South Korea unveils five-year AI blueprint for ‘super-innovation economy’

South Korea’s new administration has unveiled a five-year economic plan to build what it calls a ‘super-innovation economy’ by integrating AI across all sectors of society.

The strategy, led by President Lee Jae-myung, commits 100 trillion won (approximately US$71.5 billion) to position the country among the world’s top three AI powerhouses. Private firms will drive development, with government support for nationwide adoption.

Plans include a sovereign Korean-language AI model, humanoid robots for logistics and industry, and commercialising autonomous vehicles by 2027. Unmanned ships are targeted for completion by 2030, alongside widespread use of drones in firefighting and aviation.

AI will also be introduced into drug approvals, smart factories, welfare services, and tax administration, with AI-based tax consultations expected by 2026. Education initiatives and a national AI training data cluster will nurture talent and accelerate innovation.

Five domestic firms, including Naver Cloud, SK Telecom, and LG AI Research, will receive state support to build homegrown AI foundation models. Industry reports currently rank South Korea between sixth and 10th in global AI competitiveness.

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Google enhances AI Mode with personalised dining suggestions

Google has expanded its AI Mode in Search to 180 additional countries and territories, introducing new agentic features to help users make restaurant reservations. The service remains limited to English and is not yet available in the European Union.

The update enables users to specify their dining preferences and constraints, allowing the system to scan multiple platforms and present real-time availability. Once a choice is made, users are directed to the restaurant’s booking page.

Partners supporting the service include OpenTable, Resy, SeatGeek, StubHub, Booksy, Tock, and Ticketmaster. The feature is part of Google’s Search Labs experiment, available to subscribers of Google AI Ultra in the United States.

AI Mode also tailors suggestions based on previous searches and introduces a Share function, letting users share restaurant options or planning results with others, with the option to delete links.

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Meta strikes $10 billion cloud deal with Google

Meta has signed a cloud computing deal with Google worth more than $10 billion, marking one of the most significant agreements in the industry.

The six-year partnership will see Meta use Google Cloud’s servers, storage, networking and other services to power its massive AI projects.

The deal comes as Meta accelerates its AI infrastructure spending, with CEO Mark Zuckerberg pledging hundreds of billions of dollars for new data centres.

Last month, Meta raised its capital expenditure forecast to $72 billion and disclosed plans to offload $2 billion in data centre assets to outside partners.

The partnership highlights a growing trend of rival technology giants collaborating on AI infrastructure. Just weeks earlier, OpenAI struck a similar deal to use Google Cloud services despite being a competitor in the AI field.

These agreements have boosted Google Cloud’s performance, which saw a 32% jump in second-quarter revenue in July, surpassing market expectations.

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New robotic system uses AI to analyse water quality

A new study in Robot Learning has introduced a robotic system that combines machine learning with decision-making to analyse water samples. The approach enables robots to detect, classify, and distinguish drinking water on Earth and potentially other planets.

Researchers used a hybrid method that merged the TOPSIS decision-making technique with a Random Forest Classifier trained on the Water Quality and Potability Dataset from Kaggle. By applying data balancing techniques, classification accuracy rose from 69% to 73%.

The robotic prototype includes thrusters, motors, solar power, sensors, and a robotic arm for sample collection. Water samples are tested in real time, with the onboard model classifying them as drinkable.

The system has the potential for rapid crisis response, sustainable water management, and planetary exploration, although challenges remain regarding sensor accuracy, data noise, and scalability. Researchers emphasise that further testing is necessary before real-world deployment.

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Japan pledges billions and AI training to Africa

Japan has pledged $5.5 billion in loans and announced an ambitious AI training programme to deepen economic ties with Africa.

At TICAD 9, Prime Minister Shigeru Ishiba proposed creating an Indian Ocean–Africa economic zone to link African nations with Asia and the Middle East.

Japan will also support training 30,000 AI experts over three years to drive digital transformation and job growth across the continent.

The initiative comes amid growing calls from leaders like António Guterres and João Lourenço to overhaul global finance systems and empower African representation.

Japan’s move signals renewed interest in African engagement, as the US scales back and China’s influence expands across the region.

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GPT-5 criticised for lacking flair as users seek older ChatGPT options

OpenAI’s rollout of GPT-5 has faced criticism from users attached to older models, who say the new version lacks the character of its predecessors.

GPT-5 was designed as an all-in-one model, featuring a lightweight version for rapid responses and a reasoning version for complex tasks. A routing system determines which option to use, although users can manually select from several alternatives.

Modes include Auto, Fast, Thinking, Thinking mini, and Pro, with the last available to Pro subscribers for $200 monthly. Standard paid users can still access GPT-4o, GPT-4.1, 4o-mini, and even 3o through additional settings.

Chief executive Sam Altman has said the long-term goal is to give users more control over ChatGPT’s personality, making customisation a solution to concerns about style. He promised ample notice before permanently retiring older models.

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Indian firms accelerate growth through AI, Microsoft finds

Indian firms are accelerating the adoption of AI, with many using AI agents to enhance workforce capabilities rather than relying solely on traditional methods.

According to Microsoft’s 2025 Work Trend Index, 93% of leaders in India plan to extend AI integration across their organisations within the next 12 to 18 months.

Frontier firms in India are leading the charge, redesigning operations around collaboration between humans and AI agents instead of following conventional hierarchies.

Over half of leaders already deploy AI to automate workflows and business processes across entire teams, enabling faster and more agile decision-making.

Microsoft notes that AI is becoming a true thought partner, fuelling creativity, accelerating decisions, and redefining teamwork instead of merely supporting routine tasks. Leaders report that embedding AI into daily operations drives measurable improvements in productivity, innovation, and business outcomes.

The findings are part of a global survey of 31,000 participants across 31 countries, highlighting India’s role at the forefront of AI-driven organisational transformation rather than merely following international trends.

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MIT highlights divide in business AI project success

A new MIT study has found that 95% of corporate AI projects fail to deliver returns, mainly due to difficulties integrating them with existing workflows.

The report, ‘The GenAI Divide: State of AI in Business 2025’, examined 300 deployments and interviewed 350 employees. Only 5% of projects generated value, typically when focused on solving a single, clearly defined problem.

Executives often blamed model performance, but researchers pointed to a workforce ‘learning gap’ as the bigger barrier. Many projects faltered because staff were unprepared to adapt processes effectively.

More than half of GenAI budgets were allocated to sales and marketing, yet the most substantial returns came from automating back-office tasks, such as reducing agency costs and streamlining roles.

The study also found that tools purchased from specialised vendors were nearly twice as successful as in-house systems, with success rates of 67% compared to 33%.

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Google to replace Assistant with Gemini in smart home devices

Google has announced that Gemini will soon power its smart home platform, replacing Google Assistant on existing Nest speakers and displays from October. The feature will launch initially as an early preview.

Gemini for Home promises more natural conversations and can manage complex household tasks, including controlling smart devices, creating calendars, and handling lists or timers through natural language commands. It will also support Gemini Live for ongoing dialogue.

Google says the upgrade is designed to serve all household members and visitors, offering hands-free help and integration with streaming platforms. The move signals a renewed focus on Google Home, a product line that has been largely overlooked in recent years.

The announcement hints at potential new hardware, given that Google’s last Nest Hub was released in 2021 and the Nest Audio speaker dates back to 2020.

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Meta freezes hiring as AI costs spark investor concern

Meta has frozen hiring in its AI division, halting a spree that had drawn top researchers with lucrative offers. The company described the pause as basic organisational planning, aimed at building a more stable structure for its superintelligence ambitions.

The freeze, first reported by the Wall Street Journal, began last week and prevents employees in the unit from transferring to other teams. Its duration has not been communicated, and Meta declined to comment on the number of hires already made.

The decision follows growing tensions inside the newly created Superintelligence Labs, where long-serving researchers have voiced concerns over disparities in pay and recognition compared with recruits.

Alexandr Wang, who leads the division, recently told staff that superintelligence is approaching and that significant changes are necessary to prepare. His email outlined Meta’s most significant reorganisation of its AI efforts.

The pause also comes amid investor scrutiny, as analysts warn that heavy reliance on stock-based compensation to attract talent could fuel innovation or dilute shareholder value without precise results.

Despite these concerns, Meta’s stock has risen by about 28% since the start of the year, reflecting continued investor confidence in the company’s long-term prospects.

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