Capacity development

AI cheating drives ACCA to halt online exams

The Association of Chartered Certified Accountants (ACCA) has announced it will largely end remote examinations in the UK from March 2026, requiring students to sit tests in person unless exceptional circumstances apply.

The decision aims to address a surge in cheating, particularly facilitated by AI tools.

Remote testing was introduced during the Covid-19 pandemic to allow students to continue qualifying when in-person exams were impossible. The ACCA said online assessments have now become too difficult to monitor effectively, despite efforts to strengthen safeguards against misconduct.

Investigations show cheating has impacted major auditing firms, including the ‘big four’ and other top companies. High-profile cases, such as EY’s $100m (£74m) settlement in the US, highlight the risks posed by compromised professional examinations.

While other accounting bodies, including the Institute of Chartered Accountants in England and Wales, continue to allow some online exams, the ACCA has indicated that high-stakes assessments must now be conducted in person to maintain credibility and integrity.

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Agentic AI plans push US agencies to prioritise data reform

US federal agencies planning to deploy agentic AI in 2026 are being told to prioritise data organisation as a prerequisite for effective adoption. AI infrastructure providers say poorly structured data remains a major barrier to turning agentic systems into operational tools.

Public sector executives at Amazon Web Services, Oracle, and Cisco said government clients are shifting focus away from basic chatbot use cases. Instead, agencies are seeking domain-specific AI systems capable of handling defined tasks and delivering measurable outcomes.

US industry leaders said achieving this shift requires modernising legacy infrastructure alongside cleaning, structuring, and contextualising data. Executives stressed that agentic AI depends on high-quality data pipelines that allow systems to act autonomously within defined parameters.

Oracle said its public sector strategy for 2026 centres on enabling context-aware AI through updated data assets. Company executives argued that AI systems are only effective when deeply aligned with an organisation’s underlying data environment.

The companies said early agentic AI use cases include document review, data entry, and network traffic management. Cloud infrastructure was also highlighted as critical for scaling agentic systems and accelerating innovation across government workflows.

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New AI brain model mirrors lab animal behaviour without using animal data

A new computational brain model, built entirely from biological principles, has learned a visual categorisation task with accuracy and variability matching that of lab animals. Remarkably, the model achieved these results without being trained on any animal data.

The biomimetic design integrates detailed synaptic rules with large-scale architecture across the cortex, striatum, brainstem, and acetylcholine-modulated systems.

As the model learned, it reproduced neural rhythms observed in real animals, including strengthened beta-band synchrony during correct decisions. The result demonstrates emergent realism in both behaviour and underlying neural activity.

The model also revealed a previously unnoticed set of ‘incongruent neurons’ that predicted errors. When researchers revisited animal data, they found the same signals had gone undetected, highlighting the platform’s potential to uncover hidden neural dynamics.

Beyond neuroscience research, the model offers a powerful tool for testing neurotherapeutic interventions in silico. Simulating disease-related circuits allows scientists to test treatments before costly clinical trials, potentially speeding up the development of next-generation neurotherapeutics.

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Manus acquisition signals Meta’s continued AI expansion

Meta Platforms has acquired Manus, a Singapore-based developer of general-purpose AI agents, as part of its continued push to expand artificial intelligence capabilities. The deal underscores Meta’s strategy of acquiring specialised AI firms to accelerate product development.

Manus, founded in China before relocating to Singapore, develops AI agents capable of performing tasks such as market research, coding, and data analysis. The company said it reached more than $100 million in annualised revenue within eight months of launch and was serving millions of users worldwide.

Meta said the acquisition will help integrate advanced automation into its consumer and enterprise offerings, including the Meta AI assistant. Manus will continue operating its subscription service, and its employees will join Meta’s teams.

Financial terms were not disclosed, but media reports valued the deal at more than $2 billion. Manus had been seeking funding at a similar valuation before being approached by Meta and had recently raised capital from international investors.

The acquisition follows a series of AI-focused deals by Meta, including investments in Scale AI and AI device start-ups. Analysts say the move highlights intensifying competition among major technology firms to secure AI talent and capabilities.

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KT faces action in South Korea after a femtocell security breach impacts users

South Korea has blamed weak femtocell security at KT Corp for a major mobile payment breach that triggered thousands of unauthorised transactions.

Officials said the mobile operator used identical authentication certificates across femtocells and allowed them to stay valid for ten years, meaning any device that accessed the network once could do so repeatedly instead of being re-verified.

More than 22,000 users had identifiers exposed, and 368 people suffered unauthorised payments worth 243 million won.

Investigators also discovered that ninety-four KT servers were infected with over one hundred types of malware. Authorities concluded the company failed in its duty to deliver secure telecommunications services because its overall management of femtocell security was inadequate.

The government has now ordered KT to submit detailed prevention plans and will check compliance in June, while also urging operators to change authentication server addresses regularly and block illegal network access.

Officials said some hacking methods resembled a separate breach at SK Telecom, although there is no evidence that the same group carried out both attacks. KT said it accepts the findings and will soon set out compensation arrangements and further security upgrades instead of disputing the conclusions.

A separate case involving LG Uplus is being referred to police after investigators said affected servers were discarded, making a full technical review impossible.

The government warned that strong information security must become a survival priority as South Korea aims to position itself among the world’s leading AI nations.

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Millions watch AI-generated brainrot content on YouTube

Kapwing research reveals that AI-generated ‘slop’ and brainrot videos now dominate a significant portion of YouTube feeds, accounting for 21–33% of the first 500 Shorts seen by new users.

These rapidly produced AI videos aim to grab attention but make it harder for traditional creators to gain visibility. Analysis of top trending channels shows Spain leads in AI slop subscribers with 20.22 million, while South Korea’s channels have amassed 8.45 billion views.

India’s Bandar Apna Dost is the most-viewed AI slop channel, earning an estimated $4.25 million annually and showing the profit potential of mass AI-generated content.

The prevalence of AI slop and brainrot has sparked debates over creativity, ethics, and advertiser confidence. YouTube CEO Neal Mohan calls generative AI transformative, but rising automated videos raise concerns over quality and brand safety.

Researchers warn that repeated exposure to AI-generated content can distort perception and contribute to information overload. Some AI content earns artistic respect, but much normalises low-quality videos, making it harder for users to tell meaningful content from repetitive or misleading material.

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SoftBank invests $4 billion in global AI networks

SoftBank Group has agreed to acquire DigitalBridge for $4 billion, strengthening its global digital infrastructure capabilities. The move aims to scale data centres, connectivity, and edge networks to support next-generation AI services.

The acquisition aligns with SoftBank’s mission to develop Artificial Super Intelligence (ASI), providing the compute power and connectivity needed to deploy AI at scale.

DigitalBridge’s global portfolio of data centres, cell towers, fibre networks, and edge infrastructure will enhance SoftBank’s ability to finance and operate these assets worldwide.

DigitalBridge will continue to operate independently under CEO Marc Ganzi. The transaction, valued at a 15% premium to its closing share price, is expected to close in the second half of 2026, pending regulatory approval.

SoftBank and DigitalBridge anticipate that the combined resources will accelerate investments in AI infrastructure, supporting the rapid growth of technology companies and fostering the development of advanced AI applications.

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New rules set for digital yuan in 2026

China’s central bank has confirmed that a revised digital yuan framework will enter force on 1 January 2026, redefining the e-CNY as a form of digital deposit money rather than a cash substitute.

The upgraded framework adds new standards and rules, based on a decade of domestic and cross-border pilot programmes. Usage already spans retail payments, public services, healthcare, education, tourism, and international settlements.

Under the new plan, digital yuan balances held in commercial bank wallets will be classified as bank deposit liabilities. Banks must pay interest on these holdings, which will be insured and included in regular asset-liability management.

Digital yuan operations will also be folded into China’s reserve requirement system. Wallet balances at authorised banks will count towards reserve calculations, while non-bank payment institutions must hold full reserves against the digital yuan they administer.

By late November 2025, cumulative transactions had reached 3.48 billion, with a total value of 16.7 trillion yuan.

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AI transforms Indian filmmaking

Filmmakers in India are rapidly adopting AI tools like ChatGPT, Midjourney and Stable Diffusion to create visuals, clone voices, and streamline production processes for both independent and large-scale films.

Low-budget directors now produce nearly entire films independently, reducing costs and production time. Filmmakers use AI to visualise scenes, experiment creatively, and plan sound and effects efficiently.

AI cannot fully capture cultural nuance, emotional depth, or storytelling intuition, so human oversight remains essential. Intellectual property, labour protections, and ethical issues remain unresolved.

Hollywood has resisted AI, with strikes over rights and labour concerns. Indian filmmakers, however, carefully combine AI tools with human creativity to preserve artistic vision and cultural nuance.

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Stronger safeguards arrive with OpenAI’s GPT-5.2 release

OpenAI has launched GPT-5.2, highlighting improved safety performance in conversations involving mental health. The company said the update strengthens how its models respond to signs of suicide, self-harm, emotional distress, and reliance on the chatbot.

The release follows criticism and legal challenges accusing ChatGPT of contributing to psychosis, paranoia, and delusional thinking in some users. Several cases have highlighted the risks of prolonged emotional engagement with AI systems.

In response to a wrongful death lawsuit involving a US teenager, OpenAI denied responsibility while stating that ChatGPT encouraged the user to seek help. The company also committed to improving responses when users display warning signs of mental health crises.

OpenAI said GPT-5.2 produces fewer undesirable responses in sensitive situations than earlier versions. According to the company, the model scores higher on internal safety tests related to self-harm, emotional reliance, and mental health.

The update builds on OpenAI’s use of a training approach known as safe completion, which aims to balance helpfulness and safety. Detailed performance information has been published in the GPT-5.2 system card.

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