Capacity development

Bezos predicts gigantic gains from the current AI investment bubble

Jeff Bezos has acknowledged that an ‘AI bubble’ is underway but believes its long-term impact will be overwhelmingly positive.

Speaking at Italian Tech Week in Turin, the Amazon founder described it as an ‘industrial bubble’ rather than a purely financial.

He argued that the intense competition and heavy investment will ultimately leave society better off, even if many projects fail. ‘When the dust settles and you see who the winners are, societies benefit from those investors,’ he said, adding that the benefits of AI will be ‘gigantic’.

Bezos’s comments come amid surging spending by Big Tech on AI chips and data centres. Citigroup forecasts that investment will exceed $2.8 trillion by 2029.

OpenAI, Meta, Microsoft, Google and others are pouring billions into infrastructure, with projects like OpenAI’s $500 billion Stargate initiative and Meta’s $29 billion capital raise for AI data centres.

Industry leaders, including Sam Altman of OpenAI, warned of an AI bubble. Yet many argue that, unlike the dot-com era, today’s market is anchored by Nvidia and OpenAI, whose products form the backbone of AI development.

The challenge for tech giants will be finding ways to recover vast investments while sustaining rapid growth.

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

AI industry faces recalibration as Altman delays AGI

OpenAI CEO Sam Altman has again adjusted his timeline for achieving artificial general intelligence (AGI). After earlier forecasts for 2023 and 2025, Altman suggests 2030 as a more realistic milestone. The move reflects mounting pressure and shifting expectations in the AI sector.

OpenAI’s public projections come amid challenging financials. Despite a valuation near $500 billion, the company reportedly lost $5 billion last year on $3.7 billion in revenue. Investors remain drawn to ambitious claims of AGI, despite widespread scepticism. Predictions now span from 2026 to 2060.

Experts question whether AGI is feasible under current large language model (LLM) architectures. They point out that LLMs rely on probabilistic patterns in text, lack lived experience, and cannot develop human judgement or intuition from data alone.

Another point of critique is that text-based models cannot fully capture embodied expertise. Fields like law, medicine, or skilled trades depend on hands-on training, tacit knowledge, and real-world context, where AI remains fundamentally limited.

As investors and commentators calibrate expectations, the AI industry may face a reckoning. Altman’s shifting forecasts underscore how hype and uncertainty continue to shape the race toward perceived machine-level intelligence.

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

Frontier firms reshape work with AI integration

Forward-thinking companies, known as Frontier Firms, are reshaping business by integrating AI deeply into their operations. US employees’ adoption of AI tools has doubled in two years, reflecting a rapid shift.

These firms are not just experimenting but are setting new standards by redesigning workflows to leverage AI, particularly in software development. The impacts are spreading to sales, service, finance, and marketing. Three distinct patterns define this transformation.

The first, human + AI assistant, pairs individuals with AI to eliminate repetitive tasks, allowing developers to focus on design and quality.

The second, human-agent teams, integrate AI as digital workers in workflows for tasks like code testing and compliance, boosting efficiency.

The third, human-led, agent-operated pattern sees AI managing entire processes like automated release pipelines, with humans setting goals and intervening only when needed.

These patterns do not follow a linear path but appear simultaneously across different business functions. A single team might use AI to draft code, test it collaboratively, and automate releases in one day.

As these practices compound, they accelerate innovation and scale. Leaders must embrace these changes to stay competitive, as AI-driven workflows are poised to transform industries beyond software development.

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

Future of work shaped by AI, flexible ecosystems and soft retirement

As technology reshapes workplaces, how we work is set for significant change in the decade’s second half. Seven key trends are expected to drive this transformation, shaped by technological shifts, evolving employee expectations, and new organisational realities.

AI will continue to play a growing role in 2026. Beyond simply automating tasks, companies will increasingly design AI-native workflows built from the ground up to automate, predict, and support decision-making.

Hybrid and remote work will solidify flexible ecosystems of tools, networks, and spaces to support employees wherever they are. The trend emphasises seamless experiences, global talent access, and stronger links between remote workers and company culture.

The job landscape will continue to change as AI affects hiring in clerical, administrative, and managerial roles, while sectors such as healthcare, education, and construction grow. Human skills, such as empathy, communication, and leadership, will become increasingly valuable.

Data-driven people management will replace intuition-based approaches, with AI used to find patterns and support evidence-based decisions. Employee experience will also become a key differentiator, reflecting customer-focused strategies to attract and retain talent.

An emerging ‘soft retirement’ trend will see healthier older workers reduce hours rather than stop altogether, offering businesses valuable expertise. Those who adapt early to these trends will be better positioned to thrive in the future of work.

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

DualEntry raises $90m to scale AI-first ERP platform

New York ERP startup DualEntry has emerged from stealth with $90 million in Series A funding, co-led by Lightspeed and Khosla Ventures. Investors include GV, Contrary, and Vesey Ventures, bringing the total funding to more than $100 million within 18 months of the company’s founding.

The capital will accelerate the growth of its AI-native ERP platform, which has processed $100 billion in journal entries. The platform targets mid-market finance teams, aiming to automate up to 90% of manual tasks and scale without external IT support or add-ons.

Early adopters include fintech firm Slash, which runs its $100M+ ARR operation with a single finance employee. DualEntry offers a comprehensive ERP suite that covers general ledger, accounts receivable, accounts payable, audit controls, FP&A, and live bank connections.

The company’s NextDay Migration tool enables complete onboarding within 24 hours, securely transferring all data, including subledgers and attachments. With more than 13,000 integrations across banking, CRM, and HR systems, DualEntry establishes a centralised source of accounting information.

Founded in 2024 by Benedict Dohmen and Santiago Nestares, the startup positions itself as a faster, more flexible alternative to legacy systems such as NetSuite, Sage Intacct, and Microsoft Dynamics, while supporting starter tools like QuickBooks and Xero.

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

Diag2Diag brings fusion reactors closer to commercial viability

Researchers have developed an AI tool that could make fusion power more reliable and affordable. Diag2Diag reconstructs missing sensor data to give scientists a clearer view of plasma, helping address one of fusion energy’s biggest challenges.

Developed through a collaboration led by Princeton University and the US Department of Energy’s Princeton Plasma Physics Laboratory, Diag2Diag analyses multiple diagnostics in real time to generate synthetic, high-resolution data. It improves plasma control and cuts reliance on costly hardware.

A key use of Diag2Diag is improving the study of the plasma pedestal, the fuel’s outer layer. Current methods miss sudden changes or lack detail. The AI fills these gaps without new instruments, helping researchers fine-tune stability.

The system has also advanced research into edge-localised modes, or ELMs, which are bursts of energy that can damage reactor walls. It revealed how magnetic perturbations create ‘magnetic islands’ that flatten plasma temperature and density, supporting a leading theory on ELM suppression.

Although designed for fusion, Diag2Diag could also enhance reliability in fields such as spacecraft monitoring and robotic surgery. For fusion specifically, it supports smaller, cheaper, and more dependable reactors, bringing the prospect of clean, round-the-clock power closer to reality.

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

AI transcription tool aims to speed up police report writing

The Washington County Sheriff’s Office in Oregon is testing an AI transcription service to speed up police report writing. The tool, Draft One, analyses Axon body-worn camera footage to generate draft reports for specific calls, including theft, trespassing, and DUII incidents.

Corporal David Huey stated that the technology is designed to provide deputies more time in the field. He noted that reports that took around 90 minutes can now be completed in 15 to 20 minutes, freeing officers to focus on policing rather than paperwork.

Deputies in the 60-day pilot must review and edit all AI-generated drafts. At least 20 percent of each report must be manually adjusted to ensure accuracy. Huey explained that the system deliberately inserts minor errors to ensure officers remain engaged with the content.

He added that human judgement remains essential for interpreting emotional cues, such as tense body language, which AI cannot detect solely from transcripts. All data generated by Draft One is securely stored within Axon’s network.

After the pilot concludes, the sheriff’s office and the district attorney will determine whether to adopt the system permanently. If successful, the tool could mark a significant step in integrating AI into everyday law enforcement operations.

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

Japan targets AI leadership through new Nvidia–Fujitsu collaboration

Nvidia and Fujitsu have partnered to build an AI infrastructure in Japan, focusing on robotics and advanced computing. The project will utilise Nvidia’s GPUs and Fujitsu’s expertise to support healthcare, manufacturing, environmental work, and customer services, with completion targeted for 2030.

Speaking in Tokyo, Nvidia CEO Jensen Huang said Japan could lead the world in AI and robotics. He described the initiative as part of the ongoing AI industrial revolution, calling infrastructure development essential in Japan and globally.

The infrastructure will initially target the Japanese market but may later expand internationally. Although specific projects and investment figures were not disclosed, collaboration with robotics firm Yaskawa Electric was mentioned as a possible example.

Fujitsu and Nvidia have previously collaborated on digital twins and robotics to address Japan’s labour shortages. Both companies state that AI systems will continually evolve and adapt over time.

Fujitsu CEO Takahito Tokita said the partnership takes a humancentric approach to keep Japan competitive. He added that the companies aim to create unprecedented technologies and tackle serious societal challenges.

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

US AI models outperform Chinese rival DeepSeek

The National Institute of Standards and Technology’s Centre for AI Standards and Innovation (CAISI) found AI models from Chinese developer DeepSeek trail US models in performance, cost, security, and adoption.

Evaluations covered three DeepSeek and four leading US models, including OpenAI’s GPT-5 series and Anthropic’s Opus 4, across 19 benchmarks.

US AI models outperformed DeepSeek across nearly all benchmarks, with the most significant gaps in software engineering and cybersecurity tasks. CAISI found DeepSeek models costlier and far more vulnerable to hijacking and jailbreaking, posing risks to developers, consumers, and national security.

DeepSeek models were observed to echo inaccurate Chinese Communist Party narratives four times more often than US reference models. Despite weaknesses, DeepSeek model adoption has surged, with downloads rising nearly 1,000% since January 2025.

CAISI is a key contact for industry collaboration on AI standards and security. The evaluation aligns with the US government’s AI Action Plan, which aims to assess the capabilities and risks of foreign AI while securing American leadership in the field.

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

Harvard physicists build first continuous quantum computer

Harvard physicists have developed the first continuously operating quantum computer, running for more than two hours without interruption and potentially indefinitely.

Until now, most quantum machines lasted milliseconds, with the longest recorded runtime about 13 seconds. The Harvard team overcame the problem of qubit loss by replenishing atoms in real time using an optical lattice conveyor belt and optical tweezers.

The system contains 3,000 qubits and can inject 300,000 atoms per second, allowing information to be preserved as older particles escape. The findings were produced with MIT collaborators and mark a turning point in quantum research.

Researchers say machines capable of running indefinitely could arrive within two to three years, accelerating progress in medicine, finance, and cryptography. Harvard has heavily invested in the field, launching one of the first PhD programmes in quantum science.

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