DIGITALEUROPE urges stronger EU-US digital cooperation

DIGITALEUROPE has called for the rapid implementation of the EU-US trade deal and the launch of a broader transatlantic digital dialogue. The organisation said commitments under the Turnberry Agreement should be implemented to provide greater predictability for businesses.

DIGITALEUROPE said progress on implementing legislation is important for timely adoption of the agreement. The organisation also highlighted the importance of cooperation on digital resilience and competitiveness between the EU and the United States.

According to DIGITALEUROPE, the proposed EU-US Digital Dialogue could address areas including critical technologies, cybersecurity, secure connectivity, and energy technologies. The organisation said industry participation would support cooperation and transatlantic coordination.

DIGITALEUROPE also called for progress on a Cyber Mutual Recognition Agreement between the EU and the US. The statement reflects ongoing efforts to reinforce digital collaboration between Europe and the US.

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IPU webinar explores parliamentary action on AI

The Inter-Parliamentary Union will hold a webinar on how parliaments are responding to AI, focusing on oversight, committee structures, technical expertise and institutional capacity.

The event is the first substantive parliamentary exchange since the adoption of the Kuala Lumpur Declaration on Parliaments and responsible AI in November 2025. It forms part of the IPU’s Parliamentary Action on AI webinar series, which follows earlier IPU work on AI, democracy, human rights and the rule of law.

More than 60 national parliaments have taken action on AI through legislative reviews, oversight inquiries, dedicated committee structures and capacity-building programmes for MPs and parliamentary staff. Approaches, however, continue to vary across regions and institutional systems.

The webinar will draw on the IPU’s monthly tracker of parliamentary actions on AI policy. Participants will share experiences, lessons learned and emerging good practices on how legislatures can organise their work in a fast-moving and technically complex policy area.

The session will examine how specialised committees and other AI-related bodies are being created, how parliaments are sourcing independent technical expertise and how research services are adapting to support AI policy work.

It will also focus on sustaining informed engagement with governments and the private sector. The IPU says the aim is to help participants identify practical steps to strengthen parliamentary oversight of AI in their own institutions.

Why does it matter?

The webinar shows how AI governance is becoming a parliamentary capacity issue, not only an executive or regulatory one. As governments adopt AI strategies and companies deploy increasingly complex systems, legislatures need technical expertise, committee structures and research support to scrutinise policy choices, protect rights and hold decision-makers accountable. Also, it follows the IPU resolution on the impact of AI on democracy, human rights, and the rule of law, adopted at the 149th Assembly in Geneva in October 2024, and the Kuala Lumpur Declaration adopted at the Artificial Intelligence Conference in Malaysia in November 2025.

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Financial institutions increase cyber defences following AI security findings

Banking institutions across the United States, Europe, and Japan are strengthening cybersecurity measures following the identification of new vulnerabilities through AI-assisted security analysis tools. The findings have increased discussion around how AI may affect cyber risks across financial infrastructure.

Security teams are reviewing legacy system vulnerabilities and accelerating remediation efforts, according to sector reports. Smaller institutions are relying on intelligence shared by larger banks, while regulators warn that inaction increases exposure to coordinated cyberattacks.

International financial organisations, including the International Monetary Fund, have highlighted potential risks linked to evolving AI-enabled cyber threats.

Recent incidents involving platform breaches, supply-chain compromises, and AI-related exploit techniques have contributed to broader cybersecurity concerns across sectors.

Cybersecurity specialists said defence strategies increasingly rely on coordinated intelligence-sharing and AI-supported security systems.

Why does it matter?

AI is accelerating both the discovery of system weaknesses and the sophistication of cyberattacks, increasing systemic risk across interconnected financial infrastructure. As banking becomes more digitally dependent, cybersecurity shifts into a core stability concern for global financial governance and market resilience.

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Singapore expands implementation of National AI Strategy 2.0

Singapore has outlined the continued implementation of its National AI Strategy 2.0, focusing on expanding AI adoption and innovation across sectors. According to officials, the strategy is intended to strengthen Singapore’s AI capabilities and international cooperation.

The strategy includes investment in AI-related initiatives across industry, government, and research sectors. The initiatives include support for research centres, public service applications, and AI adoption among businesses.

Government agencies are expanding AI-supported services and participating in research and knowledge-sharing initiatives. Programmes including collaborative platforms and events are intended to support ecosystem development and professional exchange.

The strategy also highlights international cooperation on AI governance, safety, and standards. These efforts form part of broader ambitions to contribute to global AI progress while advancing national capabilities in Singapore.

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UK authorities issue guidance on frontier AI cyber risks in finance

The Bank of England, the Financial Conduct Authority (FCA), and HM Treasury published a joint statement on cybersecurity and operational resilience risks linked to frontier AI models.

According to the statement, current frontier AI models can perform certain cyber-related tasks at high speed and scale, potentially increasing operational and security risks if misused.

UK authorities said regulated firms should strengthen governance, vulnerability management, third-party risk oversight, and recovery capabilities. The statement also referred to the use of automated and AI-supported defensive measures in cybersecurity operations.

The guidance highlighted risks associated with third-party services, open-source software, and legacy systems. According to the statement, boards and senior management should maintain awareness of frontier AI-related operational and cyber risks.

The authorities said they will continue monitoring frontier AI developments and engage with industry through the Cross Market Operational Resilience Group (CMORG). The statement also references guidance published by the UK National Cyber Security Centre (NCSC) on vulnerability management and AI-related cyber risks.

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Pope Leo XIV to publish first encyclical on AI and human dignity

Pope Leo XIV’s first encyclical, Magnifica humanitas, focusing on the protection of the human person in the age of AI, will be released on 25 May, according to Vatican News.

The document, whose title roughly translates as ‘The greatness of humanity,’ addresses the relationship among AI, human dignity, and Catholic social teaching. It carries the Pope’s signature dated 15 May, marking the 135th anniversary of Rerum novarum, the landmark 1891 encyclical by Pope Leo XIII on labour and social issues during the industrial era.

The Vatican said the encyclical will be presented during an event at the Synod Hall in Vatican City on the day of publication. Pope Leo XIV is expected to attend, along with Church officials, theologians, and technology specialists.

Participants scheduled to speak include Cardinal Víctor Manuel Fernández, Prefect of the Dicastery for the Doctrine of the Faith; Cardinal Michael Czerny, Prefect of the Dicastery for Promoting Integral Human Development; Professor Anna Rowlands of Durham University; Christopher Olah, co-founder of AI company Anthropic and a researcher focused on AI interpretability; and Professor Leocadie Lushombo of Santa Clara University.

Cardinal Secretary of State Pietro Parolin is expected to deliver closing remarks before the Pope delivers an address and blesses.

The publication comes amid growing international debate over the societal impact of AI systems, including questions related to ethics, labour, governance, misinformation, and human oversight. The Vatican has increasingly engaged with discussions around digital technologies and AI in recent years, often emphasising human dignity, accountability, and the ethical use of emerging technologies.

By linking the new encyclical to the anniversary of Rerum novarum, the Vatican appears to place AI within a broader historical context of technological transformation and social change.

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World Economic Forum highlights growing role of AI in public administration

The World Economic Forum (WEF) has highlighted the growing role of AI in public administration and digital government systems.

According to Ahmed Tamim Hisham Al Kuttab of the Abu Dhabi Department of Government Enablement, future public services may become more automated and integrated across agencies.

The piece points to examples such as Abu Dhabi’s TAMM platform, which integrates more than 1,150 government services into a unified digital system. Officials said the TAMM platform uses AI-enabled systems to support service delivery and reduce administrative processes for users.

The WEF discussed how AI systems could support coordination of public services across government agencies following major life events, such as births, healthcare changes, or residency updates, reducing the need for citizens to navigate complex bureaucratic structures themselves.

The report also emphasised the importance of trust, accountability, transparency, and institutional oversight in government AI deployment. Instead, policymakers are urged to prioritise trust, accountability, transparency, and institutional legitimacy when deploying AI systems in public administration.

WEF’s report also highlights growing interest in agentic AI systems capable of coordinating workflows and executing administrative tasks autonomously. According to the report, decisions involving areas such as healthcare and legal outcomes should continue to involve human oversight and accountability.

The discussion forms part of broader international interest in AI-enabled public services and digital government infrastructure.

Why does it matter?

AI-driven public administration could fundamentally reshape state capacity, public trust, and citizen interaction with government systems, as WEF argues. Automated coordination across agencies may improve efficiency, reduce bureaucracy, and lower administrative costs. However, AI-native governance models also introduce major governance challenges involving privacy, explainability, cybersecurity, algorithmic bias, and democratic accountability. The debate reflects a wider global shift towards AI-powered digital states and intelligent public infrastructure.

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Claude Mythos AI model triggers global cyber risk review

Anthropic’s Claude Mythos Preview has drawn attention from financial regulators after the UK AI Security Institute found a notable increase in the model’s cybersecurity capabilities, including stronger performance on multi-step cyber-attack simulations.

AISI said earlier that its evaluation found continued improvement in capture-the-flag challenges and significant improvement in multi-step cyber-attack simulations. The institute said Mythos completed a previously unsolved 32-step simulated corporate network attack, marking the first time one of its tested models had completed that scenario.

Anthropic has also published its own technical assessment of Claude Mythos Preview, describing the model as a general-purpose system with advanced cybersecurity capabilities. The company has limited access to the model, reflecting concerns about the dual-use nature of systems that can support vulnerability discovery and cyber operations.

According to media reports, Anthropic is expected to brief the Financial Stability Board on the cybersecurity implications of Claude Mythos, as regulators examine whether frontier AI models could create new risks for banks and other financial institutions. The reports said the model has not been made publicly available because of concerns that its capabilities could be misused.

The scrutiny comes as financial authorities pay closer attention to the links between AI, cyber resilience and systemic risk. Advanced AI models support defenders by helping identify vulnerabilities and improve security testing, but similar capabilities could also lower the cost and complexity of offensive cyber activity.

Some experts have cautioned against treating Mythos as a wholly new category of threat, arguing that it amplifies existing cyber risks rather than replacing them. Weak authentication, unpatched systems and poor cyber hygiene remain central causes of breaches, making baseline resilience and governance critical as AI capabilities advance.

Why does it matter?

Claude Mythos shows how frontier AI models can become dual-use infrastructure: useful for strengthening cyber defence, but potentially risky if similar capabilities are misused. For financial institutions, the issue is systemic. If advanced models can accelerate vulnerability discovery or cyber operations across interconnected organisations, regulators may need to treat AI model oversight as part of financial stability and cyber resilience planning.

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Interpol warns AI is increasing scale and accessibility of cybercrime

Interpol said AI tools are changing cybercrime operations by lowering technical barriers and enabling broader use of online fraud techniques. Interpol Cybercrime Director Neal Jetton said AI tools, including chatbots and automated phishing services, can enable individuals with limited technical expertise to conduct online scams.

According to Interpol, phishing-as-a-service models and AI-generated content are contributing to more scalable fraud campaigns.

Interpol said organised criminal groups are increasingly using outsourced technical services and AI-supported tools in cyber-enabled fraud operations. Law enforcement officials said AI-enabled fraud may increase the scale and profitability of some cybercrime activities.

Interpol said international law enforcement cooperation is expanding in response to cross-border fraud networks and evolving cyber threats. Authorities are focusing on disrupting cross-border fraud infrastructure and strengthening national cyber capabilities as AI-driven threats continue to evolve.

Why does it matter?

AI is effectively industrialising cybercrime by reducing the skill threshold required to execute sophisticated fraud at scale. That shift expands the pool of potential attackers and increases the speed, volume, and personalisation of scams, placing sustained pressure on digital trust in financial, governmental, and communication systems.

At the same time, it forces law enforcement and cybersecurity frameworks to adapt from reactive investigation models to more proactive, intelligence-led, and cross-border coordination mechanisms to keep pace with rapidly evolving threat capabilities.

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New Zealand outlines public service reforms focused on digital systems and AI

New Zealand has announced public service reforms aimed at improving efficiency, reducing duplication and expanding digital systems across government operations.

Public Service Minister Paul Goldsmith outlined plans to streamline departments and expand the use of digital systems and AI in public administration. The government said the reforms respond to public sector growth that has increased in recent years.

The programme sets a target of returning the core public service to around 55,000 employees by 2029, reversing growth that saw staffing rise from approximately 47,000 in 2017 to more than 65,000 in 2023. According to officials, projected savings are intended to support areas including healthcare, education, infrastructure, and security.

Critics, including the Public Service Association, have raised concerns that the reforms could weaken service delivery and that AI and restructuring may not adequately replace experienced workers, warning of potential disruption across essential public services.

Why does it matter? 

The reform reflects a shift towards ‘digital-first state capacity’, where governments attempt to maintain or improve service delivery while constraining headcount growth through automation, AI integration and organisational consolidation.

The approach signals an increasing reliance on data-driven and AI-enabled systems to offset labour intensity in back-office functions, while reallocating fiscal resources towards frontline services and infrastructure.

At the same time, it raises structural questions about institutional resilience, transition costs of large-scale digitisation, and whether productivity gains from AI can realistically substitute for experienced human capacity in complex public service environments.

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