Digital business models Archives | Page 295 of 564

Moflin, Japan’s AI-powered robot pet with a personality

A fluffy, AI-powered robot pet named Moflin is capturing the imagination of consumers in Japan with its unique ability to develop distinct personalities based on how it is ‘raised.’ Developed by Casio, Moflin recognises its owner and learns their preferences through interactions such as cuddling and stroking, boasting over four million possible personality variations.

Priced at ¥59,400, Moflin has become more than just a companion at home, with some owners even taking it along on day trips. To complement the experience, Casio offers additional services, including a specialised salon to clean and maintain the robot’s fur, further enhancing its pet-like feel.

Erina Ichikawa, the lead developer, says the aim was to create a supportive sidekick capable of providing comfort during challenging moments, blending technology with emotional connection in a new way.

A similar ‘pet’ was also seen in China. Namely, AI-powered ‘smart pets’ like BooBoo are gaining popularity in China, especially among youth, offering emotional support and companionship. Valued for easing anxiety and isolation, the market is set to reach $42.5 billion by 2033, reflecting shifting social and family dynamics.

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Creative industries raise concerns over the EU AI Act

Organisations representing creative sectors have issued a joint statement expressing concerns over the current implementation of the EU AI Act, particularly its provisions for general-purpose AI systems.

The response focuses on recent documents, including the General Purpose AI Code of Practice, accompanying guidelines, and the template for training data disclosure under Article 53.

The signatories, drawn from music and broader creative industries, said they had engaged extensively throughout the consultation process. They now argue that the outcomes do not fully reflect the issues raised during those discussions.

According to the statement, the result does not provide the level of intellectual property protection that some had expected from the regulation.

The group has called on the European Commission to reconsider the implementation package and is encouraging the European Parliament and member states to review the process.

The original EU AI Act was widely acknowledged as a landmark regulation, with technology firms and creative industries closely watching its rollout across member countries.

Google confirmed that it will sign the General Purpose Code of Practice elsewhere. The company said the latest version supports Europe’s broader innovation goals more effectively than earlier drafts, but it also noted ongoing concerns.

These include the potential impact of specific requirements on competitiveness and handling trade secrets.

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Apple’s quiet race to replace Google Search with its own AI

Apple occasionally seems out of step with public sentiment, particularly when it comes to AI. A revealing example, highlighted by Bloomberg’s Mark Gurman in his Power On newsletter, involves Apple’s initial reluctance to build a ChatGPT-style chatbot for the iPhone.

Engineers within Apple’s AI division reportedly concluded that creating such a chatbot was unnecessary. Executives in both software and marketing agreed, suggesting there was only limited consumer interest in these tools.

However, chatbots have already demonstrated strong capabilities in answering user queries—something Siri still struggles with. While Siri can manage simple phone tasks, such as setting timers and alarms, it falls short in terms of the depth and accuracy of modern generative AI models.

Currently, Siri can redirect questions to ChatGPT, but only with user consent on a case-by-case basis. The responses, however, are brief and lack the detail found in the standalone ChatGPT app.

For richer answers, users are better off installing ChatGPT or Google’s Gemini directly. Siri’s limited integration does not extend to older models, such as the iPhone 15 or 15 Plus, which lack Apple Intelligence.

Users of these devices are strongly encouraged to install the AI apps manually for a more capable assistant experience. AI is also transforming search. Apple Services chief Eddy Cue has acknowledged that AI-driven search is the future.

Nonetheless, Apple remains financially bound to Google, which pays approximately $20 billion annually to be the default search engine on Apple devices. The US Department of Justice may soon intervene, potentially disrupting a partnership crucial to the growth of Apple’s Services division.

In a bid to modernise its search experience, Apple is developing its answer engine through an internal team known as AKI (Answers, Knowledge and Information).

The goal is to build a web-crawling system capable of delivering accurate responses to general knowledge queries, similar to what ChatGPT offers. Apple is considering deploying this answer engine not only within Siri but also across Spotlight and Safari.

A standalone app may also be developed to complement these efforts. Apple has also shown interest in external AI tools, such as Perplexity. Its iOS app, boasting a near-perfect rating from almost 230,000 reviews, promises clear, up-to-date answers, a long-time demand from users frustrated with Siri’s limitations.

The success of Apple’s in-house AI search project will be closely watched. Many iPhone users are hopeful that the next wave of AI tools will finally deliver the intelligence and responsiveness long expected from Apple’s digital assistant.

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Largest Bitcoin transactions in history spark quantum security talk

Eight long-dormant Bitcoin wallets from the early days of the network moved a combined 80,000 BTC in early July 2025. Each wallet sent roughly 10,000 BTC to new SegWit addresses, which offer enhanced security against future quantum computing threats.

These transfers mark the most significant single Bitcoin transactions ever recorded, attracting intense speculation across the crypto community.

Shortly after the transfer, around 28,600 BTC were sent to Galaxy Digital, with about 9,000 BTC sold, likely contributing to a 5% price drop from Bitcoin’s recent all-time high of $123,000.

Experts believe the security upgrade was a precaution against quantum computing risks, threatening Bitcoin’s cryptographic foundations in the coming decades. Developers are working on proposals to protect vulnerable wallets and strengthen network security.

Blockchain analysis shows all eight wallets belong to one entity, with some suspecting Roger Ver, aka ‘Bitcoin Jesus,’ because of his early role and recent legal troubles. Around that time, OP_RETURN messages appeared on the blockchain, possibly a spam campaign pressuring the wallet owner to prove control.

While no evidence of hacking has emerged, these events have heightened attention on dormant Bitcoin holdings and quantum security.

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AI breaches push data leak costs to new heights despite global decline

IBM’s 2025 Cost of a Data Breach Report revealed a sharp gap between rapid AI adoption and the oversight needed to secure it.

Although the global average data breach cost fell slightly to $4.44 million, security incidents involving AI systems remain more severe and disruptive.

Around 13% of organisations reported breaches involving AI models or applications, while 8% were unsure whether they had been compromised.

Alarmingly, nearly all AI-related breaches occurred without access controls, leading to data leaks in 60% of cases and operational disruption in almost one-third. Shadow AI (unsanctioned or unmanaged systems) played a central role, with one in five breaches traced back to it.

Organisations without AI governance policies or detection systems faced significantly higher costs, especially when personally identifiable information or intellectual property was exposed.

Attackers increasingly used AI tools such as deepfakes and phishing, with 16% of studied breaches involving AI-assisted threats.

Healthcare remained the costliest sector, with an average breach price of $7.42 million and the most extended recovery timeline of 279 days.

Despite the risks, fewer organisations plan to invest in post-breach security. Only 49% intend to strengthen defences, down from 63% last year.

Even fewer will prioritise AI-driven security tools. With many organisations also passing costs on to consumers, recovery now often includes long-term financial and reputational fallout, not just restoring systems.

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Nvidia refutes chip backdoor allegations as China launches probe

Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.

The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.

The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.

China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.

In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.

Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.

The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.

Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.

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Apple plans new AI answer engine

Apple is quietly developing its own AI-powered ‘answer engine‘ as part of a push to compete in the growing intelligent search field. The initiative is led by a new team called ‘Answers, Knowledge, and Information’.

The project aims to create a system that can respond to user questions by pulling from web-based content.

The tool may be launched as a standalone app or integrated into existing Apple platforms such as Siri and Safari. Although Apple has added ChatGPT support to Siri, plans for a more advanced, personalised AI assistant have faced repeated delays.

Apple is hiring engineers with search expertise, signalling a long-term plan to reshape how users access information across its products.

The company may also need to revise its longstanding search partnership with Google following the tech giant’s antitrust defeat, further pushing Apple towards building its solution.

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FBI warns public to avoid scanning QR codes on unsolicited packages

The FBI has issued a public warning about a rising scam involving QR codes placed on packages delivered to people who never ordered them.

According to the agency, these codes can lead recipients to malicious websites or prompt them to install harmful software, potentially exposing sensitive personal and financial data.

The scheme is a variation of the so-called brushing scam, in which online sellers send unordered items and use recipients’ names to post fake product reviews. In the new version, QR codes are added to the packaging, increasing the risk of fraud by directing users to deceptive websites.

While not as widespread as other fraud attempts, the FBI urges caution. The agency recommends avoiding QR codes from unknown sources, especially those attached to unrequested deliveries.

It also advised consumers to pay close attention to the web address that appears before tapping on any QR code link.

Authorities have noted broader misuse of QR codes, including cases where criminals place fake codes over legitimate ones in public spaces.

In one recent incident, scammers used QR stickers on parking meters in New York to redirect people to third-party payment pages requesting card details.

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Meta bets on smartglasses to lead future tech

Mark Zuckerberg is boldly pushing to replace the smartphone with smartglasses powered by superintelligent AI. The Meta CEO described a future where wearable devices replace phones, using sight and sound to assist users throughout the day.

Meta is heavily investing, offering up to $100 million to attract top AI talent. Zuckerberg’s idea of ‘personal superintelligence’ merges AI and hardware to offer personalised help and build an Apple-style ecosystem under Meta’s control.

The company’s smartglasses already feature cameras, microphones and speakers, and future models could include built-in screens and AI-generated interfaces.

Other major players are also chasing the next computing shift. Amazon is acquiring a startup that builds AI wearables, while OpenAI’s Sam Altman and former Apple designer Jony Ive are working on a new physical AI device.

These efforts all point to a changing landscape in which mobile screens might no longer dominate.

Apple CEO Tim Cook responded by defending the iPhone’s central role in modern life, though he acknowledged complementary technologies may emerge. While Apple remains dominant, Meta’s advances signal that the competition to define the next computing platform is wide open.

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Prisons trial AI to forecast conflict and self‑harm risk

UK Justice Secretary Shabana Mahmood has rolled out an AI-driven violence prediction tool across prisons and probation services. One system evaluates inmates’ profiles, factoring in age, past behaviour, and gang ties, to flag those likely to become violent. Matching prisoners to tighter supervision or relocation aims to reduce attacks on staff and fellow inmates.

Another feature actively scans content from seized mobile phones. AI algorithms sift through over 33,000 devices and 8.6 million messages, detecting coded language tied to contraband, violence, or escape plans. When suspicious content is flagged, staff receive alerts for preventive action.

Rising prison violence and self-harm underscore the urgency of such interventions. Assaults on staff recently reached over 10,500 a year, the highest on record, while self-harm incidents reached nearly 78,000. Overcrowding and drug infiltration have intensified operational challenges.

Analysts compare the approach to ‘pre‑crime’ models, drawing parallels with sci-fi narratives, raising concerns around civil liberties. Without robust governance, predictive tools may replicate biases or punish potential rather than actual behaviour. Transparency, independent audit, and appeals processes are essential to uphold inmate rights.

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