Capacity development Archives | Digital Watch Observatory

Microsoft commits $10 billion to Japan’s AI future

Microsoft Corporation announced a $10 billion investment in Japan over four years to expand AI infrastructure and strengthen cybersecurity partnerships with the government. The investment aligns with Prime Minister Sanae Takaichi’s strategy for economic growth through advanced technologies.

The company will collaborate with Japanese firms SoftBank and Sakura Internet to develop domestically-based AI computing capacity, allowing Japanese businesses and government agencies to store sensitive data locally whilst accessing Microsoft Azure services.

Why does it matter?

Microsoft plans to train 1 million engineers and developers by 2030 as part of the initiative to build Japan’s digital workforce in AI and emerging technologies. The investment addresses Japan’s growing demand for cloud and AI services as part of the company’s Asia-wide expansion strategy.

The announcement, made on 3 April, reflects Microsoft’s commitment to supporting Japanese technological advancement whilst maintaining data security. Sakura Internet’s share price jumped 20 percent following the news, signalling strong market confidence in the partnership.

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Nova Scotia launches five person AI team to support government operations

Nova Scotia will recruit a five-person team to help integrate AI into provincial government operations, marking a more structured push to introduce AI tools into public service work across Canada. Jennifer LaPlante, deputy minister of cybersecurity and digital solutions, said the group will develop protocols for staff across departments as the province expands its use of AI.

The team is expected to identify tools that could improve productivity and efficiency in government work, including systems such as Microsoft Copilot for tasks like drafting documents and summarising information. The move suggests that Nova Scotia is shifting from limited experimentation towards a more organised approach to AI adoption in public administration.

Officials say existing rules already govern the use of some AI meeting tools and virtual assistants, while a broader responsible-use policy is still being developed. That places the province’s AI push within a wider effort to balance innovation with security, oversight, and system protection.

Funding will come from a C$4.4 million investment to establish AI capabilities during the current fiscal year. Part of that budget will go towards licences and software, with room for the team to grow over time.

The department has also launched an AI chatbot, Scottie, to answer public questions about government services. According to officials, the tool retrieves information from existing government sources rather than generating new content, suggesting an effort to limit risk while expanding AI use in public-facing services.

Taken together, the measures point to a broader effort to embed AI more formally into provincial government operations, not only through tools and staffing but also through internal rules governing its use.

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World Economic Forum signals new phase for frontier technologies

Frontier technologies are entering a more explicitly geopolitical phase, according to discussions highlighted at the World Economic Forum Annual Meeting in Davos. Competition is increasingly defined by infrastructure, energy systems, supply chains and standards, rather than pure technological capability.

AI sits at the centre of this shift, with the main constraint moving from model performance to physical capacity. Rising electricity demand, grid limits and resource pressures are shaping large-scale data centre deployment, making energy infrastructure key to digital competitiveness.

New approaches are emerging to address these bottlenecks. Start-ups such as Emerald AI are developing software that enables data centres to adjust power consumption dynamically, shifting workloads, using stored energy and responding to grid conditions in real time.

Early demonstrations suggest potential reductions in peak demand, supporting more flexible integration with electricity systems.

Broader frontier technology trends reflect the same pattern, from robotics capital inflows in China to satellite infrastructure debates in Europe and accelerating post-quantum security standards.

Across sectors, infrastructure resilience and strategic coordination are becoming central to technological development. The shift matters because it reframes frontier technology as an infrastructure and governance issue rather than a purely innovation-driven race.

It reinforces the need to track how digital systems are increasingly constrained and enabled by energy, standards and cross-border coordination. Such a perspective helps explain where real power is concentrating in the global tech stack and where future regulatory and market tensions are likely to emerge.

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Serbia launches LORYA to turn cultural heritage into AI-ready language data

Serbia has launched LORYA, a new platform that uses AI-supported document processing to convert books, newspapers, manuscripts, and other written heritage materials into clean, structured, machine-readable data for research, education, and language technologies.

Developed by the UN Development Programme, the Mathematical Institute of the Serbian Academy of Sciences and Arts, and the National Library of Serbia, with support from France and Japan, the project is aimed not only at preserving written cultural heritage, but also at addressing a broader AI problem: the weak representation of underrepresented languages, scripts, and historical texts in digital training data.

The distinction matters. While many digitisation initiatives focus mainly on preservation and access, LORYA is also designed to prepare historical material for computational use. In practice, that means converting complex printed and handwritten documents into reusable data that can better support language technologies and future AI systems.

The platform focuses on books, newspapers, manuscripts, and other archival sources, including materials that traditional OCR systems often struggle to process. Its ability to work with handwritten, multi-script, and visually complex documents makes it especially relevant for collections that have remained difficult to digitise in a meaningful way.

That gives the project a wider significance beyond Serbia. As AI systems continue to depend on large volumes of digital text, many smaller or historically under-digitised languages remain poorly represented in training datasets. By transforming cultural heritage into structured digital resources, LORYA frames preservation not only as an archival task but also as part of a broader effort to make AI development more linguistically inclusive.

The project has also been released as open-source software and recognised as a Digital Public Good, suggesting that it is meant to serve as more than a national pilot. Interest from UNDP teams in Iraq and Nepal indicates that the model could be adapted in other contexts where cultural heritage, language diversity, and digital capacity intersect.

Seen in that light, LORYA is not simply a heritage digitisation tool. It is also an attempt to connect cultural preservation with public-interest AI development, while arguing that historical texts, minority languages, and local knowledge systems should not remain on the margins of the AI era.

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Cyberbullying in education addressed at UNESCO workshop in Addis Ababa

UNESCO has used a two-day workshop in Addis Ababa to push cyberbullying, hate speech, misinformation, and other forms of online violence in schools higher on the education and digital safety agenda, bringing together teachers, education experts, government representatives, youth leaders, and academics in training organised by its Liaison Office to the African Union, UNECA and Ethiopia alongside the Addis Ababa City Government Education Bureau.

Held on 7 and 8 March, the event was presented as an effort to strengthen local capacity to recognise, prevent, and respond to online harms affecting students, while framing cyberviolence not only as a student well-being issue, but also as a broader challenge for safer and more inclusive learning environments.

According to UNESCO, such harms can affect learners’ mental health, sense of safety, and academic performance, placing cyberbullying and online abuse within a wider discussion about digital well-being and protection in education. That framing matters because it treats online violence in schools as more than an issue of classroom discipline or individual misconduct.

The organisation also linked the workshop to wider evidence of harm in digital spaces, citing data showing that 58% of young women and girls globally have experienced online harassment on social media platforms. The Addis Ababa event can be read as part of a broader attempt to build institutional awareness and response capacity around online harms affecting young people.

Training sessions covered digital safety, cyberbullying prevention, digital rights and responsibilities, digital well-being, and UNESCO guidance on tackling cyberviolence in education. The emphasis was not only on identifying risks, but also on helping educators and youth leaders respond to them more effectively in both online and offline learning settings.

While the workshop did not introduce a new policy framework or regulatory measure, it suggests that cyberbullying is increasingly being treated as part of a wider public-interest conversation about education, student protection, and digital harms.

That gives the event greater relevance than a routine training session, particularly in a context where schools are being pushed to address the social consequences of digital platforms more directly.

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MIT develops AI framework to test ethics in autonomous systems

Researchers at MIT have introduced a new framework designed to evaluate the ethical impact of autonomous systems used in high-stakes environments. The approach aims to identify cases where AI-driven decisions may be technically efficient but fail to meet fairness expectations.

Growing reliance on AI in areas such as energy distribution and traffic management has raised concerns about unintended bias. Cost-optimised systems can still disadvantage communities, especially when ethical factors are hard to measure.

The framework, known as SEED-SET, separates objective performance metrics from subjective human values. A large language model is used to simulate stakeholder preferences, enabling the system to compare scenarios and detect where outcomes diverge from ethical expectations.

Testing shows the method generates more relevant scenarios while reducing manual analysis. Findings highlight its potential to improve transparency and support more balanced decision-making before AI systems are deployed.

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EIB highlights AI as key driver of Croatia’s economic growth

The European Investment Bank and the Croatian National Bank have emphasised the strategic importance of AI in strengthening Croatia’s economic competitiveness. Discussions at a joint conference focused on accelerating AI adoption through coordinated investment, policy development and skills enhancement.

Despite strong investment activity among firms in Croatia, the uptake of advanced technologies remains limited. Only a small share of companies systematically use generative AI, with applications largely confined to internal processes, highlighting significant untapped potential for productivity gains.

Participants identified key structural barriers, including limited access to finance, shortages of skilled workers and regulatory uncertainty.

Addressing these challenges requires a combined approach that mobilises private capital, improves access to funding for smaller firms and supports the development of a more robust innovation ecosystem.

The EIB continues to play a central role in Europe’s digital transformation, with major funding initiatives aimed at scaling AI technologies and strengthening strategic infrastructure.

By aligning financial instruments with policy priorities, the initiative seeks to enhance long-term growth, resilience and integration into global value chains.

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EPO accelerates digital patent shift with paperless system by 2027

The European Patent Office (EPO) is accelerating its transition towards a fully digital patent system, with plans to implement a paperless patent-granting process by 2027.

Discussions at the latest eSACEPO meeting highlighted steady progress and broad stakeholder support for modernising patent workflows.

Electronic filing and communication are set to become the default, with paper-based processes limited to exceptional cases. The shift aims to improve efficiency and accessibility, supported by legal adjustments and the gradual introduction of structured data formats to enhance processing accuracy.

Digital tools continue to evolve, with the MyEPO platform expanding its functionality through interface upgrades, self-service features and new capabilities such as colour drawing submissions.

The rollout of DOCX filing, alongside optional PDF backups, reflects a cautious approach designed to balance innovation with reliability.

AI is increasingly integrated into patent examination processes, supporting tasks such as search and documentation.

However, the EPO maintains a human-centric model, ensuring that decision-making authority remains with patent examiners while AI enhances productivity and consistency.

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New Oracle agentic AI tool streamlines CAD to procurement workflows

Oracle has launched a new agentic AI application designed to connect engineering and procurement into a single workflow. The Design-to-Source Workspace for product lifecycle management aims to reduce delays, improve traceability, and minimise compliance risks across sourcing processes.

Traditional design-to-source models often operate sequentially, with engineering and procurement working in separate stages. Oracle’s approach replaces that structure with a continuous, coordinated loop, where AI evaluates cost, supply, and risk in real time as designs evolve.

The platform translates CAD data directly into sourcing actions, eliminating manual input and reducing errors. Automated workflows handle supplier identification, risk assessment, and request-for-quote execution, while maintaining compliance and auditability throughout the process.

Expected gains include up to 60% less manual work, significantly faster RFQ cycles, and a 20% to 30% reduction in overall sourcing timelines. Greater accuracy and improved decision-making allow teams to focus on higher-value tasks rather than repetitive coordination.

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Microsoft announces $5.5 billion Singapore plan with free Copilot for students

Microsoft will invest $5.5 billion in Singapore from 2025 to 2029 to expand cloud and AI infrastructure and operations. The announcement was made by Vice Chair and President Brad Smith at the Asia Tech x Inspire event.

Every tertiary student in Singapore will receive free access to Microsoft 365 Copilot for 12 months. More than 200,000 students will use AI tools integrated into applications including Word, Excel, Outlook and PowerPoint.

Educators will receive free AI training through Microsoft Elevate for Educators across schools and higher education institutions. Nonprofit leaders will also be supported through Microsoft Elevate for Changemakers to build practical AI skills.

Officials said the initiatives aim to strengthen workforce readiness and support responsible AI adoption. The programmes align with Singapore’s National AI Strategy 2.0 and broader efforts to expand AI literacy.

LinkedIn data shows demand for AI literacy skills in Singapore has increased by more than 70% year on year. Microsoft said the investment reflects long term confidence in Singapore as a global digital leader.

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