Development Archives | Digital Watch Observatory

China expands AI adoption across consumer economy

China’s Ministry of Commerce and seven other government departments have issued guidelines to accelerate the integration of AI into consumer markets.

The implementation document sets out 17 measures in five areas under an ‘AI plus consumption’ strategy. It aims to expand smart product consumption, support AI-enabled services and create new consumer scenarios.

For goods consumption, the guidelines call for a wider supply of AI products, upgrades to consumer electronics, household appliances and home products, and the development of smart wearable devices. They also promote AI-powered robots for elderly care, companionship and daily assistance.

For services, the measures encourage the use of AI in home services, elderly care, tourism, accommodation, catering and education. Examples include smart elderly-care facilities, AI-enabled tourism services and smart canteens in offices, schools and hospitals.

The guidelines also call for faster development of smart retail, deeper integration of AI with e-commerce and improved smart logistics networks at county, township and village levels. Authorities also want to expand delivery coverage in remote areas.

China will support ‘AI plus consumption’ clusters and AI experience centres, while encouraging rental, sharing and trial use of AI products in public venues. Local authorities are also encouraged to introduce subsidies for next-generation smart terminals and other AI-related consumer products under existing consumer goods trade-in policies.

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Greece and the European Commission strengthen AI cooperation for public services

Greece and the European Commission have reinforced cooperation on AI through a conference held during the BEYOND 2026 exhibition, bringing together policymakers, academics, technology experts and citizens to discuss the future of AI in Europe.

Speaking at the event, Minister of Digital Governance and Artificial Intelligence Dimitris Papastergiou emphasised the importance of responsible and innovative AI adoption to improve public services, drive digital transformation and strengthen Greece’s competitiveness.

European Commission Director-General for Translation Christos Ellinides outlined the EU’s approach to AI, highlighting initiatives that support innovation, multilingualism and digital transformation across member states.

Commission experts presented AI-powered multilingual services and digital tools designed to improve communication, accessibility and collaboration across the European Union. Discussions also explored the opportunities and challenges associated with AI deployment, while emphasising the importance of maintaining a human-centric approach to technological development.

The conference concluded with calls for closer cooperation between European institutions and national authorities to develop reliable, secure and human-centric AI systems. Organisers said the initiative reflects Greece’s commitment to advancing digital transformation and strengthening its role within the emerging European AI ecosystem.

Why does it matter?

The conference highlights how AI policy in Europe is increasingly being shaped through cooperation between EU institutions and national governments. As countries seek to deploy AI across public services, education and digital infrastructure, coordination will be important for ensuring interoperability, trust and compliance with European regulatory frameworks.

The event also reflects Europe’s broader approach to AI governance, which aims to balance innovation with safeguards related to transparency, security and fundamental rights. By promoting multilingual AI tools, citizen-centred services and cross-border collaboration, initiatives such as this support the EU’s wider objectives of digital sovereignty, competitiveness and inclusive digital transformation.

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Asian Development Bank launches digital transformation strategy focused on AI and inclusion

The Asian Development Bank (ADB) has launched a new digital transformation strategy aimed at helping countries across Asia and the Pacific harness AI and digital technologies while protecting vulnerable groups from associated risks.

According to ADB, the strategy will run from 2026 to 2030 and focus on expanding digital connectivity, strengthening digital skills, enhancing cybersecurity and privacy protections, improving data governance and promoting the responsible use of AI.

The bank said it will support the development of digital infrastructure, secure and interoperable systems, and measures to ensure that underserved communities can benefit from digital technologies.

ADB said it will also convene governments, private-sector actors and development partners to mobilise financing, share expertise and accelerate digital technologies initiatives across the regions.

Why does it matter?

The strategy reflects the growing recognition that digital transformation is becoming a key driver of economic development, public-sector modernisation and social inclusion. As AI, digital platforms and data-driven services become more important to competitiveness, countries with stronger digital infrastructure, skills and governance frameworks are likely to be better positioned to capture their benefits.

The initiative also highlights the need to balance innovation with safeguards. Expanding access to AI and digital technologies can create opportunities for growth and service delivery, but it also raises challenges related to cybersecurity, privacy, digital inequality and responsible AI governance. By combining investment in infrastructure with support for digital skills and governance, ADB is positioning digital transformation as both a development priority and a policy challenge for the region.

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OECD publishes AI literacy framework for schools

The Organisation for Economic Co-operation and Development (OECD) has published a new report, ‘Empowering Learners for the Age of AI‘, outlining an AI literacy framework for primary and secondary education.

According to the OECD, AI is becoming increasingly embedded in everyday digital life and is influencing civic, professional and social outcomes. The organisation argues that education systems must equip young people with the knowledge and skills needed to understand, evaluate and use AI responsibly.

The report defines AI literacy as a combination of knowledge, skills and attitudes that enable learners to understand how AI systems function, critically evaluate their outputs and use them ethically, responsibly and creatively.

The OECD said the framework outlines learning outcomes for primary and secondary students and is intended to support policymakers, educators, schools and families in fostering AI literacy both inside and outside the classroom. The report was published on 18 June 2026.

Why does it matter?

As AI becomes increasingly integrated into education, work, public services and everyday life, AI literacy is emerging as a foundational skill alongside traditional digital literacy. Understanding how AI systems operate, where their limitations lie and how their outputs should be evaluated will be important for informed participation in society and the economy.

The OECD framework also reflects a broader policy shift from focusing solely on access to technology toward developing the skills needed to use AI responsibly and critically. By providing a common reference point for educators and policymakers, the framework could help shape future curricula, teacher training programmes and national education strategies aimed at preparing students for an AI-enabled world.

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Digital Decade report showcases Spain’s progress in AI and connectivity

Spain has strengthened its position as one of the EU’s leading digital economies, according to the European Commission’s 2026 State of the Digital Decade report.

The assessment highlights Spain’s strong performance in connectivity, digital public services, AI adoption and digital skills, with the country outperforming the EU average across several key indicators.

The report notes that Spain remains a European leader in digital infrastructure. Spain has the highest share of internet connections delivering speeds of 100 Mbps or more and ranks second in fibre-optic coverage across the EU. Fibre networks now reach almost 96% of the population, while 5G coverage exceeds 99% nationwide and nearly 96% in rural areas.

The Commission also highlighted investments in submarine cables and connectivity programmes that have reinforced Spain’s role as a key digital gateway between Europe, Africa and Latin America.

Spain also continues to rank among the EU’s top performers in digital public services. The Commission cited improvements to the ‘Mi Carpeta Ciudadana’ platform, which expanded services and incorporated user feedback during 2025.

Spain also ranks among Europe’s best performers in prefilled administrative forms, helping citizens interact more efficiently with public authorities. Digital services for both citizens and businesses remain significantly above the EU average.

The report also highlights the growing adoption of advanced technologies by Spanish businesses. AI adoption among Spanish businesses increased from 11.3% in 2024 to 20.3% in 2025, slightly above the EU average.

Data analytics adoption reached 47.1%, while digitalisation among small and medium-sized enterprises continued to improve through initiatives such as Kit Digital, Kit Consulting and Acelera Pyme.

The Commission also highlighted Spain’s commitment to quantum technologies, cybersecurity resilience and digital skills development, with 66.5% of the population now possessing at least basic digital skills.

Why does it matter?

Spain’s performance illustrates how sustained investment in digital infrastructure, public services and innovation can translate into broader economic and technological competitiveness. High levels of fibre connectivity, widespread digital public services and growing AI adoption provide a foundation for productivity growth and support the country’s position within Europe’s digital economy.

The findings are also relevant to the EU’s broader ambitions around technological sovereignty. As Europe seeks to reduce strategic dependencies in critical technologies, countries such as Spain are becoming important contributors to the bloc’s digital capacity through investments in connectivity, cybersecurity, quantum technologies and digital skills. Continued progress in these areas will be important for meeting the EU’s 2030 Digital Decade objectives.

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Ottawa strengthens role in quantum computing and cybersecurity research

Researchers and technology experts in Ottawa are contributing to advances in quantum computing, a technology that could transform fields such as drug discovery, clean energy and space exploration by solving highly complex problems beyond the reach of many conventional computers.

Researchers said quantum computing could accelerate scientific discovery and enable breakthroughs that may eventually translate into practical applications across a range of industries. However, the technology also presents significant cybersecurity challenges, as sufficiently advanced quantum computers could eventually undermine widely used encryption methods that protect digital communications and online services.

The University of Ottawa is conducting research into quantum communications and cryptography aimed at developing security technologies capable of withstanding future quantum-enabled threats. Researchers are working to better understand the fundamentals of quantum mechanics and future security systems.

Industry representatives said Ottawa’s concentration of cryptographic expertise has helped establish this city in Canada as an important centre for quantum cybersecurity research and innovation.

Why does it matter?

Quantum computing has the potential to become one of the most transformative technologies of the coming decades. Its ability to process certain types of complex calculations far more efficiently than conventional computers could accelerate advances in areas such as materials science, pharmaceuticals, energy systems and scientific research.

At the same time, quantum technologies present a major cybersecurity challenge. Many of today’s encryption systems were designed for classical computers and could become vulnerable to future quantum attacks. As a result, governments, universities and technology companies are investing in quantum-safe cryptography and secure communications. Ottawa’s growing role in quantum research reflects a broader international effort to prepare for both the opportunities and security implications of the quantum era.

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Anthropic and South Korea partner on AI safety and cybersecurity

Anthropic has opened an office in Seoul and announced a series of partnerships across South Korea’s AI ecosystem, alongside a memorandum of understanding (MoU) with the Ministry of Science and ICT on AI safety.

The company said the Seoul office will serve as a long-term hub for collaboration with South Korean enterprises, startups, researchers and developers using Claude. Senior Anthropic leaders travelled to Seoul this week to open the office and meet partners, customers, and developers.

Anthropic said the MOU with South Korea’s Ministry of Science and ICT will support the safe and responsible adoption of AI across the public sector. The cooperation will focus on AI safety and cybersecurity, including Korean-language model safety evaluations with the Korea AI Safety Institute and information sharing on AI-enabled cyber threats.

KiYoung Choi, Representative Director of South Korea at Anthropic, said South Korean organisations understand that innovation and safety are linked. He said the Seoul office provides a long-term base for collaboration with organisations helping shape South Korea’s AI leadership.

Anthropic also highlighted broader adoption of Claude among South Korean companies. NAVER has deployed Claude Code across its engineering organisation, while Nexon engineering teams are using Claude Code to write, review, and ship code for live-service games.

Large South Korean business groups are also using Claude. LG CNS plans to deploy it across LG Group, Hanwha Solutions is using Claude through AWS Bedrock to meet in-region data residency and security requirements, and Samsung SDS is deploying Claude across Samsung Electronics for knowledge work, agentic workflows, and software development.

South Korean startups are also integrating Claude into products. Channel Corp uses Claude to power Channel Talk, a customer AI platform used by more than 230,000 companies across South Korea, Japan, and the United States.

Anthropic said it will also work with the National AI Research Lab, a consortium spanning KAIST, South Korea University, Yonsei University, and POSTECH. Anthropic will provide Claude access to up to 60 affiliated researchers to support work on AI safety, model evaluation, alignment, robustness and frontier AI research.

In the nonprofit sector, Good Neighbors Korea is deploying Claude to help staff analyse programme outcomes, navigate social welfare law and internal guidelines, and reduce administrative work for frontline social workers.

Anthropic said South Korea ranks among the top dozen countries globally for Claude.ai usage, with activity concentrated in technical and creative work. The company has launched Claude for Startups in South Korea and has held Claude Meetups for South Korean developers since September 2025.

The company also co-hosted Claude Build Day with BASS Ventures, bringing together more than 100 South Korean founders and developers. Anthropic will also co-host a Push to Prod hackathon with Replit, Korea Investment Partners, and Korea Investment Accelerator.

Why does it matter?

The announcement highlights South Korea’s growing importance in the global AI landscape. Beyond being a major market for AI products, the country is increasingly positioning itself as a centre for AI research, safety evaluation, enterprise adoption and public-sector deployment.

The expansion also illustrates how frontier AI companies are combining commercial growth with governance initiatives. Anthropic’s cooperation with the Ministry of Science and ICT and the Korea AI Safety Institute suggests that AI safety, cybersecurity and model evaluation are becoming integrated into broader ecosystem-building efforts. As competition among leading AI companies intensifies, partnerships that combine research, regulation, enterprise adoption and developer engagement are likely to play an increasingly important role in shaping national AI ecosystems.

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Spain backs AI gigafactory to boost European technological sovereignty

Spain has approved a €719 million investment in a national AI gigafactory project aimed at expanding advanced computing capacity and strengthening European technological sovereignty.

The investment was authorised by Spain’s Council of Ministers through the Ministry for Digital Transformation and Public Service. The investment will be channelled through the Spanish Society for Technological Transformation (SETT), which will establish a public-private consortium to develop the project and submit a bid under a forthcoming European Commission call for AI gigafactories.

The government said the project is intended to expand European access to advanced computing resources, reduce technological dependencies and support AI development under European regulatory frameworks.

The planned Spanish bid will use a multi-site model, with locations in Móra la Nova in Tarragona and San Fernando de Henares in Madrid. The government said the AI gigafactory is designed as a large-scale industrial initiative and could become part of one of Europe’s main AI infrastructures.

Spain’s Minister for Digital Transformation and Public Service, Óscar López, said the investment supports technological sovereignty, reindustrialisation and leadership in reliable and sustainable AI. He argued that greater European access to advanced computing resources would accelerate innovation, support scientific research and enable public administrations to develop more advanced and secure digital services.

According to the government, AI gigafactories are specialised data centres designed to host hundreds of thousands of GPUs required to train and deploy advanced AI models. These include large language models and advanced computer vision systems.

The ministry said such facilities differ from conventional data centres because they are specialised for the large-scale computing capacity required by the next generation of AI. The ministry noted that infrastructure for training frontier AI models is currently dominated by US hyperscalers and, to a lesser extent, China’s domestic AI ecosystem.

Spain said the AI gigafactory project would support European efforts to build sovereign supercomputing hubs through EuroHPC, which includes the MareNostrum 5 supercomputer at the Barcelona Supercomputing Center, and programmes such as PERTE Chip.

The government said an AI gigafactory would benefit startups, SMEs, large companies, universities, research centres and public administrations that need significant computing capacity to develop advanced AI. It would also allow the European ecosystem to train, test, and deploy AI models without depending entirely on foreign providers.

The project is structured through a public-private consortium whose composition is still being finalised. Spain said the scale of the initiative requires a combination of public leadership, industrial capabilities, financing and technological expertise.

The ministry said SETT’s participation will provide public strategic direction, coordination, and execution capacity. The operation also builds on Spain’s existing AI infrastructure ecosystem, including two AI Factories linked to EuroHPC: the Barcelona Supercomputing Center and the Galician Supercomputing Center, both supported by Spanish government funding.

Why does it matter?

The announcement reflects the growing importance of computing infrastructure in the global AI race. Access to large-scale compute resources has become a strategic requirement for training and deploying advanced AI systems, yet much of that capacity remains concentrated among a small number of US technology companies and, increasingly, Chinese providers.

Spain’s investment, therefore, goes beyond digital infrastructure. It forms part of a broader European effort to strengthen technological sovereignty, support domestic innovation ecosystems and reduce dependence on foreign AI platforms. If successful, the project could provide startups, research institutions, public administrations and businesses with greater access to advanced computing resources while reinforcing the EU’s ambitions to build a more competitive and autonomous AI ecosystem.

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EU’s 2026 State of the Digital Decade report highlights progress and remaining challenges

The European Commission’s 2026 State of the Digital Decade report shows that the EU continues to make progress towards its digital transformation goals, although significant structural challenges remain on the path to its 2030 targets.

The report highlights progress in digital infrastructure, business digitalisation and public services. Basic 5G coverage now reaches 96.8% of households, while nearly one in five businesses uses AI.

AI adoption accelerated significantly during 2025, increasing by 48% compared with the previous year. More than 60% of Europeans now possess at least basic digital skills.

Despite the progress, the Commission identified several areas requiring urgent attention. However, the EU currently accounts for only 9% of the global semiconductor market, well below its target of reaching 20% by 2030.

Europe also remains heavily dependent on non-EU cybersecurity suppliers and continues to face shortages of ICT specialists, particularly women in digital professions.

The report also revealed strong public support for digital sovereignty and technological self-reliance. According to a new Eurobarometer survey, most citizens support greater investment in local digital infrastructure, reduced dependence on foreign technologies and stronger regulation of AI.

Citizens also identified digital health, green technologies, connectivity and AI as areas likely to deliver the greatest benefits over the next decade.

Why does it matter?

The report provides one of the most comprehensive assessments of Europe’s progress towards its 2030 Digital Decade objectives and offers insight into the EU’s broader competitiveness agenda. Strong growth in AI adoption, connectivity and digital public services suggests that digital transformation is accelerating across the Union.

At the same time, the findings highlight persistent challenges related to technological sovereignty. Europe’s limited share of the global semiconductor market, continued dependence on foreign technology suppliers, and ongoing digital skills shortages could constrain its long-term competitiveness. As the EU increasingly links economic resilience, security and digital policy, addressing these gaps will be critical to achieving its 2030 ambitions and strengthening strategic autonomy in key technologies.

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INTERPOL report warns of rising cybercrime across Asia-Pacific

INTERPOL has published its 2025/2026 Asia and South Pacific Cyberthreat Assessment Report, covering the period from January 2024 to March 2025. The report documents a rise in cybercrime across the region, attributing the trend to expanding digital infrastructure, the adoption of new technologies and increasingly organised criminal networks.

More than half of the countries surveyed reported that cybercrime accounts for over 30% of all crimes recorded nationally. Phishing and related online scam techniques were identified as the most common and financially damaging forms of cybercrime, with 33 % of surveyed countries recorded over 10,000 such cases.

Neal Jetton, INTERPOL’s Cybercrime Director, said the findings demonstrate how cybercriminals are increasingly exploiting AI, ransomware-as-a-service models and sophisticated social engineering techniques. He noted that operational cooperation, information sharing, and cyber resilience are factors relevant to protecting communities and infrastructure as digital adoption in the region increases.

Growth in internet connectivity, mobile banking, cloud computing, and digital financial services has accompanied this cybercriminal activity, according to the report.

Survey respondents also highlighted challenges for law enforcement, including gaps in specialised forensic tools, cybercrime training and technical capacity. The report also notes differences in cybersecurity capacity across countries.

Some countries have established cybersecurity frameworks and institutional capabilities, while others, including developing countries and small island states, reported resource and capacity constraints.

The report identifies jurisdictions with fragmented enforcement structures, limited technical capabilities, and weaker legislation as more exposed to exploitation by cybercriminal actors.

The report was prepared through the Asia and South Pacific Joint Operations against Cybercrime (ASPJOC) project, funded by the United Kingdom’s Foreign, Commonwealth & Development Office (FCDO). It draws on information submitted by 18 INTERPOL member countries in the Asia and South Pacific region, along with contributions from private sector partners, operational case studies, and analysis of emerging cyber threat trends.

It is one of several regional cyber threat assessments produced by INTERPOL, alongside similar reports covering regions such as Africa. The full report is available from INTERPOL.

Why does this matter?

The report highlights how cybercrime is becoming a major security, economic and governance challenge across Asia and the South Pacific. As countries expand digital infrastructure, online banking, cloud services and digital government initiatives, cybercriminals are finding new opportunities to exploit vulnerabilities and target individuals, businesses and critical sectors.

The findings also illustrate the growing role of AI in cyberspace. While organisations increasingly use AI to strengthen cybersecurity, threat actors are adopting the same technologies to enhance phishing campaigns, generate deepfakes and automate attacks. This accelerating technological competition underscores the importance of international cooperation, cyber capacity-building and information sharing to strengthen resilience across the region.

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