Capacity development

Climate tech and AI will shape Europe’s technology future

Europe faces a pivotal moment in its technology sector, with AI, climate tech and defence set to shape the continent’s future. Sustained investment is essential if Europe wants to remain competitive against the US and China in high-tech industries.

Venture capital firm Atomico’s State of European Tech 2025 report shows that AI already attracts the majority of funding, led by companies such as Mistral AI, Lovable, Synthesia and n8n.

Defence tech is also growing, with firms like Helsing, Isar Aerospace and Cambridge Aerospace securing significant investment to advance AI-powered systems.

Despite strong talent and innovation, Europe must match US levels of research funding, expand computing infrastructure and simplify regulations to realise its potential fully.

Experts say aligning ambition with commitment will be crucial for Europe to develop the next generation of world-leading tech companies.

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

Foxconn and OpenAI strengthen US AI manufacturing

OpenAI has formed a new partnership with Foxconn to prepare US manufacturing for a fresh generation of AI infrastructure hardware.

The agreement centres on design support and early evaluation instead of immediate purchase commitments, which gives OpenAI a path to influence development while Foxconn builds readiness inside American facilities.

Both companies expect rapid advances in AI capability to demand a new class of physical infrastructure. They plan to co-design several generations of data centre racks that can keep pace with model development instead of relying on slower single-cycle upgrades.

OpenAI will share insight into future hardware needs while Foxconn provides engineering knowledge and large-scale manufacturing capacity across the US.

A key aim is to strengthen domestic supply chains by improving rack architecture, widening access to domestic chip suppliers and expanding local testing and assembly. Foxconn intends to produce essential data centre components in the US, including cabling, networking, cooling and power systems.

The companies present such an effort as a way to support faster deployment, create more resilient infrastructure and bring economic benefits to American workers.

OpenAI frames the partnership as part of a broader push to ensure that critical AI infrastructure is built within the US instead of abroad. Company leaders argue that a robust domestic supply chain will support American leadership in AI and keep the benefits widely shared across the economy.

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

Target expands OpenAI partnership with new ChatGPT shopping app

Target is expanding its partnership with OpenAI by launching a new shopping app directly inside ChatGPT. The app offers customers personalised recommendations, multi-item baskets and streamlined checkout across Drive Up, Order Pickup and shipping.

The retailer will continue using OpenAI’s models and ChatGPT Enterprise to enhance employee productivity and strengthen digital experiences across its business.

AI is central to Target’s operations, supporting supply-chain forecasts, store processes, and personalised digital tools. Over 18,000 employees utilise ChatGPT Enterprise to streamline routine tasks, enhance creativity, and receive faster support for guest requests and returns through internal AI assistants.

Customer-facing tools such as Shopping Assistant, Gift Finder, Guest Assist and JOY reinforce this strategy by offering curated suggestions and instant answers.

The new Target app inside ChatGPT extends this AI-driven approach to customers. Shoppers will be able to ask for ideas, browse curated suggestions, build baskets and check out through their Target accounts.

The beta version launches next week, and upcoming features include Target Circle linking and same-day delivery. Target views the partnership as part of a retail shift, embedding AI across products, operations and guest interactions to drive the next wave of innovation.

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

Most Canadian businesses adopt AI but few see clear returns

Most Canadian businesses are using generative AI, yet few have fully integrated it into core operations. Only a small fraction are seeing measurable returns, according to new research from KPMG Canada.

Among 753 surveyed business leaders, 93 percent reported some AI adoption. Still, only 31 percent have deployed it across all workflows, while 32 percent have partially integrated AI, and 20 percent remain in early experimentation phases.

Despite widespread adoption, only 2 percent of companies reported a clear return on investment, mostly among firms with annual revenues over $1 billion. Nearly two-thirds said ROI was between five and 20 percent, while almost a third could not quantify it.

Most leaders expect returns within one to five years, highlighting the gap between AI adoption and measurable business impact. Experts emphasise that clear strategies and robust metrics are crucial to translate AI implementation into quantifiable growth.

KPMG Canada notes that successful AI integration requires investment not only in technology, but also in people and processes. Organisations are prioritising talent acquisition, skills training and change management to enhance AI literacy and scale adoption.

Strong governance and strategic frameworks that track both financial and operational benefits are crucial for companies to fully leverage the potential of AI and maintain competitiveness in a rapidly evolving economic landscape.

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

EU simplifies digital rules to save billions for companies

The European Commission has unveiled a digital package designed to simplify rules and reduce administrative burdens, allowing businesses to focus on innovation rather than compliance.

An initiative that combines the Digital Omnibus, Data Union Strategy, and European Business Wallet to strengthen competitiveness across the EU while maintaining high standards of fundamental rights, data protection, and safety.

The Digital Omnibus streamlines rules on AI, cybersecurity, and data. Amendments will create innovation-friendly AI regulations, simplify reporting for cybersecurity incidents, harmonise aspects of the GDPR, and modernise cookie rules.

Improved access to data and regulatory guidance will support businesses, particularly SMEs, allowing them to develop AI solutions and scale operations across member states more efficiently.

The Data Union Strategy aims to unlock high-quality data for AI, strengthen Europe’s data sovereignty, and support businesses with legal guidance and strategic measures to ensure fair treatment of the EU data abroad.

Meanwhile, the European Business Wallet will provide a unified digital identity for companies, enabling secure signing, storage, and exchange of documents and communication with public authorities across 27 member states.

By easing administrative procedures, the package could save up to €5 billion by 2029, with the Business Wallet alone offering up to €150 billion in annual savings.

The Commission has launched a public consultation, the Digital Fitness Check, to assess the impact of these rules and guide future steps, ensuring that businesses can grow and innovate instead of being held back by complex regulations.

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

EU introduces plan to strengthen consumer protection

The European Commission has unveiled the 2030 Consumer Agenda, a strategic plan to reinforce protection, trust, and competitiveness across the EU.

With 450 million consumers contributing over half of the Union’s GDP, the agenda aims to simplify administrative processes for businesses, rather than adding new burdens, while ensuring fair treatment for shoppers.

The agenda sets four priorities to adapt to rising living costs, evolving online markets, and the surge in e-commerce. Completing the Single Market will remove cross-border barriers, enhance travel and financial services, and evaluate the effectiveness of the Geo-Blocking Regulation.

A planned Digital Fairness Act will address harmful online practices, focusing on protecting children and strengthening consumer rights.

Sustainable consumption takes a central focus, with efforts to combat greenwashing, expand access to sustainable goods, and support circular initiatives such as second-hand markets and repairable products.

The Commission will also enhance enforcement to tackle unsafe or non-compliant products, particularly from third countries, ensuring that compliant businesses are shielded from unfair competition.

Implementation will be overseen through the Annual Consumer Summit and regular Ministerial Forums, which will provide political guidance and monitor progress.

The 2030 Consumer Agenda builds on prior achievements and EU consultations, aiming to modernise consumer protection instead of leaving gaps in a rapidly changing market.

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

Young wealthy investors push advisers towards broader crypto access

A rising number of young, high-earning Americans are moving away from wealth advisers who fail to offer crypto access, signalling a sharp generational divide in portfolio expectations.

New survey results from Zerohash show that 35 percent of affluent investors aged 18 to 40 have already redirected funds to advisers who support digital-asset allocations, often shifting between $250,000 and $1 million.

Confidence in crypto has strengthened as major financial institutions accelerate adoption. Zerohash reported that more than four-fifths of surveyed investors feel more assured in the asset class thanks to involvement from BlackRock, Fidelity and Morgan Stanley.

Wealthier respondents proved the least patient. Half of those earning above $500,000 said they had already replaced advisers who lack crypto exposure, and 84 percent plan to expand their holdings over the coming year.

Demand now extends well beyond Bitcoin and Ethereum. Ninety-two percent want access to a wider range of digital assets, mirroring expanding interest in altcoin-based ETFs and staking products.

Asset managers are responding quickly, with 21Shares launching its Solana ETF in the US and BlackRock preparing a staked Ether product. The Solana category alone has attracted more than $420 million in inflows, underscoring the rising appetite for institutional-grade exposure.

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

New AI tools aim to speed discovery of effective HIV vaccines

Over 40 million people worldwide are living with HIV, a chronic infection that remains a leading cause of death. Developing an effective vaccine has proven difficult due to the virus’s rapid mutations and the vast volume of clinical data produced during trials.

Scripps Research has received $1.1 million from CHAVD to purchase high-performance computing and AI technology. The investment lets researchers analyse millions of vaccine candidates faster, speeding antibody identification and refining experimental vaccines.

StepwiseDesign enables the AI system to evaluate vaccine-induced antibodies and identify the most promising candidates for development. The system has found rare antibodies that neutralise HIV in uninfected individuals, showing its ability to detect extremely rare precursors.

Researchers hope the computational framework will not only fast-track HIV vaccine development but also be applied to other complex pathogens, including influenza and malaria. The project highlights collaboration and innovation, with potential to improve global health outcomes for millions at risk.

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

Health sector AI growth in Europe raises safety concerns

Concerns are growing as European countries expand the use of AI in healthcare without establishing sufficient protections for patients or healthcare workers.

A new World Health Organisation report found significant disparities in how nations develop, regulate and fund AI tools.

Some countries are rapidly deploying chatbots, imaging systems and data-analysis tools, while others have barely started integrating AI into their health services. Only four nations across Europe and Central Asia currently have a national strategy dedicated to AI in health care.

WHO officials warn that weak safeguards could lead to biassed algorithms, medical errors and increased inequality in access to care.

The report urges governments to strengthen legal frameworks, train health workers in AI literacy and ensure these technologies are rigorously tested before reaching patients.

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

Sundar Pichai warns users not to trust AI tools easily

Google CEO Sundar Pichai advises people not to unquestioningly trust AI tools, warning that current models remain prone to errors. He told the BBC that users should rely on a broader information ecosystem rather than treat AI as a single source of truth.

Pichai said generative systems can produce inaccuracies and stressed that people must learn what the tools are good at. The remarks follow criticism of Google’s own AI Overviews feature, which attracted attention for erratic and misleading responses during its rollout.

Experts say the risk grows when users depend on chatbots for health, science, or news. BBC research found major AI assistants misrepresented news stories in nearly half of the tests this year, underscoring concerns about factual reliability and the limits of current models.

Google is launching Gemini 3.0, which it claims offers stronger multimodal understanding and reasoning. The company says its new AI Mode in search marks a shift in how users interact with online information, as it seeks to defend market share against ChatGPT and other rivals.

Pichai says Google is increasing its investment in AI security and releasing tools to detect AI-generated images. He maintains that no single company should control such powerful technology and argues that the industry remains far from a scenario in which one firm dominates AI development.

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