A cautious mood spread across global markets as US stocks declined and Bitcoin slid to its lowest level since late 2024. Technology and software shares led losses, pushing major indices to their weakest performance in two weeks.
Bitcoin fell sharply before stabilising, remaining well below its October peak despite continued pro-crypto messaging from Washington. Gold and silver moved higher during the session, reinforcing their appeal as defensive assets amid rising uncertainty.
Investor sentiment weakened after Anthropic unveiled new legal-focused features for its Claude chatbot, reviving fears of disruption across software and data-driven business models. Analysts at Morgan Stanley pointed to rotation within the technology sector, with investors reducing exposure to software stocks.
Geopolitical tensions intensified after reports of US military action involving Iran, pushing oil prices higher and increasing market volatility. Combined AI uncertainty, geopolitical risk, and shifting safe-haven flows continue to weigh on equities and digital assets alike.
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AI is widening the cyber risk landscape and forcing security teams to rethink established safeguards. Microsoft has updated its Secure Development Lifecycle to address AI-specific threats across design, deployment and monitoring.
The updated approach reflects how AI can blur trust boundaries by combining data, tools, APIs and agents in one workflow. New attack paths include prompts, plugins, retrieved content and model updates, raising risks such as prompt injection and data poisoning.
Microsoft says policy alone cannot manage non-deterministic systems and fast iteration cycles. Guidance now centres on practical engineering patterns, tight feedback loops and cross-team collaboration between research, governance and development.
Its SDL for AI is organised around six pillars: threat research, adaptive policy, shared standards, workforce enablement, cross-functional collaboration and continuous improvement. Microsoft says the aim is to embed security into every stage of AI development.
The company also highlights new safeguards, including AI-specific threat modelling, observability, memory protections and stronger identity controls for agent workflows. Microsoft says more detailed guidance will follow in the coming months.
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Mozilla has confirmed that Firefox will include a built-in ‘AI kill switch‘ from version 148, allowing users to disable all AI features across the browser. The update follows earlier commitments that AI tools would remain optional as Firefox evolves into what the company describes as an AI-enabled browser.
The new controls will appear in the desktop release scheduled to begin rolling out on 24 February. A dedicated AI Controls section will allow users to turn off every AI feature at once or manage each tool individually, reflecting Mozilla’s aim to balance innovation with user choice.
At launch, Firefox 148 will introduce AI-powered translations, automatic alt text for images in PDFs, tab grouping suggestions, link previews, and an optional sidebar chatbot supporting services such as ChatGPT, Claude, Copilot, Gemini, and Le Chat Mistral.
All of these tools can be disabled through a single ‘Block AI enhancements’ toggle, which removes prompts and prevents new AI features from appearing. Mozilla has said preferences will remain in place across updates, with users able to adjust settings at any time.
The organisation said the approach is intended to give people full control over how AI appears in their browsing experience, while continuing development for those who choose to use it. Early access to the controls will also be available through Firefox Nightly.
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The European Commission has missed a key deadline to issue guidance on how companies should classify high-risk AI systems under the EU AI Act, fuelling uncertainty around the landmark law’s implementation.
Guidance on Article 6, which defines high-risk AI systems and stricter compliance rules, was due by early February. Officials have indicated that feedback is still being integrated, with a revised draft expected later this month and final adoption potentially slipping to spring.
The delay follows warnings that regulators and businesses are unprepared for the act’s most complex rules, due to apply from August. Brussels has suggested delaying high-risk obligations under its Digital Omnibus package, citing unfinished standards and the need for legal clarity.
Industry groups want enforcement delayed until guidance and standards are finalised, while some lawmakers warn repeated slippage could undermine confidence in the AI Act. Critics warn further changes could deepen uncertainty if proposed revisions fail or disrupt existing timelines.
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European data and legal software stocks fell sharply after US AI startup Anthropic launched a new tool for corporate legal teams. The company said the software can automate contract reviews, compliance workflows, and document triage, while clarifying that it does not offer legal advice.
Investors reacted swiftly, sending shares in Pearson, RELX, Sage, Wolters Kluwer, London Stock Exchange Group, and Experian sharply lower. Thomson Reuters also suffered a steep decline, reflecting concern that AI tools could erode demand for traditional data-driven services.
Market commentators warned that broader adoption of AI in professional services could compress margins or bypass established providers altogether. Morgan Stanley flagged intensifying competition, while AJ Bell pointed to rising investor anxiety across the sector.
The sell-off also revived debate over AI’s impact on employment, particularly in legal and other office-based roles. Recent studies suggest the UK may face greater disruption than other large economies as companies adopt AI tools, even as productivity gains continue to rise.
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The United Arab Emirates is strengthening its global tech role by treating advanced innovation as a pillar of sovereignty rather than a standalone growth driver. National strategy increasingly links technology with long-term economic resilience, security, and geopolitical relevance.
A key milestone was the launch of the UAE Advanced Technology Centre with the Technology Innovation Institute and the World Economic Forum, announced alongside the Davos gathering.
The initiative highlights the UAE’s transition from technology consumer to active participant in shaping global governance frameworks for emerging technologies.
The centre focuses on policy and governance for areas including artificial intelligence, quantum computing, biotechnology, robotics, and space-based payment systems.
Backed by a flexible regulatory environment, the UAE is promoting regulatory experimentation and translating research into real-world applications through institutions such as the Mohamed bin Zayed University of Artificial Intelligence and innovation hubs like Masdar City.
Alongside innovation, authorities are addressing rising digital risks, particularly deepfake technologies that threaten financial systems, public trust, and national security.
By combining governance, ethical standards, and international cooperation, the UAE is advancing a model of digital sovereignty that prioritises security, shared benefits, and long-term strategic independence.
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The Second International Submarine Cable Resilience Summit opened this week in Porto, Portugal, bringing together senior officials from governments, international organisations, and industry to address the growing risks facing the underwater cables that carry most of the world’s internet traffic. The event highlighted how submarine cables have become critical infrastructure for the global digital economy, especially as societies grow more dependent on cloud services, AI, and cross-border data flows.
Opening the summit, Ambassador João Mira Gomes, Permanent Representative of Portugal to the United Nations Office at Geneva, explained that Portugal’s infrastructure minister was absent due to ongoing storm recovery efforts, underlining the real-world pressures facing critical infrastructure today. He recalled Portugal’s long history in global connectivity, noting that one of the earliest submarine cables linking Portugal and the United Kingdom was built to support the port wine trade, a reminder that communication networks and economic exchange have long evolved together.
Professor Sandra Maximiano, co-chair of the International Advisory Body for Submarine Cable Resilience, placed the discussions in a broader historical context. She pointed to the creation of the International Telecommunication Union in 1865 as the first global organisation dedicated to managing international communications, stressing that cooperation on submarine cables has always been a ‘positive-sum game’ in which all countries benefit from shared rules and coordination.
Maximiano also highlighted Portugal’s strategic role as a cable hub, citing its extensive coastline, large exclusive economic zone, and favourable landing conditions connecting Europe, the Americas, Africa, and Asia. She outlined key projects such as the Atlantic CAM system linking mainland Portugal with Madeira and the Azores using a resilient ring design and smart cable technology that combines telecommunications with seismic and oceanographic monitoring. Existing and planned systems, she said, are not just data pipelines but foundations for innovation, scientific cooperation, and strategic autonomy.
A major outcome of the summit was the adoption of the Porto Declaration on Submarine Cable Resilience, developed with input from more than 150 experts worldwide. The declaration sets out practical guidance to improve permitting and repair processes, strengthen legal frameworks, promote route diversity and risk mitigation, and enhance capacity-building, with special attention to the needs of small island states and developing countries.
ITU Secretary-General Doreen Bogdan-Martin framed these efforts within a rapidly changing digital landscape, announcing that 2026 will be designated the ‘year of resilience.’ She warned that the scale of global digital dependence has transformed the impact of cable disruptions, as even minor outages can ripple across AI systems, cloud platforms, and autonomous services. Resilience, she argued, now depends as much on international coordination and preparedness as on cable design itself.
From the European Union perspective, European Commission Vice-President Henna Virkkunen outlined upcoming EU measures, including a submarine cable security toolbox and targeted funding through the Connecting Europe Facility. She stressed the importance of regional coordination and praised Portugal’s active role in aligning EU initiatives with global efforts led by the ITU.
Closing the opening session, Ambassador Gomes linked cable resilience to broader goals of development and peace, warning that digital divides fuel inequality and instability, and reaffirming Portugal’s commitment to international cooperation and capacity-building as the summit moves the global conversation from policy to action.
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UpScrolled has surpassed 2.5 million users globally, gaining rapid momentum following TikTok’s restructuring of its US ownership earlier this year, according to founder Issam Hijazi.
The social network grew to around 150,000 users in its first six months before accelerating sharply in January, crossing one million users within weeks and reaching more than 2.5 million shortly afterwards.
Positioned as a hybrid of Instagram and X, UpScrolled promotes itself as an open platform free of shadowbanning and selective content suppression, while criticising major technology firms for data monetisation and algorithm-driven engagement practices.
Hijazi said the company would avoid amplification algorithms but acknowledged the need for community guidelines, particularly amid concerns about explicit content appearing on the platform.
Interest in alternative social networks has increased since TikTok’s shift to US ownership, though analysts note that long-term growth will depend on moderation frameworks, feature development, and sustained community trust.
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Japan and the United Kingdom have formalised a Strategic Cyber Partnership focused on strengthening cooperation in cybersecurity, including information sharing, defensive capabilities, and resilience of critical infrastructure. In related high-level discussions between the two leaders, Japan and the UK also agreed on the need to work with like-minded partners to address vulnerabilities in critical mineral supply chains.
The Strategic Cyber Partnership outlines three core areas of cooperation:
sharing cyber threat intelligence and enhancing cyber capabilities;
supporting whole-of-society resilience through best practices on infrastructure and supply chain protection and alignment on regulatory and standards issues;
collaborating on workforce development and emerging cyber technologies.
The agreement is governed through a joint Cyber Dialogue mechanism and is non-binding in nature.
Separately, at a summit meeting in Tokyo, the leaders noted the importance of strengthening supply chains for minerals identified as critical for modern industry and technology, and agreed to coordinate efforts with other partners on this issue.
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Europe is stepping up efforts to industrialise quantum technologies with a €50 million investment in superconducting quantum devices. Funding from the EU Chips Joint Undertaking and national agencies will support the Supreme consortium’s work from early 2026.
Superconducting quantum systems rely on ultra-low temperatures to maintain qubit stability, making manufacturing processes complex and costly. Supreme aims to develop reliable fabrication methods that can be scaled across Europe.
Access to these technologies will be opened to companies through shared pilot production runs and process design kits. Such tools are intended to lower barriers for firms developing quantum hardware and related systems.
The initiative also responds to Europe’s weaker performance in quantum patents compared with research output. Alignment with the upcoming Quantum Act and the EU Chips Act is expected to strengthen commercial uptake and industrial competitiveness.
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