Development

World Economic Forum President warns of potential AI and crypto bubbles 

World Economic Forum President Borge Brende has warned that massive investments in AI and cryptocurrencies may create financial bubbles. Speaking in Berlin, he noted that $500 billion has been invested in AI this year, raising concerns about speculative bubbles in AI and cryptocurrency.

Brende described frontier technologies as a ‘big paradigm shift’ that could drive global growth, with potential productivity gains of up to 10% over the next decade. He noted that breakthroughs in medicine, synthetic biology, space, and energy could transform economies, but stressed that the benefits must be widely shared.

Geopolitical uncertainty remains a significant concern, according to Brende. He pointed to rising tensions between the US and China, calling it a race for technological dominance that could shape global power.

He also urged multilateral cooperation to address global challenges, including pandemics, cybercrime, and investment uncertainty.

Despite the disorder in world politics, Brende highlighted the resilience of economies like those in the US, China, and India. He called for patient investment strategies and stronger international coordination to ensure that new technologies translate into sustainable prosperity.

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AI performance improves by mimicking human brain networks

Scientists at the University of Surrey have developed a new method to make artificial intelligence smarter by copying the way the human brain works. Their approach, called Topographical Sparse Mapping, connects AI ‘neurons’ only to nearby or related ones, mimicking how the brain organises information efficiently.

An advanced version, Enhanced Topographical Sparse Mapping, prunes unneeded connections during training, similar to how the brain strengthens useful pathways as it learns. Researchers are also exploring applications in neuromorphic computing, which designs computer systems to mimic the structure and function of the human brain.

The approach helps AI models, including tools like ChatGPT, work better while using less electricity. Traditional AI training can waste huge amounts of energy, but the new brain-inspired design cuts unnecessary connections without losing accuracy.

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Mustafa Suleyman warns against building seemingly conscious AI

Mustafa Suleyman, CEO of Microsoft AI, argues that AI should be built for people, not to replace them. Growing belief in chatbot consciousness risks campaigns for AI rights and a needless struggle over personhood that distracts from human welfare.

Debates over true consciousness miss the urgent issue of convincing imitation. Seemingly conscious AI may speak fluently, recall interactions, claim experiences, and set goals that appear to exhibit agency. Capabilities are close, and the social effects will be real regardless of metaphysics.

People already form attachments to chatbots and seek meaning in conversations. Reports of dependency and talk of ‘AI psychosis‘ show persuasive systems can nudge vulnerable users. Extending moral status to uncertainty, Suleyman argues, would amplify delusions and dilute existing rights.

Norms and design principles are needed across the industry. Products should include engineered interruptions that break the illusion, clear statements of nonhuman status, and guardrails for responsible ‘personalities’. Microsoft AI is exploring approaches that promote offline connection and healthy use.

A positive vision keeps AI empowering without faking inner life. Companions should organise tasks, aid learning, and support collaboration while remaining transparently artificial. The focus remains on safeguarding humans, animals, and the natural world, not on granting rights to persuasive simulations.

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Millions turn to AI to manage finances across the UK

AI is playing an increasingly important role in personal finance, with over 28 million UK adults using AI over the past year.

Lloyds Banking Group’s latest Consumer Digital Index reveals that many individuals turn to platforms like ChatGPT for budgeting, savings planning, and financial education, reporting an average annual savings of £399 through AI insights.

Digital confidence strongly supports financial empowerment. Two-thirds of internet users report that online tools enhance their ability to manage money, while those with higher digital skills experience lower stress and greater control over their finances.

Regular engagement with AI and other digital tools enhances both knowledge and confidence in financial decision-making.

Trust remains a significant concern despite growing usage. Around 80% of users worry about inaccurate information or insufficient personalisation, emphasising the need for reliable guidance.

Jas Singh, CEO of Consumer Relationships at Lloyds, highlights that banks must combine AI innovation with trusted expertise to help people make more intelligent choices and build long-term financial resilience.

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Saudi Arabia pushes global AI ambitions with Humain

Saudi Arabia is accelerating its ambitions in AI with the launch of Humain, a homegrown AI company backed by the kingdom’s $1 trillion sovereign wealth fund. The company, financed by the Public Investment Fund, aims to offer a wide range of AI services and tools, including an Arabic large language model capable of understanding diverse dialects and observing Islamic values.

The company has secured major deals to expand its operations, including a $3 billion data centre project with Blackstone’s AirTrunk, a partnership with US chipmaker Qualcomm, and a significant stake acquisition by state-owned Saudi Aramco. The agreements aim to boost AI integration across the kingdom’s key sectors.

Challenges remain, from talent shortages to access to advanced technology, while regional competition is strong. Yet Humain’s leadership remains confident, aiming to position Saudi Arabia as a major player in the global AI landscape.

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Microsoft AI chief rules out machine consciousness as purely biological phenomenon

Microsoft’s AI head, Mustafa Suleyman, has dismissed the idea that AI could ever become conscious, arguing that consciousness is a property exclusive to biological beings.

Speaking at the AfroTech Conference in Houston, Suleyman said researchers should stop exploring the notion of sentient AI, calling it ‘the wrong question’.

He explained that while AI can simulate experience, it cannot feel pain or possess subjective awareness.

Suleyman compared AI’s output to a narrative illusion rather than genuine consciousness, aligning with the philosophical theory of biological naturalism, which ties awareness to living brain processes.

Suleyman has become one of the industry’s most outspoken critics of conscious AI research. His book ‘The Coming Wave’ and his recent essay ‘We must build AI for people;’ not to be a person warn against anthropomorphising machines.

He also confirmed that Microsoft will not develop erotic chatbots, a direction that has been embraced by competitors such as OpenAI and xAI.

He stressed that Microsoft’s AI systems are designed to serve humans, not mimic them. The company’s Copilot assistant now includes a ‘real talk’ mode that challenges users’ assumptions instead of offering flattery.

Suleyman said responsible development must avoid ‘unbridled accelerationism’, adding that fear and scepticism are essential for navigating AI’s rapid evolution.

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Brain-inspired networks boost AI performance and cut energy use

Researchers at the University of Surrey have developed a new method to enhance AI by imitating how the human brain connects information. The approach, called Topographical Sparse Mapping, links each artificial neuron only to nearby or related ones, replicating the brain’s efficient organisation.

According to findings published in Neurocomputing, the structure reduces redundant connections and improves performance without compromising accuracy. Senior lecturer Dr Roman Bauer said intelligent systems can now be designed to consume less energy while maintaining power.

Training large models today often requires over a million kilowatt-hours of electricity, a trend he described as unsustainable.

An advanced version, Enhanced Topographical Sparse Mapping, introduces a biologically inspired pruning process that refines neural connections during training, similar to how the brain learns.

Researchers believe that the system could contribute to more realistic neuromorphic computers, which simulate brain functions to process data more efficiently.

The Surrey team said that such a discovery may advance generative AI systems and pave the way for sustainable large-scale model training. Their work highlights how lessons from biology can shape the next generation of energy-efficient computing.

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Q3 funding in Europe rebounds with growth rounds leading

Europe raised €13.7bn across just over 1,300 rounds in Q3, the strongest quarter since Q2 2024. September alone brought €8.7bn. July and August reflected the familiar summer slowdown.

Growth equity provided €7bn, or 51.6% of the total, with two consecutive quarters surpassing 150 growth rounds. Data centres, AI agents, and GenAI led the activity, with more AI startups scaling with larger cheques.

Early-stage totals were the lowest in 12 months, yet they were ahead of Q3 last year. Lovable’s $200 million Series A at a $1.8 billion valuation stood out. Seven new unicorns included Nscale, Fuse Energy, Framer, IQM, Nothing, and Tide.

ASML led the quarter’s largest deal, investing €1.3bn in Mistral AI’s €1.7bn Series C. France tallied €2.7 billion, heavily concentrated in Mistral, while the UK reached €4.49 billion. Germany followed with just over €1.5bn, ahead of the Netherlands and Switzerland.

AI-native funding surpassed all verticals for the first time on record, reaching €3.9 billion, with deeptech at €2.6 billion. Agentic AI logged 129 rounds, sharply higher year-over-year, while data centres edged out agents for capital. Defence and dual-use technology attracted €2.1 billion across 44 rounds.

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Unexpected language emerges as best for AI prompting

A new joint study by the University of Maryland and Microsoft has found that Polish is the most effective language for prompting AI, outperforming 25 others, including English, French, and Chinese.

The researchers tested leading AI models, including OpenAI, Google Gemini, Qwen, Llama, and DeepSeek, by providing identical prompts in 26 languages. Polish achieved an average accuracy of 88 percent, securing first place. English, often seen as the natural choice for AI interaction, came only sixth.

According to the study, Polish proved to be the most precise in issuing commands to AI, despite the fact that far less Polish-language data exists for model training. The Polish Patent Office noted that while humans find the language difficult, AI systems appear to handle it with remarkable ease.

Other high-performing languages included French, Italian, and Spanish, with Chinese ranking among the lowest. The finding challenges the widespread assumption that English dominates AI communication and could reshape future research on multilingual model optimisation.

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Perplexity launches AI-powered patent search to make innovation intelligence accessible

The US software company, Perplexity, has unveiled Perplexity Patents, the first AI-powered patent research agent designed to democratise access to intellectual property intelligence. The new tool allows anyone to explore patents using natural language instead of complex keyword syntax.

Traditional patent research has long relied on rigid search systems that demand specialist knowledge and expensive software.

Perplexity Patents instead offers conversational interaction, enabling users to ask questions such as ‘Are there any patents on AI for language learning?’ or ‘Key quantum computing patents since 2024?’.

The system automatically identifies relevant patents, provides inline viewing, and maintains context across multiple questions.

Powered by Perplexity’s large-scale search infrastructure, the platform uses agentic reasoning to break down complex queries, perform multi-step searches, and return comprehensive results supported by extensive patent documentation.

Its semantic understanding also captures related concepts that traditional tools often miss, linking terms such as ‘fitness trackers’, ‘activity bands’, and ‘health monitoring wearables’.

Beyond patent databases, Perplexity Patents can also draw from academic papers, open-source code, and other publicly available data, revealing the entire landscape of technological innovation. The service launches today in beta, free for all users, with extra features for Pro and Max subscribers.

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