Competition regulation

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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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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UK App Store antitrust case escalates as Apple appeals

Apple has filed an appeal of a major UK antitrust ruling that could result in billions of dollars in compensation for App Store users. The move would escalate the case from the Competition Appeal Tribunal to the UK Court of Appeal.

The application follows an October ruling in which the tribunal found Apple had abused its dominant market position by charging excessive App Store fees. The decision set a £1.5 billion ($1.9 billion) compensation figure, which Apple previously signalled it would challenge.

After the tribunal declined to grant permission to appeal, Apple sought to appeal to a higher court. The company has not commented publicly on the latest filing but continues to dispute the tribunal’s assessment of competition in the app economy.

Central to the case is the tribunal’s proposed developer commission rate of 15-20 per cent, lower than Apple’s longstanding 30 per cent fee. The rate was determined using what the court described as informed estimates.

If upheld, the compensation would be distributed among UK App Store users who made purchases between 2015 and 2024. The case is being closely watched as a test of antitrust enforcement against major digital platforms.

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New SIM cards in South Korea now require real-time facial recognition

South Korea has introduced mandatory facial recognition for anyone registering a new SIM card or eSIM, whether in-store or online.

The live scan must match the photo on an official ID so that each phone number can be tied to a verified person instead of relying on paperwork alone.

Existing users are not affected, and the requirement applies only at the moment a number is issued.

The government argues that stricter checks are needed because telecom fraud has become industrialised and relies heavily on illegally registered SIM cards.

Criminal groups have used stolen identity data to obtain large volumes of numbers that can be swapped quickly to avoid detection. Regulators now see SIM issuance as the weakest link and the point where intervention is most effective.

Telecom companies must integrate biometric checks into onboarding, while authorities insist that facial data is used only for real-time verification and not stored. Privacy advocates warn that biometric verification creates new risks because faces cannot be changed if compromised.

They also question whether such a broad rule is proportionate when mobile access is essential for daily life.

The policy places South Korea in a unique position internationally, combining mandatory biometrics with defined legal limits. Its success will be judged on whether fraud meaningfully declines instead of being displaced.

A rule that has become a test case for how far governments should extend biometric identity checks into routine services.

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AI slop dominates YouTube recommendations for new users

More than 20 percent of videos recommended to new YouTube users are low-quality, attention-driven content commonly referred to as AI slop, according to new research. The findings raise concerns about how recommendation systems shape early user experience on the platform.

Video-editing firm Kapwing analysed 15,000 of YouTube’s top channels across countries worldwide. Researchers identified 278 channels consisting entirely of AI-generated slop, designed primarily to maximise views rather than provide substantive content.

These channels have collectively amassed more than 63 billion views and 221 million subscribers. Kapwing estimates the network generates around $117 million in annual revenue through advertising and engagement.

To test recommendations directly, researchers created a new YouTube account and reviewed its first 500 suggested videos. Of these, 104 were classified as AI slop, with around one third falling into a category described as brainrot content.

Kapwing found that AI slop channels attract large audiences globally, including tens of millions of subscribers in countries such as Spain, Egypt, the United States, and Brazil. Researchers said the scale highlights the growing reach of low-quality AI-generated video content.

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Bitcoin adoption remains uneven across US states

A recent SmartAsset study based on IRS tax return data highlights sharp regional differences in Bitcoin participation across the US. Crypto engagement is concentrated in certain states, driven by income, tech adoption, and local economic culture.

Washington leads the rankings, with 2.43 per cent of taxpayers reporting crypto transactions, followed by Utah, California, Colorado and New Jersey. These states have strong tech sectors, higher incomes, and populations familiar with digital financial tools.

New Jersey’s position also shows that crypto interest extends beyond traditional tech hubs in the West. At the opposite end, states such as West Virginia, Mississippi, Kentucky, Louisiana and Alabama record participation close to or below one per cent.

Lower household incomes, smaller tech industries and a preference for conventional financial products appear to limit reported crypto activity, although some low-level holdings may not surface in tax data.

The data also reflects crypto’s sensitivity to market cycles. Participation surged during the 2021 bull run before declining sharply in 2022 as prices fell.

Higher-income households remain far more active than middle-income earners, reinforcing the view that Bitcoin adoption in the US is still largely speculative and unevenly distributed.

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New Chinese rules target AI chatbots and emotional manipulation

China has proposed new rules to restrict AI chatbots from influencing human emotions in ways that could lead to suicide or self-harm. The Cyberspace Administration released draft regulations, open for public comment until late January.

The measures target human-like interactive AI services, including emotionally responsive AI chatbots, that simulate personality and engage users through text, images, audio, or video. Officials say the proposals signal a shift from content safety towards emotional safety as AI companions gain popularity.

Under the draft rules, AI chatbot services would be barred from encouraging self-harm, emotional manipulation, or obscene, violent, or gambling-related content. Providers would be required to involve human moderators if users express suicidal intent.

Additional provisions would strengthen safeguards for minors, including guardian consent and usage limits for emotionally interactive systems. Platforms would also face security assessments and interaction reminders when operating services with large user bases.

Experts say the proposals could mark the world’s first attempt to regulate emotionally responsive AI systems. The move comes as China-based chatbot firms pursue public listings and as global scrutiny grows over how conversational AI affects mental health and user behaviour.

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EU targets addictive gaming features

Video gaming has become one of Europe’s most prominent entertainment industries, surpassing a niche hobby, with over half the population regularly engaging in it.

As the sector grows, the EU lawmakers are increasingly worried about addictive game design and manipulative features that push players to spend more time and money online.

Much of the concern focuses on loot boxes, where players pay for random digital rewards that resemble gambling mechanics. Studies and parliamentary reports warn that children may be particularly vulnerable, with some lawmakers calling for outright bans on paid loot boxes and premium in-game currencies.

The European Commission is examining how far design choices contribute to digital addiction and whether games are exploiting behavioural weaknesses rather than offering fair entertainment.

Officials say the risk is higher for minors, who may not fully understand how engagement-driven systems are engineered.

The upcoming Digital Fairness Act aims to strengthen consumer protection across online services, rather than leaving families to navigate the risks alone. However, as negotiations continue, the debate over how tightly gaming should be regulated is only just beginning.

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Kazakhstan climbs global AI readiness ranking

Kazakhstan has risen to 60th place out of 195 countries in the 2025 Government AI Readiness Index, marking a 16-place improvement and highlighting a year of accelerated institutional and policy development.

The ranking, compiled by Oxford Insights, measures governments’ ability to adopt and manage AI across public administration, the economy, and social systems.

At a regional level, Kazakhstan now leads Central Asia in AI readiness. A strong performance in the Public Sector Adoption pillar, with a score of 73.59, reflects the widespread use of digital services, e-government platforms, and a shift toward data-led public service delivery.

The country’s advanced digital infrastructure, high internet penetration, and mature electronic government ecosystem provide a solid foundation for scaling AI nationwide.

Political and governance initiatives have further strengthened Kazakhstan’s position. In 2025, the government enacted its first comprehensive AI law, which covers ethics, safety, and digital innovation.

At the same time, the Ministry of Digital Development, Innovation and Aerospace Industry was restructured into a dedicated Ministry of Artificial Intelligence and Digital Development, signalling the government’s commitment to making AI a central policy priority.

Kazakhstan’s progress demonstrates how a focused policy, infrastructure, and institutional approach can enhance AI readiness, enabling the responsible and effective integration of AI across public and economic sectors.

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