AI training with pirated books triggers massive legal risk

A US court has ruled that AI company Anthropic engaged in copyright infringement by downloading millions of pirated books to train its language model, Claude.

Although the court found that using copyrighted material for AI training could qualify as ‘fair use’ under US law when the content is transformed, it also held that acquiring the content illegally instead of licensing it lawfully constituted theft.

Judge William Alsup described AI as one of the most transformative technologies of our time. Still, he stated that Anthropic obtained millions of digital books from pirate sites such as LibGen and Pirate Library Mirror.

He noted that buying the same books later in print form does not erase the initial violation, though it may reduce potential damages.

The penalties for wilful copyright infringement in the US could reach up to $150,000 per work, meaning total compensation might run into the billions.

The case highlights the fine line between transformation and theft and signals growing legal pressure on AI firms to respect intellectual property instead of bypassing established licensing frameworks.

Australia, which uses a ‘fair dealing’ system rather than ‘fair use’, already offers flexible licensing schemes through organisations like the Copyright Agency.

CEO Josephine Johnston urged policymakers not to weaken Australia’s legal framework in favour of global tech companies, arguing that licensing provides certainty for developers and fair payment to content creators.

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New NHS plan adds AI to protect patient safety

The NHS is set to introduce a world-first AI system to detect patient safety risks early by analysing hospital data for warning signs of deaths, injuries, or abuse.

Instead of waiting for patterns to emerge through traditional oversight, the AI will use near real-time data to trigger alerts and launch rapid inspections.

Health Secretary Wes Streeting announced that a new maternity-focused AI tool will roll out across NHS trusts in November. It will monitor stillbirths, brain injuries and death rates, helping identify issues before they become scandals.

The initiative forms part of a new 10-year plan to modernise the health service and move it from analogue to digital care.

The technology will send alerts to the Care Quality Commission, whose teams will investigate flagged cases. Professor Meghana Pandit, NHS England’s medical director, said the UK would become the first country to trial this AI-enabled early warning system to improve patient care.

CQC chief Sir Julian Hartley added it would strengthen quality monitoring across services.

However, nursing leaders voiced concerns that AI could distract from more urgent needs. Professor Nicola Ranger of the Royal College of Nursing warned that low staffing levels remain a critical issue.

She stressed that one nurse often handles too many patients, and technology should not replace the essential investment in frontline staff.

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Nvidia insiders sell over $1bn in shares amid AI market boom

Senior Nvidia executives have sold more than $1bn worth of shares over the past year, with over half of those sales taking place in June.

The move comes as Nvidia’s stock soared to record highs, driven by renewed investor enthusiasm for AI. According to the Financial Times, insiders took advantage of the AI-driven rally instead of waiting for further market shifts.

Among those selling shares was Nvidia CEO Jensen Huang, who offloaded stock for the first time since September, as revealed in recent regulatory filings.

The surge in share price helped the company briefly reclaim its title as the world’s most valuable firm, following upbeat forecasts from analysts predicting Nvidia will ride a ‘Golden Wave’ of AI growth.

Nvidia’s stock has recovered more than 60% since early April, when markets were rattled by President Donald Trump’s global tariff plans.

The rebound reflects optimism that upcoming trade negotiations may soften the economic blow and keep momentum behind tech and AI-focused firms.

Nvidia declined to comment on the report.

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Sam Altman reverses his stance on AI hardware as current computers can’t meet the demands

Sam Altman, CEO of OpenAI, has returned from his earlier position, saying that AGI would not need new hardware.

Speaking on a podcast with his brother, Altman said current computers are no longer suited for the fast-evolving demands of AI. Instead of relying on standard hardware, he now believes new solutions are necessary.

OpenAI has already started developing dedicated AI hardware, including potential custom chips, marking a shift from using general-purpose GPUs and servers.

Altman also hinted at a new device — not a wearable, nor a phone — that could serve as an AI companion. Designed to be screen-free and aware of its surroundings, the product is being co-developed with former Apple design chief Jony Ive.

The collaboration, however, has run into legal trouble. A federal judge recently ordered OpenAI and Ive to pause the promotion of the new venture after a trademark dispute with a startup named IYO, which had previously pitched similar ideas to Altman’s investment firm.

OpenAI’s recent $6.5 billion acquisition of io Products, co-founded by Ive, reflects the company’s more profound commitment to reshaping how people interact with AI.

Altman’s revised stance on hardware suggests the era of purpose-built AI devices is no longer a vision but a necessary reality.

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Cybercrime surge hits airlines across North America

According to the FBI and cybersecurity experts, a well-known cybercrime group has launched fresh attacks on the airline industry, successfully breaching the networks of several airlines in the US and Canada.

The hackers, identified as ‘Scattered Spider’, are known for aggressive extortion tactics and are now shifting their focus to aviation instead of insurance or retail, their previous targets.

Airline security teams remain on high alert despite no flights or operations being disrupted. Hawaiian Airlines and Canada’s WestJet have acknowledged recent cyber incidents, while sources suggest more affected companies may step forward soon.

Both airlines reported no impact on day-to-day services, likely due to solid internal defences and continuity planning.

The attackers often exploit help desks by impersonating employees or customers to access corporate systems. Experts warn that airline call centres are especially vulnerable, given their importance to customer support.

Cybersecurity firms, including Mandiant, are now supporting the response and advising firms to reinforce these high-risk entry points.

Scattered Spider has previously breached major casinos, insurance, and retail companies. The FBI confirmed it is working with aviation partners to contain the threat and assist victims.

Industry leaders remain alert, noting that airlines, IT contractors, and vendors across the aviation sector are at risk from the escalating threat.

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Hacktivist attacks surge in Iran–Israel tensions

The Iran–Israel conflict has now expanded into cyberspace, with rival hacker groups launching waves of politically driven attacks.

Following Israel’s military operation against Iran, pro-Israeli hackers known as ‘Predatory Sparrow‘ struck Iran’s Sepah Bank, deleting data and causing significant service disruption.

A day later, the same group targeted Nobitex, Iran’s largest crypto exchange, stealing and destroying over $90 million in assets.

Cyber attacks intensified in the days before and after Israeli strikes. According to NSFOCUS, cyberattacks on Iran peaked three days before the military operation, suggesting pre-attack reconnaissance.

In retaliation, pro-Iranian hackers escalated attacks on Israel on 16 June, focusing on government systems, aerospace, and education.

While attacks on Iran have been fewer, Israeli systems have faced over 1,300 attacks in 2025 alone, with 37% of all global hacktivist activity aimed at Israel since the conflict began.

However, analysts note these attacks have been high in volume but limited in impact. Their malware tactics involve evading antivirus software, deleting data, and turning off recovery systems.

NSFOCUS warns that geopolitical tensions are turning hacktivist groups into informal cyber proxies. Though not formally state-backed, these loosely organised actors align closely with national interests.

As traditional defences lag, cybersecurity experts argue that national infrastructure must adopt more strategic, coordinated defence measures instead of fragmented responses, especially during crises and conflicts.

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Google Doppl, the new AI app, turns outfit photos into try-on videos

Google has unveiled Doppl, a new AI-powered app that lets users create short videos of themselves wearing any outfit they choose.

Instead of relying on imagination or guesswork, Doppl allows people to upload full-body photos and apply outfits seen on social media, thrift shops, or friends, creating animated try-ons that bring static images to life.

The app builds on Google’s earlier virtual try-on tools integrated with its Shopping Graph. Doppl pushes things further by transforming still photos into motion videos, showing how clothes flow and fit in movement.

Users can upload their full-body image or choose an AI model to preview outfits. However, Google warns that the fit and details might not always be accurate at an early stage.

Doppl is currently only available in the US for Android and iOS users aged 18 or older. While Google encourages sharing videos with friends and followers, the tool raises concerns about misuse, such as generating content using photos of others.

Google’s policy requires disclosure if someone impersonates another person, but the company admits that some abuse may occur. To address the issue, Doppl content will include invisible watermarks for tracking.

In its privacy notice, Google confirmed that user uploads and generated videos will be used to improve AI technologies and services. However, data will be anonymised and separated from user accounts before any human review is allowed.

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Dutch government to build AI plant with €70 million pledge

The Dutch government has pledged €70 million to build a new AI facility in Groningen to establish a European hub for AI research and development.

A consortium of Dutch organisations will manage the plant and focus on healthcare, agriculture, defence and energy applications.

The government is also seeking an additional €70 million in EU co-financing and has welcomed a separate €60 million contribution from the Groningen regional administration.

The plant is expected to be commissioned in 2026 and reach operation by early 2027 if funding is secured.

Minister of Economic Affairs Vincent Karremans emphasised the need to develop domestic AI capacity, warning that dependence on foreign technologies could threaten national competitiveness and digital independence.

‘Those who do not develop the technology themselves depend on others, ’ Karremans said on the government’s website.

European countries have grown increasingly concerned over their reliance on AI technologies developed by US companies.

The Groningen initiative marks a broader effort by the EU to build its own AI infrastructure instead of leaving strategic control in foreign hands.

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Gartner warns that more than 40 percent of agentic AI projects could be cancelled by 2027

More than 40% of agentic AI projects will likely be cancelled by the end of 2027 due to rising costs, limited business value, and poor risk control, according to research firm Gartner.

These cancellations are expected as many early-stage initiatives remain trapped in hype, often misapplied and far from ready for real-world deployment.

Gartner analyst Anushree Verma warned that most agentic AI efforts are still at the proof-of-concept stage. Instead of focusing on scalable production, many companies have been distracted by experimental use cases, underestimating the cost and complexity of full-scale implementation.

A recent poll by Gartner found that only 19% of organisations had made significant investments in agentic AI, while 31% were undecided or waiting.

Much of the current hype is fuelled by vendors engaging in ‘agent washing’ — marketing existing tools like chatbots or RPA under a new agentic label without offering true agentic capabilities.

Out of thousands of vendors, Gartner believes only around 130 offer legitimate agentic solutions. Verma noted that most agentic models today lack the intelligence to deliver strong returns or follow complex instructions independently.

Still, agentic AI holds long-term promise. Gartner expects 15% of daily workplace decisions to be handled autonomously by 2028, up from zero in 2024. Moreover, one-third of enterprise applications will include agentic capabilities by then.

However, to succeed, organisations must reimagine workflows from the ground up, focusing on enterprise-wide productivity instead of isolated task automation.

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Path forward for global digital cooperation debated at IGF 2025

At the 20th Internet Governance Forum (IGF) in Lillestrøm, Norway, policymakers, civil society, and digital stakeholders gathered to chart the future of global internet governance through the WSIS+20 review. With a high-level UN General Assembly meeting scheduled for December, co-facilitators from Kenya and Albania emphasised the need to update the World Summit on the Information Society (WSIS) framework while preserving its original, people-centred vision.

They underscored the importance of inclusive consultations, highlighting a new multistakeholder sounding board and upcoming joint sessions to enhance dialogue between governments and broader communities. The conversation revolved around the evolving digital landscape and how WSIS can adapt to emerging technologies like AI, data governance, and digital public infrastructure.

While some participants favoured WSIS as the primary global framework, others advocated for closer synergy with the Global Digital Compact (GDC), stressing the importance of coordination to avoid institutional duplication. Despite varied views, there was widespread consensus that the existing WSIS action lines, being technology-neutral, can remain relevant by accommodating new innovations.

Speakers from the government, private sector, and civil society reiterated the call to permanently secure the IGF’s mandate, praising its unique ability to foster open, inclusive dialogue without the pressure of binding negotiations. They pointed to IGF’s historical success in boosting internet connectivity and called for more tangible outputs to influence policymaking.

National-level participation, especially from developing countries, women, youth, and marginalised communities, was identified as crucial for meaningful engagement.

The session ended on a hopeful note, with participants expressing a shared commitment to a more inclusive and equitable digital future. As the December deadline looms, the global community faces the task of turning shared principles into concrete action, ensuring digital governance mechanisms remain cooperative, adaptable, and genuinely representative of all voices.

Track all key moments from the Internet Governance Forum 2025 on our dedicated IGF page.