Digital divide Archives | Page 7 of 47 | Digital Watch Observatory

Sovereign AI becomes a strategic question for governments

Governments across the world are increasingly treating AI as a strategic capability that shapes economic development, public services and national security. Momentum behind the idea of ‘sovereign AI’ is growing as countries reassess who controls the chips, cloud infrastructure, data and models powering modern technology.

Complete control over the entire AI stack remains unrealistic for most economies because of the enormous financial and technological costs involved. Global infrastructure continues to rely heavily on US technology firms, which still operate a large share of data centres and AI systems worldwide.

Policy makers are therefore exploring different approaches to sovereignty across the AI ecosystem rather than pursuing total independence. Strategies range from building domestic computing capacity to adapting global AI models for national languages, regulations and public services.

Several countries already illustrate different approaches. The EU is investing billions in AI infrastructure, Canada protects sensitive computing resources while using global models, and India prioritises applications that serve its multilingual population through public digital systems.

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Online privacy faces new pressures in the age of social media

Online privacy is eroding as digital services collect ever-growing personal data and surveillance becomes part of daily technology use. The debate has intensified as social media platforms, advertisers, and connected devices expand their ability to track behaviour, preferences, and habits.

Analysts say younger generations have adapted to this reality rather than resisting it. ‘In 2026, online privacy is a luxury, not a right,’ says Thomas Bunting, an analyst at the UK innovation think tank Nesta. He argues many people have grown up accepting data collection as a trade-off for access to online services, noting: ‘We’ve been taught how to deal with it.’

Advocates warn that the erosion of online privacy could have wider social consequences. Cybersecurity expert Prof Alan Woodward from the University of Surrey says the issue goes beyond personal privacy. ‘People should care about online privacy because it shapes who has power over their lives,’ he says, arguing that privacy is ‘about having something to protect: freedom of thought, experimentation, dissent and personal development without permanent surveillance.’

Despite a growing number of privacy tools and regulations, data exposure remains widespread. According to Statista, more than 1.35 billion people were affected by data breaches, hacks, or exposure in 2024 alone. At the same time, more than 160 countries now have privacy legislation, while users regularly encounter cookie consent prompts that govern how their data is collected online.

Experts say frustration with privacy controls reflects a broader ‘privacy paradox’, in which people express concern about data protection but rarely change their behaviour. Cisco’s Consumer Privacy Survey found that while 89% of respondents said they care about privacy, only 38% actively take steps to protect their data.

As philosopher Carissa Véliz notes, the challenge is not simply awareness but a sense of agency: ‘Mostly, people don’t feel like they have control.’ She argues that protecting privacy requires stronger regulation, responsible technology design, and cultural change, adding: ‘It’s about having [access to] the right tech, but also using it.’

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Santander and Mastercard complete Europe’s first AI agent payment

Spanish banking giant Banco Santander and Mastercard have completed what they describe as Europe’s first live end-to-end payment executed by an AI agent. The pilot combined Santander’s live payments infrastructure with Mastercard Agent Pay to enable autonomous, permission-based transactions.

Mastercard Agent Pay, launched in April 2025, allows AI agents to initiate and complete payments within predefined consumer limits. The transaction was orchestrated with support from PayOS and integrates Microsoft Azure OpenAI Service and Copilot Studio.

Following the pilot, Santander plans to expand testing and explore new partnerships across agentic commerce use cases. The bank, which manages around €1.84 trillion in assets, is positioning AI as a core driver of innovation.

AI initiatives at Santander are led by chief data and AI officer Ricardo Martín Manjón, hired from BBVA. A strategic partnership with OpenAI has also connected up to 30,000 employees to ChatGPT Enterprise in one of the fastest deployments of its kind.

Global competition in agentic payments is intensifying as Citi, US Bank and Westpac trial Mastercard Agent Pay. Westpac recently completed New Zealand’s first authenticated agentic transaction, while DBS, Visa, Axis Bank and RBL Bank are advancing similar intelligent commerce pilots.

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Growing robotics market positions Qualcomm for next technology wave

Qualcomm expects robotics to become a significant business opportunity within two years, according to chief executive Cristiano Amon. The company is increasingly expanding beyond smartphones as it searches for new long-term growth markets.

Earlier this year, Qualcomm introduced its Dragonwing processor designed specifically for robotics applications. The chipset aims to operate across multiple robotic platforms using a scalable approach similar to its successful mobile processor strategy.

Industry enthusiasm for robotics has grown alongside rapid advances in AI technologies. Often described as ‘physical AI’, these systems allow robots to interpret surroundings and perform complex tasks more effectively.

Market forecasts suggest strong future demand, with analysts predicting robotics could develop into a multi-trillion-dollar global industry. Technology leaders across the semiconductor sector increasingly view intelligent machines as a major next computing platform.

Robotics innovation featured prominently at Mobile World Congress in Barcelona, where companies showcased emerging autonomous machines. Growing investment highlights intensifying competition to shape the future of AI-powered automation worldwide.

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Samsung strengthens Japan 5G rollout with Rakuten Mobile partnership

Samsung has secured an agreement with Rakuten Mobile to deliver Open RAN-compliant 5G radios supporting a nationwide mobile network upgrade across Japan. Commercial deployment is expected to begin in 2026 following extensive testing of the cloud-native infrastructure.

Rakuten Mobile continues to expand its fully virtualised network architecture, designed to improve flexibility, performance, and vendor interoperability. The integration of Samsung equipment demonstrates growing industry confidence in Open RAN technology at large-scale commercial deployments.

Equipment supplied includes low-band and mid-band radios, alongside energy-efficient Massive MIMO systems operating in the 3.8 GHz spectrum. Compact hardware enables easier installation on buildings and street infrastructure while improving capacity in dense urban areas.

Executives from both companies highlighted ambitions to accelerate AI-enabled networks and global Open RAN adoption. Samsung also positioned the partnership as a step toward future 6G innovation and broader next-generation connectivity services.

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UK launches consultation on possible social media ban for under-16s

Britain has opened a public consultation examining whether children under 16 should face restrictions or a potential ban on social media use. Young people, parents and educators are being invited to share views before ministers decide on future policy.

Officials are considering several options beyond a full ban, including disabling addictive platform features, introducing overnight curfews, regulating access to AI chatbots, and tightening age verification rules. Pilot schemes will test proposed measures to gather practical evidence on their effectiveness.

The debate follows international momentum after Australia introduced restrictions on under-16 access to major platforms, with Spain signalling similar intentions. Political parties, charities and campaigners remain divided over whether bans or stronger safety regulations offer better protection.

Children’s organisations warn blanket prohibitions could push young users towards less regulated online spaces, creating a ‘false sense of security’. Researchers and policymakers instead emphasise improving platform safety standards while allowing young people to socialise and express themselves online responsibly.

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AI helps scientists translate thoughts into speech and images

Breakthroughs in AI and neuroscience are bringing researchers closer to translating human thoughts into words, offering new communication tools for people living with paralysis or severe speech disorders. Experiments with implanted brain electrodes have enabled patients to produce sentences simply by imagining speech.

Machine learning systems analyse neural signals captured from small electrode arrays placed in speech-related brain regions, converting activity into text at increasing speed and accuracy. Recent trials achieved communication rates approaching practical conversation while also capturing tone, rhythm and emotional expression.

Scientists have begun detecting ‘inner speech’, identifying silent counting or imagined phrases without physical attempts to speak. Findings suggest thinking and speaking rely on overlapping neural networks, although spontaneous thoughts remain difficult to decode reliably.

Beyond language, researchers are reconstructing images, music and sensory experiences from brain scans using generative AI models. Studies analysing visual and auditory processing reveal how different brain regions encode perception, opening possibilities for studying hallucinations, dreams and animal cognition.

Technology companies, including Neuralink, are pushing brain-computer interfaces toward commercial use, though current systems sample only a tiny fraction of the brain’s billions of neurons. Experts believe widespread applications such as natural speech restoration or even brain-to-brain communication may emerge within the next two decades, alongside growing ethical debates around privacy and mental autonomy.

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AI data centre boom drives global memory chip shortage

Global demand for AI data centres is creating a severe shortage of memory chips, disrupting supply chains across the consumer electronics industry. Manufacturers warn shortages of RAM could lead to higher prices and delayed shipments for devices including laptops, smartphones and gaming consoles.

Only three companies dominate global RAM production, with capacity increasingly redirected towards high-bandwidth memory used in AI systems. Analysts say rapid investment in AI infrastructure has absorbed available supply faster than manufacturers can expand production facilities.

Major technology firms are already feeling pressure as memory costs rise and inventories tighten. Companies including Apple, HP, Dell and Qualcomm have warned investors that pricing increases and weaker forecasts may follow if shortages persist.

Gaming and computer manufacturers are exploring different responses, ranging from price increases to redesigning products that require less memory. Experts expect supply constraints to continue through the year as chipmakers attempt to balance AI demand with consumer electronics needs.

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Japanese bank Mizuho plans major AI shift across administrative operations

Mizuho Financial Group plans to reduce work equivalent to 5,000 administrative positions over the next decade by introducing AI systems to improve operational efficiency. Around one-third of its 15,000 clerical staff nationwide will see their duties reshaped rather than eliminated.

Administrative employees currently manage processes such as document checks and data entry when opening accounts at subsidiary branches. Management expects many of these routine activities to be handled by AI as automation expands across operations.

Company leaders confirmed no layoffs are planned, with affected employees set to move into roles requiring direct customer interaction. Staff will transition towards investment product sales, corporate services and other positions where human engagement remains essential.

Mizuho intends to invest up to 100 billion yen by fiscal 2028 to develop and deploy AI technologies supporting business reform. An internal department overseeing clerical work will also be renamed the ‘Process Design Group’, signalling a stronger focus on AI-driven transformation.

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Dell expands AI PC strategy to support human creativity

Dell is accelerating development of AI PCs, positioning them as the next standard for personal computing rather than a niche category. Industry forecasts suggest AI-enabled devices could account for more than half of global PC sales by 2026.

Dedicated neural processing units allow AI tasks to run directly on devices, freeing central and graphics processors for demanding creative workflows. Dell says such hardware enables faster editing, improved generative tools and smoother multitasking for designers, editors and digital creators.

Louise Quennell, UK Senior Director at Dell Technologies, emphasised that AI should support creativity rather than replace it. Automating repetitive tasks aims to give professionals more time for experimentation, artistic decision-making and higher-value creative work.

AI assistants are increasingly capable of managing scheduling, summarising information and reducing routine digital administration. Dell believes reducing these ‘digital chores’ could significantly improve productivity, particularly for freelancers balancing creative production with business responsibilities.

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