Digital business models

Digital twins gain momentum through AI

AI is accelerating the creation of digital twins by reducing the time and labour required to build complex models. Consulting firm McKinsey says specialised virtual replicas can take six months or more to develop, but generative AI tools can now automate much of the coding process.

McKinsey analysts say AI can structure inputs and synthesise outputs for these simulations, while the models provide safe testing environments for AI systems. Together, the technologies can reduce costs, shorten development cycles, and accelerate deployment.

Quantum Elements, a startup backed by QNDL Participations and the USC Viterbi School of Engineering, is applying this approach to quantum computing. Its Constellation platform combines AI agents, natural language tools, and simulation software.

The company says quantum systems are hard to model because qubits behave differently across hardware types such as superconducting circuits, trapped ions, and photonics. These variations affect stability, error rates, and performance.

By using digital twins, developers can test algorithms, simulate noise, and evaluate error correction without building physical hardware. Quantum Elements says this can cut testing time from months to minutes.

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Patients notified months after Canopy Healthcare cyber incident

Canopy Healthcare, one of New Zealand’s largest private medical oncology providers, has disclosed a data breach affecting patient and staff information, six months after the incident occurred.

The company said an unauthorised party accessed part of its administration systems on 18 July 2025, copying a ‘small’ amount of data. Affected information may include patient records, passport details, and some bank account numbers.

Canopy said it remains unclear exactly which individuals were impacted and what data was taken, adding that no evidence has emerged of the information being shared or published online.

Patients began receiving notifications in December 2025, prompting criticism over the delay. One affected patient said they were unhappy to learn about the breach months after it happened.

The New Zealand company said it notified police and the Privacy Commissioner at the time, secured a High Court injunction to prevent misuse of the data, and confirmed that its medical services continue to operate normally.

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Taiwan aims to train 500,000 AI professionals

Taiwan aims to train 500,000 AI professionals by 2040, backed by a NT$100 billion (US$31.6 billion) government venture fund. President Lai Ching-te announced the 2026 AI talent forum in Taipei.

The government’s 10-year AI plan includes a national computing centre and the development of technologies such as silicon photonics, quantum computing, and robotics. President Lai said that national competitiveness depends on both chipmaking and citizens’ ability to utilise AI across various disciplines.

To achieve these goals, AI training courses are being introduced for public sector employees, and students are being encouraged to acquire AI skills. The initiative aims to foster cooperation between government, industry, and academia to drive economic transformation.

With a larger pool of AI professionals, Taiwan hopes to help small and medium-sized enterprises accelerate digital upgrades, enhance innovation, and strengthen the nation’s global competitiveness in emerging technologies.

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Tuya unveils AI-powered pet companion Aura

Tuya Smart has unveiled Aura, its first AI-powered pet companion robot, at CES 2026. Designed to support pets’ emotional well-being, Aura monitors behaviour and vocal cues to help owners understand their pets’ moods in real time.

Aura combines interactive play, treat dispensing, voice communication, and expressive animated eyes with autonomous home navigation. It captures memorable moments with AI-powered photography and generates short videos, allowing owners to stay connected even when away.

The robot connects to Tuya’s developer ecosystem and local pet services, offering boarding, grooming, medical support, behaviour training, and community engagement. By merging companionship with practical services, Aura represents a new class of AI devices integrated into daily life.

Tuya’s launch of Aura demonstrates the company’s leadership in AI and robotics innovation. The robot sets the stage for future applications in home service robotics, emotional support, and elder or family care, highlighting a vision for AI-driven living.

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UK considers regulatory action after Grok’s deepfake images on X

UK Prime Minister Keir Starmer is consulting Canada and Australia on a coordinated response to concerns surrounding social media platform X, after its AI assistant Grok was used to generate sexualised deepfake images of women and children.

The discussions focus on shared regulatory approaches rather than immediate bans.

X acknowledged weaknesses in its AI safeguards and limited image generation to paying users. Lawmakers in several countries have stated that further regulatory scrutiny may be required, while Canada has clarified that no prohibition is currently under consideration, despite concerns over platform responsibility.

In the UK, media regulator Ofcom is examining potential breaches of online safety obligations. Technology secretary Liz Kendall confirmed that enforcement mechanisms remain available if legal requirements are not met.

Australian Prime Minister Anthony Albanese also raised broader concerns about social responsibility in the use of generative AI.

X owner Elon Musk rejected accusations of non-compliance, describing potential restrictions as censorship and suppression of free speech.

European authorities requested the preservation of internal records for possible investigations, while Indonesia and Malaysia have already blocked access to the platform.

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Google brings AI to personalised shopping

Google is working with major retailers to use AI in guiding customers from product discovery to checkout. The company has launched the Universal Commerce Protocol, an open standard for seamless agentic commerce that keeps retailers in control of customer relationships.

The Universal Commerce Protocol works with existing systems and partners, including Shopify, Etsy, Wayfair, Target, and Walmart.

Customers can receive personalised offers, loyalty rewards, and recommendations in Google Search or Gemini, completing purchases via Google Pay without leaving the platform.

To support retailers, Google has launched Gemini Enterprise for Customer Experience, which unifies search, commerce, and service touchpoints across all channels.

Early partners, such as The Home Depot and McDonald’s, are already utilising AI-powered agents to enhance service, provide proactive recommendations, and improve customer engagement.

Logistics also feature prominently, with Wing expanding delivery capabilities alongside Walmart, doubling operations in existing markets, and rolling out to Houston, Orlando, Tampa, Charlotte, and other cities.

Google aims to create an end-to-end shopping ecosystem where AI, agentic protocols, and seamless delivery elevate both customer and retailer experiences.

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Google removes AI health summaries after safety concerns

Google removed some AI health summaries after a Guardian investigation found they gave misleading and potentially dangerous information. The AI Overviews contained inaccurate liver test data, potentially leading patients to believe they were healthy falsely.

Experts have criticised AI Overviews for oversimplifying complex medical topics, ignoring essential factors such as age, sex, and ethnicity. Charities have warned that misleading AI content could deter people from seeking medical care and erode trust in online health information.

Google removed AI Overviews for some queries, but concerns remain over cancer and mental health summaries that may still be inaccurate or unsafe. Professionals emphasise that AI tools must direct users to reliable sources and advise seeking expert medical input.

The company stated it is reviewing flagged examples and making broad improvements, but experts insist that more comprehensive oversight is needed to prevent AI from dispensing harmful health misinformation.

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India mandates live identity checks for crypto users

India’s Financial Intelligence Unit has tightened crypto compliance, requiring live identity checks, location verification, and stronger Client Due Diligence. The measures aim to prevent money laundering, terrorist financing, and misuse of digital asset services.

Crypto platforms must now collect multiple identifiers from users, including IP addresses, device IDs, wallet addresses, transaction hashes, and timestamps.

Verification also requires users to provide a Permanent Account Number and a secondary ID, such as a passport, Aadhaar, or voter ID, alongside OTP confirmation for email and phone numbers.

Bank accounts must be validated via a penny-drop mechanism to confirm ownership and operational status.

Enhanced due diligence will apply to high-risk transactions and relationships, particularly those involving users from designated high-risk jurisdictions and tax havens. Platforms must monitor red flags and apply extra scrutiny to comply with the new guidelines.

Industry experts have welcomed the updated rules, describing them as a positive step for India’s crypto ecosystem. The measures are viewed as enhancing transparency, protecting users, and aligning the sector with global anti-money laundering standards.

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Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

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AI race shows diverging paths for China and the US

The US administration’s new AI action plan frames global development as an AI race with a single winner. Officials argue AI dominance brings economic, military, and geopolitical advantages. Experts say competition is unfolding across multiple domains.

The United States continues to lead in the development of advanced large language and multimodal models by firms such as OpenAI, Google, and Anthropic. American companies also dominate global computing infrastructure. Control over high-end AI chips and data-centre capacity remains concentrated in US firms.

Chinese companies are narrowing the gap in the practical applications of AI. Models from Alibaba, DeepSeek, and Moonshot AI perform well in tasks such as translation, coding, and customer service. Performance at the cutting edge still lags behind US systems.

Washington’s decision to allow limited exports of Nvidia’s H200 AI chips to China reflects a belief that controlled sales can preserve US leadership. Critics argue the move risks weakening America’s computing advantage. Concerns persist over long-term strategic consequences.

Rather than a decisive victory for either side in the AI race, analysts foresee an era of asymmetric competition in AI. The United States may dominate advanced AI services, but China is expected to lead in large-scale industrial deployment within the evolving AI race.

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