Digital business models

AUSTRAC cracks down on crypto ATM money laundering risks

Australia’s financial crime regulator, AUSTRAC, has fined crypto ATM operator Cryptolink $56,340 for failing to report large cash transactions on time. The regulator also ordered the company to improve its anti-money laundering (AML) and counterterrorism financing (CTF) controls.

AUSTRAC’s Crypto Taskforce identified weaknesses in Cryptolink’s risk assessments and reporting controls, raising concerns about the misuse of crypto ATMs by criminals.

According to AUSTRAC CEO Brendan Thomas, crypto ATMs remain one of the highest-risk channels for money laundering in Australia, often used to launder scam proceeds. He emphasised that operators must take stronger action to prevent criminal exploitation of the sector.

As part of the undertaking, Cryptolink must appoint independent reviewers to assess its compliance systems and validate all large cash transaction reports. Cryptolink must report its remedial progress to AUSTRAC by March 2026, having paid the fine without admitting liability.

Findings from AUSTRAC’s taskforce revealed that 85% of transactions made by the 90 most frequent ATM users were linked to scams or money mule schemes. Authorities will keep monitoring high-risk operators to improve oversight and protect consumers from crypto-related crimes.

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Switzerland ranks among top countries for AI adoption

Switzerland has been ranked 15th globally for AI adoption, with around one in three working-age adults using AI tools, according to Microsoft’s AI Diffusion Report. At 32.4%, the country’s adoption rate exceeds the Global North average of 23%, reflecting strong digital engagement.

The report shows over one billion people have used AI tools in under three years, making it the fastest-adopted technology ever. Microsoft analysed platforms like Copilot, ChatGPT, Claude, Gemini, and Midjourney to track AI use and introduced indices measuring AI development, infrastructure, and adoption.

Countries such as Singapore, the UAE, Norway, and Ireland show high AI adoption is possible with strong technology, education, and policy support, even without frontier-level breakthroughs.

Switzerland follows this model, using infrastructure, digital skills, and forward-looking policies to drive innovation and economic growth.

Despite rapid adoption in the Global North, nearly four billion people globally still lack the electricity, internet, or digital skills necessary to access AI, highlighting a growing divide between wealthier and lower-income nations.

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Reliance and Google expand Gemini AI access across India

Google has partnered with Reliance Intelligence to expand access to its Gemini AI across India.

Under the new collaboration, Jio Unlimited 5G users aged between 18 and 25 will receive the Google AI Pro plan free for 18 months, with nationwide eligibility to follow soon.

The partnership grants access to the Gemini 2.5 Pro model and includes increased limits for generating images and videos with the Nano Banana and Veo 3.1 tools.

Users in India will also benefit from expanded NotebookLM access for study and research, plus 2 TB of cloud storage shared across Google Photos, Gmail and Drive for data and WhatsApp backups.

According to Google, the offer represents a value of about ₹35,100 and can be activated via the MyJio app. The company said the initiative aims to make its most advanced AI tools available to a wider audience and support everyday productivity across India’s fast-growing digital ecosystem.

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Microsoft leaders envision AI as an invisible partner in work and play

AI, gaming and work were at the heart of the discussion during the Paley International Council Summit, where three Microsoft executives explored how technology is reshaping human experience and industry structures.

Mustafa Suleyman, Phil Spencer and Ryan Roslansky offered perspectives on the next phase of digital transformation, from personalised AI companions to the evolution of entertainment and the changing nature of work.

Mustafa Suleyman, CEO of Microsoft AI, described a future where AI becomes an invisible companion that quietly assists users. He explained that AI is moving beyond standalone apps to integrate directly into systems and browsers, performing tasks through natural language rather than manual navigation.

With features like Copilot on Windows and Edge, users can let AI automate everyday functions, creating a seamless experience where technology anticipates rather than responds.

Phil Spencer, CEO of Microsoft Gaming, underlined gaming’s cultural impact, noting that the industry now surpasses film, books and music combined. He emphasised that gaming’s interactive nature offers lessons for all media, where creativity, participation and community define success.

For Spencer, the future of entertainment lies in blending audience engagement with technology, allowing fans and creators to shape experiences together.

Ryan Roslansky, CEO of LinkedIn, discussed how AI is transforming skills and workforce dynamics. He highlighted that required job skills are changing faster than ever, with adaptability, AI literacy and human-centred leadership becoming essential.

Roslansky urged companies to focus on potential and continuous learning instead of static job descriptions, suggesting that the most successful organisations will be those that evolve with technology and cultivate resilience through education.

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WhatsApp adds passkey encryption for safer chat backups

Meta is rolling out a new security feature for WhatsApp that allows users to encrypt their chat backups using passkeys instead of passwords or lengthy encryption codes.

A feature for WhatsApp that enables users to protect their backups with biometric authentication such as fingerprints, facial recognition or screen lock codes.

WhatsApp became the first messaging service to introduce end-to-end encrypted backups over four years ago, and Meta says the new update builds on that foundation to make privacy simpler and more accessible.

With passkey encryption, users can secure and access their chat history easily without the need to remember complex keys.

The feature will be gradually introduced worldwide over the coming months. Users can activate it by going to WhatsApp settings, selecting Chats, then Chat backup, and enabling end-to-end encrypted backup.

Meta says the goal is to make secure communication effortless while ensuring that private messages remain protected from unauthorised access.

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UAE and Google launch ‘AI for All’ national skills initiative

In a major public-private collaboration, the UAE’s Artificial Intelligence, Digital Economy, and Remote Work Applications Office and Google announced the ‘AI for All’ initiative, aimed at delivering AI skills training across the United Arab Emirates.

The announcement was made on 29 October 2025 and will roll out through 2026.

The programme targets a broad audience, from students, teachers, university learners and government employees, to small and medium-sized enterprises (SMEs), creatives and content-makers.

It will cover fundamentals of AI, practical use-cases, responsible and safe AI use, and prompt-engineering for generative models. Google is also providing university students and other participants access to its advanced Gemini models as part of the skilling effort.

This initiative reflects the UAE’s broader ambition to become a global hub for innovation and talent in the AI economy, as well as Google’s regional strategy under its ‘AI Opportunity Initiative’ for the Middle East & North Africa.

By combining training, awareness campaigns and access to AI tools, the collaboration seeks to ensure that AI’s benefits are accessible to all segments of society in the UAE.

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A new capitalism for the intelligent age

In his Time’s article, Klaus Schwab argues that business is undergoing a deeper transformation than previous technological revolutions. He notes that we are entering what he terms the ‘Intelligent Age’, where value is less about physical assets and more about ideas, relationships and the ability to learn faster than change.

According to Schwab, the assumptions of the Industrial Age, that growth meant simply scaling, that efficiency trumped adaptability, and that workers were interchangeable, no longer hold. Instead, enterprises must become living ecosystems, adaptable platforms rather than pipelines.

However, Schwab warns that intelligent technologies such as AI and automation are not inherently benign.

On the one hand, they can amplify human potential; on the other, if misused, they risk diminishing it. Business leaders must therefore undergo not just digital transformation, but a mental transformation, embracing resilience, inclusivity and human dignity as core values.

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EU considers classifying ChatGPT as a search engine under the DSA. What are the implications?

The European Commission is pondering whether OpenAI’s ChatGPT should be designated as a ‘Very Large Online Search Engine’ (VLOSE) under the Digital Services Act (DSA), a move that could reshape how generative AI tools are regulated across Europe.

OpenAI recently reported that ChatGPT’s search feature reached 120.4 million monthly users in the EU over the past six months, well above the 45 million threshold that triggers stricter obligations for major online platforms and search engines. The Commission confirmed it is reviewing the figures and assessing whether ChatGPT meets the criteria for designation.

The key question is whether ChatGPT’s live search function should be treated as an independent service or as part of the chatbot as a whole. Legal experts note that the DSA applies to intermediary services such as hosting platforms or search engines, categories that do not neatly encompass generative AI systems.

Implications for OpenAI

If designated, ChatGPT would be the first AI chatbot formally subject to DSA obligations, including systemic risk assessments, transparency reporting, and independent audits. OpenAI would need to evaluate how ChatGPT affects fundamental rights, democratic processes, and mental health, updating its systems and features based on identified risks.

‘As part of mitigation measures, OpenAI may need to adapt ChatGPT’s design, features, and functionality,’ said Laureline Lemoine of AWO. ‘Compliance could also slow the rollout of new tools in Europe if risk assessments aren’t planned in advance.’

The company could also face new data-sharing obligations under Article 40 of the DSA, allowing vetted researchers to request information about systemic risks and mitigation efforts, potentially extending to model data or training processes.

A test case for AI oversight

Legal scholars say the decision could set a precedent for generative AI regulation across the EU. ‘Classifying ChatGPT as a VLOSE will expand scrutiny beyond what’s currently covered under the AI Act,’ said Natali Helberger, professor of information law at the University of Amsterdam.

Experts warn the DSA would shift OpenAI from voluntary AI-safety frameworks and self-defined benchmarks to binding obligations, moving beyond narrow ‘bias tests’ to audited systemic-risk assessments, transparency and mitigation duties. ‘The DSA’s due diligence regime will be a tough reality check,’ said Mathias Vermeulen, public policy director at AWO.

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Trainium2 power surges as AWS’s Project Rainier enters service for Anthropic

Anthropic and AWS switched on Project Rainier, a vast Trainium2 cluster spanning multiple US sites to accelerate Claude’s evolution.

Project Rainier is now fully operational, less than a year after its announcement. AWS engineered an EC2 UltraCluster of Trainium2 UltraServers to deliver massive training capacity. Anthropic says it offers more than five times the compute used for prior Claude models.

UltraServers bind four Trainium2 servers with high-speed NeuronLinks so 64 chips act as one. Tens of thousands of networks are connected through Elastic Fabric Adapter across buildings. The design reduces latency within racks while preserving flexible scale across data centres.

Anthropic is already training and serving Claude on Rainier across the US and plans to exceed one million Trainium2 chips by year’s end. More computing should raise model accuracy, speed evaluations, and shorten iteration cycles for new frontier releases.

AWS controls the stack from chip to data centre for reliability and efficiency. Teams tune power delivery, cooling, and software orchestration. New sites add water-wise cooling, contributing to the company’s renewable energy and net-zero goals.

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A licensed AI music platform emerges from UMG and Udio

UMG and Udio have struck an industry-first deal to license AI music, settle litigation, and launch a 2026 platform that blends creation, streaming, and sharing in a licensed environment. Training uses authorised catalogues, with fingerprinting, filtering, and revenue sharing for artists and songwriters.

Udio’s current app stays online during the transition under a walled garden, with fingerprinting, filtering, and other controls added ahead of relaunch. Rights management sits at the core: licensed inputs, transparent outputs, and enforcement that aims to deter impersonation and unlicensed derivatives.

Leaders frame the pact as a template for a healthier AI music economy that aligns rightsholders, developers, and fans. Udio calls it a way to champion artists while expanding fan creativity, and UMG casts it as part of its broader AI partnerships across platforms.

Commercial focus extends beyond headline licensing to business model design, subscriptions, and collaboration tools for creators. Expect guardrails around style guidance, attribution, and monetisation, plus pathways for official stems and remix packs so fan edits can be cleared and paid.

Governance will matter as usage scales, with audits of model inputs, takedown routes, and payout rules under scrutiny. Success will be judged on artist adoption, catalogue protection, and whether fans get safer ways to customise music without sacrificing rights.

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