Development

New law requires AI disclosure in advertising in the US

A new law in New York, US, will require advertisers to disclose when AI-generated people appear in commercial content. Governor Kathy Hochul said the measure brings transparency and protects consumers as synthetic avatars become more widespread.

A second law now requires consent from heirs or executors when using a deceased person’s likeness for commercial purposes. The rule updates the state’s publicity rights, which previously lacked clarity in the context of the generative AI era.

Industry groups welcomed the move, saying it addresses the risks posed by unregulated AI usage, particularly for actors in the film and television industries. The disclosure must be conspicuous when an avatar does not correspond to a real human.

Specific expressive works such as films, games and shows are exempt when the avatar matches its use in the work. The laws arrive as national debate intensifies and President-elect Donald Trump signals potential attempts to limit state-level AI regulation.

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Mercedes-Benz nominates new supervisory board members to drive AI and sustainability

Mercedes-Benz Group AG has announced planned changes to its Supervisory Board, proposing the appointment of Katharina Beumelburg and Rashmi Misra at the company’s 2026 Annual General Meeting.

The move is intended to strengthen the board’s expertise in sustainability, industrial transformation, and AI, reflecting the company’s strategic focus on decarbonisation and digital innovation.

Beumelburg brings extensive experience in global sustainability and energy transition from roles at Heidelberg Materials, SLB, and Siemens. At the same time, Misra brings deep expertise in AI and emerging technologies, having held senior positions at Analogue Devices and Microsoft.

They will succeed Dame Polly Courtice and Prof. Dr Helene Svahn, who will step down in April 2026 after contributing to Mercedes-Benz’s strategic development in recent years.

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Taiwan strengthens its role in global semiconductors

Taiwan will continue to produce the world’s most advanced semiconductors domestically to remain a vital player globally. Deputy Foreign Minister Francois Chih-chung Wu said the island’s expertise cannot be easily replicated abroad.

Taiwan has invested in fabs in the US, Japan and Germany, but warned that moving production overseas is complex. The island plans to foster international partnerships while maintaining core technology in-house to safeguard its supply chains.

China’s military pressure on Taiwan has increased concerns over regional stability and global chip supply. Wu emphasised that preventing conflict is the most effective way to secure the semiconductor industry.

Washington and Europe share strategic interests with Taiwan, including the semiconductor industry and navigation in the Taiwan Strait. Wu expressed confidence that the international community would defend these interests, maintaining Taiwan’s essential role in technology.

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AI-powered grid pilot aims to cut energy costs in Ottawa

Canada has announced new federal funding to pilot AI tools on the electricity grid, backing a project designed to improve reliability, affordability and efficiency as energy demand grows.

The government of Canada will provide $6 million to Hydro Ottawa under the Ottawa Distributed Energy Resource Accelerator programme. The initiative will utilise AI-enhanced predictive analytics to forecast peak demand and help balance electricity supply and demand in near real-time.

The project will turn customer-owned technologies such as smart thermostats, electric vehicle chargers and home batteries into responsive grid resources. By aggregating them, Hydro Ottawa aims to manage local constraints and reduce costly network upgrades, starting in areas like Kanata North that are experiencing rapid growth.

Officials say the programme will give households more control over energy use while strengthening grid resilience. The pilot is also intended to serve as a model that could be scaled across other neighbourhoods and electricity systems.

The funding comes through the Energy Innovation Program, which supports innovative grid demonstrations and AI-driven energy projects. Ottawa says such initiatives are key to modernising Canada’s electricity system and supporting the transition to a low-carbon economy.

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OpenAI outlines safeguards as AI cyber capabilities advance

Cyber capabilities in advanced AI models are improving rapidly, delivering clear benefits for cyberdefence while introducing new dual-use risks that require careful management, according to OpenAI’s latest assessment.

The company points to sharp gains in capture-the-flag performance, with success rates rising from 27 percent in August to 76 percent by November 2025. OpenAI says future models could reach high cyber capability, including assistance with sophisticated intrusion techniques.

To address this, OpenAI says it is prioritising defensive use cases, investing in tools that help security teams audit code, patch vulnerabilities, and respond more effectively to threats. The goal is to give defenders an advantage in an often under-resourced environment.

OpenAI argues that cybersecurity cannot be governed through a single safeguard, as defensive and offensive techniques overlap. Instead, it applies a defence-in-depth approach that combines access controls, monitoring, detection systems, and extensive red teaming to limit misuse.

Alongside these measures, the company plans new initiatives, including trusted access programmes for defenders, agent-based security tools in private testing, and the creation of a Frontier Risk Council. OpenAI says these efforts reflect a long-term commitment to cyber resilience.

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Disney backs OpenAI with $1bn investment and licensing pact

The Walt Disney Company has struck a landmark agreement with OpenAI, becoming the first major content licensing partner on Sora, the AI company’s short-form generative video platform.

Under the three-year deal, Sora will generate short videos using more than 200 animated and creature characters from Disney, Pixar, Marvel, and Star Wars. The licence also covers ChatGPT Images, excluding talent likenesses and voices.

Beyond licensing, Disney will become a major OpenAI customer, using its APIs to develop new products and experiences, including for Disney+, while deploying ChatGPT internally across its workforce. Disney will also make a $1 billion equity investment in OpenAI and receive warrants for additional shares.

Both companies frame the partnership as a test case for responsible AI in creative industries. Executives say the agreement is designed to expand storytelling possibilities while protecting creators’ rights, user safety, and intellectual property across platforms.

Subject to final approvals, Sora-generated Disney content is expected to begin rolling out in early 2026. Curated selections may appear on Disney+, marking a new phase in how established entertainment brands engage with generative AI tools.

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YouTube offers creators payments in PayPal stablecoin

YouTube has introduced a new payment option for US-based creators, allowing them to receive earnings in PayPal’s stablecoin, PYUSD. The move adds another major tech company experimenting with crypto-linked payments, while simplifying the process for content creators.

PayPal manages the conversion and custody of the stablecoin, meaning YouTube does not directly handle any crypto. The feature uses YouTube’s existing payout system and follows PayPal’s broader PYUSD rollout earlier this year.

Stablecoins have gained attention among tech firms following the signing of the GENIUS Act in July 2025, which provides a federal framework for these assets. Stripe and Google are exploring stablecoins for faster settlements, reflecting rising interest in regulated digital payments.

PYUSD, which reached a market capitalisation of nearly $4 billion, is already integrated into several PayPal products, including Venmo and merchant tools. For now, the payout option is limited to US creators, with no timeline announced for expansion to other regions.

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AI use grows among EU enterprises in 2025

In 2025, one in five EU enterprises with at least ten employees reported using AI technologies, marking a significant rise from 13.5% in 2024. AI adoption has more than doubled since 2021, showing its increasing use in business across the EU.

Nordic countries led the way, with Denmark at 42%, Finland at 37.8%, and Sweden at 35%. In contrast, Romania, Poland, and Bulgaria had the lowest adoption rates, ranging from 5.2% to 8.5%.

Almost all EU member states recorded increases compared with the previous year, with Denmark, Finland, and Lithuania showing the most significant gains.

Enterprises mainly used AI to analyse text, generate multimedia, produce language, and convert speech into machine-readable formats. Analysing written language saw the most significant growth in 2025, followed by content generation, highlighting AI’s expanding role in communication and data processing.

Rising AI adoption is also linked to efficiency gains and innovation across EU businesses. Companies report using AI to streamline operations, support decision-making, and enhance customer engagement, signalling broader economic and technological impacts.

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OpenAI launches GPT‑5.2 for professional knowledge work

OpenAI has introduced GPT‑5.2, its most advanced model series to date, designed to enhance professional knowledge work. Users report significant time savings, with daily reductions of 40-60 minutes and more than 10 hours per week for heavy users.

The new model excels at generating spreadsheets, presentations, and code, while also handling complex, multi-step projects with improved speed and accuracy.

Performance benchmarks show GPT‑5.2 surpasses industry professionals on GDPval tasks across 44 occupations, producing outputs over eleven times faster and at a fraction of the cost.

Coding abilities have also reached a new standard, encompassing debugging, refactoring, front-end UI work, and multi-language software engineering tasks, providing engineers with a more reliable daily assistant.

GPT‑5.2 Thinking improves long-context reasoning, vision, and tool-calling capabilities. It accurately interprets long documents, charts, and graphical interfaces while coordinating multi-agent workflows.

The model also demonstrates enhanced factual accuracy and fewer hallucinations, making it more dependable for research, analysis, and decision-making.

The rollout includes ChatGPT Instant, Thinking, and Pro plans, as well as API access for developers. Early tests show GPT‑5.2 accelerates research, solves complex problems, and improves professional workflows, setting a new benchmark for real-world AI tasks.

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EU supports Germany’s semiconductor expansion

The European Commission has approved €623 million in German support for two first-of-a-kind semiconductor factories in Dresden and Erfurt.

A funding that will help GlobalFoundries expand its site to create new wafer capacity and will assist X-FAB in building an open foundry designed for advanced micro-electromechanical systems.

Both projects aim to increase Europe’s strategic autonomy in chip production, rather than allowing dependence on non-European suppliers to deepen.

The facility planned by GlobalFoundries will adapt technologies developed under the IPCEI Microelectronics and Communication Technologies framework for dual-use needs in aerospace, defence and critical infrastructure.

The manufacturing process will take place entirely within the EU to meet strict security and reliability demands. X-FAB’s project will offer services that European firms, including start-ups and small companies, currently source from abroad.

A new plant that is expected to begin commercial operation by 2029 and will introduce manufacturing capabilities not yet available in Europe.

In return for public support, both companies will pursue innovation programmes, strengthen cross-border cooperation, and apply priority-rated orders during supply shortages, in line with the European Chips Act.

They will also develop training schemes to expand the pool of skilled workers, rather than relying on the limited existing capacity. Each company has committed to seeking recognition for its facilities as Open EU Foundries.

The Commission concluded that the aid packages comply with the EU State aid rules because they encourage essential economic activity, show apparent incentive effects and remain proportionate to funding gaps identified during assessment.

These measures form part of Europe’s broader shift toward a more resilient semiconductor ecosystem and follow earlier decisions supporting similar investments across member states.

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