across encrypted services, gaming platforms and AI-powered technologies, policymakers are being encouraged to adopt broader regulatory frameworks that target platform design as well as user access.

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UAE and US deepen AI partnership under Pax Silica framework

The United Arab Emirates is expanding its AI cooperation with the United States, describing the partnership as a long-term strategic framework centred on investment, trusted technology and joint innovation across multiple sectors.

The UAE is investing across the US AI ecosystem, including semiconductors, AI applications, energy and digital infrastructure. Officials said the partnership reflects years of institutional cooperation, reinforced through continued policy alignment, economic collaboration and high-level engagement.

At the second Pax Silica Summit in Washington, UAE representatives joined international partners in advancing the Joint Statement on AI Opportunity, with 35 countries reaffirming their commitment to innovation-driven policies, private-sector research and resilient technology supply chains. The UAE joined the Pax Silica initiative in January 2026 as part of a broader US$1.4 trillion economic and technology framework.

The partnership also includes major infrastructure and investment projects, including advanced US semiconductor exports to the UAE, a joint AI campus in Abu Dhabi and expanding data centre capacity. Officials said cooperation will continue to deepen through long-term investment, research and technology integration.

Why does it matter?

The partnership illustrates how AI is increasingly shaping strategic relationships between countries, extending beyond research cooperation into semiconductors, computing infrastructure, investment and supply chains. Governments are treating AI capabilities as a foundation of long-term economic competitiveness and technological influence.

It also reflects the growing importance of trusted international technology partnerships. As countries seek secure access to advanced chips, data centres and AI infrastructure, collaborations such as the UAE-US partnership are becoming an important part of broader industrial, economic and geopolitical strategies.

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WTO highlights AI opportunities for small businesses

The WTO’s Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) has highlighted AI as a key tool for helping small businesses compete in international trade.

During meetings on 29 and 30 June, WTO members explored how AI could strengthen supply chains, reduce trade barriers and help smaller firms navigate an increasingly uncertain global trading environment. The group also welcomed Ghana as its 106th member.

One of the highlights was the announcement of the 2026 Small Business Champions, recognising organisations using AI to support international trade.

Zambia’s Rinato Space was selected to apply satellite technology and AI to provide climate monitoring, early warning systems and capacity-building services for smallholder farmers, helping improve agricultural productivity and export opportunities.

France-based Koaloo.FI was also recognised for using generative AI to automate environmental, social and governance compliance, assess supply chain risks and improve access to financing for small suppliers.

The competition also recognised Colombia’s Cámara Colombiana de Informática y Telecomunicaciones and the Center for International Private Enterprise for developing an AI governance roadmap for Latin America that includes affordable AI tools for MSMEs.

Türkiye’s Globby was honoured for creating an AI-powered trade intelligence platform that helps small businesses identify international market opportunities and participate more effectively in global commerce.

WTO members acknowledged persistent barriers to AI adoption, including limited digital infrastructure, fragmented international standards, shortages of technical expertise, constrained access to finance and the need for supportive legal and regulatory frameworks.

WTO officials also presented ongoing initiatives, including preparations for the upcoming World Trade and Tech Day, alongside new AI-related learning tools and digital trade resources.

The meeting also focused on broader trade uncertainty affecting small businesses worldwide.

The meeting also addressed broader trade uncertainty affecting MSMEs. Representatives from organisations including World Intellectual Property Organization, the International Finance Corporation, the International Telecommunication Union, the Food and Agriculture Organization and the Pan African Alliance of Small and Medium Industries presented initiatives to improve market access, trade finance, intellectual property protection and digital trade participation.

Why does it matter?

The discussions reflect a growing recognition that AI is becoming an important enabler of international trade, particularly for smaller businesses that often lack the resources to compete with larger firms. By helping automate compliance, improve supply chain management and identify export opportunities, AI could reduce longstanding barriers to global market participation.

At the same time, the meeting highlighted that technology alone is not enough. Expanding the benefits of AI for MSMEs will depend on investment in digital infrastructure, skills, financing and interoperable regulatory frameworks, making international cooperation an increasingly important component of digital trade policy.

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Vietnam’s new e-commerce law takes effect

Vietnam’s Law on E-commerce came into effect on 1 July 2026, modernising the country’s digital economy framework after more than a decade of rapid growth in online commerce. The law addresses gaps that previous regulations failed to close, particularly around intermediary platforms, cross-border e-commerce, counterfeit goods, commercial fraud, and consumer rights infringements.

Under the new law, e-commerce platforms must verify sellers’ identities, disclose information about sellers, products and transaction terms, proactively identify violations, and establish effective complaint-handling mechanisms. They are also required to retain transaction data, provide it to authorities on request, and strengthen product information requirements, particularly for sensitive goods.

The legislation also promotes greener e-commerce through more efficient logistics and environmentally friendly packaging, while creating new opportunities for SMEs, household businesses and startups. Consumer protections have been strengthened through clearer rules on complaints, refunds, compensation and personal data, with experts expecting consistent enforcement to improve market confidence over time.

Major e-commerce platforms operating in Vietnam have already begun adapting, including by expanding the use of near-field communication (NFC) technology for seller verification and AI to detect counterfeit and intellectual property-infringing products. Although compliance costs may initially increase, the reforms are expected to reward businesses that invest in higher standards and strengthen the long-term development of Vietnam’s digital marketplace.

Why does it matter?

Vietnam’s new law reflects a broader shift towards platform accountability in digital commerce. By requiring marketplaces to verify sellers, retain transaction data and proactively tackle fraud and counterfeit goods, the government is placing greater responsibility on intermediaries to ensure the integrity of online marketplaces.

The legislation also illustrates how digital economy regulation is evolving beyond consumer protection alone. Combining AI-enabled enforcement, stronger data governance and sustainability measures, the framework aims to support long-term growth in e-commerce while increasing trust in Vietnam’s rapidly expanding digital economy.

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US House of Representatives passes Kids Internet and Digital Safety Act

The US House of Representatives has passed the Kids Internet and Digital Safety Act in a bipartisan 267-117 vote, advancing a broad package that combines 14 online child safety proposals into a single piece of legislation.

The legislation includes provisions requiring AI chatbots to remind users they are not human, provide mental health resources, encourage regular breaks and avoid promoting potentially harmful topics. Lawmakers also removed the original Kids Online Safety Act’s proposed ‘duty of care’ provision after concerns it could lead to censorship, a decision criticised by several senators who co-authored the earlier bill.

Critics, including digital rights organisations and several lawmakers, argue the legislation weakens existing protections and does not go far enough in holding technology companies accountable. The Electronic Frontier Foundation warned that compliance could encourage widespread age verification, potentially requiring users to submit personal information and raising concerns about privacy and freedom of expression.

Supporters reject those criticisms, arguing that the bill does not explicitly require age verification but instead strengthens safeguards for minors and expands parental controls. The legislation now moves to the Senate, where it is expected to face further scrutiny.

Why does it matter?

The legislation represents one of the most comprehensive federal efforts to strengthen online child safety in the United States. Its inclusion of AI chatbot requirements reflects growing recognition that conversational AI introduces new risks for younger users that existing online safety frameworks were not designed to address.

At the same time, the bill highlights the continuing challenge of balancing child protection with privacy and freedom of expression. As it moves to the Senate, debate is likely to focus on whether stronger platform accountability can be achieved without expanding age verification requirements or creating incentives for broader online censorship.

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Singapore proposes Digital Infrastructure Bill to strengthen cloud security

Singapore has launched a public consultation on a proposed Digital Infrastructure Bill that would establish a comprehensive regulatory framework for major cloud computing services and data centres.

Published jointly by the Ministry of Digital Development and Information and the Infocomm Media Development Authority (IMDA), the draft legislation aims to strengthen the resilience and security of critical digital infrastructure while introducing mandatory environmental sustainability standards for data centre operations.

The Bill recognises digital infrastructure as a foundation of Singapore’s digital economy, supporting services ranging from digital banking and e-commerce to cloud platforms and public administration. Unlike earlier amendments to the Cybersecurity Act, which focused primarily on cyber risks, the proposal extends regulatory oversight to operational resilience, business continuity, disaster recovery and environmental sustainability.

A central feature is a new licensing regime for major foundational digital infrastructure (FDI) providers. Cloud providers generating at least S$100 million annually from Singapore-based customers through Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) offerings would require a major FDI licence.

Cloud and colocation data centres with a critical IT load of at least 10 megawatts serving third parties would also fall within the regime. Licensed providers will be required to implement robust physical security and cybersecurity measures, maintain business continuity and disaster recovery plans, and report cybersecurity incidents and service disruptions to IMDA.

The Bill also establishes a separate licensing regime for data centres with a critical IT load of at least 3 megawatts. In addition to operational capability, applicants would be assessed against energy efficiency, water efficiency and broader sustainability criteria.

Beyond operational capability, applicants will be assessed on energy efficiency, water efficiency and broader sustainability considerations. Licensed operators will initially need to comply with facility-level Power Usage Effectiveness (PUE) requirements, while the legislation enables future regulations covering IT equipment efficiency and water consumption.

Singapore’s Green Data Centre Roadmap and previous voluntary industry standards will therefore evolve into legally enforceable baseline requirements across the sector.

IMDA would receive broad enforcement powers, including the authority to grant, suspend and revoke licences, issue binding codes of practice, conduct investigations and impose financial penalties. The Bill also proposes amendments to Singapore’s Cybersecurity Act to ensure consistency across the country’s digital infrastructure framework. Public consultation remains open until 22 July 2026.

Why does it matter?

The proposed legislation reflects a growing shift in how governments view digital infrastructure. As cloud computing and data centres become increasingly critical to AI, financial services and public administration, policymakers are expanding regulation beyond cybersecurity to include operational resilience, business continuity and environmental sustainability.

Singapore’s approach could also serve as a model for other digital hubs. By combining resilience requirements, licensing, cyber oversight and sustainability obligations within a single regulatory framework, the Bill illustrates how governments are adapting infrastructure governance to support the rapid growth of cloud services and AI-driven computing.

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UN scientific panel publishes first global AI assessment ahead of Geneva governance dialogue

The United Nations’ Independent International Scientific Panel on Artificial Intelligence has published its first preliminary report, providing an evidence-based assessment of AI’s opportunities, risks, and societal impacts ahead of next week’s inaugural Global Dialogue on AI Governance in Geneva. Rather than prescribing specific policies, the report aims to inform international discussions by providing an independent scientific foundation for AI governance decision-making.

Established by the UN General Assembly in August 2025 following commitments made in the Global Digital Compact, the panel brings together 40 independent experts from academia, civil society, the private sector, and the technical community. It is the first permanent UN scientific body dedicated exclusively to assessing the development and societal implications of AI. The report will serve as a key input to the Global Dialogue on AI Governance, which takes place on 6–7 July alongside the World Summit on the Information Society (WSIS) Forum and the AI for Good Global Summit in Geneva.

The preliminary report examines AI through four broad dimensions:

Scientific and technological developments;
Opportunities for sustainable development;
Emerging risks;
Approaches to international governance.

Instead of advocating a particular regulatory model, the panel seeks to establish a shared evidence base that can support future policymaking and international cooperation on AI.

Rather than focusing solely on risks, the report examines AI’s growing role across sectors, including healthcare, education, agriculture, scientific research, and public administration. It describes AI as a general-purpose technology with the potential to accelerate innovation, improve productivity, and expand access to knowledge and public services. At the same time, the panel notes that these benefits remain unevenly distributed across countries and regions, with significant disparities in access to computing infrastructure, technical expertise, and digital resources.

The report estimates that more than one billion people now use AI-powered services each week, while frontier AI capabilities remain concentrated among a relatively small number of companies and countries. According to the panel, this concentration extends beyond AI models themselves to include computing infrastructure, specialised hardware, large-scale datasets, and technical talent, raising broader questions about equitable access to AI and the distribution of its benefits.

The panel also highlights the challenges facing developing countries, warning that many risk becoming primarily consumers rather than producers of AI technologies if investment in local infrastructure, research ecosystems, digital skills, and governance capacity does not keep pace with global developments. It identifies multilingual AI, locally relevant datasets, and stronger scientific capabilities as important factors in ensuring that AI systems better reflect diverse societies and languages rather than reinforcing existing global disparities.

Alongside these opportunities, the report identifies a range of emerging risks associated with increasingly capable AI systems. These include the use of AI for cyberattacks, fraud, disinformation, election interference, and other malicious activities, as well as broader concerns related to market concentration, transparency, and the growing dependence of many countries on a limited number of AI providers. The panel also notes that many governments currently lack the technical capacity to evaluate the most advanced frontier AI models independently.

Beyond security-related concerns, the report identifies environmental sustainability as an increasingly important governance issue. It notes that the rapid expansion of AI requires increasing amounts of computing power, electricity, water, and specialised hardware, and argues that future AI development should balance technological progress with efficient resource use and broader sustainable development objectives.

Speaking at the report’s launch, UN Secretary-General António Guterres said that the pace of AI development requires stronger international cooperation grounded in scientific evidence and inclusive dialogue.

Panel co-chair Maria Ressa described the publication as an independent scientific assessment designed to inform, rather than replace, intergovernmental decision-making. The report itself states that ‘effective AI governance requires international cooperation,’ while recognising that governance approaches will continue to reflect different national circumstances and policy priorities.

The publication marks the first major output of the Independent International Scientific Panel on AI since its establishment under the Global Digital Compact. Future reports are expected to provide regular scientific assessments of AI capabilities, impacts, and governance challenges as the technology continues to evolve.

Why does it matter?

As governments, international organisations, researchers, and industry representatives gather in Geneva next week for the inaugural Global Dialogue on AI Governance, the preliminary report is expected to provide an important reference point for discussions on the future of AI. By combining scientific evidence with a broad assessment of opportunities, risks, and governance considerations, it seeks to support a more informed international conversation on how AI can contribute to sustainable development, human rights, and shared global prosperity.

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