Capacity development Archives | Digital Watch Observatory

Armenian finance minister highlights AI’s economic potential and risks

Armenia’s Finance Minister Vahe Hovhannisyan said AI could support economic growth while also creating new economic and labour-market challenges. He made the comments during a parliamentary discussion on the performance of the 2025 state budget.

Hovhannisyan said the impact of AI is being widely debated internationally and that governments around the world are actively exploring its economic implications. He was responding to questions about AI’s potential effect on GDP growth and the expansion of the tax base.

The minister cited international estimates suggesting that AI adoption could add approximately 0.8 to 1 percentage point to economic growth. He said AI has the potential to generate new forms of employment while supporting productivity and economic growth.

At the same time, Hovhannisyan warned that AI could disrupt existing jobs and create adjustment challenges for labour markets. The remarks were made during discussions on Armenia‘s 2025 budget performance, as the government’s 2026 budget projects economic growth of 5,4%.

Why does it matter?

The comments reflect a broader global debate about AI’s economic impact. Policymakers increasingly view AI as a potential driver of productivity, innovation and economic growth, while also recognising the possibility of labour-market disruption and changing workforce demands.

For emerging economies such as Armenia, the challenge is not only adopting AI technologies but also ensuring that workers and businesses can benefit from them. The long-term impact of AI on growth, employment and public finances will depend on investment, skills development and the ability to adapt to technological change.

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

Japanese researchers develop interpretable AI for materials discovery

Researchers in Japan have developed an interpretable AI method to explain how AI models make predictions in materials discovery. The method analyses features learned by a trained AI model and uses them to identify relationships between atomic structure and optical spectra.

The study was led by researchers from the Institute of Science Tokyo, in collaboration with Tohoku University. The work is expected to be published in the journal Advanced Intelligent Discovery.

AI is increasingly used in materials research to predict how materials behave based on atomic structure. Such models can accelerate materials discovery and reduce reliance on trial-and-error experimentation, but many operate as black boxes, making it difficult to understand how they arrive at specific predictions.

The researchers addressed this problem by analysing a trained AI model that predicts optical absorption spectra from atomic structural data. They extracted features from the model’s internal layers and clustered materials according to shared structural and spectral characteristics.

The team used an atomistic line graph neural network trained on data from 2,681 metal oxides, chalcogenides, and related compounds. The clustering process classified materials into groups sharing structural characteristics such as elemental composition, atomic coordination, bond lengths, bond angles and similar spectral signatures.

According to the researchers, the model learned meaningful relationships between atomic structure and material properties without being explicitly provided oxidation states or electronic configurations as input. The interpretable AI method could therefore help researchers identify the factors behind desired spectral shapes and support more rational materials design.

The approach could also be applied beyond optical absorption spectra. Researchers said the approach could also help explain how atomic arrangements influence other material properties under varying conditions, such as temperature and pressure, opening new possibilities for designing materials with targeted characteristics.

Why does it matter?

One of the main challenges facing the use of AI in scientific research is explainability. While AI systems can identify patterns and generate accurate predictions, researchers often need to understand the reasoning behind those predictions before they can confidently apply them in experimental settings.

By revealing how AI models connect atomic structures with material properties, interpretable AI could make machine learning a more effective tool for scientific discovery. The approach may help accelerate the development of advanced materials for applications ranging from renewable energy and electronics to sensors and next-generation manufacturing, while improving trust in AI-assisted research.

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

Singapore warns of Microsoft impersonation scams causing major losses

The Singapore Police Force (SPF) and the Cyber Security Agency of Singapore (CSA) have warned the public about technical support scams that impersonate Microsoft. Authorities said at least 10 cases had been reported since February 2026, with total losses exceeding S$1.7 million.

In this scam variant, victims typically encounter a pop-up alert in their web browser. The alert falsely appears to originate from Microsoft and claims that the user’s device has been hacked or compromised.

Victims are then instructed to contact a so-called technical support officer through an internet-based phone number. After making contact, victims may be transferred to another scammer posing as a police officer, who claims that their device has been used for criminal activities such as money laundering.

Authorities in Singapore said victims may be instructed to make bank transfers, provide banking credentials, or grant remote access to their devices. In some cases, scammers asked victims to download remote access applications or click links that allowed them to take control of bank accounts.

SPF and CSA advised members of the public to verify alerts through official software provider channels. They noted that Microsoft does not include phone numbers in error or warning messages, and that users should not call numbers displayed in suspicious pop-ups or click links or buttons within such alerts.

People who believe they have fallen victim to the scam are advised to disconnect their computer from the internet, contact their bank, remove applications installed under the scammer’s instructions, and run an anti-virus scan. They should also change passwords and banking credentials using a trusted device, remove unauthorised payees, and report the incident to the police and CSA’s SingCERT.

Why does it matter?

Technical support scams remain one of the most effective forms of cyber-enabled fraud because they combine social engineering, impersonation and remote access techniques. By exploiting trust in well-known brands such as Microsoft and creating a sense of urgency, scammers can persuade victims to hand over sensitive information or direct access to their devices.

The cases also highlight how cybersecurity and financial security are increasingly interconnected. Basic cyber hygiene practices, such as verifying security alerts through official channels, avoiding unsolicited remote access requests and reporting incidents quickly, can help prevent account compromise and reduce financial losses.

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

Spanish minister says AI regulation boosts competitiveness and trust

Spain’s Minister for Digital Transformation and Public Function, Óscar López, said that AI regulation strengthens competitiveness rather than discouraging investment. Speaking at the Foro Talento España event organised by TRIVU, he argued that trust is becoming a key factor in the development and adoption of AI.

López pointed to OpenAI’s decision to open its first office in Spain as evidence that AI regulation can coexist with innovation and investment. He said Spain’s approach helps create a more predictable and trustworthy environment for businesses and technology development.

The minister also highlighted government investments in digital skills and talent development. He cited initiatives including the National Digital Skills Plan, university programmes focused on AI and cybersecurity, and plans to recruit 1,600 ICT specialists for the public sector.

These efforts have contributed to growth in higher education, technology training and STEM employment. Speaking in Madrid, López said continued investment in talent, digital skills and emerging technologies will be essential as AI and other advanced digital sectors continue to evolve in Spain.

Why does it matter?

The relationship between AI regulation and innovation remains a central policy debate worldwide. While some argue that regulation could slow investment and technological development, others contend that clear rules can increase trust, reduce uncertainty and encourage long-term adoption.

Spain’s position reflects a growing European approach that views regulation and innovation as complementary rather than competing objectives. By combining AI governance measures with investments in skills, education and digital talent, policymakers are seeking to build an environment that supports both technological development and public trust.

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

Microsoft president says AI’s future should be shaped by people, not technology alone

Microsoft Vice Chair and President Brad Smith has argued that the future impact of AI should be shaped by people rather than technology alone, emphasising the importance of human agency, creativity and the dignity of work.

In a recent blog post, Smith said concerns expressed by university graduates about AI’s impact on employment should be taken seriously by the technology sector.

Smith also noted that younger generations remain among the most active users of AI technologies but are increasingly questioning how AI will affect jobs, careers and society. He argued that graduates are sending a clear message that AI should support human capabilities instead of determining the role of people in the workforce.

The article draws on historical examples of technological disruption, including photography, computing and automation, arguing that new technologies have often transformed work rather than eliminated human creativity and ambition.

Smith acknowledged concerns about entry-level employment, workforce restructuring and economic uncertainty, while suggesting that AI adoption is likely to unfold over decades rather than over a short period.

Microsoft argues that individuals should focus on combining expertise in their chosen fields with AI literacy. The company also emphasises the importance of uniquely human skills such as creativity, curiosity, communication, compassion and judgement.

For organisations, Smith recommends using AI to strengthen institutional knowledge and productivity while retaining control over proprietary data, intellectual property and strategic decision-making.

Why does it matter?

The debate over AI’s impact on employment has become one of the central questions in technology policy and economic planning. While some forecasts focus on job displacement, others argue that AI will primarily transform how work is performed, creating demand for new skills and roles while reshaping existing occupations.

Smith’s comments offer insight into how a leading AI developer views the long-term transition. His emphasis on augmentation, workforce adaptation and human agency reflects a broader industry narrative that AI should enhance rather than replace human capabilities, while highlighting the growing importance of digital skills, lifelong learning and public participation in decisions about AI deployment.

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

European Commission study simplifies SELFIE tool for school digital capacity monitoring

The Joint Research Centre (JRC) of the European Commission has published a study proposing shorter versions of the Self-reflection on Effective Learning by Fostering the Use of Innovative Educational Technologies (SELFIE) tool to support the monitoring of schools’ digital capacity.

The study suggests that shorter instruments could help schools and policymakers use data for digital education planning when time and organisational constraints make the full SELFIE tool more difficult to implement. SELFIE is a scientifically validated tool for measuring schools’ digital capacity. According to the study, the tool had been used by more than 5.5 million users across 80 countries by September 2023.

Researchers developed two shortened versions of the SELFIE tool: a midi-SELFIE with 16 items and a mini-SELFIE with 8 items. The shorter instruments were developed using existing datasets and psychometric analyses based on Item Response Theory models.

The researchers evaluated the shortened tools across three use cases. The first examined changes in digital capacity over time in selected schools; the second examined regional differences in Port u gal; and the third used a representative sample from Spain to explore links between digital capacity and teachers’ use of digital technology during lessons.

The full SELFIE tool and the two shortened versions produced broadly comparable results across the cases examined. The researchers said the midi and mini versions could therefore serve as reliable alternatives for specific uses where the full instrument is too long.

The study suggests that shorter SELFIE tools could support school-level monitoring, digital education planning, and policy monitoring. The findings may be useful for education systems seeking evidence-based approaches to improving teaching and learning while reducing the administrative burden on schools.

Why does it matter?

As governments invest in digital education, there is a growing demand for reliable tools that can measure schools’ digital readiness and inform policy decisions. However, lengthy assessment processes can create practical challenges for schools and education authorities, limiting participation and data collection.

The study suggests that shorter versions of the SELFIE tool can provide comparable insights while reducing the time required for implementation. If adopted more widely, these streamlined assessments could support evidence-based digital education policies, help monitor progress in digital transformation, and make data collection more accessible for schools.

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

Uruguay launches Latin America’s first national AI ethics business council

Uruguay has become the first country in Latin America to establish a national Business Council for the Ethics of Artificial Intelligence, a UNESCO-backed initiative aimed at strengthening responsible AI governance.

Launched in Montevideo, the council will serve as a platform connecting businesses, academic institutions and public authorities to promote ethical, transparent and accountable AI development.

The initiative is aligned with UNESCO’s Recommendation on the Ethics of Artificial Intelligence, adopted in 2021 as the first global normative framework dedicated to the ethical governance of AI. The council aims to ensure that AI deployment promotes human well-being, fundamental rights, transparency and non-discrimination while supporting innovation.

The Uruguayan Chamber of Information Technologies will lead the national chapter, supported by representatives from the technology and telecommunications sectors.

During 2026, the council plans to focus on integrating ethical AI practices into business operations, strengthening technical capabilities and promoting Uruguay as a regional reference point for AI governance.

UNESCO officials noted that ethical AI principles can strengthen innovation by fostering trust, accountability and long-term sustainability. Such an initiative by Uruguay is expected to contribute to broader regional discussions on AI governance and responsible digital transformation.

Why does it matter?

As AI adoption accelerates, governments and businesses are increasingly seeking governance mechanisms that balance innovation with accountability, transparency and respect for fundamental rights. While many AI governance initiatives have focused on regulation, Uruguay’s approach places particular emphasis on engaging the private sector in the implementation of ethical AI principles.

The initiative also reflects a broader international trend towards multi-stakeholder AI governance, bringing together government, industry and academia to address challenges such as bias, transparency and responsible deployment. As the first initiative of its kind in Latin America, the council could influence regional discussions on AI governance and digital transformation.

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

EU expands InvestEU funding for startups and transformative industries

The European Commission and the European Investment Bank Group have signed an agreement to add €22 billion in strategic financing to the InvestEU programme to support transformative investments in the EU economy.

The amendment follows the adoption of the Omnibus II Regulation and is intended to accelerate financing for priority sectors, including clean technologies, biotechnology, digital advancement and high-potential start-ups and scale-ups.

According to the EIB Group, the projects supported through the amendment are expected to generate a total financial impact of around €70 billion by the end of the current Multiannual Financial Framework. The wider Omnibus II package set a minimum target of €55 billion in additional public and private investment.

The expanded InvestEU programme is expected to benefit more than 130,000 small and medium-sized enterprises by improving access to finance and simplifying administrative procedures. The EIB said all SMEs supported under InvestEU will benefit from streamlined processes and reduced reporting requirements.

The amendment also lays the groundwork for a future InvestEU instrument under the next Multiannual Financial Framework, as part of the planned European Competitiveness Fund. The Commission and EIB said the expanded programme is intended to support Europe’s green and digital transitions, competitiveness and long-term economic resilience.

Why does it matter?

The agreement shows how the EU is using public guarantees and EIB Group financing to address investment gaps in strategic sectors. For digital policy, the relevant signal is the focus on digital advancement, high-growth start-ups and scale-ups, and technological sovereignty. Access to finance remains a central challenge for European companies trying to commercialise and scale technologies in areas such as digital infrastructure, advanced industry and deep tech.

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

PMI launches global standard for AI project management

The Project Management Institute (PMI) has published a global standard for managing AI initiatives in portfolio, programme and project environments. The standard, titled ‘The Standard for Artificial Intelligence in Portfolio, Program, and Project Management‘, is intended to guide project, programme and portfolio teams delivering AI initiatives.

PMI said AI deployment within organisations is typically delivered through projects, including the development of AI systems, AI-enabled workflows and AI-powered products. The organisation said project professionals have lacked a dedicated framework for planning, governing and delivering AI transformation initiatives.

The standard establishes eight guiding principles, five performance domains and a lifecycle framework for designing, deploying and overseeing AI initiatives. PMI said the guidance is technology-agnostic and built around human-in-the-loop oversight at every stage.

The standard comes as governments and organisations continue to develop AI governance approaches, including risk-based regulation, transparency requirements, and accountability measures. PMI said the standard is intended to help project professionals integrate responsible AI governance into project delivery, from design and development through deployment and oversight.

The standard also addresses AI business cases, tool selection, AI-specific risk management, ethics oversight, and compliance with emerging requirements such as the EU AI Act and ISO 42001. PMI said the framework provides project leaders with a common language for aligning legal, audit, finance, technology and business teams around AI implementation objectives and governance requirements.

The standard is available as a free digital download for PMI members worldwide. Non-members can access the digital edition through purchase or PMI membership.

Why does it matter?

As organisations move from experimenting with AI to deploying it at scale, attention is increasingly shifting from technical development to implementation, governance and operational oversight. Many AI initiatives fail not because of technology limitations, but because of challenges related to project management, risk management, stakeholder alignment and organisational readiness.

PMI’s standard reflects the growing effort to operationalise AI governance by translating broad principles into practical project delivery processes. It also highlights how emerging regulatory frameworks, such as the EU AI Act, are influencing the way organisations plan, manage and oversee AI-enabled transformation initiatives.

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

UNESCO expands gender-responsive digital education training in Tanzania

UNESCO has completed the second cohort of its Teacher Educator Training on Gender-Responsive Pedagogy for Inclusive Digital Education in Tanzania.

The initiative, delivered in partnership with Beijing Normal University (BNU) and Tanzania’s Ministry of Education, Science and Technology, trained 30 teacher educators from the University of Dodoma (UDOM) and Mkwawa University College of Education (MUCE).

The programme forms part of the UNESCO–BNU project ‘Closing the Digital Divide: Ensuring Gender-Transformative Digital Skills Education for Women and Girls‘. Participants received practical training in gender-responsive pedagogy, inclusive digital learning and strategies to encourage greater participation by girls in ICT and STEM fields.

According to UNESCO, the training focused on helping educators identify and address barriers that may discourage girls from pursuing digital skills development and careers in technology. Through workshops, peer learning, case studies, and practical exercises, participants explored approaches to creating more inclusive and equitable learning environments.

With the completion of the second cohort, the initiative has now trained 60 teacher educators from four Tanzanian higher education institutions: UDOM, MUCE, the Dar es Salaam University College of Education (DUCE), and the Open University of Tanzania (OUT).

UNESCO expects the trained educators to pass on the knowledge and skills acquired through the programme to future teachers, creating a multiplier effect across Tanzania’s education system.

The project is now entering a new phase focused on strengthening Girls in ICT Clubs in 20 secondary schools across Tanzania. Planned activities include mentorship programmes, innovation bootcamps, ICT training and engagement with female role models aimed at encouraging girls’ participation in technology and STEM disciplines.

Why does it matter?

Digital skills are increasingly essential for participation in education, employment, and the wider economy. However, gender gaps in access to technology and STEM opportunities continue to limit the participation of women and girls in many parts of the world.

By equipping teacher educators with gender-responsive teaching approaches and supporting girls’ engagement with ICT and STEM, the UNESCO–BNU initiative seeks to address barriers at multiple levels of the education system. The programme also highlights the role of education and capacity development in promoting digital inclusion and expanding opportunities for future generations.

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