Digital business models

Digital assets set to double in portfolios

Investment institutions now allocate an average of 7% of their portfolios to digital assets, with projections indicating a rise to 16% within three years. Digital cash and tokenised equities or fixed income dominate, each comprising about 1% of portfolios.

Asset managers show greater exposure than asset owners, particularly in Bitcoin and Ethereum, with some even investing in smaller cryptocurrencies and NFTs.

Asset managers lead in adopting tokenised assets, holding 6% in public asset tokenisation and 5% in private assets, compared to just 1% and 2% for asset owners. Digital cash also sees higher adoption among managers at 7% versus 2% for owners.

Despite this, cryptocurrencies like Bitcoin and Ethereum drive the majority of returns, with 27% and 21% of respondents citing them as top performers, respectively.

Looking ahead, private assets are expected to lead the tokenisation trend, with most institutions anticipating digital assets will become mainstream within a decade. By 2030, over half of respondents expect 10-24% of investments in digital assets or tokenised instruments, showing cautious optimism.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Netherlands safeguards economic security through Nexperia intervention

The Dutch Minister of Economic Affairs has invoked the Goods Availability Act in response to serious governance issues at semiconductor manufacturer Nexperia.

The measure, announced on 30 September 2025, seeks to ensure the continued availability of the company’s products in the event of an emergency. Nexperia, headquartered in Nijmegen, will be allowed to maintain its normal production activities.

A decision that follows recent indications of significant management deficiencies and actions within Nexperia that could affect the safeguarding of vital technological knowledge and capacity in the Netherlands and across Europe.

Authorities view these capabilities as essential for economic security, as Nexperia supplies chips for the automotive sector and consumer electronics industries.

Under the order, the Minister of Economic Affairs may block or reverse company decisions considered harmful to Nexperia’s long-term stability or to the preservation of Europe’s semiconductor value chain.

The Netherlands government described the use of the Goods Availability Act as exceptional, citing the urgency and scale of the governance concerns.

Officials emphasised that the action applies only to Nexperia and does not target other companies, sectors, or countries. The decision may be contested through the courts.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft restores services after major outage

Microsoft users around the world faced major disruptions on Thursday after a network configuration error caused a temporary outage across Microsoft 365, Teams, Outlook and Azure. The issue interrupted access to core productivity tools in the middle of the US workday.

The misconfiguration affected data routing in the US but also caused interruptions in Europe, Africa and the Middle East. Microsoft said traffic rebalancing restored normal service after several hours of monitoring.

The outage briefly left businesses without access to Word, Excel, PowerPoint and OneDrive, creating frustration among workers reliant on Microsoft’s cloud ecosystem. Analysts noted the incident was minor compared with the widespread 2024 outage linked to CrowdStrike software.

By Thursday evening, Microsoft confirmed that all affected systems were stable and that a review was underway to prevent recurrence. The company said it remains committed to improving reliability across its global network infrastructure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Meta may bring Reels to the big screen with Instagram TV

Instagram is reportedly exploring plans to launch a dedicated TV app aimed at expanding its video reach across larger screens.

The move was revealed by CEO Adam Mosseri at the Bloomberg Screentime conference in Los Angeles, where he said that as consumption behaviour shifts toward TV, Instagram must follow.

Mosseri clarified that there’s no official launch yet, but that the company is actively considering how to present Instagram content, especially Reels, on TV devices in a compelling way.

He also ruled out plans to license live sports or Hollywood content for the TV app, emphasising Instagram would carry over its existing focus on short-form and vertical video rather than pivoting fully into full-length entertainment.

The proposed TV app would deepen Instagram’s stake in the video space and help it compete more directly with YouTube, TikTok and other video platforms, especially as users increasingly watch video content in living rooms.

However, translating vertical video formats like Reels to a horizontal, large-screen environment poses design, UX and monetisation challenges.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Google faces UK action over market dominance

Google faces new regulatory scrutiny in the UK after the competition watchdog designated it with strategic market status under a new digital markets law. The ruling could change how users select search engines and how Google ranks online content.

The Competition and Markets Authority said Google controls more than 90 percent of UK searches, giving it a position of unmatched influence. The designation enables the regulator to propose targeted measures to ensure fair competition, with consultations expected later in 2025.

Google argued that tighter restrictions could slow innovation, claiming its search tools contributed £118 billion to the UK economy in 2023. The company warned that new rules might hinder product development during rapid AI advancement.

The move adds to global scrutiny of the tech giant, which faces significant fines and court cases in the US and EU over advertising and app store practices. The CMA’s decision marks the first important use of its new powers to regulate digital platforms with strategic control.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Tariffs and AI top the agenda for US CEOs over the next three years

US CEOs prioritise cost reduction and AI integration amid global economic uncertainty. According to KPMG’s 2025 CEO Outlook, leaders are reshaping supply chains while preparing for rapid AI transformation over the next three years.

Tariffs are a key factor influencing business strategies, with 89% of US CEOs expecting significant operational impacts. Many are adjusting sourcing models, while 86% say they will increase prices where needed. Supply chain resilience remains the top short-term pressure for decision-making.

AI agents are seen as major game-changers. 84% of CEOs expect a native AI company to become a leading industry player within 3 years, displacing incumbents. Companies are accelerating investment returns, with most expecting payoffs within one to three years.

Cybersecurity is a significant concern alongside AI integration. Forty-six percent have increased spending on digital risk resilience, focusing on fraud prevention and data privacy. CEOs recognise that AI and quantum computing introduce both opportunities and new vulnerabilities.

Workforce transformation is a clear priority. Eighty-six percent plan to embed AI agents into teams next year, while 73% focus on retaining and retraining high-potential talent. Upskilling, governance, and organisational redesign are emerging as essential strategies.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Grok to get new AI video detection tools, Musk says

Musk said Grok will analyse bitstreams for AI signatures and scan the web to verify the origins of videos. Grok added that it will detect subtle AI artefacts in compression and generation patterns that humans cannot see.

AI tools such as Grok Imagine and Sora are reshaping the internet by making realistic video generation accessible to anyone. The rise of deepfakes has alarmed users, who warn that high-quality fake videos could soon be indistinguishable from real footage.

A user on X expressed concern that leaders are not addressing the growing risks. Elon Musk responded, revealing that his AI company xAI is developing Grok’s ability to detect AI-generated videos and trace their origins online.

The detection features aim to rebuild trust in digital media as AI-generated content spreads. Commentators have dubbed the flood of such content ‘AI slop’, raising concerns about misinformation and consent.

Concerns about deepfakes have grown since OpenAI launched the Sora app. A surge in deepfake content prompted OpenAI to tighten restrictions on cameo mode, allowing users to opt out of specific scenarios.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

AI tool accelerates immune cell analysis for researchers

Researchers at the University of Tokyo have created scHDeepInsight, an AI platform that quickly and reliably classifies immune cells from single-cell RNA data. The system turns genetic profiles into images and uses a hierarchy-aware CNN to identify broad immune types and finer subtypes.

By reflecting the natural structure of the immune system, the tool improves accuracy and consistency compared with previous methods.

scHDeepInsight uses hierarchical learning to mirror the immune system’s ‘family tree’ and image-based gene representation to capture complex gene relationships. It also includes built-in analytics to highlight key genes influencing cell behaviour.

The platform labels thousands of cells within minutes, a task that can take hours or days manually, and ensures rare cell populations are correctly identified through adjusted training processes.

While primarily a research tool, scHDeepInsight provides a healthy baseline for comparing disease-related immune changes, aiding studies in cancer, infections, and autoimmune conditions.

Researchers can apply it to patient samples to identify deviations from normal patterns, though clinical interpretation requires further validation. The system is already available as a downloadable package for laboratory use.

The team aims to expand scHDeepInsight to other biological areas, supporting clinical research and potentially discovering new cell types. Integrating AI with experimental validation, the tool aims to improve understanding of cellular systems and speed up immunology discoveries.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Google Cloud to power Gap Inc.’s digital transformation with AI

Gap Inc. has announced a multi-year partnership with Google Cloud to power its human-centred, digitally enabled technology strategy. The collaboration aims to accelerate AI adoption across the company’s brands, including Old Navy, Gap, Banana Republic, and Athleta.

The partnership will give Gap Inc. access to Google’s AI stack, including Gemini, Vertex AI, and BigQuery. These tools will drive innovation in product design, pricing, marketing, and employee workflows, improving efficiency and enabling faster, more personalised retail experiences.

AI tools will accelerate product development and planning, support hyper-personalised shopping, and optimise marketing through smarter recommendations and storytelling. Gap Inc. is also using Google Ads to strengthen its omnichannel campaigns through AI-driven optimisation.

For employees, AI will act as a partner in decision-making and execution, making operations more agile and freeing teams to focus on creativity and customer engagement. This shift reflects a broader redesign of workflows to embed AI across the business.

Gap Inc. CTO Sven Gerjets said the partnership will bring AI to life across the company. Google Cloud CEO Thomas Kurian described it as a step towards reinventing retail with speed, personalisation, and industry-leading experiences.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Malawi and Zambia join COMESA digital payment trials

The COMESA Clearing House (CCH) has reached a major milestone in its efforts to modernise regional trade, advancing its Digital Retail Payments Platform (DRPP) to user trials across Malawi and Zambia. The initiative, developed to simplify cross-border transactions using local currencies, aims to make payments faster, cheaper, and more accessible across the Common Market for Eastern and Southern Africa.

The latest phase involves two digital financial service providers and one foreign exchange provider, marking the successful transition from technical testing to real-world trials. Designed with inclusion and security in mind, the DRPP targets a wide range of users, from small businesses and informal traders to individual citizens, helping to remove long-standing barriers to regional commerce.

CCH has called on governments, financial institutions, and private-sector partners to join this pivotal stage of development, emphasising that collaboration is key to refining the system. Once fully operational, the platform will allow cross-border payments to function as seamlessly as domestic ones, fostering economic growth and trade integration across the region.

By combining innovation with financial cooperation, the COMESA Clearing House continues to build the foundation for a more connected and prosperous regional economy, one where inclusive, digital payments empower businesses and communities alike.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!