Digital business models Archives | Digital Watch Observatory

YouTube expands AI deepfake detection tools for celebrities

The expansion of its likeness detection technology to the entertainment industry has been announced by YouTube, extending access beyond content creators to talent agencies, management companies and the individuals they represent.

The move is part of a broader effort by the platform to address the growing misuse of AI to generate misleading or unauthorised videos of public figures. By extending the tool to entertainment industry stakeholders, YouTube is signalling that AI-driven impersonation is no longer treated as a niche creator issue but as a broader identity and rights problem.

The system works in a way broadly comparable to Content ID, allowing eligible users to identify videos that use AI to replicate a person’s face or likeness. Once such content is detected, individuals can request its removal through YouTube’s existing privacy complaint process.

The rollout has been developed with input from major industry players, including Creative Artists Agency, United Talent Agency, William Morris Endeavor, and Untitled Management. Those partnerships are intended to help YouTube refine how the system works in practice and ensure it reflects the needs of artists and rights holders dealing with synthetic media.

Importantly, access to the tool is not limited to people who actively run YouTube channels. Celebrities and public figures can use it even without a direct creator presence on the platform, extending its reach across a much broader part of the entertainment ecosystem.

The significance of the update lies in how platforms are beginning to treat AI impersonation as a governance issue rather than merely a content-moderation problem.

As synthetic media tools become easier to use and more convincing, technology companies are under growing pressure to provide faster and more credible mechanisms for detecting misuse, protecting identity rights, and limiting deceptive content.

YouTube’s latest move shows that platform responses are becoming more structured and rights-based, especially in sectors where a person’s likeness is closely tied to reputation, image, and commercial value. The bigger question now is whether such tools will prove effective enough to keep pace with the scale and speed of AI-generated impersonation online.

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Australian regulator highlights rising AI use across various industries

The Australian Communications and Media Authority reports that AI use is accelerating across telecommunications, media and online gambling sectors. The findings highlight growing adoption alongside increasing complexity in how the technology is applied.

According to the Authority, AI is being used in media to personalise advertising and streamline content production. However, concerns have been raised about misinformation risks and the use of copyrighted material.

In the gambling sector, AI supports predictive analytics, promotions and detection of harmful behaviour, while telecommunications companies use it to improve efficiency, detect scams and strengthen network resilience.

The Authority states that despite efficiency gains, stakeholders are calling for stronger governance, transparency and safeguards as AI adoption expands in Australia.

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UK regulator selects firms for second cohort of AI testing programme in financial services

The Financial Conduct Authority (FCA) has selected eight firms to join the second cohort of its AI Live Testing programme, with trials beginning in April 2026. The announcement was made at UK FinTech Week.

The initiative allows participants to test AI applications under regulatory oversight, with a focus on risk management and live monitoring. FCA is working with AI assurance specialist Advai to support the deployment of systems across financial markets.

Jessica Rusu, chief data, information and intelligence officer at FCA, said the programme reflects collaboration between regulators and industry. She added that FCA continues to work with firms to support the safe and responsible development of AI in UK financial markets.

The second cohort includes Barclays, Experian, Lloyds Banking Group, UBS, Aereve, Coadjute, GoCardless and Palindrome. FCA noted that use cases include targeted investment support, credit scoring insights, anti-money laundering detection and agentic payments.

FCA will also use the programme to examine emerging concepts, such as targeted support, a lighter-touch regulatory category aimed at addressing the UK’s advice gap. It reported that applications to its innovation services, including the Regulatory Sandbox and Innovation Pathways, increased by 49 percent year on year. A report on AI adoption practices is expected later in 2026, with a full evaluation of the cohort due in 2027.

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EU launches protected data register

The European Commission has introduced a European Register of protected data to improve access to public sector information. The initiative is presented through the data.europa.eu platform as part of wider data-sharing efforts.

According to the Commission, the register provides a central point for discovering protected data held by public authorities. It is designed to make such datasets more visible and easier to locate.

The platform helps users identify conditions under which protected data can be accessed and reused. This includes guidance on legal and technical requirements linked to sensitive datasets.

The European Commission states that the register aims to strengthen transparency and data-driven innovation while supporting access to public sector information across the European Union.

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Saudi Arabia pilots global blueprint for quantum economy development

Saudi Arabia has become the first country to pilot the World Economic Forum’s Quantum Economy Blueprint, applying a global strategic framework to its national innovation agenda.

The initiative, led by the Centre for the Fourth Industrial Revolution Saudi Arabia, aims to align emerging quantum technologies with the long-term development goals outlined in Vision 2030.

The pilot, based on analysis of 24 national quantum strategies and input from global organisations, translated theoretical guidance into practical policy workstreams.

It highlighted how quantum initiatives gain stronger traction when embedded within broader national priorities, such as economic diversification and technological leadership, rather than being treated as isolated research efforts.

Five key lessons emerged from the exercise. These include the importance of linking research to commercial applications, ensuring flexible access to quantum hardware through partnerships and cloud systems, and building strong collaboration between government, academia, and industry.

The findings also underline that talent development is central to competitiveness, extending beyond scientists to engineers, policymakers, and business specialists.

The experience suggests that countries do not need full ownership of quantum infrastructure to participate in the sector, but can instead rely on strategic access models and ecosystem cooperation.

Saudi Arabia’s pilot demonstrates how global frameworks can be adapted into national action, offering a model for other countries developing their quantum strategies.

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DIFC unveils plan to build ‘AI-native’ financial centre in Dubai

Dubai International Financial Centre has announced plans to become what it describes as the world’s first ‘AI-native’ financial centre, embedding AI into regulation, business operations, and physical infrastructure rather than treating it as a stand-alone tool.

The initiative is being presented as a broader redesign of how a financial centre functions. Instead of limiting AI to back-office support or isolated digital services, DIFC says it wants AI to shape legal frameworks, compliance processes, client management, and the wider operation of the financial ecosystem.

The plan builds on DIFC’s longer-term AI strategy, launched in 2023 and already tied to changes in data governance and the centre’s wider innovation agenda.

According to DIFC, AI is already being used in areas such as compliance and client services, with further expansion planned across financial workflows, supervisory processes, and institutional decision-making.

DIFC also says the initiative will be supported by a broader ecosystem designed to attract investment, talent, and experimentation. That includes training programmes, venture support, accelerators, and the continued development of its AI-focused innovation infrastructure. The aim is not only to encourage firms to use AI, but to make Dubai a base for building and scaling AI-driven financial services.

The project also extends beyond software and regulation. DIFC says physical infrastructure will evolve alongside digital systems, with plans linked to smart buildings, robotics, autonomous mobility, and digital twins by the end of the decade.

That gives the announcement a broader urban and economic dimension, positioning AI as part of the district’s future design rather than simply a tool used by firms within it.

The broader significance of the move lies in how Dubai is trying to position itself in the global race to shape AI in finance. Rather than focusing only on innovation-friendly rhetoric, DIFC is presenting regulation, infrastructure, skills, and ecosystem-building as part of a single strategy.

If realised in practice, that could strengthen Dubai’s role as a hub for AI-driven financial services and as a testing ground for new governance models.

At the same time, the claim to be the world’s first ‘AI-native’ financial centre should be understood as DIFC’s own description of the project, rather than an independently established category.

The more solid story is that Dubai is trying to make AI part of the operating logic of a financial centre itself, using policy, infrastructure, and investment to support that ambition.

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UK invests £500 million in Sovereign AI fund to boost startups

The UK government has launched a £500 million Sovereign AI initiative to support domestic startups, aiming to strengthen national capabilities and reduce reliance on foreign technology providers.

The programme is designed to help companies start, scale and compete globally while remaining rooted in Britain.

An initiative that combines direct investment with broader support, including fast-track visas, access to high-performance computing and assistance in navigating regulation and procurement.

Early backers target firms working on advanced AI infrastructure, life sciences and next-generation computing, reflecting a strategic focus on sectors with long-term economic and security implications.

A central feature is access to national supercomputing resources, addressing one of the most significant barriers to AI development.

By providing large-scale compute capacity and linking it to potential future investment, the programme aims to accelerate research, testing and deployment within the UK ecosystem.

Essentially, the policy signals a shift toward a more interventionist approach, positioning the state as an active investor rather than a passive regulator.

The objective is to anchor innovation domestically, ensuring that intellectual property, talent and economic value remain within the UK as global competition in AI intensifies.

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OpenAI accelerates life sciences research with a new specialised model

OpenAI has launched GPT-Rosalind, a purpose-built model. It is designed to support complex workflows in biology, drug discovery and translational medicine.

A system that focuses on improving reasoning across scientific domains, enabling researchers to process large volumes of data, literature and experimental inputs more efficiently.

The model is engineered to assist with early-stage discovery, where improvements can significantly influence downstream outcomes.

By supporting hypothesis generation, evidence synthesis and experimental design, GPT-Rosalind aims to streamline fragmented research processes that often slow scientific progress.

Integration with specialised tools and access to more than 50 scientific databases enable the new OpenAI model to operate across multi-step workflows.

Why does it matter?

Early evaluations indicate stronger performance in areas such as protein analysis, genomics and chemical reasoning, alongside improved capability in selecting and using domain-specific tools.

Access is currently limited through a controlled deployment framework, ensuring use within governed research environments.

Partnerships with organisations including Amgen and Moderna reflect a broader effort to apply AI to real-world scientific challenges while maintaining safeguards and oversight.

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New India partnership targets AI innovation and digital transformation

Broadcast Engineering Consultants India Limited (BECIL) and the Centre for Development of Advanced Computing (C-DAC) have signed a Memorandum of Understanding to collaborate on advanced technologies and digital transformation. The agreement focuses on joint projects, consultancy, and technical support across sectors.

The partnership covers AI, machine learning, Internet of Things, cybersecurity, 5G, and cloud computing. It also includes the development of turnkey solutions, technology transfer, and the commercialisation of innovative products.

Capacity development is a key component of the collaboration. Both organisations will support workforce upskilling and skill development to strengthen technical capabilities.

Officials stated that the partnership aims to leverage complementary strengths to deliver technology solutions. It is also expected to support innovation and contribute to India’s broader digital development objectives.

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Software sector faces AI disruption

An analysis from Goodbody Stockbrokers UC suggests that generative AI is reshaping the technology sector, raising questions about the long-term outlook for software as a service models. The report highlights shifting investor sentiment towards software companies.

According to Goodbody Stockbrokers UC, increased AI investment by major technology firms is driving demand for infrastructure and data processing, while also changing how software is developed and used. This shift is influencing spending patterns across the sector.

The report notes that software services have recently underperformed, particularly in the UK and Europe, due to weaker demand, pricing pressure and longer sales cycles. These trends reflect broader uncertainty as AI adoption accelerates.

Goodbody Stockbrokers UC indicates that AI is creating both disruption and opportunity, with the sector adapting to new technology layers and investment priorities as the industry evolves globally.

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