Development

AI adoption drops at large US companies for the first time since 2023

Despite the hype surrounding AI, new data suggests corporate adoption of AI is slowing.

A biweekly survey by the US Census Bureau found AI use among firms with over 250 employees dropped from nearly 14 percent in mid-June to under 12 percent in August, marking the largest decline since the survey began in November 2023.

Smaller companies with fewer than four workers saw a slight increase, but mid-sized businesses largely reported flat or falling AI adoption. The findings are worrying for tech investors and CEOs, who have invested heavily in enterprise AI in the hope of boosting productivity and revenue across industries.

So far, up to 95 per cent of companies using AI have not generated new income from the technology.

The decline comes amid underwhelming performance from high-profile AI releases. OpenAI’s GPT-5, expected to revolutionise enterprise AI, underperformed in benchmark tests, while some companies are rehiring human staff after previously reducing headcount based on AI promises.

Analysts warn that AI innovations may have plateaued, leaving enterprise adoption struggling to justify prior investments.

Unless enterprise AI starts delivering measurable results, corporate usage could continue to decline, signalling a potential slowdown in the broader AI-driven growth many had anticipated.

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Superconducting qubits power Stanford’s quantum router advance

Quantum computers could become more efficient with a new quantum router that directs data more quickly within machines. Researchers at Stanford have built the component, which could eventually form the backbone of quantum random access memory (QRAM).

The router utilises superconducting qubits, controlled by electromagnetic pulses, to transmit information to quantum addresses. Unlike classical routers, it can encode addresses in superposition, allowing data to be stored in two places simultaneously.

In tests with three qubits, the router achieved a fidelity of around 95%. If integrated into QRAM, it could unlock new algorithms by placing information into quantum states where locations remain indeterminate.

Experts say the advance could benefit areas such as quantum machine learning and database searches. It may also support future ideas, such as quantum IP addresses, although more reliable designs with larger qubit counts are still required.

The Stanford team acknowledges the device needs refinement to reduce errors. But with further development, the quantum router could be a vital step toward practical QRAM and more powerful quantum computing applications.

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Anthropic AI faces legal setback in authors’ piracy lawsuit

A federal judge has rejected the $1.5 billion settlement Anthropic agreed to in a piracy lawsuit filed by authors.

Judge William Alsup expressed concerns that the deal was ‘nowhere close to complete’ and could be forced on writers without proper input.

The lawsuit involves around 500,000 authors whose works were allegedly used without permission to train Anthropic’s large language models. The proposed settlement would have granted $3,000 per work, a sum far exceeding previous copyright recoveries.

However, the judge criticised the lack of clarity regarding the list of works, authors, notification process, and claim forms.

Alsup instructed the lawyers to provide clear notice to class members and allow them to opt in or out. He also emphasised that Anthropic must be shielded from future claims on the same issue. The court set deadlines for a final list of works by September 15 and approval of all related documents by October 10.

The ruling highlights ongoing legal challenges for AI companies using copyrighted material for training large language models instead of relying solely on licensed or public-domain data.

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Fake GitHub downloads deliver GPUGate malware to EU IT staff

A malvertising campaign is targeting IT workers in the EU with fake GitHub Desktop installers, according to Arctic Wolf. The goal is to steal credentials, deploy ransomware, and infiltrate sensitive systems. The operation has reportedly been active for over six months.

Attackers used malicious Google Ads that redirected users to doctored GitHub repositories. Modified README files mimicked genuine download pages but linked to a lookalike domain. MacOS users received the AMOS Stealer, while Windows victims downloaded bloated installers hiding malware.

The Windows malware evaded detection using GPU-based checks, refusing to run in sandboxes that lacked real graphics drivers. On genuine machines, it copied itself to %APPDATA%, sought elevated privileges, and altered Defender settings. Analysts dubbed the technique GPUGate.

The payload persisted by creating privileged tasks and sideloading malicious DLLs into legitimate executables. Its modular system could download extra malware tailored to each victim. The campaign was geo-fenced to EU targets and relied on redundant command servers.

Researchers warn that IT staff are prime targets due to their access to codebases and credentials. With the campaign still active, Arctic Wolf has published indicators of compromise, Yara rules, and security advice to mitigate the GPUGate threat.

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Orson Welles lost film reconstructed with AI

More than 80 years after Orson Welles’ The Magnificent Ambersons was cut and lost, AI is being used to restore 43 missing minutes of the film.

Amazon-backed Showrunner, led by Edward Saatchi, is experimenting with AI technology to rebuild the destroyed sequences as part of a broader push to reimagine how Hollywood might use AI in storytelling.

The project is not intended for commercial release, since Showrunner has not secured rights from Warner Bros. or Concord, but instead aims to explore what could have been the director’s original vision.

The initiative marks a shift in the role of AI in filmmaking. Rather than serving only as a tool for effects, dubbing or storyboarding, it is being positioned as a foundation for long-form narrative creation.

Showrunner is developing AI models capable of sustaining complex plots, with the goal of eventually generating entire films. Saatchi envisions the platform as a type of ‘Netflix of AI,’ where audiences might one day interact with intellectual property and generate their own stories.

To reconstruct The Magnificent Ambersons, the company is combining traditional techniques with AI tools. New sequences will be shot with actors, while AI will be used for face and pose transfer to replicate the original cast.

Thousands of archival set photographs are being used to digitally recreate the film’s environments.

Filmmaker Brian Rose, who has rebuilt 30,000 missing frames over five years, has reconstructed set movements and timing to match the lost scenes, while VFX expert Tom Clive will assist in refining the likenesses of the original actors.

A project that underlines both the creative possibilities and ethical tensions surrounding AI in cinema. While the reconstructed footage will not be commercially exploited, it raises questions about the use of copyrighted material in training AI and the risk of replacing human creators.

For many, however, the experiment offers a glimpse of what Welles’ ambitious work might have looked like had it survived intact.

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AI-tissue collaboration could transform drug trials and precision medicine

Researchers combine human tissue models with explainable AI to analyse patient data and identify treatments that work best for specific patients. First applied to inflammatory bowel disease, the approach could improve clinical trial success rates and accelerate drug discovery.

REPROCELL, IBM, and the STFC Hartree Centre have developed Pharmacology-AI, a platform uniting tissue models with machine learning. Delivered through the Hartree National Centre for Digital Innovation, it reduces costs, enhances trial design, and enables more targeted therapies.

Unlike tools that seek to replace human expertise, the platform acts as a decision-support system. It helps scientists detect patterns in complex datasets while keeping outputs interpretable for clinical trial use. Developers emphasised usability, ensuring non-technical staff can work with the system.

Human fresh tissue models play a central role, preserving biological complexity and simulating drug effects before trials. However, this generates reliable data that can be paired with AI to identify optimal patient profiles and reduce the risk of costly trial failures.

The project’s success suggests broad applications beyond IBD. With explainable AI and high-quality patient data, Pharmacology-AI could improve outcomes across multiple disease areas, making drug development faster, more efficient, and more precise.

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Quantum-proof cryptography emerges as key test for stablecoins

Stablecoins have become central to the digital economy, with billions in daily transactions and stronger regulatory backing under the GENIUS Act. Yet experts warn that advances in quantum computing could undermine their very foundations.

Elliptic curve and RSA cryptography, widely used in stablecoin systems, are expected to be breakable once ‘Q-Day’ arrives. Quantum-equipped attackers could instantly derive private keys from public addresses, exposing entire networks to theft.

The immutability of blockchains makes upgrading cryptographic schemes especially challenging. Dormant wallets and legacy addresses may prove vulnerable, putting billions of dollars at risk if issuers fail to take action promptly.

Researchers highlight lattice-based and hash-based algorithms as viable ‘quantum-safe’ alternatives. Stablecoins built with crypto-agility, enabling seamless upgrades, will better adapt to new standards and avoid disruptive forks.

Regulators are also moving. NIST is finalising post-quantum cryptographic standards, and new rules will likely be established before 2030. Stablecoins that embed resilience today may set the global benchmark for digital trust in the quantum age.

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Trilateral quantum talks highlight innovation and security priorities

The United States, Japan, and South Korea held two Trilateral Quantum Cooperation meetings this week in Seoul and Tokyo. Officials and experts from government and industry gathered to discuss securing quantum ecosystems against cyber, physical, and intellectual property threats.

The US State Department stressed that joint efforts will ensure breakthroughs in quantum computing benefit citizens while safeguarding innovation. Officials said cooperation is essential as quantum technologies could reshape industries, global power balances, and economic prosperity.

The President of South Korea, Lee Jae Myung, described the partnership as entering a ‘golden era’, noting that Seoul, Washington, and Tokyo must work together both to address North Korea and to drive technological progress.

The talks come as Paul Dabbar, the former CEO of Bohr Quantum Technology, begins his role as US Deputy Secretary of Commerce. Dabbar brings experience in deploying emerging quantum network technologies to the new trilateral framework.

North Korea has also signalled interest in quantum computing for economic development. Analysts note that quantum’s lower energy demand compared to supercomputers could appeal to a country plagued by chronic power shortages.

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Conti and LockBit dominate ransomware landscape with record attacks

Ransomware groups have evolved into billion-dollar operations targeting critical infrastructure across multiple countries, employing increasingly sophisticated extortion schemes. Between 2020 and 2022, more than 865 documented attacks were recorded across Australia, Canada, New Zealand, and the UK.

Criminals have escalated from simple encryption to double and triple extortion, threatening to leak stolen data as added leverage. Attack vectors include phishing, botnets, and unpatched flaws. Once inside, attackers use stealthy tools to persist and spread.

BlackSuit, formerly known as Conti, led with 141 attacks, followed by LockBit’s 129, according to data from the Australian Institute of Criminology. Ransomware-as-a-Service groups hit higher volumes by splitting developers from affiliates handling breaches and negotiations.

Industrial targets bore the brunt, with 239 attacks on manufacturing and building products. The consumer goods, real estate, financial services, and technology sectors also featured prominently. Analysts note that industrial firms are often pressured into quick ransom payments to restore production.

Experts warn that today’s ransomware combines military-grade encryption with advanced reconnaissance and backup targeting, raising the stakes for defenders. The scale of activity underscores how resilient these groups remain, adapting rapidly to law enforcement crackdowns and shifting market opportunities.

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New ChatGPT feature enables multi-threaded chats

The US AI firm OpenAI has introduced a new ChatGPT feature that allows users to branch conversations into separate threads and explore different tones, styles, or directions without altering the original chat.

The update, rolled out on 5 September, is available to anyone logged into ChatGPT through the web version.

The branching tool lets users copy a conversation from a chosen point and continue in a new thread while preserving the earlier exchange.

Marketing teams, for example, could test formal, informal, or humorous versions of advertising content within parallel chats, avoiding the need to overwrite or restart a conversation.

OpenAI described the update as a response to user requests for greater flexibility. Many users had previously noted that a linear dialogue structure limited efficiency by forcing them to compare and copy content repeatedly.

Early reactions online have compared the new tool to Git, which enables software developers to branch and merge code.

The feature has been welcomed by ChatGPT users who are experimenting with brainstorming, project analysis, or layered problem-solving. Analysts suggest it also reduces cognitive load by allowing users to test multiple scenarios more naturally.

Alongside the update, OpenAI is working on other projects, including a new AI-powered jobs platform to connect workers and companies more effectively.

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