Rethinking AI regulation: Are new laws really necessary?

Specialised AI regulation may not be necessary, as existing laws already cover many aspects of AI-related concerns. Jovan Kurbalija, executive director of Diplo, argues in his blog that before enacting new AI-specific rules, society must assess whether current legal frameworks—such as consumer protection, data governance, and liability laws—can effectively regulate AI.

He draws historical parallels, citing the 4,000-year-old Code of Hammurabi as an example of legal accountability principles that remain relevant today. Kurbalija explains that legal systems have always adapted to technological advances without requiring entirely new legal categories.

He also highlights how laws governing property, commerce, and torts were successfully applied to the internet in the 1990s, suggesting that AI can be regulated similarly. Instead of focusing on abstract ethical discussions, he argues that enforcing existing legal frameworks will ensure accountability for AI developers and users.

The blog post also examines different layers of AI regulation, from hardware and data laws to algorithmic governance and AI applications. While AI-generated content has raised legal disputes over intellectual property and data use, these challenges, Kurbalija contends, should be addressed by refining current laws rather than introducing entirely new ones. He points to ongoing legal battles involving OpenAI, the New York Times, and Getty Images as examples of courts adapting existing regulations to the AI landscape.

Ultimately, Kurbalija asserts that AI is a tool, much like a hammer or a horse, and does not require its own distinct legal system. What matters most, he insists, is holding those who create and deploy AI accountable for its consequences. Society can effectively govern AI without requiring specialised regulations by reinforcing traditional legal principles such as liability, transparency, and justice.

French telecoms giant Iliad commits €3 billion to AI infrastructure

French telecoms group Iliad has announced a €3 billion investment in AI infrastructure, including data centres and computing power. The investment will be made through its subsidiary OpCore, which operates 13 data centres across Europe. In the short term, OpCore plans to deploy several hundred megawatts of capacity, with a long-term goal of expanding to several gigawatts.

Iliad has also partnered with France-based AI startup Mistral AI to integrate its ‘Le Chat Pro’ AI model into services for its 15.5 million French subscribers. The move highlights Europe’s push to catch up with the US and China in AI development. American initiatives, such as US President Donald Trump’s Stargate programme, aim to invest up to $500 billion in AI over the next five years.

OpenAI CEO Sam Altman has urged Europe to embrace AI and suggested a Stargate-style programme could be introduced on the continent. Iliad’s investment signals a growing commitment among European companies to strengthen the region’s AI capabilities and infrastructure.

Nokia appoints Justin Hotard as new CEO

Nokia has announced that Pekka Lundmark will step down as CEO, with Justin Hotard, currently EVP and GM of Intel’s Data Center & AI Group, set to take over the role on April 1. This leadership change is seen as part of Nokia’s strategic shift towards expanding into areas like AI and data centres, where the company is positioning itself for future growth. Hotard’s strong background in AI and technology is expected to drive Nokia’s focus on these emerging sectors.

The news has led to a 1.6% rise in Nokia’s shares, reflecting positive investor sentiment despite the surprise announcement. Analysts note that the appointment of Hotard suggests Nokia’s commitment to strengthening its network infrastructure unit, particularly as it looks to benefit from the surge in AI investments. This follows Nokia’s $2.3 billion acquisition of US optical networking firm Infinera, aimed at tapping into the growing data centre market.

Lundmark, who has been CEO since 2020, will remain with Nokia as an advisor to Hotard until the end of the year. Despite some initial denials about leadership changes, the company confirmed that the transition plan had been in place for some time, with Lundmark signalling his intention to step down once the business repositioning was more advanced.

Nokia’s infrastructure business, which includes AI-integrated systems for communication, and its mobile networks division, focusing on 5G technology, are both seen as key to the company’s future. While shares are up 27.85% over the past year, they remain significantly lower than their peak in 2000.

South Korea accuses DeepSeek of excessive data collection

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes. The agency warned government bodies last week to take security measures, highlighting that unlike other AI services, DeepSeek collects sensitive data such as keyboard input patterns and transfers it to Chinese servers. Some South Korean government ministries have already blocked access to the app due to these security concerns.

The NIS also pointed out that DeepSeek grants advertisers unrestricted access to user data and stores South Korean users’ data in China, where it could be accessed by the Chinese government under local laws. The agency also noted discrepancies in the app’s responses to sensitive questions, such as the origin of kimchi, which DeepSeek claimed was Chinese when asked in Chinese, but Korean when asked in Korean.

DeepSeek has also been accused of censoring political topics, such as the 1989 Tiananmen Square crackdown, prompting the app to suggest changing the subject. In response to these concerns, China’s foreign ministry stated that the country values data privacy and security and complies with relevant laws, denying that it pressures companies to violate privacy. DeepSeek has not yet commented on the allegations.

EU AI regulations making it harder for global firms, Ezzat says

Aiman Ezzat, CEO of Capgemini, has criticised the European Union’s AI regulations, claiming they are overly restrictive and hinder the ability of global companies to deploy AI technology in the region. His comments come ahead of the AI Action summit in Paris and reflect increasing frustration from private sector players with EU laws. Ezzat highlighted the complexity of navigating different regulations across countries, especially in the absence of global AI standards, and argued that the EU’s AI Act hailed as the most comprehensive worldwide, could stifle innovation.

As one of Europe’s largest IT services firms, Capgemini works with major players like Microsoft, Google Cloud, and Amazon Web Services. The company is concerned about the implementation of AI regulations in various countries and how they affect business operations. Ezzat is hopeful that the AI summit will provide an opportunity for regulators and industry leaders to align on AI policies moving forward.

Despite the regulatory challenges, Ezzat spoke positively about DeepSeek, a Chinese AI firm gaining traction by offering cost-effective, open-source models that compete with US tech giants. However, he pointed out that while DeepSeek shares its models, it is not entirely open source, as there is limited access to the data used for training the models. Capgemini is in the early stages of exploring the use of DeepSeek’s technology with clients.

As concerns about AI’s impact on privacy grow, European data protection authorities have begun investigating AI companies, including DeepSeek, to ensure compliance with privacy laws. Ezzat’s comments underscore the ongoing tension between innovation and regulation in the rapidly evolving AI landscape.

Taiwanese chipmakers struggle against rising Chinese competitors

Powerchip Technology, a Taiwanese IT company, is facing intense competition from Chinese foundries like Nexchip, which has rapidly gained market share in the legacy chip sector. This shift, driven by steep discounts and aggressive capacity expansion, has been accelerated by China’s localisation efforts, forcing Powerchip to retreat from the once-profitable business of making integrated circuits for Chinese flat panels. The increasing dominance of Chinese companies in the $56.3 billion legacy chip market is causing concern in Taiwan, with companies like Powerchip and UMC now focusing on more advanced technologies to stay competitive.

Chinese foundries, supported by strong government funding and low margins, have significantly increased their production capacity, undercutting Taiwanese rivals on price. By 2027, China is projected to surpass Taiwan’s global mature node manufacturing capacity. Taiwanese executives are exploring specialisation and diversification, shifting focus from legacy chips to more advanced processes like 3D stacking, which integrates logic and DRAM memory to improve performance.

The rising competition from China is compounded by geopolitical tensions, as some customers are now requesting chips made outside China. This shift is partly due to the US’s trade policies and worsening relations between Beijing and other nations. Taiwanese companies are seeing more orders directed to their local fabs, with some customers explicitly avoiding ‘Made in China’ products.

While Taiwanese companies still have an edge in terms of process stability and production yields, the pressure from Chinese competitors is forcing them to rethink their strategies and adapt to the changing landscape. The future of the industry may depend on how Taiwan navigates both the rising Chinese competition and the geopolitical challenges shaping global supply chains.

France boosts AI industry with 109 billion euro investments

France is set to announce private sector investments totalling around 109 billion euros ($112.5 billion) in its AI sector at the Paris AI summit, according to President Emmanuel Macron. The investment package includes 20 billion euros from Canadian investment firm Brookfield and up to 50 billion euros from the United Arab Emirates, which will also fund a 1-gigawatt data centre.

Brookfield’s investment is expected to focus on developing data centre infrastructure, crucial for AI technology that requires massive amounts of energy to operate.With the demand for AI technology rising, Europe is aiming to secure necessary investments to meet the growing need for energy and infrastructure.

This comes amid global competition, as US President Donald Trump recently announced that companies like OpenAI, SoftBank, and Oracle would invest $500 billion in AI infrastructure over the next four years to ensure the US stays ahead in the global AI race.

Oracle expands AI tools in NetSuite to speed up business processes

Oracle has introduced new AI features to its NetSuite corporate finance software, aiming to streamline common business tasks. Unlike competitors focused on developing general-purpose AI assistants, Oracle is integrating targeted tools to automate tedious processes. One of the latest additions helps generate price quotes for complex purchases through chatbot-driven interactions, making it easier for businesses and consumers to configure products like customised bicycles.

The AI-powered quoting tool allows sales professionals to quickly compile prices based on customer requirements, reducing time spent on manual calculations. Oracle‘s approach focuses on enhancing efficiency rather than competing in the race to build massive AI models. Instead, the company partners with firms like Canadian startup Cohere to power its AI tools.

Oracle’s recent collaboration with OpenAI to build large data centres has raised speculation about further AI partnerships. While no formal announcements have been made, Oracle executives have indicated a willingness to work with OpenAI in the future. The company’s AI strategy prioritises practical applications that help businesses close deals faster and lower operational costs.

Mistral AI launches new chat assistant as European alternative to US and Chinese rivals

French startup Mistral AI has launched a new app for its generative AI assistant, Le Chat, as it seeks to compete with American and Chinese tech giants. The Paris-based company, backed by Nvidia, claims its AI model responds at speeds of up to 1,000 words per second. The release comes just before an AI summit in Paris, highlighting growing European interest in homegrown alternatives to dominant players like OpenAI’s ChatGPT.

CEO Arthur Mensch emphasised the importance of European AI development, stating that Mistral aims to make AI more open and widely accessible. The company has secured major partnerships with firms such as Veolia and European government agencies, though it remains smaller than its US competitors. Mensch also acknowledged that DeepSeek, a rising Chinese AI firm, had benefited from Mistral’s open-source technology.

Despite its rapid growth and a valuation of €5.8 billion, Mistral AI is not planning an initial public offering in the near future. The company has raised over €1 billion and remains financially strong. Mensch believes European AI firms have a cultural role to play in shaping the industry and positioning themselves as credible alternatives to US and Chinese models.

Meta partners with UNESCO to improve AI language technology

Meta has launched a new initiative with UNESCO to enhance AI language recognition and translation, focusing on underserved languages. The Language Technology Partner Program invites collaborators to provide speech recordings, transcriptions, and translated texts to help train AI models. The finalised models will be open-sourced, allowing broader accessibility and research.

The government of Nunavut in Canada is among the early partners, contributing recordings in Inuktut, a language spoken by some Indigenous communities. Meta is also releasing an open-source machine translation benchmark to evaluate AI performance across seven languages, available on Hugging Face.

While Meta presents the initiative as a philanthropic effort, improved AI language tools could benefit the company’s broader goals. Meta AI continues to expand multilingual support, including automatic translation for content creators. However, the company has faced criticism for its handling of non-English content, with reports highlighting inconsistencies in content moderation across languages.