Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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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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Deepfake abuse crisis escalates worldwide

AI-generated deepfake abuse is emerging as a serious global threat, with women and girls disproportionately affected by non-consensual and harmful digital content. Advances in AI make it easy to create manipulated content that can spread across platforms within minutes and reach millions.

Data highlights the scale of the issue. The vast majority of deepfake content online consists of explicit material, overwhelmingly targeting women.

Accessible and often free tools have lowered the barrier to entry, enabling widespread misuse. At the same time, the ability to endlessly replicate and share such content makes removal nearly impossible once it is published.

Legal responses remain fragmented, with many pre-existing laws leaving gaps in addressing AI-generated deepfake abuse. Enforcement issues, such as cross-border challenges and limited digital forensics capabilities, make it unlikely that perpetrators will face consequences.

Pressure is mounting on governments and technology platforms to act. Calls for reform include clearer legislation, faster obligations to remove content, improved law enforcement capabilities, and stronger support systems for victims.

Without coordinated global action, deepfake abuse is set to expand alongside the technologies enabling it.

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Telefónica Tech moves to combine AI and quantum computing

Telefónica Tech has partnered with three European firms to bring AI and quantum computing closer together. The collaboration aims to improve how advanced models are developed and deployed across different environments.

The initiative brings together Qilimanjaro Quantum Tech, Multiverse Computing and Qcentroid. Their combined expertise is expected to support more efficient, compact and locally deployable AI systems.

Quantum computing is seen as a way to reduce the heavy processing demands of large AI models. Faster computation could yield more accurate results while reducing the time required to solve complex problems.

Each partner contributes specialised capabilities, from quantum hardware and algorithms to software platforms and orchestration tools. These technologies could support applications such as simulations, edge AI and rapid prototyping.

Telefónica Tech is also strengthening its role in integrating AI and quantum solutions for enterprise clients. The move reflects a broader push to build scalable, sovereign and next-generation digital infrastructure in Europe.

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FBI warns of fake tokens targeting Tron wallets

The FBI’s New York Field Office has warned that fraudulent tokens impersonating the agency are being airdropped to Tron wallets, with recipients threatened with ‘total block’ of assets unless they submit personal information via phishing sites.

At least 728 wallets were affected, some holding over US$1 million in USDT, when the warning was issued on 19 March.

The scam warns users that their wallets are ‘under investigation’ and instructs them to complete an online anti-money-laundering form. The FBI urged crypto holders to ignore these messages and avoid entering any personal data on linked websites.

Attackers exploit Tron for its fast and low-cost transactions, using bots to distribute tokens widely and generate spoofed addresses.

Impersonation scams have surged dramatically in 2025, with Chainalysis reporting a 1,400% year-over-year increase. Total crypto fraud losses are estimated at US$17 billion, with AI-assisted scams proving far more profitable than traditional schemes.

The FBI previously ran a blockchain sting using Ethereum tokens, resulting in indictments and the seizure of millions in assets.

The bureau encourages anyone who receives the fake FBI tokens to report the incident to the Internet Crime Complaint Centre to help combat ongoing crypto fraud.

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AI agent causes internal data leak at Meta

Meta recently confirmed that an AI agent inadvertently exposed sensitive company and user data to some employees. The leak happened when an engineer followed the AI agent’s forum suggestion, exposing data for about two hours.

Meta stated that no user data was mishandled and emphasised that human errors could cause similar issues.

The incident reflects broader challenges in deploying agentic AI tools within major tech companies. Amazon faced similar issues, with internal AI tools causing outages and operational errors, showing risks of quickly integrating AI into critical workflows.

Experts describe these deployments as experimental, with companies testing AI at scale without fully assessing potential risks.

Security specialists note that AI agents lack the contextual awareness that human engineers accumulate over years of experience. Lacking long-term operational knowledge, AI can make decisions that compromise security, a factor in the Meta breach.

Analysts warn that such errors are likely to recur as AI adoption accelerates.

The episode comes amid growing attention on agentic AI’s potential to disrupt workflows, affect productivity, and introduce new vulnerabilities. Industry observers caution that AI tools must be carefully monitored and accompanied by robust safeguards to prevent future incidents.

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Mastercard expands AI strategy with new payments model

Mastercard has introduced a generative AI foundation model trained on billions of anonymised transactions. The model is designed as a backend system to power insights across payments and commerce services.

The company plans to extend AI use beyond fraud detection into cybersecurity, loyalty programmes and small-business tools. The model is being developed with support from Nvidia and Databricks technologies.

Earlier AI tools focused on fraud detection, significantly improving accuracy and reducing false positives. The new model marks a shift towards a broader infrastructure approach across multiple products.

This move aligns with Mastercard’s growing reliance on value-added services, which generated over $13 billion in revenue. These services include security, analytics and digital payment solutions beyond the core network.

Competitors such as Visa and PayPal are also expanding AI-driven commerce platforms. The race is intensifying as firms build integrated systems for payments, automation and intelligent services.

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New iPhone vulnerability raises concerns over advanced mobile cyber threats

A newly identified cyberattack known as ‘DarkSword’ is raising concerns about the security of iPhone devices, following reports that millions of users could be exposed to rapid data extraction techniques.

Cybersecurity researchers indicate that the attack targets specific iOS versions, exploiting vulnerabilities in the Safari browser and a graphics processing feature known as WebGPU.

Once access is gained, attackers can retrieve sensitive information, including messages, emails and location data, within minutes, while removing traces of the intrusion almost immediately.

Estimates suggest that a significant share of global iPhone users may be affected, with hundreds of millions of devices running vulnerable software versions.

The scale of exposure remains uncertain, particularly as experts continue to assess whether additional versions of iOS may also be impacted.

Researchers have associated the campaign with a threat actor previously identified by Google, with observed activity across multiple regions.

Such a development highlights growing concerns about the evolution of mobile cyber threats, where increasingly sophisticated techniques are being deployed beyond traditional state-level operations.

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Bitcoin moves closer to quantum resistance with BIP-360

BTQ Technologies has deployed Bitcoin Improvement Proposal BIP-360 on its Bitcoin Quantum Testnet v0.3.0, marking the first live test of the proposal. The upgrade introduces a quantum-resistant transaction model, Pay-to-Merkle-Root, designed to strengthen Bitcoin’s long-term security.

BIP-360 focuses on mitigating a vulnerability linked to Taproot’s key-path spending mechanism, which can expose public keys on-chain. Such exposure may become a risk if future quantum computers are capable of exploiting cryptographic weaknesses using advanced algorithms.

The testnet adds new consensus rules, post-quantum signatures, and full transaction lifecycle testing. Faster one-minute block times and adjusted fee structures have been introduced to accommodate larger and more complex signatures.

Growing global attention on quantum threats adds urgency to the development. US, EU, and Canadian authorities are setting timelines for post-quantum cryptography to protect future system security.

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EU scrutiny intensifies over Broadcom VMware licensing dispute

Broadcom is facing increased regulatory pressure in the EU following a formal antitrust complaint concerning changes to VMware licensing practices.

The complaint highlights growing tensions between large technology providers and European cloud infrastructure firms.

The filing, submitted by Cloud Infrastructure Services Providers in Europe, raises concerns that revised licensing models could significantly alter market dynamics.

European providers argue that the changes may limit flexibility, increase costs, and affect their ability to compete effectively in the cloud services sector.

At the centre of the dispute lies the broader issue of market concentration and control over critical digital infrastructure.

Industry stakeholders suggest that restrictive licensing conditions could reshape access to essential virtualisation technologies, which underpin a wide range of cloud and enterprise services across the EU.

Regulatory attention is expected to focus on whether such practices align with the EU competition rules, particularly regarding fair access and market neutrality.

The case emerges at a time when European policymakers are intensifying oversight of dominant technology firms and seeking to strengthen digital sovereignty across strategic sectors.

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