Critical infrastructure Archives | Digital Watch Observatory

European businesses gain AI-powered contract tools with local data hosting

Workday has rolled out its Contract Lifecycle Management (CLM) platform with EU-hosted data in Frankfurt, allowing European organisations to use AI contract tools while keeping all data within the EU.

German, French, and Spanish language support is live, with more languages planned. The update is part of Workday’s EU Sovereign Cloud strategy, targeting the CLM market, which is set to grow to $1.9 billion by 2033.

The platform uses AI agents to automate contracts. The Contract Intelligence Agent extracts terms, obligations, and renewal dates to create a searchable repository, while the Contract Negotiation Agent flags deviations, drafts redlines, and speeds approvals.

Multilingual support ensures smooth workflows across Europe’s largest commercial languages, improving compliance and efficiency.

GDPR compliance remains critical, with fines up to €20 million or 4% of global turnover. EU-hosted CLM removes offshore data risks, which are crucial for the finance, healthcare, and defence sectors. Workday combines AI efficiency with full legal compliance.

Decision-makers should focus on three priorities: EU data residency, leveraging AI agents to accelerate contracts, and integrating CLM with HR and finance systems to maximise value. Workday aims to capture market share in Europe against competitors such as Icertis and DocuSign.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Pakistan’s digital transformation highlighted as UNESCO advances AI ethics

UNESCO used the Pakistan Governance Forum 2026 to highlight the need for a structured Ethical AI and Data Governance Framework as the country accelerates its digital transformation.

Federal leaders, provincial authorities and civil society convened to examine governance reforms, with UNESCO urging Pakistan to align its expanding digital public infrastructure with coherent standards that protect rights while enabling innovation.

Speaking at the Forum, Fuad Pashayev underlined that Pakistan’s reform priority should centre on the Recommendation on the Ethics of Artificial Intelligence, adopted unanimously by all 193 Member States.

Anchoring national systems in transparency, accountability and meaningful human oversight was framed as essential for maintaining public trust as digital services reshape access to benefits and interactions between citizens and the state.

To support the shift, UNESCO promoted its AI Readiness Assessment Methodology (RAM), which is already deployed in more than 50 countries. The tool helps governments identify regulatory gaps, strengthen institutional coordination and design safeguards against discrimination and algorithmic bias.

UNESCO has already contributed to Pakistan’s draft National AI Policy, ensuring alignment with international ethical frameworks while accommodating national development needs.

Capacity building formed a major pillar of UNESCO’s engagement. In partnership with the University of Oxford, the organisation launched a global course on AI and Digital Transformation in Government in 2025, attracting over nineteen thousand enrolments worldwide.

Pakistan leads participation globally, reflecting both the country’s momentum and growing demand for structured training.

UNESCO’s ongoing work aims to reinforce data governance, improve AI readiness and embed ethical safeguards across Pakistan’s digital transformation strategy.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Agentic AI network slicing launches in 5G Advanced with Nokia and AWS

Nokia and Amazon Web Services have introduced what they describe as the first agentic AI-powered network slicing solution operating in commercial 5G-Advanced networks. Early pilot projects with du and Orange are already underway, marking the transition from laboratory testing to commercial deployment.

For an extended period, network slicing has been presented as a way to tailor connectivity to the needs of enterprises and end users, yet static configurations have until now limited its commercial impact. A more autonomous approach is now being tested, designed to convert operational intent directly into concrete network actions.

The joint system combines Nokia’s network slicing portfolio with AI services delivered via the Amazon Web Services (AWS) Bedrock platform. Software agents analyse real-time data, including traffic levels, location information, and significant events, and automatically adjust radio access network policies. However, this enables capacity to be prioritised in response to congestion, emergencies, or large gatherings.

Enterprise use is central to the deployment. Campuses, factories, and urban areas can receive connectivity aligned with predefined service level targets (SLAs), while public safety teams can activate dedicated network slices during critical incidents. Premium consumer services, such as gaming and streaming, may also benefit from more stable performance during peak demand periods.

The solution spans the radio, transport, and core networks and will be showcased at the Mobile World Congress 2026. Commercial success will depend on whether intent-based slicing can transform what has long been a promised feature into a sustainable and scalable revenue source for operators.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Financial crime risks are reshaped by the rise of autonomous AI agents

Autonomous AI agents are transforming finance by executing transactions independently and speeding up workflows in digital assets and programmable finance. Software can manage wallets and move funds across blockchains in seconds, narrowing detection windows.

AI agents don’t create new crimes but increase speed and complexity, making accountability essential. Responsibility rests with developers, operators, and beneficiaries, with investigators tracing control, configuration, and economic benefit to determine liability.

Weak oversight or misconfigured rules can lead to significant compliance and enforcement consequences.

Investigations face new challenges as autonomous agents operate across multiple blockchains, decentralised exchanges, and global jurisdictions.

Real-time analytics and automated tracing are essential to link transactions to accountable actors before funds move. Governance architecture and monitoring systems increasingly serve as evidence in regulatory or criminal actions.

Institutions and law enforcement are using AI monitoring, anomaly detection, and automated containment systems. Autonomous AI impacts sanctions and national security, emphasising the need for human oversight alongside automation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU faces renewed pressure to ease industrial AI rules

European governments are renewing pressure to scale back industrial AI rules rather than expand regulatory demands.

Ten countries, including Germany, France, Italy, Spain and Poland, have urged the EU to clarify how the AI Act overlaps with machinery law and to adopt more realistic implementation deadlines. Their position is even more surprising, given that the legislation already outlines its relationship with existing industrial frameworks.

Parliament’s centre and centre-right groups are pushing for deeper cuts. The European People’s Party wants all industrial sectors to move to a lighter regime, while Renew is advocating broad exemptions for industrial and business-to-business AI.

The European Conservatives and Reformers are also seeking reductions for non-safety-related systems. Together, the three groups edge close to a parliamentary majority, signalling momentum for a broader deregulation push.

No sweeping changes have been added to the AI omnibus so far, yet policymakers expect more adjustments ahead. The package must be finalised by August, so legislators are focused on meeting the deadline instead of reopening primary debates.

Broader revisions to industrial AI rules are likely to reappear in the Commission’s forthcoming Digital Fitness Check, which will reassess how multiple EU tech laws interact.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Galaxy S26 series brings powerful AI and privacy features

Samsung Electronics has unveiled the Galaxy S26 series, featuring advanced AI experiences, powerful performance, and an industry-leading camera system designed to simplify everyday smartphone tasks.

The series, which includes the Galaxy S26, S26+, and S26 Ultra, handles complex processes in the background, allowing users to focus on results rather than device operations.

The Galaxy S26 Ultra introduces the world’s first built-in Privacy Display, a redesigned chipset, and improved thermal management. Together, these upgrades enhance AI performance, graphics, and CPU efficiency, while ensuring faster, cooler, and more reliable operation throughout the day.

Photography and videography are also upgraded with wider apertures, Nightography Video, Super Steady video, and AI-powered editing tools that make professional-quality content accessible to all users.

Galaxy AI streamlines daily experiences by proactively suggesting actions, organising information, and automating tasks. Features such as Now Nudge, Now Brief, Circle to Search, and upgraded Bixby allow users to interact naturally with their devices.

Integrated AI agents, including Gemini and Perplexity, support multi-step tasks across apps, from booking services to advanced searches, all with minimal input.

Samsung has embedded multiple layers of security and privacy in the Galaxy S26 series. From AI-powered Call Screening and Privacy Alerts to Knox Vault, Knox Matrix, and post-quantum cryptography, users can control data access and protect personal information.

With long-term security updates, seamless software, and Galaxy Buds4 integration, the S26 series aims to combine performance, convenience, and safety in a single, intuitive device.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI misuse in online scams involving OpenAI models

OpenAI has reported new instances of its models being exploited in online scams and coordinated information campaigns. The company detailed actions to remove offending accounts and strengthen safeguards, highlighting misuse in fraud and deceptive content creation.

Several cases involved romance and ‘task’ scams, in which AI-generated messages built emotional engagement before requesting payment. One network, dubbed ‘Operation Date Bait,’ used chatbots to promote a fictitious dating service targeting young men in Indonesia.

Another, ‘Operation False Witness,’ saw actors posing as legal professionals to solicit advance fees for non-existent recovery services.

The report also outlined coordinated campaigns leveraging AI to produce articles, social media posts, and comments on geopolitical topics. In ‘Operation Trolling Stone,’ AI-generated content on a Russian arrest in Argentina was shared widely in multiple languages to mimic grassroots engagement.

OpenAI stressed that AI was sometimes used, but reach and account size largely drove engagement.

The company continues monitoring misuse and collaborates with partners and authorities to curb fraudulent or deceptive activity. Systems have been updated to decline policy-violating requests, and not all suspicious content online was generated using its tools.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft backs Australia’s next phase of digital government with new AI and cloud agreement

Australia’s rise to second place in the OECD Digital Government Index signals renewed momentum for national digital transformation.

A shift that comes as Microsoft signs a new five-year Volume Sourcing Arrangement with the Federal Government, designed to underpin modernisation across public services and create a secure, future-ready foundation for responsible AI adoption.

The agreement led by the Digital Transformation Agency gives agencies access to Microsoft Copilot, Azure, Microsoft 365, Dynamics 365 and a strengthened security and compliance framework instead of continuing reliance on ageing systems.

The arrangement sets clearer strategic pathways for innovation, procurement and skills development through an enhanced governance structure.

It recommits both sides to national security requirements, including the Security of Critical Infrastructure legislation, the Cloud Hosting Certification Framework and IRAP.

These measures allow agencies to expand AI use while retaining control of data and meeting the expectations placed on government institutions.

A successful Copilot trial in 2024 already demonstrated personal productivity gains of around one hour per day for participating staff.

Microsoft is also establishing a $1.55 million training fund for the Australian Public Service to support capability building in ethical AI use and modern cloud operations.

The company emphasises that Australia’s partner ecosystem will gain new opportunities because the agreement simplifies how local firms engage with government agencies. Such an approach forms an important part of the wider public sector reform agenda announced last year.

The new deal aligns with national priorities set out in the Whole-of-Government Cloud Computing Policy and the National AI Plan.

Australia now enters a pivotal period in which digital transformation is guided not only by technological capacity but by the frameworks of trust, resilience and public benefit that shape how government services evolve.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UAE builds sovereign financial cloud

The Central Bank of the UAE has partnered with Abu Dhabi-based AI company Core42 to develop a sovereign financial cloud infrastructure in the UAE. The system is designed to ensure data sovereignty and strengthen protection against cyber threats.

According to the Central Bank of the UAE, the platform will operate on a centralised, highly secure and isolated infrastructure. It aims to support continuous financial services while boosting operational agility across the UAE.

The infrastructure will be powered by AI and provide automation and real-time data analysis for licensed institutions in the UAE. It will also enable unified management of multi-cloud services within a single regulatory framework.

Core42, established by G42 in 2023, said finance must remain sovereign as it relies on digital infrastructure. The Central Bank of the UAE described the project as a key pillar of its financial infrastructure transformation programme.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Conduent breach exposes data of 25 million people across US

More than 25 million people across the United States have had personal information exposed following a ransomware attack on government contractor Conduent. Updated state breach notifications indicate the incident is larger than initially understood.

Conduent provides printing, payment processing, and benefit administration services for state agencies and large corporations. Its systems support food assistance, unemployment benefits, and workplace programmes, reaching more than 100 million individuals, according to the company.

US State disclosures show Oregon and Texas account for most of the affected records, with additional cases reported in Massachusetts, New Hampshire, and Washington. Compromised data includes names, dates of birth, addresses, Social Security numbers, health insurance information, and medical details.

Public information from Conduent has been limited since the January 2025 attack. An incident notice published in October carried a ‘noindex’ tag in its source code, preventing search engines from listing the page, which critics say reduced visibility for affected individuals.

The breach ranks among the largest recent ransomware incidents, though it is smaller than the 2024 Change Healthcare attack that affected 190 million people. Regulators and affected users continue seeking clarity on the Conduent case and its security failures.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!