Artificial intelligence

Europe risks falling behind without telecom scale, Telefónica says

Telefónica has called for a shift in Europe’s telecommunications policy, arguing that market fragmentation is undermining investment, digital competitiveness, and the continent’s technological sovereignty, according to a new blog post from the company.

In the post, Telefónica says Europe’s emphasis on maximising retail competition has produced a highly fragmented operator landscape. It cites industry data showing the average European operator serves around five million customers, far fewer than peers in the United States or China.

The company argues that this lack of scale explains Europe’s lower per-capita investment in telecoms infrastructure and is slowing the rollout of technologies such as standalone 5G, fibre networks, and sovereign cloud and AI platforms.

Telefónica points to recent reports by Mario Draghi and Enrico Letta as signs of a policy shift, with EU institutions placing greater weight on investment capacity, resilience, and dynamic efficiency alongside traditional competition objectives.

The blog post concludes that Europe faces a strategic choice between preserving fragmented markets or enabling responsible consolidation. Telefónica says carefully regulated mergers could support sustainability, reduce regional digital divides, and strengthen Europe’s digital infrastructure.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

How data centres affect electricity, prices, water consumption and jobs

Data centres have become critical infrastructure for modern economies, supporting services ranging from digital communications and online commerce to emergency response systems and financial transactions.

As AI expands, demand for cloud computing continues to accelerate, increasing the need for additional data centre capacity worldwide.

Concerns about environmental impact often focus on electricity and water use, yet recent data indicate that data centres are not primary drivers of higher power prices and consume far less water than many traditional industries.

Studies show that rising electricity costs are largely linked to grid upgrades, climate-related damage and fuel prices instead of large-scale computing facilities, while water use by data centres remains a small fraction of overall consumption.

Technological improvements have further reduced resource intensity. Operators have significantly improved water efficiency per unit of computing power, adopting closed-loop liquid cooling and advanced energy management systems.

In many regions, water is required only intermittently, with consumption levels lower than those in sectors such as clothing manufacturing, agriculture and automotive services.

Beyond digital services, data centres deliver tangible economic benefits to local communities. Large-scale investments generate construction activity, long-term technical employment and stable tax revenues, while infrastructure upgrades and skills programmes support regional development.

As cloud computing and AI continue to shape everyday life, data centres are increasingly positioned as both economic and technological anchors.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

BBVA deepens AI partnership with OpenAI

OpenAI and BBVA have agreed on a multi-year strategic collaboration designed to embed artificial intelligence across the global banking group.

An initiative that will expand the use of ChatGPT Enterprise to all 120,000 BBVA employees, marking one of the largest enterprise deployments of generative AI in the financial sector.

The programme focuses on transforming customer interactions, internal workflows and decision making.

BBVA plans to co-develop AI-driven solutions with OpenAI to support bankers, streamline risk analysis and redesign processes such as software development and productivity support, instead of relying on fragmented digital tools.

The rollout follows earlier deployments that demonstrated strong engagement and measurable efficiency gains, with employees saving hours each week on routine tasks.

ChatGPT Enterprise will be implemented with enterprise grade security and privacy safeguards, ensuring compliance within a highly regulated environment.

Beyond internal operations, BBVA is accelerating its shift toward AI native banking by expanding customer facing services powered by OpenAI models.

The collaboration reflects a broader move among major financial institutions to integrate AI at the core of products, operations and personalised banking experiences.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI reshapes cybercrime investigations in India

Maharashtra police are expanding the use of an AI-powered investigation platform developed with Microsoft to tackle the rapid growth of cybercrime.

MahaCrimeOS AI, already in use across Nagpur district, will now be deployed to more than 1,100 police stations statewide, significantly accelerating case handling and investigation workflows.

The system acts as an investigation copilot, automating complaint intake, evidence extraction and legal documentation across multiple languages.

Officers can analyse transaction trails, request data from banks and telecom providers and follow standardised investigation pathways, instead of relying on slow manual processes.

Built using Microsoft Foundry and Azure OpenAI Service, MahaCrimeOS AI integrates policing protocols, criminal law references and open-source intelligence.

Investigators report major efficiency gains, handling several cases monthly where only one was previously possible, while maintaining procedural accuracy and accountability.

The initiative highlights how responsible AI deployment can strengthen public institutions.

By reducing administrative burden and improving investigative capacity, the platform allows officers to focus on victim support and crime resolution, marking a broader shift toward AI-assisted governance in India.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

New law requires AI disclosure in advertising in the US

A new law in New York, US, will require advertisers to disclose when AI-generated people appear in commercial content. Governor Kathy Hochul said the measure brings transparency and protects consumers as synthetic avatars become more widespread.

A second law now requires consent from heirs or executors when using a deceased person’s likeness for commercial purposes. The rule updates the state’s publicity rights, which previously lacked clarity in the context of the generative AI era.

Industry groups welcomed the move, saying it addresses the risks posed by unregulated AI usage, particularly for actors in the film and television industries. The disclosure must be conspicuous when an avatar does not correspond to a real human.

Specific expressive works such as films, games and shows are exempt when the avatar matches its use in the work. The laws arrive as national debate intensifies and President-elect Donald Trump signals potential attempts to limit state-level AI regulation.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Mercedes-Benz nominates new supervisory board members to drive AI and sustainability

Mercedes-Benz Group AG has announced planned changes to its Supervisory Board, proposing the appointment of Katharina Beumelburg and Rashmi Misra at the company’s 2026 Annual General Meeting.

The move is intended to strengthen the board’s expertise in sustainability, industrial transformation, and AI, reflecting the company’s strategic focus on decarbonisation and digital innovation.

Beumelburg brings extensive experience in global sustainability and energy transition from roles at Heidelberg Materials, SLB, and Siemens. At the same time, Misra brings deep expertise in AI and emerging technologies, having held senior positions at Analogue Devices and Microsoft.

They will succeed Dame Polly Courtice and Prof. Dr Helene Svahn, who will step down in April 2026 after contributing to Mercedes-Benz’s strategic development in recent years.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Chinese tech giant bolsters AI ambitions with new foundation model division

Huawei Technologies is intensifying its AI strategy with the establishment of a dedicated foundation model unit within its 2012 Laboratories research arm, reflecting the heightened competition among China’s major tech companies to develop advanced AI systems.

A recruitment advertisement posted in October signals that the Shenzhen-based telecom and tech giant is proactively wooing global AI talent to assemble a world-class team focused on foundational model development.

Huawei has confirmed the establishment of the unit but has offered few operational details.

Richard Yu Chengdong, head of Huawei’s consumer group and newly appointed chairman of the Investment Review Board overseeing AI strategy, has personally promoted the drive on social media, urging young engineers to help ‘make the world’s most powerful AI.’

This movement underscores Huawei’s broader ambition to challenge both domestic rivals and Western AI leaders in core areas of generative AI technology.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

How AI is powering smarter digital maps for commercial fleets

AI is increasingly embedded in digital mapping systems used by commercial fleets, transforming static navigation tools into adaptive decision-making platforms.

These AI-powered systems ingest real-time data from vehicles, traffic feeds, weather, and sensors to optimise routes and operations continuously.

For fleet operators, this enables more accurate arrival times, reduced fuel consumption, and faster responses to disruptions such as congestion or road closures. AI models can also anticipate problems before they occur by identifying patterns in historical and live data.

Smarter maps support broader fleet intelligence, including predictive maintenance, driver behaviour analysis, and compliance monitoring. Mapping platforms are becoming core operational infrastructure rather than auxiliary navigation tools.

As logistics networks become increasingly complex, AI-driven mapping is emerging as a competitive necessity for commercial fleets seeking efficiency, resilience, and scalability.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI-powered grid pilot aims to cut energy costs in Ottawa

Canada has announced new federal funding to pilot AI tools on the electricity grid, backing a project designed to improve reliability, affordability and efficiency as energy demand grows.

The government of Canada will provide $6 million to Hydro Ottawa under the Ottawa Distributed Energy Resource Accelerator programme. The initiative will utilise AI-enhanced predictive analytics to forecast peak demand and help balance electricity supply and demand in near real-time.

The project will turn customer-owned technologies such as smart thermostats, electric vehicle chargers and home batteries into responsive grid resources. By aggregating them, Hydro Ottawa aims to manage local constraints and reduce costly network upgrades, starting in areas like Kanata North that are experiencing rapid growth.

Officials say the programme will give households more control over energy use while strengthening grid resilience. The pilot is also intended to serve as a model that could be scaled across other neighbourhoods and electricity systems.

The funding comes through the Energy Innovation Program, which supports innovative grid demonstrations and AI-driven energy projects. Ottawa says such initiatives are key to modernising Canada’s electricity system and supporting the transition to a low-carbon economy.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

OpenAI outlines safeguards as AI cyber capabilities advance

Cyber capabilities in advanced AI models are improving rapidly, delivering clear benefits for cyberdefence while introducing new dual-use risks that require careful management, according to OpenAI’s latest assessment.

The company points to sharp gains in capture-the-flag performance, with success rates rising from 27 percent in August to 76 percent by November 2025. OpenAI says future models could reach high cyber capability, including assistance with sophisticated intrusion techniques.

To address this, OpenAI says it is prioritising defensive use cases, investing in tools that help security teams audit code, patch vulnerabilities, and respond more effectively to threats. The goal is to give defenders an advantage in an often under-resourced environment.

OpenAI argues that cybersecurity cannot be governed through a single safeguard, as defensive and offensive techniques overlap. Instead, it applies a defence-in-depth approach that combines access controls, monitoring, detection systems, and extensive red teaming to limit misuse.

Alongside these measures, the company plans new initiatives, including trusted access programmes for defenders, agent-based security tools in private testing, and the creation of a Frontier Risk Council. OpenAI says these efforts reflect a long-term commitment to cyber resilience.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!