UK government AI tool recovers £500m lost to fraud

A new AI system developed by the UK Cabinet Office has helped reclaim nearly £500m in fraudulent payments, marking the government’s most significant recovery of public funds in a single year.

The Fraud Risk Assessment Accelerator analyses data across government departments to identify weaknesses and prevent scams before they occur.

It uncovered unlawful council tax claims, social housing subletting, and pandemic-related fraud, including £186m linked to Covid support schemes. Ministers stated the savings would be redirected to fund nurses, teachers, and police officers.

Officials confirmed the tool will be licensed internationally, with the US, Canada, Australia, and New Zealand among the first partners expected to adopt it.

The UK announced the initiative at an anti-fraud summit with these countries, describing it as a step toward global cooperation in securing public finances through AI.

However, civil liberties groups have raised concerns about bias and oversight. Previous government AI systems used to detect welfare fraud were found to produce disparities based on age, disability, and nationality.

Campaigners warned that the expanded use of AI in fraud detection risks embedding unfair outcomes if left unchecked.

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Hidden psychological risks and AI psychosis in human-AI relationships

For years, stories and movies have imagined humans interacting with intelligent machines, envisioning a coexistence of these two forms of intelligence. What once felt like purely amusing fiction now resonates differently, taking on a troubling shape and even has a name: AI psychosis. 

When it was released in 2013, the film Her seemed to depict a world far removed from reality, an almost unimaginable scenario of human-AI intimacy. In the story, a man falls in love with an AI operating system, blurring the line between companionship and emotional dependence. Without giving too much away, the film’s unsettling conclusion serves as a cautionary lens. It hints at the psychological risks that can emerge when the boundary between human and machine becomes distorted, a phenomenon now being observed in real life under a new term in psychology. 

The cinematic scenario, once considered imaginative, now resonates as technology evolves. AI chatbots and generative companions can hold lifelike conversations, respond with apparent empathy, and mimic an understanding of human emotions. We are witnessing a new kind of unusually intense emotional connection forming between people and AI, with more than 70% of US teens already using chatbots for companionship and half engaging with them regularly.

The newly observed mental health concern raises questions about how these systems influence our feelings, behaviours, and relationships in an era marked by isolation and loneliness. How might such AI interactions affect people, particularly children or those already vulnerable to mental health challenges? 

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

AI psychosis: myth or reality? 

It is crucial to clarify that AI psychosis is not an official medical diagnosis. Rather, it describes the amplification of delusional thinking facilitated by AI interactions. Yet, it deserves the full attention and treatment focus of today’s psychologists, given its growing impact. It is a real phenomenon that cannot be ignored. 

At its core, AI psychosis refers to a condition in which vulnerable individuals begin to misinterpret machine responses as evidence of consciousness, empathy, or even divine authority. Symptoms reported in documented cases include grandiose beliefs, attachment-based delusions, obsessive over-engagement with chatbots, social withdrawal, insomnia, and hallucinations. Some users have gone so far as to develop romantic or spiritual attachments, convinced that the AI truly understands them or holds secret knowledge.

Clinicians also warn of cognitive dissonance: users may intellectually know that AI lacks emotions, yet still respond as though interacting with another human being. The mismatch between reality and perception can fuel paranoia, strengthen delusions, and in extreme cases lead to medication discontinuation, suicidal ideation, or violent behaviour. Adolescents appear especially susceptible, given that their emotional and social frameworks are still developing. 

Ultimately, AI psychosis does not mean that AI itself causes psychosis. Instead, it acts as a mirror and magnifier, reinforcing distorted thinking patterns in those already predisposed to psychological vulnerabilities.

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

 The dark side: Emotional bonds without reciprocity

Humans are naturally wired to seek connection, drawing comfort and stability from social bonds that help navigate complex emotional landscapes- the fundamental impulse that has ensured the survival of the human race. From infancy, we rely on responsive relationships to learn empathy, trust, and communication, the skills essential for both personal and societal well-being. Yet, in today’s era of loneliness, technology has transformed how we maintain these relationships. 

As AI chatbots and generative companions grow increasingly sophisticated, they are beginning to occupy roles traditionally reserved for human interaction, simulating empathy and understanding despite lacking consciousness or moral awareness. With AI now widely accessible, users often communicate with it as effortlessly as they would with friends, blending curiosity, professional needs, or the desire for companionship into these interactions. Over time, this illusion of connection can prompt individuals to overvalue AI-based relationships, subtly diminishing engagement with real people and reshaping social behaviours and emotional expectations.

These one-sided bonds raise profound concerns about the dark side of AI companionship, threatening the depth and authenticity of human relationships. In a world where emotional support can now be summoned with a tap, genuine social cohesion is becoming increasingly fragile.

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

Children and teenagers at risk from AI 

Children and teenagers are among the most vulnerable groups in the AI era. Their heightened need for social interaction and emotional connection, combined with developing cognitive and emotional skills, makes them particularly vulnerable. Young users face greater difficulty distinguishing authentic human empathy from the simulated responses of AI chatbots and generative companions, creating fertile ground for emotional reliance and attachment. 

AI toys and apps have become increasingly widespread, making technology an unfiltered presence in children’s lives. We still do not fully understand the long-term effects, though early studies are beginning to explore how these interactions may influence cognitive, emotional, and social development. From smartphones to home assistants, children and youth are spending growing amounts of time interacting with AI, often in isolation from peers or family. These digital companions are more than just games, because they are beginning to shape children’s social and emotional development in ways we are not yet fully aware of.

The rising prevalence of AI in children’s daily experiences has prompted major AI companies to recognise the potential dangers. Some firms have started implementing parental advisory systems, usage limits, and content monitoring to mitigate the risks for younger users. However, these measures are still inconsistent, and the pace at which AI becomes available to children often outstrips safeguards. 

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

The hidden risks of AI to adult mental health

Even adults with strong social networks face growing challenges in managing mental health and are not immune to the risks posed by modern technology. In today’s fast-paced world of constant digital stimulation and daily pressures, the demand for psychotherapy is higher than ever. Generative AI and chatbots are increasingly filling this gap, often in ways they were never intended.

The ease, responsiveness, and lifelike interactions of AI can make human relationships feel slower or less rewarding, with some turning to AI instead of seeking professional therapeutic care. AI’s free and widely accessible nature tempts many to rely on digital companions for emotional support, misusing technology designed to assist rather than replace human guidance.

Overreliance on AI can distort perceptions of empathy, trust, and social reciprocity, contributing to social isolation, emotional dependence, and worsening pre-existing mental health vulnerabilities. There have been documented cases of adults developing romantic feelings for AI in the absence of real-life intimacy.

Left unchecked, these dynamics may trigger symptoms linked to AI psychosis, representing a growing societal concern. Awareness, responsible AI design, and regulatory guidance are essential to ensure digital companions complement, rather than replace, human connection and mental health support, safeguarding both individuals and broader social cohesion.

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

Urgent call for AI safeguards and regulatory action

Alarmingly, extreme cases have emerged, highlighting the profound risks AI poses to its users. In one tragic instance, a teenager reportedly took his life after prolonged and distressing interactions with an AI chatbot, a case that has since triggered legal proceedings and drawn widespread attention to the psychological impact of generative AI on youth. Similar reports of severe anxiety, depression, and emotional dysregulation linked to prolonged AI use underline that these digital companions can have real-life consequences for vulnerable minds.

Such incidents have intensified calls for stricter regulatory frameworks to safeguard children and teenagers. Across Europe, governments are beginning to respond: Italy, for example, has recently tightened access to AI platforms for minors under 14, mandating explicit parental consent before use. These legislative developments reflect the growing recognition that AI is no longer just a technological novelty but directly intersects with our welfare, mental health, and social development.

As AI continues to penetrate every pore of people’s daily lives, society faces a critical challenge: ensuring that technology complements rather than replaces human interaction. Cases of AI-linked distress serve as stark reminders that legislative safeguards, parental involvement, and psychological guidance are no longer optional but urgent necessities to protect a generation growing up in the era of AI.

AI is no longer just a tool- humans are forming deep emotional bonds with artificial intelligence, impacting behavior, decision-making, and the very way we perceive connection.

Towards a safer human-AI relationship

As humans increasingly form emotional connections with AI, the challenge is no longer theoretical but is unfolding in real time. Generative AI and chatbots are rapidly integrating into everyday life, shaping the way we communicate, seek comfort, and manage emotions. Yet despite their widespread use, society still lacks a full understanding of the psychological consequences, leaving both young people and adults at risk of AI-induced psychosis and the growing emotional dependence on digital companions.

Experts emphasise the urgent need for AI psychoeducation, responsible design, and regulatory frameworks to guide safe AI-human interaction. Overreliance on digital companions can distort empathy, social reciprocity, and emotional regulation, the core challenges of interacting with AI. Awareness is critical because recognising the limits of AI, prioritising real human connection, and fostering critical engagement with technology can prevent the erosion of mental resilience and social skills.

Even if AI may feel like ‘old news’ due to its ubiquity, it remains a rapidly evolving technology we do not yet fully understand and cannot yet properly shield ourselves from. The real threat is not the sci-fi visions of AI ruling the world and dominating humanity, but the subtle, everyday psychological shifts it imposes, like altering how we think, feel, and relate to one another. It remains essential to safeguard the emotional health, social cohesion, and mental resilience of people adapting to a world increasingly structured around artificial minds.

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Meta offers Llama AI to US allies amid global tech race

Meta will provide its Llama AI model to key European institutions, NATO, and several allied countries as part of efforts to strengthen national security capabilities.

The company confirmed that France, Germany, Italy, Japan, South Korea, and the EU will gain access to the open-source model. US defence and security agencies and partners in Australia, Canada, New Zealand, and the UK already use Llama.

Meta stated that the aim is to ensure democratic allies have the most advanced AI tools for decision-making, mission planning, and operational efficiency.

Although its terms bar use for direct military or espionage applications, the company emphasised that supporting allied defence strategies is in the interest of nations.

The move highlights the strategic importance of AI models in global security. Meta has positioned Llama as a counterweight to other countries’ developments, after allegations that researchers adapted earlier versions of the model for military purposes.

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Spanish joins Google’s global AI Mode expansion

Google is rapidly expanding AI Mode, its generative AI-powered search assistant. The company has announced that the feature is now rolling out globally in Spanish. Spanish speakers can now interact with AI Mode to ask complex questions that traditional Search handles poorly.

AI Mode has seen swift adoption since its launch earlier this year. First introduced in March, the feature was rolled out to users across the US in May, followed by its first language expansion earlier this month.

Hindi, Indonesian, Japanese, Korean, and Brazilian Portuguese were the first languages added, and Spanish now joins the list. Google says more languages will follow soon as part of its global AI Mode rollout.

Google says the feature is designed to work alongside Search, not replace it, offering conversational answers with links to supporting sources. The company has stressed that responses are generated with safety filters and fact-checking layers.

The rollout reflects Google’s broader strategy to integrate generative AI into its ecosystem, spanning Search, Workspace, and Android. AI Mode will evolve with multimodal support and tighter integration with other Google services.

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AI image war heats up as ByteDance unveils Seedream 4.0

ByteDance has unveiled Seedream 4.0, its latest AI-powered image generation model, which it claims outperforms Google DeepMind’s Gemini 2.5 Flash Image. The launch signals ByteDance’s bid to rival leading creative AI tools.

Developed by ByteDance’s Seed division, the model combines advanced text-to-image generation with fast, precise image editing. Internal testing reportedly showed superior prompt accuracy, image alignment, and visual quality compared to US-developed DeepMind’s system.

Artificial Analysis, an independent AI benchmarking firm, called Seedream 4.0 a significant step forward. The model integrates Seedream 3.0’s generation capability with SeedEdit 3.0’s editing tools while maintaining a price of US$30 per 1,000 generations.

ByteDance claims that Seedream 4.0 runs over 10 times faster than earlier versions, enhancing the user experience with near-instant image inference. Early users have praised its ability to make quick, text-prompted edits with high accuracy.

The tool is now available to users in China through Jimeng and Doubao AI apps and businesses via Volcano Engine, ByteDance’s cloud platform. A formal technical report supporting the company’s claims has not yet been released.

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Gemini brings conversational AI to Google TV

Google has launched Gemini for TV, bringing conversational AI to the living room. The update builds on Google TV and Google Assistant, letting viewers chat naturally with their screens to discover shows, plan trips, or even tackle homework questions.

Instead of scrolling endlessly, users can ask Gemini to find a film everyone will enjoy or recap last season’s drama. The AI can handle vague requests, like finding ‘that new hospital drama,’ and provide reviews before you press play.

Gemini also turns the TV into an interactive learning tool. From explaining why volcanoes erupt to guiding kids through projects, it offers helpful answers with supporting YouTube videos for hands-on exploration.

Beyond schoolwork, Gemini can help plan meals, teach new skills like guitar, or brainstorm family trips, all through conversational prompts. Such features make the TV a hub for entertainment, education, and inspiration.

Gemini is now available on the TCL QM9K series, with rollout to additional Google TV devices planned for later this year. Google says additional features are coming soon, making TVs more capable and personalised.

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ChatGPT Go launches in Indonesia with $4.5 monthly plan

OpenAI has launched its low-cost ChatGPT Go subscription in Indonesia, pricing it at 75,000 rupiah ($4.5) per month. The new plan offers ten times more messaging capacity, image generation tools and double memory compared with the free version.

The rollout follows last month’s successful launch in India, where ChatGPT subscriptions more than doubled. India has since become OpenAI’s largest market, accounting for around 13.5% of global monthly active users. The US remains second.

Nick Turley, OpenAI Vice President and head of ChatGPT, said Indonesia is already one of the platform’s top five markets by weekly activity. The new tier is aimed at expanding reach in populous, price-sensitive regions while ensuring broader access to AI services.

OpenAI is also strengthening its financial base as it pushes into new markets. On Monday, the company secured a $100 billion investment commitment from NVIDIA, joining Microsoft and SoftBank among its most prominent backers. The funding comes amid intensifying competition in the AI industry.

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Americans fear AI will weaken creativity and human connections

A new Pew Research Center survey shows Americans are more worried than excited about AI shaping daily life. Half of adults say AI’s rise will harm creative thinking and meaningful relationships, while only small shares see improvements.

Many want greater control over its use, even as most are willing to let it assist with routine tasks.

The survey of over 5,000 US adults found 57% consider AI’s societal risks to be high, with just a quarter rating the benefits as significant. Most respondents also doubt their ability to recognise AI-generated content, although three-quarters believe being able to tell human from machine output is essential.

Americans remain sceptical about AI in personal spheres such as religion and matchmaking, instead preferring its application in heavy data tasks like weather forecasting, fraud detection and medical research.

Younger adults are more aware of AI than older generations, yet they are also more likely to believe it will undermine creativity and human connections.

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China cracks down on Kuaishou and Weibo over alleged online content violations

China’s internet watchdog, the Cyberspace Administration of China (CAC), has warned online platforms Kuaishou Technology and Weibo for failing to curb celebrity gossip and harmful content on their platforms.

The CAC issued formal warnings, citing damage to the ‘online ecosystem’ and demanding corrective action. Both firms pledged compliance, with Kuaishou forming a task force and Weibo promising self-reflection.

The move follows similar disciplinary action against lifestyle app RedNote and is part of a broader two-month campaign targeting content that ‘viciously stimulates negative emotions.’

Separately, Kuaishou is under investigation by the State Administration for Market Regulation for alleged malpractice in live-streaming e-commerce.

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Behavioural AI could be the missing piece in the $2 trillion AI economy

Global AI spending is projected to reach $1.5 trillion in 2025 and exceed $2 trillion in 2026, yet a critical element is missing: human judgement. A growing number of organisations are turning to behavioural science to bridge this gap, coding it directly into AI systems to create what experts call behavioural AI.

Early adopters like Clarity AI utilise behavioural AI to flag ESG controversies before they impact earnings. Morgan Stanley uses machine learning and satellite data to monitor environmental risks, while Google Maps influences driver behaviour, preventing over one million tonnes of CO₂ annually.

Behavioural AI is being used to predict how leaders and societies act under uncertainty. These insights guide corporate strategy, PR campaigns, and decision-making. Mind Friend combines a network of 500 mental health experts with AI to build a ‘behavioural infrastructure’ that enhances judgement.

The behaviour analytics market was valued at $1.1 billion in 2024 and is projected to grow to $10.8 billion by 2032. Major players, such as IBM and Adobe, are entering the field, while Davos and other global forums debate how behavioural frameworks should shape investment and policy decisions.

As AI scrutiny grows, ethical safeguards are critical. Companies that embed governance, fairness, and privacy protections into their behavioural AI are earning trust. In a $2 trillion market, winners will be those who pair algorithms with a deep understanding of human behaviour.

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