Capacity development

Google DeepMind launches Genie 3 to create interactive 3D worlds from text

Google DeepMind has introduced Genie 3, an AI world model capable of generating explorable 3D environments in real time from a simple text prompt.

Unlike earlier versions, it supports several minutes of continuous interaction, basic visual memory, and real-time changes such as altering weather or adding characters.

The system allows users to navigate these spaces at 24 frames per second in 720p resolution, retaining object placement for about a minute.

Users can trigger events within the virtual world by typing new instructions, making Genie 3 suitable for applications ranging from education and training to video games and robotics.

Genie 3’s improvements over Genie 2 include frame-by-frame generation with memory tracking and dynamic scene creation without relying on pre-built 3D assets.

However, the AI model still has limits, including the inability to replicate real-world locations with geographic accuracy and restricted interaction capabilities. Multi-agent features are still in development.

Currently offered as a limited research preview to select academics and creators, Genie 3 will be made more widely available over time.

Google DeepMind has noted that safety and responsibility remain central concerns during the gradual rollout.

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Malaysia tackles online scams with AI and new cyber guidelines

Cybercrime involving financial scams continues to rise in Malaysia, with 35,368 cases reported in 2024, a 2.53 per cent increase from the previous year, resulting in losses of RM1.58 billion.

The situation remains severe in 2025, with over 12,000 online scam cases recorded in the first quarter alone, involving fake e-commerce offers, bogus loans, and non-existent investment platforms. Losses during this period reached RM573.7 million.

Instead of waiting for the situation to worsen, the Digital Ministry is rolling out proactive safeguards. These include new AI-related guidelines under development by the Department of Personal Data Protection, scheduled for release by March 2026.

The documents will cover data protection impact assessments, automated decision-making, and privacy-by-design principles.

The ministry has also introduced an official framework for responsible AI use in the public sector, called GPAISA, to ensure ethical compliance and support across government agencies.

Additionally, training initiatives such as AI Untuk Rakyat and MD Workforce aim to equip civil servants and enforcement teams with skills to handle AI and cyber threats.

In partnership with CyberSecurity Malaysia and Universiti Kebangsaan Malaysia, the ministry is also creating an AI-powered application to verify digital images and videos.

Instead of relying solely on manual analysis, the tool will help investigators detect online fraud, identity forgery, and synthetic media more effectively.

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Law curbs AI use in mental health services across US state

A new law in a US state has banned the use of AI for delivering mental health care, drawing a firm line between digital tools and licensed professionals. The legislation limits AI systems to administrative tasks such as note-taking and scheduling, explicitly prohibiting them from offering therapy or clinical advice.

The move comes as concerns grow over the use of AI chatbots in sensitive care roles. Lawmakers in the midwestern state of Illinois approved the measure, citing the need to protect residents from potentially harmful or misleading AI-generated responses.

Fines of up to $10,000 may be imposed on companies or individuals who violate the ban. Officials stressed that AI lacks the empathy, accountability and clinical oversight necessary to ensure safe and ethical mental health treatment.

One infamous case saw an AI-powered chatbot suggest drug use to a fictional recovering addict, a warning signal, experts say, of what can go wrong without strict safeguards. The law is named the Wellness and Oversight for Psychological Resources Act.

Other parts of the United States are considering similar steps. Florida’s governor recently described AI as ‘the biggest issue’ facing modern society and pledged new state-level regulations within months.

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Microsoft offers $5 million for cloud and AI vulnerabilities

Microsoft is offering security researchers up to $5 million for uncovering critical vulnerabilities in its products, with a focus on cloud and AI systems. The Zero Day Quest contest will return in spring 2026, following a $1.6 million payout in its previous edition.

Researchers are invited to submit discoveries between 4 August and 4 October 2025, targeting Azure, Copilot, M365, and other significant services. High-severity flaws are eligible for a 50% bonus payout, increasing the incentive for impactful findings.

Top participants will receive exclusive invitations to a live hacking event at Microsoft’s Redmond campus. The event promises collaboration with product teams and the Microsoft Security Response Centre.

Training from Microsoft’s AI Red Team and other internal experts will also be available. The company encourages public disclosure of patched findings to support the broader cybersecurity community.

The competition aligns with Microsoft’s Secure Future Initiative, which aims to strengthen cloud and AI security by default, design, and operation. Vulnerabilities will be disclosed transparently, even if no customer action is needed.

Full details and submission rules are available through the MSRC Researcher Portal. All reports will be subject to Microsoft’s bug bounty terms.

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Cloudflare claims Perplexity circumvented website scraping blocks

Cloudflare has accused AI startup Perplexity of ignoring explicit website instructions not to scrape their content.

According to the internet infrastructure company, Perplexity has allegedly disguised its identity and used technical workarounds to bypass restrictions set out in Robots.txt files, which tell bots which pages they may or may not access.

The behaviour was reportedly detected after multiple Cloudflare customers complained about unauthorised scraping attempts.

Instead of respecting these rules, Cloudflare claims Perplexity altered its bots’ user agent to appear as a Google Chrome browser on macOS and switched its network identifiers to avoid detection.

The company says these tactics were seen across tens of thousands of domains and millions of daily requests, and that it used machine learning and network analysis to identify the activity.

Perplexity has denied the allegations, calling Cloudflare’s report a ‘sales pitch’ and disputing that the bot named in the findings belongs to the company. Cloudflare has since removed Perplexity’s bots from its verified list and introduced new blocking measures.

The dispute arises as Cloudflare intensifies its efforts to grant website owners greater control over AI crawlers. Last month, it launched a marketplace enabling publishers to charge AI firms for scraping, alongside free tools to block unauthorised data collection.

Perplexity has previously faced criticism over content use, with outlets such as Wired accusing it of plagiarism in 2024.

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The risky rise of all-in-one AI companions

A concerning new trend is emerging: AI companions are merging with mental health tools, blurring ethical lines. Human therapists are required to maintain a professional distance. Yet AI doesn’t follow such rules; it can be both confidant and counsellor.

AI chatbots are increasingly marketed as friendly companions. At the same time, they can offer mental health advice. Combined, you get an AI friend who also becomes your emotional guide. The mix might feel comforting, but it’s not without risks.

Unlike a human therapist, AI has no ethical compass. It mimics caring responses based on patterns, not understanding. One prompt might trigger empathetic advice and best-friend energy, a murky interaction without safeguards.

The deeper issue? There’s little incentive for AI makers to stop this. Blending companionship and therapy boosts user engagement and profits. Unless laws intervene, these all-in-one bots will keep evolving.

There’s also a massive privacy cost. People confide personal feelings to these bots, often daily, for months. The data may be reviewed, stored, and reused to train future models. Your digital friend and therapist might also be your data collector.

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Google signs groundbreaking deal to cut data centre energy use

Google has become the first major tech firm to sign formal agreements with US electric utilities to ease grid pressure. The deals come as data centres drive unprecedented energy demand, straining power infrastructure in several regions.

The company will work with Indiana Michigan Power and Tennessee Valley Authority to reduce electricity usage during peak demand. These arrangements will help divert power to general utilities when needed.

Under the agreements, Google will temporarily scale down its data centre operations, particularly those linked to energy-intensive AI and machine learning workloads.

Google described the initiative as a way to speed up data centre integration with local grids while avoiding costly infrastructure expansion. The move reflects growing concern over AI’s rising energy footprint.

Demand-response programmes, once used mainly in heavy manufacturing and crypto mining, are now being adopted by tech firms to stabilise grids in return for lower energy costs.

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OpenAI launches ‘study mode’ to curb AI-fuelled cheating

OpenAI has introduced a new ‘study mode’ to help students use AI for learning rather than cheating. The update arrives amid a spike in academic dishonesty linked to generative AI tools.

According to The Guardian, a UK survey found nearly 7,000 confirmed cases of AI misuse during the 2023–24 academic year. Universities are under pressure to adapt assessments in response.

Under the chatbot’s Tools menu, the new mode walks users through questions with step-by-step guidance, acting more like a tutor than a solution engine.

Jayna Devani, OpenAI’s international education lead, said the aim is to foster productive use of AI. ‘It’s guiding me towards an answer, rather than just giving it to me first-hand,’ she explained.

The tool can assist with homework and exam prep and even interpret uploaded images of past papers. OpenAI cautions it may still produce errors, underscoring the need for broader conversations around AI in education.

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The US launches $100 million cybersecurity grant for states

The US government has unveiled more than $100 million in funding to help local and tribal communities strengthen their cybersecurity defences.

The announcement came jointly from the Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Emergency Management Agency (FEMA), both part of the Department of Homeland Security.

Instead of a single pool, the funding is split into two distinct grants. The State and Local Cybersecurity Grant Program (SLCGP) will provide $91.7 million to 56 states and territories, while the Tribal Cybersecurity Grant Program (TCGP) allocates $12.1 million specifically for tribal governments.

These funds aim to support cybersecurity planning, exercises and service improvements.

CISA’s acting director, Madhu Gottumukkala, said the grants ensure communities have the tools needed to defend digital infrastructure and reduce cyber risks. The effort follows a significant cyberattack on St. Paul, Minnesota, which prompted a state of emergency and deployment of the National Guard.

Officials say the funding reflects a national commitment to proactive digital resilience instead of reactive crisis management. Homeland Security leaders describe the grant as both a strategic investment in critical infrastructure and a responsible use of taxpayer funds.

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AI adoption soothes stress even as job fears rise among employees

A recent Fortune survey indicates that 61 percent of white‑collar professionals expect AI to make their roles, or even their entire teams, obsolete within 3–5 years, yet most continue to rely on AI tools daily without visible concern.

Seventy percent of respondents credit AI with boosting their creativity and productivity, and 40  percent say it has eased stress and improved work‑life balance. Despite these benefits, many admit to ‘feigning’ AI use in workplace settings, often driven by peer pressure or a lack of formal training.

Executive commentary underscores the tension: senior business leaders, including Jim Farley and Dario Amodei, predict rapid AI‑driven disruption of white‑collar roles. Some executives forecast up to 50  percent of certain job categories could be eliminated, though others argue AI may open new opportunities.

Academic studies suggest a more nuanced impact: AI is reshaping role definitions by automating routine tasks while increasing demand for complementary skills, such as ethics, teamwork, and digital fluency. Wage benefits are growing in jobs that effectively blend AI with human oversight.

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