Cybersecurity

AI Appreciation Day highlights progress and growing concerns

AI is marking another milestone as experts worldwide reflect on its rapid rise during AI Appreciation Day. From reshaping business workflows to transforming customer experiences, AI’s presence is expanding — but so are concerns over its long-term implications.

Industry leaders point to AI’s growing role across sectors. Patrick Harrington from MetaRouter highlights how control over first-party data is now seen as key instead of just processing large datasets.

Vall Herard of Saifr adds that successful AI implementations depend on combining curated data with human oversight rather than relying purely on machine-driven systems.

Meanwhile, Paula Felstead from HBX Group believes AI could significantly enhance travel experiences, though scaling it across entire organisations remains a challenge.

Voice AI is changing industries that depend on customer interaction, according to Natalie Rutgers from Deepgram. Instead of complex interfaces, voice technology is improving communication in restaurants, hospitals, and banks.

At the same time, experts like Ivan Novikov from Wallarm stress the importance of securing AI systems and the APIs connecting them, as these form the backbone of modern AI services.

While some celebrate AI’s advances, others raise caution. SentinelOne’s Ezzeldin Hussein envisions AI becoming a trusted partner through responsible development rather than unchecked growth.

Naomi Buckwalter from Contrast Security warns that AI-generated code could open security gaps instead of fully replacing human engineering, while Geoff Burke from Object First notes that AI-powered cyberattacks are becoming inevitable for businesses unable to keep pace with evolving threats.

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Co-op CEO apologises after cyberattack hits 6.5 million members

Co-op CEO Shirine Khoury-Haq has confirmed that all 6.5 million members had their data stolen during a cyberattack in April.

‘I’m devastated that information was taken,’ Khoury-Haq told BBC Breakfast. ‘It hurt my members; they took their data, and it hurt our customers, whom I take personally.’

The stolen data included names, addresses, and contact details, but no financial or transaction information. Khoury-Haq said the incident felt ‘personal’ due to its impact on Co-op staff, adding that IT teams ‘fought off these criminals’ under immense pressure.

Although the hackers were removed from Co-op’s systems, the stolen information could not be recovered. The company monitored the breach and reported it to the authorities.

Co-op, which operates a membership profit-sharing model, is still working to restore its back-end systems. The financial impact has not been disclosed.

In response, Co-op is partnering with The Hacking Games — a cybersecurity recruitment initiative — to guide young talent towards legal tech careers. A pilot will launch in Co-op Academies Trust schools.

The breach was part of a wider wave of cyberattacks on UK retailers, including Marks & Spencer and Harrods. Four people aged 17 to 20 have been arrested concerning the incidents.

In a related case, Australian airline Qantas also confirmed a recent breach involving its frequent flyer programme. As with Co-op, financial data was not affected, but personal contact information was accessed.

Experts warn of increasingly sophisticated attacks on public and private institutions, calling for stronger digital defences and proactive cybersecurity strategies.

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Air Serbia suffers deep network compromise in July cyberattack

Air Serbia delayed issuing June payslips after a cyberattack disrupted internal systems, according to internal memos obtained by The Register. A 10 July note told staff: ‘Given the ongoing cyberattacks, for security reasons, we will postpone the distribution of June 2025 payslips.’

The IT department is reportedly working to restore operations, and payslips will be emailed once systems are secure again. Although salaries were paid, staff could not access their payslip PDFs due to the disruption.

HR warned employees not to open suspicious emails, particularly those appearing to contain payslips or that seemed self-addressed. ‘We kindly ask that you act responsibly given the current situation,’ said one memo.

Air Serbia first informed staff about the cyberattack on 4 July, with IT teams warning of possible disruptions to operations. Managers were instructed to activate business continuity plans and adapt workflows accordingly.

By 7 July, all service accounts had been shut down, and staff were subjected to company-wide password resets. Security-scanning software was installed on endpoints, and internet access was restricted to selected airserbia.com pages.

A new VPN client was deployed due to security vulnerabilities, and data centres were shifted to a demilitarised zone. On 11 July, staff were told to leave their PCs locked but running over the weekend for further IT intervention.

An insider told The Register that the attack resulted in a deep compromise of Air Serbia’s Active Directory environment. The source claims the attackers may have gained access in early July, although exact dates remain unclear due to missing logs.

Staff reportedly fear that the breach could have involved personal data, and that the airline may not disclose the incident publicly. According to the insider, attackers had been probing Air Serbia’s exposed endpoints since early 2024.

The airline also faced several DDoS attacks earlier this year, although the latest intrusion appears far more severe. Malware, possibly an infostealer, is suspected in the breach, but no ransom demands had been made as of 15 July.

Infostealers are often used in precursor attacks before ransomware is deployed, security experts warn. Neither Air Serbia nor the government of Serbia responded to media queries by the time of publication.

Air Serbia had a record-breaking year in 2024, carrying 4.4 million passengers — a 6 percent increase over the previous year. Cybersecurity experts recently warned of broader attacks on the aviation industry, with groups such as Scattered Spider under scrutiny.

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Trump unveils AI economy with $100 billion investment push

Donald Trump revealed during the Pittsburgh, Pennsylvania Energy and Innovation Summit that the US will receive over $100 billion in investments to drive its AI economy and energy infrastructure.

The funding is set to create tens of thousands of jobs across the energy and AI sectors, with Pennsylvania positioned as a central hub.

Trump stated the US is already ‘way ahead of China’ in AI development, adding that staying in the lead will require expanding power production.

Instead of relying solely on renewables, Trump highlighted ‘clean, beautiful coal, oil, and nuclear energy as key pillars supporting AI-related growth.

Westinghouse plans to build several nuclear plants nationwide, while Knighthead Capital will invest $15 billion in North America’s largest natural gas power plant in Homer City, Pennsylvania.

Additionally, Google will revitalise two hydropower facilities within the state, contributing to the broader investment wave. Trump mentioned that 20 major technology and energy firms are preparing further commitments in Pennsylvania, reinforcing its role in what he calls the US ‘AI economy’.

The event, hosted by Senator Dave McCormick at Carnegie Mellon University, also featured discussions with Pennsylvania Governor Josh Shapiro.

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Scalable quantum light factory chip unveiled

A milestone in quantum technology was achieved with the world’s first silicon chip that integrates quantum light sources and stabilising control electronics, fabricated using a standard commercial 45 nm semiconductor process. The compact chip, roughly 1 mm square, generates correlated photon pairs, key for secure communication, sensing, and computing, while built-in feedback circuits maintain performance under variable conditions.

Engineers from Northwestern University, Boston University and UC Berkeley collaborated to embed microring resonators, photodiodes, on-chip heaters and control logic, packaging them into a single, scalable system. The result is the first demonstration of a “quantum light factory” chip produced in mass-production foundries, bypassing bulky lab setups and paving the path for widespread deployment.

Researchers believe this advancement marks a crucial step forward. The ability to manufacture quantum photonic systems at scale could lead to secure quantum networks, advanced sensing platforms, and eventually photonic quantum computers. By proving the integration of quantum and classical electronics on shared silicon technologies is possible, the team has opened a new frontier in quantum engineering.

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San Francisco deploys AI assistant to 30,000 staff

San Francisco has equipped almost 30,000 city employees, from social workers and healthcare staff to administrators, with Microsoft 365 Copilot Chat. The large-scale rollout followed a six-month pilot where workers gained up to five extra hours a week handling routine tasks, particularly in 311 service lines.

Copilot Chat helps streamline bureaucratic functions, such as drafting documents, translating over 40 languages, summarising lengthy reports, and analysing data. The goal is to free staff to focus more on serving residents directly.

A comprehensive five-week training scheme, supported by InnovateUS, ensures that employees learn to use AI securely and responsibly. This includes best practices for data protection, transparent disclosure of AI-generated content, and thorough fact-checking procedures.

City leadership emphasises that all AI tools run on a secure government cloud and adhere to robust guidelines. Employees must reveal when AI is used and remain accountable for its output. The city also plans future AI deployments in traffic management, permitting, and connecting homeless individuals with support services.

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Meta opens audio lab to improve AI smart glasses

Meta has unveiled a £12 million audio research lab in Cambridge’s Ox‑Cam corridor, aimed at enhancing immersive sound for its Ray‑Ban Meta and upcoming Oakley Meta glasses. The facility includes advanced acoustic testing environments, motion‑tracked living spaces, and one of the world’s largest configurable reverberation chambers, enabling engineers to fine‑tune spatial audio through real‑world scenarios.

Designed to filter noise, focus on speech, and respond to head movement, the lab is developing adaptive audio intelligent enough to improve clarity in settings like busy streets or on public transport. Meta plans to integrate these features into its next generation of AR eyewear.

Officials say the lab represents a long‑term investment in UK engineering talent and bolsters the Oxford‑to‑Cambridge tech corridor. Meta’s global affairs lead and the Chancellor emphasised the significance of the investment, supported by a national £22 billion R&D strategy. This marks Meta’s largest overseas engineering base and reinforces its ambition to lead the global AI glasses market.

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First single-photon universal quantum system due 2026

Dutch startup QuiX Quantum has raised €15 million in Series A funding to deliver the world’s first single-photon‑based universal photonic quantum computer by 2026. This ambitious project was backed by Invest‑NL, the European Innovation Council, PhotonVentures, Oost NL and Forward One.

Since its 2019 founding, QuiX Quantum has set benchmarks with 8‑qubit and 64‑qubit photonic processors, including a notable delivery to the German Aerospace Center in 2022. Its next objective is a universal gate‑set system with fast feed‑forward electronics and single‑photon sources, essential components for fault‑tolerant, large‑scale quantum computing.

The investment will also bolster Europe’s quantum photonics supply chain. QuiX Quantum plans to deploy its systems in practical fields such as chemical simulation, pharmaceutical discovery, fraud detection and precision manufacturing, marking a key step toward commercialising quantum technology.

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Defence AI Centre at heart of Korean strategy

South Korea has unveiled a strategy to share extensive military data with defence firms to accelerate AI-powered weapon systems, inspired by US military cloud initiatives. Plans include a national public–private fund to finance innovation and bolster the country’s defence tech prowess.

A specialised working group of around 30 experts, including participants from the Defence Acquisition Program Administration, is drafting standards for safety and reliability in AI weapon systems. Their work aims to lay the foundations for the responsible integration of AI into defence hardware.

Officials highlight the need to merge classified military databases into a consolidated defence cloud, moving away from siloed systems. This model follows the tiered cloud framework adopted by the US, enabling more agile collaboration between the military and industry.

South Korea is also fast-tracking development across core defence domains, such as autonomous drones, command-and-control systems, AI-enabled surveillance, and cyber operations. These efforts are underpinned by the recently established Defence AI Centre, positioning the country at the forefront of Asia’s military AI race.

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Hungary enforces prison terms for unauthorised crypto trading

Hungary has introduced strict penalties for individuals and companies involved in unauthorised cryptocurrency trading or services. Under the updated Criminal Code, using unauthorised crypto exchanges can lead to two years in prison, with longer terms for larger trades.

Crypto service providers operating without authorisation face even harsher penalties. Sentences can reach up to eight years for transactions exceeding 500 million forints (around $1.46 million).

The updated law defines new offences such as ‘abuse of crypto-assets’, aiming to impose stricter control over the sector.

The implementation has caused confusion among crypto companies, with Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) yet to publish compliance guidelines. Businesses now face a 60-day regulatory vacuum with no clear direction.

UK fintech firm Revolut responded by briefly halting crypto services in Hungary, citing the new legislation. It has since reinstated crypto withdrawals, while its EU entity works towards securing a regional crypto licence.

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