Digital business models

Nexon investigates AI-generated TikTok ads for The First Descendant

Nexon launched an investigation after players spotted several suspicious adverts for The First Descendant on TikTok that appeared to have been generated by AI.

One advertisement allegedly used a content creator’s likeness without permission, sparking concerns about the misuse of digital identities.

The company issued a statement acknowledging ‘irregularities’ in its TikTok Creative Challenge, a campaign that lets creators voluntarily submit content for advertising.

While Nexon confirmed that all videos had been verified through TikTok’s system, it admitted that some submissions may have been produced in inappropriate circumstances.

Nexon apologised for the delay in informing players, saying the review took longer than expected. It confirmed that a joint investigation with TikTok is underway to determine what happened, and it was promised that updates would be provided once the process is complete.

The developer has not yet addressed the allegation from creator DanieltheDemon, who claims his likeness was used without consent.

The controversy has added to ongoing debates about AI’s role in advertising and protecting creators’ rights.

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Pakistan launches national AI innovation competition

Pakistan’s Ministry of Planning, Development, and Special Initiatives has launched a national innovation competition to drive the development of AI solutions in priority sectors. The initiative aims to attract top talent to develop impactful health, education, agriculture, industry, and governance projects.

Minister Ahsan Iqbal said AI is no longer a distant prospect but a present reality that is already transforming economies. He described the competition as a milestone in Pakistan’s digital history and urged the nation to embrace AI’s global momentum.

Iqbal stressed that algorithms now shape decisions more than traditional markets, warning that technological dependence must be avoided. Pakistan, he argued, must actively participate in the AI revolution or risk being left behind by more advanced economies.

He highlighted AI’s potential to predict crop diseases, aid doctors in diagnosis, and deliver quality education to every child nationwide. He said Pakistan will not be a bystander but an emerging leader in shaping the digital future.

The government has begun integrating AI into curricula and expanding capacity-building initiatives. Officials expect the competition to unlock new opportunities for innovation, empowering youth and driving sustainable development across the country.

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Gamescom showcases EU support for cultural and digital innovation

The European Commission will convene video game professionals in Cologne for the third consecutive year on August 20 and 21. The visit aims to follow developments in the industry, present the future EU budget, and outline opportunities under the upcoming AgoraEU programme.

EU Officials will also discuss AI adoption, new investment opportunities, and ways to protect minors in gaming. Renate Nikolay, Deputy Director-General of DG CONNECT, will deliver a keynote speech and join a panel titled ‘Investment in games – is it finally happening?’.

The European Commission highlights the role of gaming in Europe’s cultural diversity and innovation. Creative Europe MEDIA has already supported nearly 180 projects since 2021. At Gamescom, its booth will feature 79 companies from 24 countries, offering fresh networking opportunities to video game professionals.

The engagement comes just before the release of the second edition of the ‘European Media Industry Outlook’ report. The updated study will provide deeper insights into consumer behaviour and market trends, with a dedicated focus on the video games sector.

Gamescom remains the world’s largest gaming event, with 1,500 exhibitors from 72 nations in 2025. The event celebrates creative and technological achievements, highlighting the industry’s growing importance for Europe’s competitiveness and digital economy.

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Anthropic introduces a safety feature allowing Claude AI to terminate harmful conversations

Anthropic has announced that its Claude Opus 4 and 4.1 models can now end conversations in extreme cases of harmful or abusive user interactions.

The company said the change was introduced after the AI models showed signs of ‘apparent distress’ during pre-deployment testing when repeatedly pushed to continue rejected requests.

According to Anthropic, the feature will be used only in rare situations, such as attempts to solicit information that could enable large-scale violence or requests for sexual content involving minors.

Once activated, Claude AI will be closed, preventing the user from sending new messages in that thread, though they can still access past conversations and begin new ones.

The company emphasised that the models will not use the ability when users are at imminent risk of self-harm or harming others, ensuring support channels remain open in sensitive situations.

Anthropic added that the feature is experimental and may be adjusted based on user feedback.

The move highlights the firm’s growing focus on safeguarding both AI models and human users, balancing safety with accessibility as generative AI continues to expand.

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OpenAI launches ChatGPT Go in India

OpenAI has unveiled a new subscription tier in India, called ChatGPT Go, priced at Rs 399 per month (around $4.60). The plan significantly upgrades the free version, offering users higher message limits, more image generations, increased file uploads, and extended memory.

Nick Turley, OpenAI’s vice president and head of ChatGPT, confirmed the launch on X, noting that Indian users can now pay in rupees via UPI. The move is intended to improve accessibility and make the service more affordable for a wider audience.

ChatGPT Go is far cheaper than existing plans, with ChatGPT Plus at Rs 1,999/month (around $23) and the top-tier ChatGPT Pro at Rs 19,900/month (around $230).

Turley said the launch responds to user demand for more budget-friendly options and that India will serve as the first market before expansion elsewhere.

India has become one of OpenAI’s largest markets, with CEO Sam Altman highlighting rapid AI adoption. The launch coincides with other AI companies targeting India, including Perplexity’s partnership with Airtel and Google’s free AI Pro plan for students.

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WhatsApp trials AI-powered Writing Help for personalised messaging

WhatsApp is testing a new AI feature for iOS users that provides real-time writing assistance.

Known as ‘Writing Help’, the tool suggests alternative phrasings, adjusts tone, and enhances clarity, with all processing handled on-device to safeguard privacy.

The feature allows users to select professional, friendly, or concise tones before the AI generates suitable rewordings while keeping the original meaning. According to reports, the tool is available only to a small group of beta testers through TestFlight, with no confirmed release date.

WhatsApp says it uses Meta’s Private Processing technology to ensure sensitive data never leaves the device, mirroring privacy-first approaches like Apple’s Writing Tools.

Industry watchers suggest the new tool could give WhatsApp an edge over rivals such as Telegram and Signal, which have not yet introduced generative AI writing aids.

Analysts also see potential for integration with other Meta platforms, although challenges remain in ensuring accurate, unbiased results across different languages.

Writing Help could streamline business communication by improving grammar, structure, and tone accuracy if successful. While some users have praised its seamless integration, others warn that heavy reliance on AI could undermine authenticity in digital conversations.

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OpenAI softens GPT-5 tone after users complain it felt cold

OpenAI has updated GPT-5 to make its tone noticeably warmer and more engaging, without reverting to the overly flattering style some users criticised in GPT-4o. The change is rolling out, aiming to balance emotional resonance with substance.

CEO Sam Altman stated the adjustment directly responds to users finding GPT-5 too formal or robotic. The update is subtle yet visible, enhancing conversational warmth while avoiding sycophantic tendencies.

OpenAI also expands user control by offering three interaction modes, Auto, Fast, and Thinking, which adapt response style to user preference. These changes empower users to shape the tone and depth of their AI interactions.

Reacting to public frustration, OpenAI has reinstated GPT-4o (along with GPT-4.1, o3, and GPT-5 Thinking mini) for paid subscribers, while promising more customisation options in future updates.

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India moves closer to crypto tax reform

India’s tax authority has formally engaged cryptocurrency platforms to gather feedback on how the country should regulate virtual digital assets (VDAs). The Central Board of Direct Taxes (CBDT) has issued a questionnaire, signalling plans to review current rules and explore a new law.

The consultation focuses on contentious issues such as the flat 30% tax on crypto gains, the 1% tax deducted at source (TDS) on every transaction, and the inability to offset losses. Industry players say the measures have drained liquidity and driven traders to more favourable markets like Dubai.

Banks’ reluctance to support crypto-linked accounts has further complicated matters.

Platforms have been asked to suggest whether a dedicated VDA law should be established, and which regulator-SEBI, the RBI, MeitY, or the FIU-IND-should oversee it. The CBDT seeks feedback on the OECD’s Crypto-Asset Reporting Framework, supported by India for coordinated global regulation.

Legal experts believe India is preparing for a comprehensive framework in the coming year, following its G20 advocacy for global cooperation on digital asset regulation. Industry voices suggest the government is moving towards regulatory clarity rather than continued uncertainty.

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SoftBank invests $2 billion in Intel to boost US semiconductor industry

Japanese technology giant SoftBank has announced plans to buy a $2 billion stake in Intel, signalling a stronger push into the American semiconductor industry.

The investment comes as Washington debates greater government involvement in the sector, with reports suggesting President Donald Trump is weighing a US government stake in the chipmaker.

SoftBank will purchase Intel’s common stock at $23 per share. Its chairman, Masayoshi Son, said semiconductors remain the backbone of every industry and expressed confidence that advanced chip manufacturing will expand in the US, with Intel playing a central role.

The move follows SoftBank’s increasing investments in the US, including its role in the $500 billion ‘Stargate’ AI project announced earlier this year.

Once a dominant force in Silicon Valley, Intel has struggled against rivals such as Nvidia and AMD. Under new CEO Lip-Bu Tan, the company is cutting 15% of its workforce and reducing costs to stabilise operations.

After a private meeting, Trump recently criticised Tan’s leadership but later softened his stance.

Shares in both companies slipped following the announcement, with SoftBank down 2.2% in Tokyo and Intel falling 3.7% in New York.

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AfDB backs AI training to drive Africa’s Agenda 2063

The African Development Bank has strengthened Africa’s digital journey by backing a landmark AI training initiative linked to Agenda 2063. The effort aims to accelerate the continent’s long-term strategy, ‘The Africa We Want,’ by equipping states with practical expertise.

Through its Joint Secretariat Support Office, the Bank gave both technical and financial backing to the 5th Annual Training Workshop. The event focused on applying AI to monitoring, evaluation, and reporting under the Second Ten-Year Plan of Agenda 2063.

The Lusaka workshop, co-hosted by the African Union Commission and the African Capacity Building Foundation, featured sessions with Ailyse, ChatGPT, Google AI Studio, Google Gemini, and Perplexity. Delegates explored embedding AI insights into analytics for stronger policymaking and accountability.

By investing in institutional capacity, the AfDB and partners aim to advance AI-enabled solutions that improve policy interventions, resource allocation, and national priorities. The initiative reflects a broader effort to integrate digital tools into Africa’s governance structures.

The workshop also fostered peer learning, allowing delegates to share best practices in digital monitoring frameworks. By driving AI adoption in planning and results delivery, the AfDB underlines its role as a partner in Africa’s transformation.

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