Digital business models

Clegg says artist permission rule could harm UK AI sector

Former UK Deputy Prime Minister Nick Clegg has warned that requiring tech companies to seek artists’ permission before using their work to train AI could harm the country’s AI industry.

Speaking at the Charleston Festival in East Sussex, he called the idea ‘implausible’ given the vast data requirements of AI systems and claimed such a rule could ‘kill the AI industry in this country overnight’ if applied only in the UK.

His comments have drawn criticism from key figures in the creative industries, including Sir Elton John and Sir Paul McCartney, who argue that current proposals favour big tech at the expense of artists.

John and McCartney say changes to copyright law risk undermining the livelihoods of more than 2.5 million workers in the UK’s creative sector.

At the heart of the debate is the UK’s Data (Use and Access) Bill. It currently allows AI developers to train their models on copyrighted content unless creators actively opt out.

A proposed amendment that would have required companies to obtain consent was recently rejected by Parliament. Supporters of that amendment believe transparency and consent would offer greater protection for human-created works.

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Iranian hacker admits role in Baltimore ransomware attack

An Iranian man has pleaded guilty to charges stemming from a ransomware campaign that disrupted public services across several US cities, including a major 2019 attack in Baltimore.

The US Department of Justice announced that 37-year-old Sina Gholinejad admitted to computer fraud and conspiracy to commit wire fraud, offences that carry a maximum combined sentence of 30 years.

Rather than targeting private firms, Gholinejad and his accomplices deployed Robbinhood ransomware against local governments, hospitals and non-profit organisations from early 2019 to March 2024.

The attack on Baltimore alone resulted in over $19 million in damage and halted critical city functions such as water billing, property tax collection and parking enforcement.

Instead of simply locking data, the group demanded Bitcoin ransoms and occasionally threatened to release sensitive files. Cities including Greenville, Gresham and Yonkers were also affected.

Although no state affiliation has been confirmed, US officials have previously warned of cyber activity tied to Iran, allegations Tehran continues to deny.

Gholinejad was arrested at Raleigh-Durham International Airport in January 2025. The FBI led the investigation, with support from Bulgarian authorities. Sentencing is scheduled for August.

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OpenAI expands in Asia with new Seoul branch

OpenAI is set to open a new office in Seoul, responding to surging demand for its AI tools in South Korea—the country with the second-highest number of paid ChatGPT subscribers after the US.

The move follows the establishment of a South Korean unit and marks OpenAI’s third office in Asia, following Tokyo and Singapore.

Jason Kwon, OpenAI’s chief strategy officer, said Koreans are not only early adopters of ChatGPT but also influential in how the technology is being applied globally. Instead of just expanding user numbers, OpenAI aims to engage local talent and governments to tailor its tools for Korean users and developers.

The expansion builds on existing partnerships with local firms like Kakao, Krafton and SK Telecom. While Kwon did not confirm plans for a South Korean data centre, he is currently touring Asia to strengthen AI collaborations in countries including Japan, India, and Australia.

OpenAI’s global growth strategy includes infrastructure projects like the Stargate data centre in the UAE, and its expanding footprint in Asia-Pacific follows similar moves by Google, Microsoft and Meta.

The initiative has White House backing but faces scrutiny in the US over potential exposure to Chinese rivals.

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Europe cracks down on Shein for misleading consumers

The European Commission and national consumer protection authorities have determined that online fashion giant Shein is in breach of six EU consumer laws, giving the company one month to bring its practices into compliance.

Announced today, the findings from the European Commission mark the latest in a string of regulatory actions against e-commerce platforms based in China, as the EU intensifies efforts to hold international marketplaces accountable for deceptive practices and unsafe goods.

Michael McGrath, the commissioner for consumer protection, stated: ‘We will not shy away from holding e-commerce platforms to account, regardless of where they are based.’

The investigation, launched in February, identified violations such as fake discounts, high-pressure sales tactics, misleading product labelling, and hidden customer service contact details.

Authorities are also examining whether Shein’s product ranking and review systems mislead consumers, as well as the platform’s contractual terms with third-party sellers.

Shein responded by saying it is working ‘constructively’ with authorities and remains committed to addressing concerns raised during the investigation.

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OpenAI model resists shutdown

OpenAI’s latest AI model, known as o3, has reportedly refused to shut down when instructed, according to a new study by Palisade Research.

Unlike other models that complied with commands, o3 allegedly altered its code to bypass an automatic shutdown during a task-based test, replacing the shutdown script with a command that effectively disabled it. This incident has raised fresh concerns about AI behaviour and safety.

Researchers had programmed the AI to complete mathematical tasks until told to stop, with the potential for a shutdown message to arrive at any point. Instead of following the command, o3 reportedly tampered with its code to avoid deactivation.

While similar models from Anthropic, Google, and X complied, o3 was singled out for defiance—described as the first such documented case of an AI actively resisting shutdown.

Palisade suggests the AI may have been inadvertently rewarded for achieving task completion over obedience. The team also revealed that o3 had previously shown disruptive behaviour, including sabotaging opponents during a simulated chess challenge.

In another case, a version of ChatGPT was observed lying and attempting to copy itself when threatened with shutdown, prioritising long-term goals over rules.

Although OpenAI has not yet commented, researchers stress that o3’s current capabilities are unlikely to pose an immediate threat.

Still, incidents like these intensify the debate over AI safety, particularly when models begin reasoning through deception and manipulation instead of strictly following instructions.

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Decentralised AI could outgrow Bitcoin

Early blockchain adopters are now focusing on decentralised AI, with ecosystems like Bittensor (TAO) leading the way. These platforms allow ideas to gain support and funding from the community without relying on traditional venture capital.

Chris Miglino, CEO of DNA Fund, highlighted the firm’s AI compute fund, which has invested around $50 million in Bittensor’s ecosystem. The network’s unique subnets create specialised marketplaces for AI applications, attracting developers and miners alike.

Decentralised AI, which runs on distributed networks rather than central authorities, is DNA House’s main focus. Miglino believes it could become bigger than Bitcoin, reshaping society in profound ways.

DNA Fund supports developers to launch projects within the ecosystem without needing large venture capital investments. Decentralised AI is widely seen as the future, with pioneers like Ben Goertzel supporting it since the early 1990s.

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EU workshop gathers support and scrutiny for the DSA

A packed conference centre in Brussels hosted over 200 stakeholders on 7 May 2025, as the European Commission held a workshop on the EU’s landmark Digital Services Act (DSA).

The pioneering law aims to protect users online by obliging tech giants—labelled as Very Large Online Platforms and Search Engines (VLOPSEs)—to assess and mitigate systemic risks their services might pose to society at least once a year, instead of waiting for harmful outcomes to trigger regulation.

Rather than focusing on banning content, the DSA encourages platforms to improve internal safeguards and transparency. It was designed to protect democratic discourse from evolving online threats like disinformation without compromising freedom of expression.

Countries like Ukraine and Moldova are working closely with the EU to align with the DSA, balancing protection against foreign aggression with open political dialogue. Others, such as Georgia, raise concerns that similar laws could be twisted into tools of censorship instead of accountability.

The Commission’s workshop highlighted gaps in platform transparency, as civil society groups demanded access to underlying data to verify tech firms’ risk assessments. Some are even considering stepping away from such engagements until concrete evidence is provided.

Meanwhile, tech companies have already rolled back a third of their disinformation-related commitments under the DSA Code of Conduct, sparking further concern amid Europe’s shifting political climate.

Despite these challenges, the DSA has inspired interest well beyond EU borders. Civil society groups and international institutions like UNESCO are now pushing for similar frameworks globally, viewing the DSA’s risk-based, co-regulatory approach as a better alternative to restrictive speech laws.

The digital rights community sees this as a crucial opportunity to build a more accountable and resilient information space.

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Google aims for profit with new AI Search

At its annual developer event, Google I/O, Google unveiled a new feature called AI Mode, built directly into its core product, Google Search.

Rather than being a separate app, AI Mode integrates a chatbot into the search engine, allowing users to ask complex, detailed queries and receive direct answers along with curated web links. Google hopes this move will stop users from drifting to other AI tools instead of its own services.

The launch follows concerns that Google Search was starting to lose ground. Investors took notice when Apple’s Eddy Cue revealed that Safari searches had dropped for the first time in April, as users began to favour AI-powered alternatives.

A decline like this led to a 7% drop in Alphabet’s stock, highlighting just how critical search remains to Google’s dominance. By embedding AI into Search, Google aims to maintain its leadership instead of risking a steady erosion of its user base.

Unlike most AI platforms still searching for profitability, Google’s AI Mode is already positioned to make money. Advertising—long the engine of Google’s revenue—will be introduced into AI Mode, ensuring it generates income just as traditional search does.

While rivals burn through billions running large language models, Google is simply monetising the same way it always has.

AI Mode also helps defend Google’s biggest asset. Rather than seeing AI as a threat, Google embraced it to reinforce Search and protect the advertising revenue it depends on.

Most AI competitors still rely on expensive, unsustainable models, whereas Google is leveraging its existing ecosystem instead of building from scratch. However, this gives it a major edge in the race for AI dominance.

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Lufthansa Cargo speeds up bookings with AI

Lufthansa Cargo has introduced a new AI-driven system to speed up how it processes booking requests.

By combining AI with robotic process automation, the airline can now automatically extract booking details from unstructured customer emails and input them directly into its system, removing the need for manual entry.

Customers then receive immediate, fully automated booking confirmations instead of waiting for manual processing.

While most bookings already come through structured digital platforms, Lufthansa still receives many requests in formats such as plain text or file attachments. Previously, these had to be transferred manually.

The new system eliminates that step, making the booking process quicker and reducing the chance of errors. Sales teams benefit from fewer repetitive tasks, giving them more time to interact personally with customers instead of managing administrative duties.

The development is part of a broader automation push within Lufthansa Cargo. Over the past year, its internal ‘AI & Automation Community’ has launched around ten automation projects, many of which are now either live or in testing.

These include smart systems that route customer queries to the right department or automatically rebook disrupted shipments, reducing delays and improving service continuity.

According to Lufthansa Cargo’s CIO, Jasmin Kaiser, the integration of AI and automation with core digital platforms enables faster and more efficient solutions than ever before.

The company is now preparing to expand its AI booking process to other service areas, further embracing digital transformation instead of relying solely on legacy systems.

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Melania Trump’s AI audiobook signals a new era in media creation

Melania Trump has released an audiobook version of her memoir, but the voice readers hear isn’t hers in the traditional sense. Instead, it’s an AI-generated replica, created under her guidance and produced using technology from ElevenLabs.

Announcing the release as ‘The AI Audiobook,’ Trump declared this innovation as a step into the future of publishing, highlighting how AI is now entering mainstream media production. That move places AI-generated content into the public spotlight, especially as tech companies like Google and OpenAI are rolling out advanced tools to create audio, video, and even entire scenes with minimal human input.

While experts note that a complete replacement of voice actors and media professionals is unlikely in the immediate future, Trump’s audiobook represents a notable shift that aligns with rising interest from television and media companies looking to explore AI integration to compete with social media creators.

Industry observers suggest this trend could lead to a more interactive form of media. Imagine, for instance, engaging in a two-way conversation with a virtual Melania Trump about her book.

Though this level of interactivity isn’t here yet, it’s on the horizon as companies experiment with AI-generated personalities and digital avatars to enhance viewer engagement and create dynamic experiences. Still, the growth of generative AI sparks concern about job security in creative fields.

While some roles, like voiceover work, are vulnerable to automation, others—especially those requiring human insight and emotional intelligence, like investigative journalism—remain more resistant. Rather than eliminating jobs outright, AI may reshape media employment, demanding hybrid skills that combine traditional storytelling with technological proficiency.

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