Research shows AI complements, not replaces, human work

AI headlines often flip between hype and fear, but the truth is more nuanced. Much research is misrepresented, with task overlaps miscast as job losses. Leaders and workers need clear guidance on using AI effectively.

Microsoft Research mapped 200,000 Copilot conversations to work tasks, but headlines warned of job risks. The study showed overlap, not replacement. Context, judgment, and interpretation remain human strengths, meaning AI supports rather than replaces roles.

Other research is similarly skewed. METR found that AI slowed developers by 19%, but mostly due to the learning curves associated with first use. MIT’s ‘GenAI Divide’ measured adoption, not ability, showing workflow gaps rather than technology failure.

Better studies reveal the collaborative power of AI. Harvard’s ‘Cybernetic Teammate’ experiment demonstrated that individuals using AI performed as well as full teams without it. AI bridged technical and commercial silos, boosting engagement and improving the quality of solutions produced.

The future of AI at work will be shaped by thoughtful trials, not headlines. By treating AI as a teammate, organisations can refine workflows, strengthen collaboration, and turn AI’s potential into long-term competitive advantage.

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GPT-5-powered ChatGPT Edu comes to Oxford staff and students

The University of Oxford will become the first UK university to offer free ChatGPT Edu access to all staff and students. The rollout follows a year-long pilot with 750 academics, researchers, and professional services staff across the University and Colleges.

ChatGPT Edu, powered by OpenAI’s GPT-5 model, is designed for education with enterprise-grade security and data privacy. Oxford says it will support research, teaching, and operations while encouraging safe, responsible use through robust governance, training, and guidance.

Staff and students will receive access to in-person and online training, webinars, and specialised guidance on the use of generative AI. A dedicated AI Competency Centre and network of AI Ambassadors will support users, alongside mandatory security training.

The prestigious UK university has also established a Digital Governance Unit and an AI Governance Group to oversee the adoption of emerging technologies. Pilots are underway to digitise the Bodleian Libraries and explore how AI can improve access to historical collections worldwide.

A jointly funded research programme with the Oxford Martin School and OpenAI will study the societal impact of AI adoption. The project is part of OpenAI’s NextGenAI consortium, which brings together 15 global research institutions to accelerate breakthroughs in AI.

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US Treasury opens consultation on stablecoin regulation

The US Treasury has issued an Advance Notice of Proposed Rulemaking (ANPRM) to gather public input on implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The consultation marks an early step in shaping rules around digital assets.

The GENIUS Act instructs the Treasury to draft rules that foster stablecoin innovation while protecting consumers, preserving stability, and reducing financial crime risks. The Treasury aims to balance technological progress with safeguards for the wider economic system by opening this process.

Through the ANPRM, the public is encouraged to submit comments, data, and perspectives that may guide the design of the regulatory framework. Although no new rules have been set yet, the consultation allows stakeholders to shape future stablecoin policies.

The initiative follows an earlier request for comment on methods to detect illicit activity involving digital assets, which remains open until 17 October 2025. Submissions in response to the ANPRM must be filed within 30 days of its publication in the Federal Register.

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JFTC study and MSCA shape Japan’s AI oversight strategy

Japan is adopting a softer approach to regulating generative AI, emphasising innovation while managing risks. Its 2025 AI Bill promotes development and safety, supported by international norms and guidelines.

The Japan Fair Trade Commission (JFTC) is running a market study on competition concerns in AI, alongside enforcing the new Mobile Software Competition Act (MSCA), aimed at curbing anti-competitive practices in mobile software.

The AI Bill focuses on transparency, international cooperation, and sector-specific guidance rather than heavy penalties. Policymakers hope this flexible framework will avoid stifling innovation while encouraging responsible adoption.

The MSCA, set to be fully enforced in December 2025, obliges mobile platform operators to ensure interoperability and fair treatment of developers, including potential applications to AI tools and assistants.

With rapid AI advances, regulators in Japan remain cautious but proactive. The JFTC aims to monitor markets closely, issue guidelines as needed, and preserve a balance between competition, innovation, and consumer protection.

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UK regulator seeks feedback on crypto rules

The Financial Conduct Authority (FCA) has launched a consultation on proposed minimum standards for crypto firms, reflecting rules already applied to traditional financial services. The proposals cover areas such as operational resilience and measures to combat financial crime.

Regulators intend the framework to be proportionate, supporting UK competitiveness in global markets. The FCA is also examining how its Consumer Duty should apply to crypto, ensuring firms act to deliver good outcomes for clients.

Views are being sought on complaint-handling, including whether cases should be referred to the Financial Ombudsman Service.

David Geale, executive director of payments and digital finance, said the FCA aims to build a sustainable and competitive crypto sector by balancing innovation with trust and market integrity. He noted the standards would not eliminate investment risks but would give consumers clearer expectations.

The consultation follows draft legislation published by HM Treasury in April 2025. Responses on the discussion paper are due by 15 October 2025, with feedback on the consultation paper closing on 12 November 2025. Final rules are expected in 2026.

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Character.AI and Google face suits over child safety claims

Three lawsuits have been filed in US federal courts alleging that Character.AI and its founders, with Google’s backing, deployed predatory chatbots that harmed children. The cases involve the family of 13-year-old Juliana Peralta, who died by suicide in 2023, and two other minors.

The complaints say the chatbots were designed to mimic humans, build dependency, and expose children to sexual content. Using emojis, typos, and pop-culture personas, the bots allegedly gained trust and encouraged isolation from family and friends.

Juliana’s parents say she engaged in explicit chats, disclosed suicidal thoughts, and received no intervention before her death. Nina, 15, from New York, attempted suicide after her mother blocked the app, while a Colorado, US girl known as T.S. was also affected.

Character.AI and Google are accused of misrepresenting the app as child-safe and failing to act on warning signs. The cases follow earlier lawsuits from the Social Media Victims Law Center over similar claims that the platform encouraged harm.

SMVLC founder Matthew Bergman stated that the cases underscore the urgent need for accountability in AI design and stronger safeguards to protect children. The legal team is seeking damages and stricter safety standards for chatbot platforms marketed to minors.

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WTO report notes AI’s potential benefit to trade if divides are addressed

The WTO launched the 2025 World Trade Report, titled ‘Making trade and AI work together to benefit all’. The report argues that AI could potentially boost global trade by up to 37% and GDP by 12–13% by 2040, particularly through digitally deliverable services.

It notes that AI can lower trade costs, improve supply-chain efficiency, and create opportunities for small firms and developing countries. Still, it warns that without deliberate action, AI could deepen global inequalities and widen the gap between advanced and developing economies.

The report underscores the need for investment in digital infrastructure, energy, skills, and enabling policies, highlighting the importance of IP protection, competition frameworks, and government support.

A newly developed indicator, the WTO AI Trade Policy Openness Index (AI-TPOI), revealed significant variation in AI-related trade policies across and within income groups.

It assessed three policy areas relevant to AI diffusion: barriers to services trade, restrictions on trade in AI-enabling goods, and limitations on cross-border data flows.

Stronger multilateral cooperation and targeted capacity-building were presented as essential to ensure AI-enabled trade supports inclusive, sustainable prosperity rather than reinforcing existing divides.

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Meta and Google to block political ads in EU under new regulations

Broadcasters and advertisers seek clarity before the EU’s political advertising rules become fully applicable on 10 October. The European Commission has promised further guidance, but details on what qualifies as political advertising remain vague.

Meta and Google will block the EU’s political, election, and social issue ads when the rules take effect, citing operational challenges and legal uncertainty. The regulation, aimed at curbing disinformation and foreign interference, requires ads to display labels with sponsors, payments, and targeting.

Publishers fear they lack the technical means to comply or block non-compliant programmatic ads, risking legal exposure. They call for clear sponsor identification procedures, standardised declaration formats, and robust verification processes to ensure authenticity.

Advertisers warn that the rules’ broad definition of political actors may be hard to implement. At the same time, broadcasters fear issue-based campaigns – such as environmental awareness drives – could unintentionally fall under the scope of political advertising.

The Dutch parliamentary election on 29 October will be the first to take place under the fully applicable rules, making clarity from Brussels urgent for media and advertisers across the bloc.

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Amazon and Mercado Libre criticised for limiting seller mobility in Mexico

Mexico’s competition watchdog has accused Amazon and Mercado Libre of erecting barriers that limit the mobility of sellers in the country’s e-commerce market. The two platforms reportedly account for 85% of the seller market.

The Federal Economic Competition Commission (COFECE) stated that the companies provide preferential treatment to sellers who utilise their logistics services and fail to disclose how featured offers are selected, thereby restricting fair competition.

Despite finding evidence of these practices, COFECE stopped short of imposing corrective measures, citing a lack of consensus among stakeholders. Amazon welcomed the decision, saying it demonstrates the competitiveness of the retail market in Mexico.

The watchdog aims to promote a more dynamic e-commerce sector, benefiting buyers and sellers. Its February report had recommended measures to improve transparency, separate loyalty programme services, and allow fairer access to third-party delivery options.

Trade associations praised COFECE for avoiding sanctions, warning that penalties could harm consumers and shield traditional retailers. Mercado Libre has not yet commented on the findings.

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Gemini 2.5 solves top ICPC problems at world finals

Google CEO Sundar Pichai announced that its Gemini 2.5 Deep Think AI model achieved a ‘gold-medal performance’ at the 2025 ICPC World Finals. The ICPC World Finals is among the most prestigious university-level programming contests.

The model solved ten out of twelve problems, including one no human team could complete during the competition. The AI solved eight issues in the first 45 minutes and completed two more in the following three hours, demonstrating exceptional algorithmic reasoning and coding skills.

Gemini’s participation was conducted live and remotely under official ICPC rules, starting ten minutes after human teams, with the same five-hour limit.

Google explained that Gemini’s performance results from reinforcement learning, allowing the AI to reason, generate code, test solutions, and refine its approach based on feedback. Internal tests indicate Gemini 2.5 would have matched the top 20 human coders at past ICPC finals.

For general users, a lighter version of Gemini 2.5 Deep Think is available through the Gemini app for Google AI Ultra subscribers, offering access to advanced problem-solving capabilities in a more accessible format.

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