Digital business models Archives | Page 6 of 578

Texas lawsuit targets Netflix data practices

The Attorney General of Texas has filed a lawsuit against Netflix, alleging the company unlawfully collected user data without consent. The case claims the platform tracked extensive behavioural information from both adults and children while presenting itself as privacy-conscious.

According to the lawsuit, Netflix allegedly logged viewing habits, device usage and other interactions, turning user activity into monetised data. The lawsuit further claims that this data was shared with brokers and advertising technology firms to build detailed consumer profiles.

The Attorney General also argues that Netflix designed features to increase engagement, including autoplay, which allegedly encouraged prolonged viewing, particularly among younger users. These practices allegedly contradict the platform’s public messaging about being ad-free and family-friendly.

Texas’s complaint quoted a statement from Netflix co-founder and Chairman Reed Hastings, who allegedly said the company did not collect user data. He sought to distinguish Netflix’s approach from other major technology platforms with regard to data collection.

The Attorney General also claims that Netflix’s alleged surveillance violates the Texas Deceptive Trade Practices Act. The legal action seeks to halt the alleged data practices, introduce stricter controls, such as disabling autoplay for children, and impose penalties under consumer protection law, including civil fines of $ 10,000 per violation. The case highlights ongoing scrutiny of data practices by major technology platforms in the USA.

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WEF report says HR leaders will shape the success of AI transformation

AI is reshaping how companies organise labour, distribute decision-making and redesign internal operations, making workforce strategy a central part of AI adoption.

Writing for the World Economic Forum, Al-Futtaim Group HR director David Henderson argues that many AI projects fail because organisations focus too heavily on technology while neglecting the need to change work, accountability, and operational processes.

The article says successful AI adoption depends on how effectively businesses combine human judgement with machine-driven systems, rather than treating automation as a standalone software rollout.

Using Garry Kasparov’s ‘advanced chess’ model after his 1997 defeat to IBM’s Deep Blue as an example, Henderson highlights how humans working alongside computers eventually outperformed both machines and grandmasters operating independently.

He suggests the same principle is now emerging across modern enterprises, where stronger results come from integrating AI directly into operational workflows rather than isolating it in technical departments.

The article identifies four major responsibilities for HR leaders during AI transformation. As ‘design architects’, Chief Human Resources Officers are expected to redefine which decisions remain human-led, which become AI-assisted and how accountability is distributed across organisations. As ‘capability stewards’, they must build continuous AI learning systems rather than rely on occasional employee training programmes.

HR leaders are also described as ‘adoption catalysts’, responsible for helping frontline employees integrate AI into daily workflows, and as ‘transition guardians’, tasked with managing concerns linked to surveillance, bias, fairness, employability and workforce trust.

Several companies are cited as examples of that transition. Procter & Gamble embedded AI engineers and data scientists directly within operational business units rather than centralising them within analytics teams.

Zurich Insurance developed enterprise-wide AI learning systems focused on transferable skills and workforce redeployment, while Al-Futtaim enabled frontline retail teams to develop AI-supported customer recommendation systems through agile operational groups rather than top-down executive planning.

Why does it matter?

AI competitiveness increasingly depends on organisational adaptability instead of access to technology alone. Workforce redesign, reskilling systems, internal trust, and operational flexibility are becoming critical strategic advantages as automation expands across industries. WEF’s argument highlights how HR departments are evolving from administrative functions into central actors shaping AI governance, labour transformation, and long-term business resilience.

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World Economic Forum analysis explores AI-driven future planning for organisations

A World Economic Forum article argues that organisations need to move beyond static reports and analytical forecasts to become more future-ready in an era marked by rapid technological and geopolitical change.

The article highlights FutureSlam, a foresight method that combines participatory scenario-building, AI-supported reflection and improvisational performance to help organisations experience possible futures rather than analyse them. The authors say many organisations already invest in foresight, but struggle to translate insights into operational decisions because they often remain confined to strategy teams and slide decks.

The approach integrates human imagination with AI-generated scenarios. Participants first develop scenarios themselves, before comparing them with future images generated by an AI system using the same trend material. The authors argue that this comparison can challenge assumptions, confirm parts of participants’ reasoning and introduce perspectives that human groups may avoid.

FutureSlam then uses improvised performance, including simulated news broadcasts and staged scenarios, to make possible futures more tangible. According to the article, the method is designed to make foresight more inclusive, structured and memorable by turning participants into co-creators rather than passive recipients of expert analysis.

The authors suggest that such approaches could help organisations adapt more effectively to technological, geopolitical and societal change by turning foresight into a shared organisational capability rather than a niche strategic exercise.

Why does it matter?

AI is increasingly being used not only to automate tasks, but also to support strategic thinking, scenario-building and organisational learning. The FutureSlam example points to a broader shift in how organisations may prepare for uncertainty: less focus on predicting precise outcomes, and more focus on building the capacity to test assumptions, imagine alternatives and adapt collectively.

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Europe pushes for unified capital markets and stronger banking union

European Central Bank Vice-President Luis de Guindos has called for deeper financial integration in Europe, arguing that more unified capital markets and a stronger banking union are needed to support growth, resilience and competitiveness.

Speaking at a joint European Commission and ECB conference on financial integration, de Guindos said Europe has made progress in integrating financial markets, including through stronger cross-border capital flows and reduced differences in some asset prices across member states. However, he warned that fragmentation persists in areas such as corporate lending, equity markets and foreign direct investment.

Cross-border corporate lending within the euro area accounts for only 14% of total corporate lending, while equity market integration has shown signs of decline since 2022, and foreign direct investment within the euro area has fallen to a historical low, according to the speech.

De Guindos said policy priorities should include a genuine single rulebook for capital markets, a more European supervisory framework and support for a tokenised financial ecosystem through the distributed ledger technology pilot regime. He argued that these measures would reduce legal uncertainty, support digital financial innovation and help remove barriers to cross-border capital market integration.

He also called for further banking union reforms, including treating the banking union as a single European jurisdiction, finalising a European deposit insurance scheme and allowing capital and liquidity to move more freely within cross-border banking groups. Such steps, he said, would help reduce fragmentation and strengthen the euro area’s financial system.

The speech also pointed to the need for a more coherent regulatory framework, including simpler and more harmonised rules for banks, closer attention to regulatory gaps between banks and non-bank financial institutions, and the removal of legal and tax barriers that still limit cross-border activity.

Why does it matter?

Financial fragmentation affects how efficiently Europe can channel savings into investment, support innovation and absorb economic shocks. Deeper capital markets make it easier for businesses to access funding across borders, while a stronger banking union could reduce national barriers and improve resilience during periods of stress.

The speech also connects financial integration with digital finance and strategic autonomy. By linking capital market reform with tokenisation, EU-level supervision and banking union, the ECB is framing financial integration as part of Europe’s broader effort to remain competitive in a more fragmented global economy.

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Chainalysis points to rising adoption of blockchain forecasting

Crypto prediction markets are expanding rapidly as blockchain technology reshapes how users speculate on and hedge against real-world events, according to blockchain analytics firm Chainalysis.

Platforms that allow traders to take positions on elections, interest rates, sports and geopolitical developments have attracted both retail users and institutional firms, pushing the sector towards a more mature financial structure. Chainalysis says activity has grown sharply since late 2024, with inflows reflecting both retail participation and deposits from market makers.

The firm says major financial and crypto companies are increasingly building infrastructure around event-based contracts. It points to the involvement of major financial institutions and crypto platforms such as Robinhood, Coinbase and Crypto.com, which are exploring or launching prediction market offerings.

Chainalysis argues that blockchain transparency could help prediction markets address compliance and market-integrity risks by recording transactions on public ledgers. The firm says that visibility can support investigations into money laundering, sanctions exposure, wash trading, insider trading and market manipulation.

Regulatory uncertainty nevertheless remains a major obstacle. In the United States, regulators and state authorities continue to debate whether some prediction markets should be treated as financial derivatives or gambling products. Chainalysis also notes that several jurisdictions in Europe, Asia-Pacific and Latin America have restricted or blocked major prediction market platforms.

The firm argues that stronger blockchain-based monitoring tools could help regulators and compliance teams support responsible innovation while reducing financial crime and market abuse risks.

Why does it matter?

The growth of crypto prediction markets points to a wider convergence between digital finance, public forecasting and event-based speculation. Institutional interest suggests the sector is moving beyond retail betting, but unresolved questions over gambling law, derivatives regulation, market manipulation and the use of non-public information will shape whether these platforms become a recognised part of financial markets or remain legally fragmented.

Chainalysis also raises a broader governance question: whether public-ledger transparency can make crypto-native markets easier to monitor than traditional betting or derivatives systems, or whether global accessibility and fragmented oversight will create new risks for regulators.

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Dutch court backs Solvinity DigiD contract despite US data access fears

The District Court of The Hague has rejected an attempt by three Dutch citizens to block the government from renewing its contract with Solvinity, the company responsible for hosting and technically managing systems linked to DigiD.

The plaintiffs argued that Solvinity’s planned acquisition by US-based IT provider Kyndryl could place sensitive data from more than 16 million DigiD users under US jurisdiction, potentially exposing it to US authorities and creating risks to critical public services such as healthcare, pensions, taxes, and unemployment systems.

Despite these concerns, the court ruled in favour of the Dutch State, allowing the agreement to proceed. Judges did not accept arguments that the deal would immediately threaten data security or justify halting the contract.

The decision leaves further scrutiny to the Investment Assessment Office, which is reviewing national security risks linked to the acquisition. The case highlights ongoing tensions around digital sovereignty and data protection in the Netherlands.

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Apple may be preparing a major Siri AI shake-up in iOS 27

Apple is reportedly preparing a major expansion of Apple Intelligence that could allow users to choose which AI model powers Siri and other system features. According to recent reports, iOS 27, iPadOS 27, and macOS 27 may introduce a new ‘Extensions’ framework designed to integrate third-party AI systems directly into Apple’s software ecosystem.

The reported feature would allow applications such as Gemini and Claude to connect with Siri through their App Store apps. Users may be able to select different AI providers for different tasks, while Apple is also said to be testing separate Siri voices for responses generated by external models rather than Apple’s own systems.

The move would expand Apple’s broader AI partnership strategy rather than replace existing integrations. ChatGPT already supports selected Apple Intelligence functions, and earlier reporting suggested Google Gemini could eventually power parts of Siri itself. The new framework appears aimed at turning Apple devices into a wider AI platform that supports multiple large language models rather than a single assistant stack.

Apple is expected to present further details during its Worldwide Developers Conference on 8 June 2026. If the reported changes materialise, they could significantly reshape how users interact with AI assistants by giving them more control over which models handle tasks such as search, writing, and image generation.

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Siri AI delays lead to $250 million Apple settlement

Apple has agreed to pay $250 million to settle a class action lawsuit alleging that it misled consumers about the readiness and availability of AI-powered Siri features promoted ahead of the iPhone 16 launch. Under the proposed agreement, eligible US customers who bought supported iPhone models between 10 June 2024 and 29 March 2025 may receive between $25 and $95 per device, depending on the number of claims. Apple denied wrongdoing and settled the case without admitting liability.

The complaint argued that consumers who purchased supported iPhone 15 and iPhone 16 models expected advanced Apple Intelligence features and a significantly upgraded Siri experience that were not available at the time of sale. Plaintiffs said Apple’s marketing created the impression that the new capabilities would arrive sooner and with broader functionality than users ultimately received.

The settlement comes shortly before Apple’s annual Worldwide Developers Conference, where the company is widely expected to present further updates to Siri and its wider AI strategy.

Why does it matter?

The case shows how AI product marketing is becoming a legal and regulatory risk, not just a branding issue. As technology companies use generative AI features to drive device sales and platform adoption, courts and consumers are paying closer attention to whether those capabilities are actually available when products reach the market. The Apple settlement suggests that overstating AI readiness can create liability even before regulators step in, making transparency around launch claims increasingly important across the sector.

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European Commission publishes first Digital Markets Act review

The European Commission has published its first formal review of the Digital Markets Act, assessing how the regulation is affecting the behaviour of large online platforms in the EU digital economy. According to the review, the law has produced visible changes in some areas, while also exposing continuing problems in implementation and enforcement.

The review points to changes in user choice since the DMA entered into force in March 2024. These include support for third-party app stores and prompts on devices to select browsers or search engines, alongside reported increases in usage and downloads of alternative services.

Enforcement action is also a central part of the assessment. In April 2025, Apple was fined €500 million for blocking developers from directing users to cheaper purchasing options, while Meta was fined €200 million over its ‘consent or pay’ model. Both companies are appealing the decisions.

At the same time, the review identifies clear implementation challenges. It says investigations are taking around twice as long as the 12-month target, while legal procedures are being used to slow compliance. It also raises broader questions about whether fast-growing areas such as AI tools and cloud platforms should eventually be brought within the scope of the regulation.

The Digital Markets Act is therefore presented less as a completed intervention than as an ongoing regulatory process. The review suggests that its long-term impact will depend not only on the rules already in force, but also on how consistently they are enforced and how the EU responds to changes in digital markets.

Why does it matter?

The review matters because it shows that the real test of the Digital Markets Act is no longer whether the EU can write rules for large platforms, but whether it can enforce them quickly and adapt them to new market realities. Early changes in user choice suggest the law is starting to affect platform behaviour. However, delays in investigations and questions around AI and cloud services show that the regulatory contest is still evolving.

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Australia expands collaboration efforts in key science and technology areas

The Australian Government Department of Industry, Science and Resources has announced $6.2 million in funding for nine international projects under round two of the Global Science and Technology Diplomacy Fund (GSTDF).

The programme supports collaboration, innovation and commercialisation in priority technology areas. The selected projects focus on AI, advanced manufacturing, quantum technologies and hydrogen, with several initiatives applying AI to areas such as robotics, satellite networks and ocean forecasting.

According to the department, Australian researchers will work with international partners across Asia-Pacific, with projects spanning fields from healthcare to environmental monitoring and space technologies.

The funding reflects a broader effort to deepen international cooperation and advance strategic technologies, with collaborations involving countries including Singapore, Vietnam, Japan, Malaysia, New Zealand, and South Korea, supporting innovation linked to Australia.

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