Digital business models Archives | Page 421 of 571

Rapid AI growth raises global energy demands

The global demand for AI technology is set to consume nearly as much energy by 2030 as Japan does today, with much of that coming from data centres. According to the International Energy Agency (IEA), electricity demand from data centres will more than double by 2030, driven largely by AI.

Some AI data centres will require up to 20 times more energy than the average one, raising concerns about the environmental impact.

While AI’s rapid adoption could increase energy consumption, the IEA believes it also holds the potential for reducing overall greenhouse gas emissions. AI could improve energy efficiency, assist in designing grids for renewable energy, and optimise industrial processes.

However, the report warns that without careful regulation, AI’s growth could strain energy systems and harm the environment, particularly if fossil fuel-powered plants are used to meet energy demand.

Efforts to mitigate the impact of AI include harnessing its capabilities to design energy-efficient systems, optimise transport, and assist in critical infrastructure management. Yet, some experts argue that AI’s energy demands might outpace these benefits unless governments take proactive steps.

Claude Turmes, former Luxembourg energy minister, warned that the IEA’s optimistic outlook overlooks the severe risks to energy systems, urging stronger regulatory measures.

For more information on these topics, visit diplomacy.edu.

Anker raises prices amid rising US tariffs

Chinese tech company Anker, one of Amazon’s largest sellers, has raised prices on a fifth of its products on the platform since last Thursday. The price hikes, averaging 18%, are a direct result of the recent increase in US tariffs on Chinese goods.

The majority of the price rises occurred after 7 April, when President Donald Trump imposed an additional 50% import duty on Chinese imports.

It follows a broader trend where US import tariffs on Chinese goods have now reached 145%, while Beijing retaliated by raising tariffs on US products to 125%.

In response, China’s largest cross-border e-commerce association warned that many Chinese businesses selling on Amazon are considering price hikes or may leave the US market altogether.

Anker, a major player in the e-commerce space since its founding in 2011, has leveraged its bargaining power to implement these price increases.

With 5,000 employees and annual revenues of 22.17 billion yuan ($3 billion), Anker is able to absorb some of the tariff pressure while many of its competitors face similar challenges.

The company has also hinted at expanding into non-US markets, including Europe and Southeast Asia, as it seeks to navigate the increasingly challenging trade environment.

Anker and Amazon did not immediately respond to requests for comment.

For more information on these topics, visit diplomacy.edu.

EU prepares new data strategy for AI growth

The European Commission will soon launch a consultation on its upcoming Data Union Strategy, a key part of efforts to boost Europe’s leadership in AI.

The strategy, set to be published by the end of the year, aims to make it easier for businesses and public bodies to share data securely and efficiently across the EU.

The initiative supports the broader AI Continent Action Plan, expected to be unveiled this week, which seeks to encourage faster adoption of AI technologies by European companies.

Instead of relying on fragmented systems, the Commission wants to improve data access, digital infrastructure, and cloud capabilities while investing in talent and streamlining complex processes.

The plan includes the creation of AI factories where companies can train models using EU-based resources, and a separate Cloud and AI Development Act later this year will promote energy-efficient investments to support these goals.

Public feedback on the Data Union Strategy will be gathered from April to June as part of the consultation process.

Despite the ambition, the Commission acknowledges ongoing concerns such as uncertainty around international data flows and challenges accessing suitable data for generative AI.

Strict privacy laws like the GDPR, instead of enabling wider AI training, have led to frustration from major tech firms over regulatory delays in Europe.

For more information on these topics, visit diplomacy.edu.

Meta to block livestreaming for under 16s without parental permission

Meta will soon prevent children under 16 from livestreaming on Instagram unless their parents explicitly approve.

The new safety rule is part of broader efforts to protect young users online and will first be introduced in the UK, US, Canada and Australia, before being extended to the rest of Europe and beyond in the coming months.

The company explained that teenagers under 16 will also need parental permission to disable a feature that automatically blurs images suspected of containing nudity in direct messages.

These updates build on Meta’s teen supervision programme introduced last September, which gives parents more control over how their children use Instagram.

Instead of limiting the changes to Instagram alone, Meta is now extending similar protections to Facebook and Messenger.

Teen accounts on those platforms will be set to private by default, and will automatically block messages from strangers, reduce exposure to violent or sensitive content, and include reminders to take breaks after an hour of use. Notifications will also pause during usual bedtime hours.

Meta said these safety tools are already being used across at least 54 million teen accounts. The company claims the new measures will better support teenagers and parents alike in making social media use safer and more intentional, instead of leaving young users unprotected or unsupervised online.

For more information on these topics, visit diplomacy.edu.

EU plans new law to tackle online consumer manipulation

The European Commission is preparing to introduce the Digital Fairness Act, a new law that aims to boost consumer protection online instead of adding more regulatory burden on businesses.

Justice Commissioner Michael McGrath described the upcoming legislation as both pro-consumer and pro-business during a speech at the European Retail Innovation Summit, seeking to calm industry concerns about further EU regulation following the Digital Services Act and the Digital Markets Act.

Designed to tackle deceptive practices in the digital space, the law will address issues such as manipulative design tricks known as ‘dark patterns’, influencer marketing, and personalised pricing based on user profiling.

It will also target concerns around addictive service design and virtual currencies in video games—areas where current EU consumer rules fall short. The legislation will be based on last year’s Digital Fairness Fitness Check, which highlighted regulatory gaps in the online marketplace.

McGrath acknowledged the cost of complying with EU-wide consumer protection measures, which can run into millions for businesses.

However, he stressed that the new act would provide legal clarity and ease administrative pressure, particularly for smaller companies, instead of complicating compliance requirements further.

A public consultation will begin in the coming weeks, ahead of a formal legislative proposal expected by mid-2026.

Maria-Myrto Kanellopoulou, head of the Commission’s consumer law unit, promised a thoughtful approach, saying the process would be both careful and thorough to ensure the right balance is struck.

For more information on these topics, visit diplomacy.edu

EU refuses to soften tech laws for Trump trade deal

The European Union has firmly ruled out dismantling its strict digital regulations in a bid to secure a trade deal with Donald Trump. Henna Virkkunen, the EU’s top official for digital policy, said the bloc remained fully committed to its digital rulebook instead of relaxing its standards to satisfy American demands.

While she welcomed a temporary pause in US tariffs, she made clear that the EU’s regulations were designed to ensure fairness and safety for all companies, regardless of origin, and were not intended as a direct attack on US tech giants.

Tensions have mounted in recent weeks, with Trump officials accusing the EU of unfairly targeting American firms through regulatory means. Executives like Mark Zuckerberg have criticised the EU’s approach, calling it a form of censorship, while the US has continued imposing tariffs on European goods.

Virkkunen defended the tougher obligations placed on large firms like Meta, Apple and Alphabet, explaining that greater influence came with greater responsibility.

She also noted that enforcement actions under the Digital Markets Act and Digital Services Act aim to ensure compliance instead of simply imposing large fines.

Although France has pushed for stronger retaliation, the European Commission has held back from launching direct countermeasures against US tech firms, instead preparing a range of options in case talks fail.

Virkkunen avoided speculation on such moves, saying the EU preferred cooperation to conflict. At the same time, she is advancing a broader tech strategy, including plans for five AI gigafactories, while also considering adjustments to the EU’s AI Act to better support small businesses and innovation.

Acknowledging creative industries’ concerns over generative AI, Virkkunen said new measures were needed to ensure fair compensation for copyrighted material used in AI training instead of leaving European creators unprotected.

The Commission is now exploring licensing models that could strike a balance between enabling innovation and safeguarding rights, reflecting the bloc’s intent to lead in tech policy without sacrificing democratic values or artistic contributions.

For more information on these topics, visit diplomacy.edu.

New AI feature lets WordPress users build sites in minutes

WordPress.com has introduced a new AI website builder designed to help users create an entire website in just minutes.

Available now in early access, the feature allows anyone with a WordPress.com account to try it out free of charge. It uses a conversational interface that responds to user prompts to generate complete sites, including written content, images, colour schemes, and layouts.

Users begin by describing what kind of website they need—whether a blog, portfolio, or business site—and the AI does the rest.

The more specific the initial description, the more tailored the outcome will be. If the first version isn’t quite right, users can continue refining their site simply by chatting with the builder. Once the result is satisfactory, the website can be published directly through WordPress.com.

Currently limited to basic websites, the new tool does not yet support complex features such as ecommerce or external integrations. WordPress has indicated that more functionality is coming soon.

The generated sites remain fully customisable using the usual WordPress tools, giving users full control over editing and manual adjustments post-creation.

At launch, users get 30 free prompts before needing to choose a hosting plan, with pricing starting at $18 per month.

While similar AI tools have been introduced by platforms like Wix and Squarespace, WordPress’s version brings such technology to a significantly wider audience, given that the platform powers over 40% of all websites worldwide.

For more information on these topics, visit diplomacy.edu.

Victims of AI-driven sex crimes in Korea continue to grow

South Korea is facing a sharp rise in AI-related digital sex crimes, with deepfake pornography and online abuse increasingly affecting young women and children.

According to figures released by the Ministry of Gender Equality and Family and the Women’s Human Rights Institute, over 10,000 people sought help last year, marking a 14.7 percent increase from 2023.

Women made up more than 70 percent of those who contacted the Advocacy Center for Online Sexual Abuse Victims.

The majority were in their teens or twenties, with abuse often occurring via social media, messaging apps, and anonymous platforms. A growing portion of victims, including children under 10, were targeted due to the easy accessibility of AI tools.

The most frequently reported issue was ‘distribution anxiety,’ where victims feared the release of sensitive or manipulated videos, followed by blackmail and illegal filming.

Deepfake cases more than tripled in one year, with synthetic content often involving the use of female students’ images. In one notable incident, a university student and his peers used deepfake techniques to create explicit fake images of classmates and shared them on Telegram.

With over 300,000 pieces of illicit content removed in 2024, authorities warn that the majority of illegal websites are hosted overseas, complicating efforts to take down harmful material.

The South Korean government plans to strengthen its response by expanding educational outreach, supporting victims further, and implementing new laws to prevent secondary harm by allowing the removal of personal information alongside explicit images.

For more information on these topics, visit diplomacy.edu.

TikTok affair, China disagrees with Trump over $54B deal due to tariffs rise

The fate of TikTok hangs in the balance as China and the US trade moves over a potential deal to keep the app alive for its 170 million American users.

On 9 April 2025, China’s commerce ministry declared that any sale of TikTok must pass its government’s strict review, throwing a wrench into negotiations just as President Donald Trump hinted that a deal remains within reach.

China’s stance is clear: no deal gets the green light without approval.

The ministry stressed that TikTok’s sales must comply with Chinese laws, particularly those governing technology exports, a nod to a 2020 regulation that gives Beijing veto power over the app’s algorithm, the secret ingredient behind its viral success.

The disagreement comes after Trump’s recent tariff hikes, which slapped a 54% duty on Chinese goods, prompting Beijing to push back hard.

China had already signalled it wouldn’t budge on the deal following Trump’s tariff announcement, a move that doesn’t seem to give TikTok too much significance in a broader trade war.

Meanwhile, Trump, speaking on 9 April 2025, kept hope alive, insisting that a TikTok deal is ‘still on the table.’ He extended the deadline for ByteDance, TikTok’s Chinese parent, to find a non-Chinese buyer by 75 days, pushing the cutoff to mid-June after a near-miss on 5 April.

The deal, which would spin off TikTok’s US operations into a new entity majority-owned by American investors, could have been nearly finalised before China’s objections stalled it.

Investors, too, are on edge, with the US entity’s future clouded by geopolitical sparring.

Trump’s optimism, paired with his earlier willingness to ease tariffs, shows he’s playing a long game, balancing national security fears with a desire to keep the app functional for its massive US audience.

Washington has long worried that TikTok’s Chinese ownership makes it a conduit for Beijing to spy on the Americans or sway public opinion, a concern that led to a 2024 law demanding ByteDance divest the app or face a ban.

That law briefly shuttered TikTok in January 2025, only for Trump to step in with a reprieve. Now, with ByteDance poised to hold a minority stake in a US-based TikTok, the deal’s success hinges on China’s nod, a nod that looks increasingly elusive as trade tensions simmer.

If China blocks the deal, it could set a precedent for other nations to tighten their grip on digital exports, radically reshaping governmental interdisciplinary approaches and cyberspace, posing a final question: will the internet, as we know it, remain as a globally unified societal enabler or it will divide into national space with new monopolies?

AI feud intensifies as OpenAI sues Elon Musk

OpenAI has filed a countersuit against Elon Musk, accusing the billionaire entrepreneur of a sustained campaign of harassment intended to damage the company and regain control over its AI developments.

The legal filing comes in response to Musk’s lawsuit earlier this year, in which he claimed OpenAI had strayed from its founding mission of developing AI for the benefit of humanity.

In its countersuit, OpenAI urged a federal court to block Musk from taking further ‘unlawful and unfair actions’ and hold him accountable for the alleged damage already inflicted.

The company cited press attacks, legal pressure, and social media posts to Musk’s 200 million followers as tactics aimed at undermining its operations and reputation.

It also described Musk’s demands for corporate records and attempted acquisition efforts as part of a broader scheme to derail OpenAI’s progress.

The legal conflict highlights the growing rivalry between OpenAI and xAI, the AI firm Musk launched in 2023.

OpenAI maintains that Musk’s actions are motivated by self-interest and a desire to slow down a competing organisation. A jury trial has been scheduled for spring 2026 to resolve the escalating dispute.

For more information on these topics, visit diplomacy.edu.