National AI readiness initiative introduced in the US

The US National Science Foundation has introduced the NSF TechAccess: AI-Ready America initiative to expand access to AI education, tools, and training. The programme is designed to ensure workers, businesses, and communities can actively participate in the growing AI-driven economy.

Federal collaboration forms a core part of the initiative, bringing together the Department of Agriculture’s National Institute of Food and Agriculture, the Department of Labour, and the Small Business Administration.

The effort aims to close gaps in AI capability by improving literacy, supporting small businesses, and building hands-on learning pathways such as internships and applied training.

A network of up to 56 state and territory-based Coordination Hubs will be created to coordinate local AI adoption strategies. Each hub will receive up to $1 million in annual funding over three years, with the potential for an extension based on continued need and impact.

Further funding rounds are planned to appoint a national coordination lead and support pilot projects that scale AI readiness solutions. The initiative is part of a broader strategy informed by the White House AI Action Plan.

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New UK rules target foreign influence and crypto donations

The UK government has announced sweeping reforms to political donations, introducing a £100,000 annual cap on contributions from overseas electors. The move targets concerns that individuals living abroad could exert disproportionate financial influence on domestic politics.

Cryptocurrency donations have also been banned with immediate effect, reflecting fears over anonymity and the difficulty of tracing funds. Authorities warn that digital assets risk enabling untraceable political funding until stronger regulation is in place.

Both measures will apply retrospectively, requiring political parties and candidates to return any unlawful donations within 30 days once the legislation takes effect. Enforcement action may follow for non-compliance, signalling a stricter approach to financial oversight.

Reforms stem from the Rycroft Review, which highlighted vulnerabilities in the UK’s electoral system linked to foreign interference. Further changes, including stronger Electoral Commission powers and tighter donor checks, are expected.

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EDPB summarises conference on cross-regulatory cooperation in the EU

The European Data Protection Board has published a summary of its 17 March conference in Brussels on cross-regulatory interplay and cooperation in the EU from a data protection perspective. According to the EDPB, the event brought together representatives of the EU institutions, European Data Protection Authorities, academia, and industry.

Three panels structured the conference discussion. One focused on data protection and competition, another on the Digital Markets Act and the General Data Protection Regulation (GDPR), and a third on the Digital Services Act and the GDPR.

Discussion in the first panel centred on cooperation between regulatory bodies in data protection and competition, including lessons from the aftermath of the Bundeskartellamt ruling. The EDPB said speakers emphasised the need for regulators to align their approaches and recognise synergies between the two fields. Speakers also said data protection should be considered in competition analysis only when relevant and on a case-by-case basis. The EDPB added that it had recently agreed with the European Commission to develop joint guidelines on the interplay between competition law and data protection.

The second panel focused on joint guidelines on the Digital Markets Act and the GDPR, developed by the European Commission and the EDPB and recently opened to public consultation. According to the EDPB, speakers described the guidelines as an example of regulatory cooperation aimed at developing a coherent and compatible interpretation of the two frameworks while respecting regulatory competences. The Board said participants linked the guidelines to stronger consistency, legal clarity, and easier compliance. Some speakers also suggested changes to the final version, including points related to proportionality and the relationship between DMA obligations and the GDPR.

The final panel examined the interaction between the Digital Services Act and the GDPR. The EDPB said panellists referred to the protection of minors as one example, arguing that age verification should be effective while remaining fully in line with data protection legislation. Speakers also highlighted the need for coordination between the two frameworks, including cooperation involving the EU institutions such as the European Board for Digital Services, the European Commission, the EDPB, and national authorities. Emerging technologies such as AI were also mentioned in the discussion.

The event also featured keynote speeches from European Commission Executive Vice President Henna Virkkunen and European Parliament LIBE Committee Chair Javier Zarzalejos. According to the EDPB, Virkkunen said the Commission remained committed to cooperation between different frameworks and highlighted the need to support compliance through stronger coordination among regulators. Zarzalejos said close cross-regulatory cooperation was essential for consistency, effective enforcement, and trust, and pointed to the intersections among data protection law, competition law, the DMA, and the DSA.

EDPB Chair Anu Talus closed the conference by reiterating that the EDPB and European Data Protection Authorities are committed to supporting stakeholders in navigating what the Board described as a new cross-regulatory landscape. The EDPB said future work will include continued cooperation with the Commission on joint guidelines on the interplay between the AI Act and the GDPR, finalisation of the joint guidelines on the interplay between the DMA and the GDPR, and work on the recently announced Joint Guidelines on the interplay between data protection and competition law.

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Quantum readiness as a strategic priority for firms

Businesses are beginning to prepare for the commercial potential of quantum computing, a technology that leverages quantum mechanics to solve problems beyond the capabilities of classical computers.

Early engagement focuses on awareness, training, and workshops to explore possible applications across sectors such as pharmaceuticals, energy, finance, and advanced materials.

Companies face several barriers to readiness, including limited technological maturity, unclear business implications, high costs for access and staff training, and a shortage of talent with both quantum and industry expertise.

These obstacles mean that most readiness initiatives remain concentrated in large, research-intensive firms, leaving smaller companies at risk of falling behind.

Support mechanisms are helping firms navigate these challenges. Networking, advisory services, technology centres, R&D grants, and stakeholder consultations help firms access resources and partnerships to accelerate readiness and link research with commercial use.

Building quantum readiness will require ongoing investment in skills, infrastructure, and partnerships, alongside policies that combine exploratory pilots with long-term workforce and software support.

Hybrid approaches integrating quantum computing with AI and high-performance computing offer practical entry points for early adoption, strengthening competitiveness and innovation across industries.

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Conversational AI reshapes CNC manufacturing

Japanese manufacturing firm ARUM Inc. is introducing AI into precision machining, aiming to address a growing shortage of skilled workers. TTMC Origin uses KAYA, a conversational AI that guides operators through machining tasks with natural language instructions.

Powered by proprietary software ARUMCODE and built on Microsoft Azure AI tools, the system translates traditional craftsmanship into automated workflows. Tasks once handled by skilled machinists can now be done by junior workers, lowering the barrier to operating advanced CNC machines.

The technology dramatically reduces production time. Programming a precision component that previously took over an hour can now be completed in minutes.

Such efficiency gains are particularly valuable for high-mix, low-volume manufacturing, where speed and cost control are critical to profitability.

ARUM’s expansion into AI-driven solutions reflects broader industry pressures. Japan’s manufacturing sector continues to face a persistent labour shortage, with demand for skilled machinists exceeding supply.

By combining automation with scalable cloud infrastructure, ARUM aims to maintain the country’s leadership in precision manufacturing while preparing for global deployment.

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EU Market Integration Package prompts feedback from Circle

Circle has submitted feedback to the European Commission on its proposed Market Integration Package, aiming to strengthen capital markets integration and supervision across the EU.

The response praises digital finance reforms while recommending refinements to support institutional adoption and liquidity growth. Key recommendations include reforming the DLT Pilot Regime with adaptive thresholds, a clear path to permanent legislation, and accelerated updates.

Circle also calls for broader use of MiCA-compliant e-money tokens (EMTs) in securities settlement, ensuring alignment with the CSD Regulation and considering non-EU-issued stablecoins for cross-border interoperability.

The company urges careful calibration of centralised supervision under the European Securities and Markets Authority, focusing on systemic crypto firms and reducing administrative complexity for smaller providers.

Legal certainty regarding the use of EMTs as collateral is also highlighted, enabling the EU markets to remain competitive globally.

Circle emphasises the potential of clear and proportionate regulation to bridge traditional finance with on-chain infrastructure. The company positions regulated stablecoins like USDC and EURC as key tools for modernising Europe’s capital markets and unlocking new efficiency and liquidity.

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AI investment reshapes euro area markets and financial systems

Philip R. Lane, Member of the Executive Board of the ECB, highlighted in his speech at the ECB-SAFE-RCEA International Conference on the Climate-Macro-Finance Interface (3CMFI) that € area firms with high AI intensity have experienced stronger revenue growth, operating margins, and earnings per share.

The advantage narrows when financial institutions are excluded, and internal funding remains essential, as well-capitalised firms are more likely to adopt AI while smaller firms face investment barriers.

European venture capital and private credit are growing but remain far below US levels, limiting start-up scaling and prompting some to relocate abroad.

Banks are embracing AI extensively, particularly for fraud detection, marketing, chatbots, and credit scoring. Proprietary tools are mostly developed in-house, while specialised external providers support cybersecurity and regulatory reporting.

AI boosts operational efficiency, risk assessment, and credit pricing, yet concentration in a few frontier firms and rising reliance on market-based finance introduce potential financial risks.

Lane noted that monetary policy implications are uncertain, as AI may enhance productivity and incomes differently depending on whether it is labour- or capital-augmenting.

High capital expenditure and increased energy demand during AI adoption could add inflationary pressure, while global concentration of AI activity in the US and China may limit domestic investment, influencing the € area’s natural rate of interest.

The European Central Bank is systematically integrating AI into its analytical and operational environment. Machine-learning tools support forecasting, scenario analysis, and extraction of signals from alternative data, while workflow automation and agentic AI enhance efficiency and reduce manual workload.

The ECB’s digitalisation programme aims to scale AI across business processes, ensuring technology complements expert judgement while maintaining reliability, traceability, and accountability.

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Licence revocations hit unregistered crypto firms in Canada

Canada has increased crypto oversight, revoking registrations for nearly three dozen firms due to compliance failures. The move follows investigative reporting that uncovered widespread irregularities in the sector.

The Financial Transactions and Reports Analysis Centre of Canada removed 23 companies in one week, adding to previous actions against about a dozen other crypto firms.

Officials described the shift as part of a broader effort to address risks tied to virtual currencies, including fraud and money laundering.

Findings from the International Consortium of Investigative Journalists’ investigation highlighted clusters of crypto businesses operating without proper registration, particularly in Toronto.

Many of these services reportedly focused on converting digital assets into cash, raising concerns about gaps in oversight and compliance with anti-money laundering rules.

Authorities also flagged suspicious transaction patterns, including activity linked to wallets allegedly associated with Iran-backed groups. While regulators have promised further action, analysts warn that delayed enforcement and structural weaknesses may continue to expose the system to illicit financial flows.

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Tokenised assets set to transform European capital markets

Piero Cipollone, Member of the Executive Board of the ECB, at an event on ‘Building Europe’s integrated digital asset ecosystem: from vision to implementation,’ highlighted Europe’s progress in tokenised financial markets.

Since 2021, European issuers have placed nearly €4 billion in DLT-based fixed-income instruments, including the first digital sovereign debt by EU Member States. Eurosystem trials in 2024 processed €1.6 billion in transactions, showing strong demand for central bank money settlement in digital markets.

Tokenisation enables the full lifecycle of transactions on distributed ledgers, often automated through smart contracts.

Fragmentation across DLT platforms and the absence of a widely accepted on-chain settlement asset are holding back market expansion. Private assets, including stablecoins, carry volatility and credit risks, making a central bank money anchor crucial.

The Pontes platform, launching in Q3 2026, is expected to provide secure settlement across DLT platforms and TARGET services, supporting features like smart contracts and 24/7 operation.

The Appia roadmap outlines a longer-term vision for an integrated European tokenised ecosystem by 2028, covering technical standards, interoperability, collateral management, and cross-border connectivity.

Collaboration between the public and private sectors is critical. Feedback from 64 industry participants shaped Pontes, while Appia engages stakeholders to establish standards and ensure interoperability.

Harmonised legal frameworks are equally important to reduce post-trade fragmentation and support seamless asset transfers across EU Member States. Without coordinated laws, tokenised markets risk inefficiency despite advanced technology.

Europe is building momentum but faces intense global competition. Secure settlement, stakeholder collaboration, and legal harmonisation could make the EU a leader in digital finance with a single tokenised market.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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