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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.

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ChatGPT Health under fire after study finds major failures in emergency detection

A new evaluation of ChatGPT Health has raised major safety concerns after researchers found it frequently failed to recognise urgent medical emergencies.

The independent study, published in Nature Medicine, reported that the system under-triaged more than half of the clinical scenarios tested, giving advice that could have delayed life-saving treatment.

The research team, led by Ashwin Ramaswamy, created sixty patient simulations ranging from minor illnesses to life-threatening conditions.

Three doctors agreed on the appropriate urgency for each case before comparing their judgement with the model’s responses. The AI performed adequately in straightforward emergencies such as strokes, yet frequently minimised danger in more complex presentations, including severe asthma and diabetic crises.

Experts also warned that ChatGPT Health struggled to detect suicidal ideation reliably. Minor changes to scenario details, such as adding normal lab results, caused safeguards to disappear entirely.

Critics, including health-misinformation researcher Alex Ruani, described the behaviour as dangerously inconsistent and capable of creating a false sense of security.

OpenAI said the study did not reflect typical real-world use but acknowledged the need for continued research and improvement.

Policy specialists argue that the findings underline the need for clear safety standards, external audits and stronger transparency requirements for AI systems operating in sensitive medical contexts.

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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.

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Scotland considers new offence for AI intimate images

The Scottish government has launched a consultation proposing a specific criminal offence for creating AI-generated intimate images without consent. Existing Scots law covers the sharing of such photos, but ministers in Scotland say gaps remain around their creation.

The consultation in Scotland also seeks views on criminalising digital tools designed solely to produce intimate images and videos. Ministers aim to address harms linked to emerging AI technologies affecting women and girls across Scotland.

Additional proposals in Scotland include a statutory aggravation where domestic abuse involves a pregnant woman, requiring courts to treat such cases more seriously at sentencing. Measures to strengthen protections against spiking offences are also under review in Scotland.

Justice Secretary Angela Constance said responses in Scotland would inform future action to reduce violence against women and girls. The consultation also considers changes to non-harassment orders and examines whether further laws on non-fatal strangulation are needed in Scotland.

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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.

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AT&T data breach settlement wins preliminary approval in $177 million deal

A federal judge in Texas has preliminarily approved a $177 million settlement resolving claims that AT&T failed to safeguard consumer data in two separate breaches. The company denies wrongdoing but agreed to establish compensation funds covering affected customers nationwide.

The agreement creates two non-reversionary funds: $149 million for individuals whose personal data appeared on the dark web, and $28 million for customers whose call and text logs were accessed. It covers a March 2024 breach and a separate incident between May 2022 and early 2023.

Eligible class members may submit claims for cash payments, with amounts depending on the number of valid submissions, and may also receive up to 24 months of credit monitoring. The deadline to opt out or object is 17 October 2025, with a final approval hearing set for 3 December 2025.

Legal and administrative costs, attorneys’ fees, and service awards will be paid from the settlement funds. The case resolves claims brought on behalf of all living US residents whose data was exposed in the two AT&T breaches.

The settlement follows other recent legal challenges facing AT&T, including class actions filed by New York pensioners alleging the company misled investors about the environmental impact of its lead-sheathed cables.

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Italy orders Amazon to stop processing sensitive employee data after privacy ruling

The Italian data protection authority has ordered Amazon Italia Logistics to halt processing of sensitive employee data after investigators found that the company gathered details ranging from health conditions to union involvement.

Information about workers’ private lives and family members had also been collected, often retained for a decade through internal tracking systems rather than being limited to what labour rules in Italy allow.

Regulators discovered that some data originated from cameras positioned near restrooms and staff break areas, a practice that breached EU privacy standards.

The watchdog concluded that the company’s monitoring went far beyond what employers are permitted to compile when assessing staff performance or workplace needs.

Amazon responded by stressing that protecting employee information remains a priority and said that internal rules and training programmes are designed to ensure compliance. The company added that any findings from the Italian authority would prompt a review of its procedures instead of being dismissed.

An order that arrives as Amazon attempts to regain its lobby badges at the European Parliament.

Access was suspended in 2024 after senior representatives declined to attend hearings on warehouse working conditions, and opposition from MEPs continues to place pressure on Parliament President Roberta Metsola to reject reinstatement.

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EU moves to enforce digital fairness rules with stronger consumer oversight

Regulatory scrutiny of the EU’s digital fairness framework is set to begin on 1 July as the European Commission moves to tighten its supervision of online platforms.

An initiative that forms part of a broader effort to ensure stronger consumer protection across digital markets, with officials signalling stricter oversight of commercial practices that disadvantage users.

The Commission is preparing a major upgrade of its consumer protection framework, expected by December 2026.

The reforms aim to reinforce enforcement tools under the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Regulation, allowing regulators to intervene more effectively when platforms breach fairness standards.

Michael McGrath, Commissioner for Democracy, Justice and Rule of Law, has highlighted the need for greater transparency and accountability as digital markets expand rapidly.

The forthcoming scrutiny focuses on ensuring that platforms respect transparency obligations, avoid manipulating users and provide fair conditions in online transactions.

Regulators seek to replace fragmented enforcement with a more coordinated model that reflects the increasingly cross-border nature of digital commerce.

Stronger consumer safeguards are becoming central to the digital agenda of the EU.

The next phase of reforms is expected to streamline investigations across member states and deliver more predictable outcomes for affected consumers, offering steadier enforcement instead of reactive measures taken after violations escalate.

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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.

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AI misuse exposed as OpenAI details global disinformation and scam networks

OpenAI said criminal and state-linked groups misused ChatGPT for disinformation, scams and covert influence. Its latest threat report details coordinated account bans and highlights how AI tools are embedded within broader operational workflows rather than used in isolation.

One investigation linked accounts to Chinese law enforcement engaged in what were described as ‘cyber special operations’. Activities included planning influence campaigns, mass-reporting dissidents and drafting forged materials, with related efforts continuing through other tools despite model refusals.

The report also outlined a Cambodia-based romance scam targeting young men in Indonesia through a fake dating agency. Operators combined manual prompting with automated chatbots to sustain conversations and facilitate financial fraud, leading to account removals.

Separately, accounts tied to Russia’s ‘Rybar’ network used ChatGPT to draft and translate posts distributed across multiple platforms. OpenAI noted that campaign impact depended more on account reach and coordination than on AI-generated content alone.

Across China, Russia and parts of Southeast Asia, actors treated AI as one tool among many, alongside fake profiles, paid advertising and forged documents. OpenAI called for cross-industry vigilance, stressing the need to analyse behavioural patterns across platforms.

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