Development

FCA begins live AI testing with UK financial firms

The UK’s Financial Conduct Authority has started a live testing programme for AI with major financial firms. The initiative aims to explore AI’s benefits and risks in retail financial services while ensuring safe and responsible deployment.

Participating firms, including NatWest, Monzo, Santander and Scottish Widows, receive guidance from FCA regulators and technical partner Advai. Use cases being trialled range from debt resolution and financial advice to customer engagement and smarter spending tools.

Insights from the testing will help the FCA shape future regulations and governance frameworks for AI in financial markets. The programme complements the regulator’s Supercharged Sandbox, with a second cohort of firms due to begin testing in April 2026.

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Sega cautiously adopts AI in game development

Game development is poised to transform as Sega begins to incorporate AI selectively. The Japanese studio aims to enhance efficiency across production processes while preserving the integrity of creative work, such as character design.

Executives emphasised that AI will primarily support tasks such as content transcription and workflow optimisation, avoiding roles that require artistic skills. Careful evaluation of each potential use case will guide its implementation across projects.

The debate over generative AI continues to divide the gaming industry, with some developers raising concerns that candidates may misrepresent AI-generated work during the hiring process. Studios are increasingly requiring proof of actual creative ability to avoid productivity issues.

Other developers, including Arrowhead Game Studios, emphasise the importance of striking a balance between AI use and human creativity. By reducing repetitive tasks rather than replacing artistic roles, studios aim to enhance efficiency while preserving the unique contributions of human designers.

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Uzbekistan sets principles for responsible AI

A new ethical framework for the development and use of AI technologies has been adopted by Uzbekistan.

The rules, prepared by the Ministry of Digital Technologies, establish unified standards for developers, implementing organisations and users of AI systems, ensuring AI respects human rights, privacy and societal trust.

A framework that is part of presidential decrees and resolutions aimed at advancing AI innovation across the country. It also emphasises legality, transparency, fairness, accountability, and continuous human oversight.

AI systems must avoid discrimination based on gender, nationality, religion, language or social origin.

Developers are required to ensure algorithmic clarity, assess risks and bias in advance, and prevent AI from causing harm to individuals, society, the state or the environment.

Users of AI systems must comply with legislation, safeguard personal data, and operate technologies responsibly. Any harm caused during AI development or deployment carries legal liability.

The Ministry of Digital Technologies will oversee standards, address ethical concerns, foster industry cooperation, and improve digital literacy across Uzbekistan.

An initiative that aligns with broader efforts to prepare Uzbekistan for AI adoption in healthcare, education, transport, space, and other sectors.

By establishing clear ethical principles, the country aims to strengthen trust in AI applications and ensure responsible and secure use nationwide.

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UNESCO launches AI guidelines for courts and tribunals

UNESCO has launched new Guidelines for the Use of AI Systems in Courts and Tribunals to ensure AI strengthens rather than undermines human-led justice. The initiative arrives as courts worldwide face millions of pending cases and limited resources.

In Argentina, AI-assisted legal tools have increased case processing by nearly 300%, while automated transcription in Egypt is improving court efficiency.

Judicial systems are increasingly encountering AI-generated evidence, AI-assisted sentencing, and automated administrative processes. AI misuse can have serious consequences, as seen in the UK High Court where false AI-generated arguments caused delays, extra costs, and fines.

UNESCO’s Guidelines aim to prevent such risks by emphasising human oversight, auditability, and ethical AI use.

The Guidelines outline 15 principles and provide recommendations for judicial organisations and individual judges throughout the AI lifecycle. They also serve as a benchmark for developing national and regional standards.

UNESCO’s Judges’ Initiative, which has trained over 36,000 judicial operators in 160 countries, played a key role in shaping and peer-reviewing the Guidelines.

The official launch will take place at the Athens Roundtable on AI and the Rule of Law in London on 4 December 2025. UNESCO aims for the standards to ensure responsible AI use, improve court efficiency, and uphold public trust in the judiciary.

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FCA launches AI Live Testing for UK financial firms

The UK’s Financial Conduct Authority has launched an AI Live Testing initiative to help firms safely deploy AI in financial markets. Major companies, including NatWest, Monzo, Santander, Scottish Widows, Gain Credit, Homeprotect, and Snorkl, are participating in the first cohort.

Firms receive tailored guidance from the FCA and its technical partner, Advai, to develop and assess AI applications responsibly.

AI testing focuses on retail financial services, exploring uses such as debt resolution, financial advice, improving customer engagement, streamlining complaints handling, and supporting smarter spending and saving decisions.

The project aims to answer key questions around evaluation frameworks, governance, live monitoring, and risk management to protect both consumers and markets.

Jessica Rusu, FCA chief data officer, said the initiative helps firms use AI safely while guiding the FCA on its impact in UK financial services. The project complements the FCA’s Supercharged Sandbox, which supports firms in earlier experimentation phases.

Applications for the second AI Live Testing cohort open in January 2026, with participating firms able to start testing in April. Insights from the initiative will inform FCA AI policy, supporting innovation while ensuring responsible deployment.

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Texas makes historic investment with $5 million Bitcoin purchase

Texas has become the first US state to fund a strategic cryptocurrency reserve, purchasing approximately $5 million in Bitcoin through BlackRock’s iShares Bitcoin Trust ETF.

The move follows Governor Greg Abbott signing Senate Bill 21, allowing the comptroller’s office to create a public crypto reserve. states, such as New Hampshire and Arizona, have passed similar bills, but Texas is the first to execute an actual purchase.

The ETF acquisition acts as a temporary measure while the state finalises a contract with a cryptocurrency custodian. Comptroller representatives called the purchase a ‘placeholder investment’ while reviewing bids for a permanent custodian.

Lawmakers have allocated $10 million to the reserve, a small portion of Texas’ $338 billion budget, yet supporters argue it marks an important step for the growing crypto industry.

Bitcoin prices have fluctuated significantly this year, peaking above $126,000 in October before dropping to around $85,000 recently. The state’s purchase at roughly $87,000 per bitcoin reflects ongoing market volatility.

Advocates see the investment as forward-looking, citing potential long-term benefits in job creation, tax revenue, and digital asset adoption.

Critics remain sceptical, warning that public crypto investments carry high risk and may favour industry interests over taxpayers. Some economists criticised the move as conflicting with Texas’ conservative fiscal approach and risky government speculation.

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Serbia sees wider coverage as Yettel activates 5G

Yettel has launched its 5G network in Serbia, offering higher speeds, lower latency, and support for large numbers of connected devices. Customers need a 5G-ready handset and coverage access, which currently spans major cities and tourist areas. The operator plans wider expansion as deployment progresses.

The service uses recently acquired spectrum, with 5G delivered across the 700 MHz low band and the 3.5 GHz mid band. The frequencies support stronger indoor reach and higher-capacity performance. Yettel says the combination will improve everyday mobile connectivity and enable new digital services.

Use cases include faster downloads, smoother streaming, and more responsive cloud-based gaming. Lower latency will also support remote work and IoT applications. The company expects the network to underpin emerging services that rely on real-time communication and consistent mobile performance.

Yettel forms part of the e& PPF Telecom Group and operates more than 130 retail locations alongside its digital channels. The company says the 5G rollout complements ongoing efforts to modernise national infrastructure. It also aims to maintain strong service quality across urban and regional areas.

The network received the umlaut ‘Best in Test’ award in 2025, marking a ninth consecutive national win. Yettel frames 5G as the next stage of its technological development. The operator expects the upgrade to strengthen the broader digital ecosystem of Serbia and improve long-term connectivity options.

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Meta expands global push against online scam networks

The US tech giant, Meta, outlined an expanded strategy to limit online fraud by combining technical defences with stronger collaboration across industry and law enforcement.

The company described scams as a threat to user safety and as a direct risk to the credibility of its advertising ecosystem, which remains central to its business model.

Executives emphasised that large criminal networks continue to evolve and that a faster, coordinated response is essential instead of fragmented efforts.

Meta presented recent progress, noting that more than 134 million scam advertisements were removed in 2025 and that reports about misleading advertising fell significantly in the last fifteen months.

It also provided details about disrupted criminal networks that operated across Facebook, Instagram and WhatsApp.

Facial recognition tools played a crucial role in detecting scam content that utilised images of public figures, resulting in an increased volume of removals during testing, rather than allowing wider circulation.

Cooperation with law enforcement remains central to Meta’s approach. The company supported investigations that targeted criminal centres in Myanmar and illegal online gambling operations connected to transfers through anonymous accounts.

Information shared with financial institutions and partners in the Global Signal Exchange contributed to the removal of thousands of accounts. At the same time, legal action continued against those who used impersonation or bulk messaging to deceive users.

Meta stated that it backs bipartisan legislation designed to support a national response to online fraud. The company argued that new laws are necessary to weaken transnational groups behind large-scale scam operations and to protect users more effectively.

A broader aim is to strengthen trust across Meta’s services, rather than allowing criminal activity to undermine user confidence and advertiser investment.

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New findings reveal untrained AI can mirror human brain responses

Researchers at Johns Hopkins report that brain-inspired AI architectures can display human-like neural activity before any training. Structural design may provide stronger starting points than data-heavy methods. The findings challenge long-held views about how machine intelligence forms.

Researchers tested modified transformers, fully connected networks, and convolutional networks across multiple variants. They compared untrained model responses with neural data from humans and primates viewing identical images. The approach allowed a direct measure of architectural influence.

Transformers and fully connected networks showed limited change when scaled. Convolutional models, by contrast, produced patterns that aligned more closely with human brain activity. Architecture appears to be a decisive factor early in development.

Untrained convolutional models matched aspects of systems trained on millions of images. The results suggest brain-like structures could cut reliance on vast datasets and energy-intensive computation. The implications may reshape how advanced models are engineered.

Further research will examine simple, biologically inspired learning rules. The team plans to integrate these mechanisms into future AI frameworks. The goal is to combine architecture and biology to accelerate meaningful advances.

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Governments urged to build learning systems for the AI era

Governments are facing increased pressure to govern AI effectively, prompting calls for continuous institutional learning. Researchers argue that the public sector must develop adaptive capacity to keep pace with rapid technological change.

Past digital reforms often stalled because administrations focused on minor upgrades rather than redesigning core services. Slow adaptation now carries greater risks, as AI transforms decisions, systems and expectations across government.

Experts emphasise the need for a learning infrastructure that facilitates to reliable flow of knowledge across institutions. Singapore and the UAE have already invested heavily in large-scale capability-building programmes.

Public servants require stronger technical and institutional literacy, supported through ongoing training and open collaboration with research communities. Advocates say that states that embed learning deeply will govern AI more effectively and maintain public trust.

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