Agentic AI transforms finance systems

Organisations undergoing finance transformations are discovering that traditional system cutovers rarely go as planned. Hidden manual workarounds and undocumented processes often surface late, creating operational risks and delays during ERP migrations.

Agentic AI is emerging as a solution by deploying autonomous software agents that discover real workflows directly from system data. Scout agents analyse transaction logs to uncover hidden dependencies, allowing companies to build more accurate future systems based on actual operations.

Simulator agents to stress test new systems by generating thousands of realistic transactions continuously. When problems arise, agents analyse errors and automatically recommend fixes, turning testing into a continuous improvement process rather than a one-time checkpoint.

Sentinel agents monitor financial records in real time to detect discrepancies before they escalate into compliance risks. Leaders say the approach shifts focus from single go-live milestones to ongoing resilience, with teams increasingly managing intelligent systems instead of manual processes.

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

User emails and phone numbers leaked in Substack security incident

Substack confirmed a data breach that exposed user email addresses and phone numbers. The company said passwords and financial information were not affected. The incident occurred in October and was later investigated.

Chief executive Chris Best told users the vulnerability was identified in February and has since been fixed, with an internal investigation now underway. The company has not disclosed the technical cause of the breach or why the intrusion went undetected for several months.

Substack also did not confirm how many users were affected or provide evidence showing whether the exposed data has been misused. Users were advised to remain cautious about unexpected emails and text messages following the incident.

The breach was first reported by TechCrunch, which said the company declined to provide further operational details. Questions remain around potential ransom demands or broader system access.

Substack reports more than 50 million active subscriptions, including 5 million paid users, and raised $100 million in Series C funding in 2025, led by BOND and The Chernin Group, with participation from Andreessen Horowitz and other investors.

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

TikTok accused of breaching EU digital safety rules

The European Commission has concluded that TikTok’s design breaches the Digital Services Act by encouraging compulsive use and failing to protect users, particularly children and teenagers.

Preliminary findings say the platform relies heavily on features such as infinite scroll, which automatically delivers new videos and makes disengagement difficult.

Regulators argue that such mechanisms place users into habitual patterns of repeated viewing rather than supporting conscious choice. EU officials found that safeguards introduced by TikTok do not adequately reduce the risks linked to excessive screen time.

Daily screen time limits were described as ineffective because alerts are easy to dismiss, even for younger users who receive automatic restrictions. Parental control tools were also criticised for requiring significant effort, technical knowledge and ongoing involvement from parents.

Henna Virkkunen, the Commission’s executive vice-president for tech sovereignty, security and democracy, said addictive social media design can harm the development of young people. European law, she said, makes platforms responsible for the effects their services have on users.

Regulators concluded that compliance with the Digital Services Act would require TikTok to alter core elements of its product, including changes to infinite scroll, recommendation systems and screen break features.

TikTok rejected the findings, calling them inaccurate and saying the company would challenge the assessment. The platform argues that it already offers a range of tools, including sleep reminders and wellbeing features, to help users manage their time.

The investigation remains ongoing and no penalties have yet been imposed. A final decision could still result in enforcement measures, including fines of up to six per cent of TikTok’s global annual turnover.

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

Slovenia plans social media ban for children under 15

Among several countries lately, Slovenia is also moving towards banning access to social media platforms for children under the age of 15, as the government prepares draft legislation aimed at protecting minors online.

Deputy Prime Minister Matej Arčon said the Education Ministry initiated the proposal and would be developed with input from professionals.

The planned law would apply to major social networks where user-generated content is shared, including TikTok, Snapchat and Instagram. Arčon said the initiative reflects growing international concern over the impact of social media on children’s mental health, privacy and exposure to addictive design features.

Slovenia’s move follows similar debates and proposals across Europe and beyond. Countries such as Italy, France, Spain, UK, Greece and Austria have considered restrictions, while Australia has already introduced a nationwide minimum age for social media use.

Spain’s prime minister recently defended proposed limits, arguing that technology companies should not influence democratic decision-making.

Critics of such bans warn of potential unintended consequences. Telegram founder Pavel Durov has argued that age-based restrictions could lead to broader data collection and increased state control over online content.

Despite these concerns, Slovenia’s government appears determined to proceed, positioning the measure as part of a broader effort to strengthen child protection in the digital space.

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

EU split widens over ban on AI nudification apps

European lawmakers remain divided over whether AI tools that generate non-consensual sexual images should face an explicit ban in the EU legislation.

The split emerged as debate intensified over the AI simplification package, which is moving through Parliament and the Council rather than remaining confined to earlier negotiations.

Concerns escalated after Grok was used to create images that digitally undressed women and children.

The EU regulators responded by launching an investigation under the Digital Services Act, and the Commission described the behaviour as illegal under existing European rules. Several lawmakers argue that the AI Act should name pornification apps directly instead of relying on broader legal provisions.

Lead MEPs did not include a ban in their initial draft of the Parliament’s position, prompting other groups to consider adding amendments. Negotiations continue as parties explore how such a restriction could be framed without creating inconsistencies within the broader AI framework.

The Commission appears open to strengthening the law and has hinted that the AI omnibus could be an appropriate moment to act. Lawmakers now have a limited time to decide whether an explicit prohibition can secure political agreement before the amendment deadline passes.

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

Spain faces escalating battle with Telegram founder

The confrontation between Spain and Telegram founder Pavel Durov has intensified after he claimed that Pedro Sánchez endangered online freedoms.

Government officials responded that the tech executive spread lies rather than engage with the proposed rules in good faith. Sánchez argued that democracy would not be silenced by what he called the techno-oligarchs of the algorithm.

The dispute followed the unveiling of new measures aimed at major technology companies. The plan introduces a ban on social media use for under-16s and holds corporate leaders legally responsible when unlawful or hateful content remains online rather than being removed.

Platforms would also need to adopt age-verification tools such as ID checks or biometric systems, which Durov argued could turn Spain into a surveillance state by allowing large-scale data collection.

Tensions widened as Sánchez clashed with prominent US tech figures. Sumar urged all bodies linked to the central administration to leave X, a move that followed Elon Musk’s accusation that the Spanish leader was acting like a tyrant.

The row highlighted how Spain’s attempt to regulate digital platforms has placed its government in open conflict with influential technology executives.

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

TikTok access restored as Albania adopts new protective filters

Albania has lifted its temporary ban on TikTok after nearly a year, the government announced, saying that concerns about public, social and digital safety have now been addressed and that access will resume nationwide.

The restriction was introduced in March 2025 following a fatal stabbing linked to a social media dispute and aimed to protect younger users instead of exposing them to harmful online content.

Under the new arrangement, authorities are partnering with TikTok to introduce protective filters based on keywords and content controls and to strengthen reporting mechanisms for harmful material.

The government described the decision as a shift from restrictive measures to a phase of active monitoring, inter-institutional cooperation, and shared responsibility with digital platforms.

Although the ban has now been lifted, a court challenge contends that the earlier suspension violated the constitutional right to freedom of expression, and a ruling is expected later in February. Opposition figures also criticised the original ban when it was applied ahead of parliamentary elections.

Despite the formal ban, TikTok remained accessible to many users in Albania through virtual private networks during the year it was in force, highlighting the challenge of enforcing such blocks in practice.

Critics have also noted that addressing the impact on youth may require broader digital education and safety measures.

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

Claude Opus 4.6 sets new benchmark for enterprise AI

Anthropic has released Claude Opus 4.6, its most advanced AI model to date, introducing significant improvements in coding performance, reasoning depth, and long-context comprehension.

Engineering workflows stand to benefit from stronger debugging, code review, and better large-scale repository management, while agentic task execution now runs for more extended periods with greater reliability.

The model’s 1M token context window, now in beta, enables sustained reasoning across vast datasets and extended conversations. Performance gains span multiple benchmarks, leading in agentic coding, multidisciplinary reasoning, and high-value knowledge work.

Information retrieval in long documents has also improved, addressing persistent industry concerns around context degradation.

Operational capabilities extend beyond software development into enterprise productivity. Financial analysis, research, and document workflows gain direct support, with spreadsheet and presentation integrations enhancing daily business use.

Within Claude Code, newly introduced agent teams allow multiple AI agents to collaborate autonomously on complex workloads.

Safety remains central, with expanded evaluations showing low misalignment risk backed by interpretability research and cybersecurity safeguards. Additional tools- adaptive thinking, effort scaling, and context compaction- add flexibility for deploying long-running AI systems at scale.

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

Frontier and GPT-5.3-Codex mark major OpenAI expansion

OpenAI has unveiled Frontier, a new enterprise platform designed to help organisations build, deploy, and manage AI agents capable of executing real operational work.

The launch reflects accelerating enterprise adoption, with businesses reporting measurable productivity gains across manufacturing, finance, sales, and energy operations through agent deployment.

Frontier addresses a growing gap between AI model capability and real-world implementation. The platform equips AI agents with shared organisational context, system access, governance permissions, and feedback learning mechanisms.

By integrating across existing cloud infrastructure, enterprise software, and data environments, Frontier enables AI coworkers to operate across workflows rather than within isolated tools.

Alongside the platform release, OpenAI introduced GPT-5.3-Codex, its most advanced agentic coding model to date. The system combines the coding strength of earlier Codex iterations with expanded reasoning and professional task execution.

Benchmark performance leads across SWE-Bench Pro, Terminal-Bench, OSWorld, and GDPval, reflecting gains in software engineering, computer use, and knowledge work automation.

Cybersecurity capabilities also advance with the release. GPT-5.3-Codex includes enhanced vulnerability detection training and operates under strengthened safeguards designed to support defensive research while mitigating misuse.

Together, Frontier and GPT-5.3-Codex position AI agents as scalable digital coworkers capable of executing complex technical and enterprise workloads end-to-end.

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

New AI system predicts iceberg movements to aid maritime safety

Scientists are applying AI to enhance iceberg tracking and movement prediction, using machine learning models that analyse historical drift patterns, ocean currents and weather data.

These AI systems aim to identify how icebergs behave over time and improve forecasts for their positions, which can help maritime operators and climate researchers anticipate hazards and plan safe routes.

Traditional methods for tracking icebergs, relying on satellite imagery and manual analysis, are limited by coverage gaps and delays. The new AI techniques can fill these gaps by generating continuous trajectory predictions, enabling more proactive monitoring over remote polar waters.

Researchers suggest that this approach could support shipping safety, offshore operations, and environmental management as climate change alters iceberg calving and drift behaviours.

This work reflects broader trends in using AI for environmental modelling, where machine learning augments physical models to better understand complex natural systems influenced by changing climate conditions.

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