Digital business models

New York orders warning labels on social media features

Authorities in New York State have approved a new law requiring social media platforms to display warning labels when users engage with features that encourage prolonged use.

Labels will appear when people interact with elements such as infinite scrolling, auto-play, like counters or algorithm-driven feeds. The rule applies whenever these services are accessed from within New York.

Governor Kathy Hochul said the move is intended to safeguard young people against potential mental health harms linked to excessive social media use. Warnings will show the first time a user activates one of the targeted features and will then reappear at intervals.

Concerns about the impact on children and teenagers have prompted wider government action. California is considering similar steps, while Australia has already banned social media for under-16s and Denmark plans to follow. The US surgeon general has also called for clearer health warnings.

Researchers continue to examine how social media use relates to anxiety and depression among young users. Platforms now face growing pressure to balance engagement features with stronger protections instead of relying purely on self-regulation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

SK Telecom introduces South Korea’s first hyperscale AI model

The telecommunications firm, SK Telecom, is preparing to unveil A.X K1, Korea’s first hyperscale language model built with 519 billion parameters.

Around 33 billion parameters are activated during inference, so the AI model can keep strong performance instead of demanding excessive computing power. The project is part of a national initiative involving universities and industry partners.

The company expects A.X K1 to outperform smaller systems in complex reasoning, mathematics and multilingual understanding, while also supporting code generation and autonomous AI agents.

At such a scale, the model can operate as a teacher system that transfers knowledge to smaller, domain-specific tools that might directly improve daily services and industrial processes.

Unlike many global models trained mainly in English, A.X K1 has been trained in Korean from the outset so it naturally understands local language, culture and context.

SK Telecom plans to deploy the model through its AI service Adot, which already has more than 10 million subscribers, allowing access via calls, messages, the web and mobile apps.

The company foresees applications in workplace productivity, manufacturing optimisation, gaming dialogue, robotics and semiconductor performance testing.

Research will continue so the model can support the wider AI ecosystem of South Korea, and SK Telecom plans to open-source A.X K1 along with an API to help local developers create new AI agents.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Trust Wallet urges update after $7 million hack

Trust Wallet has urged users to update its Google Chrome extension after a security breach affecting version 2.68 resulted in the theft of roughly $7 million. The company confirmed it will refund all impacted users and advised downloading version 2.69 immediately.

Mobile users and other browser extension versions were unaffected.

Blockchain security firms revealed that malicious code in version 2.68 harvested wallet mnemonic phrases, sending decrypted credentials to an attacker‑controlled server.

Around $3 million in Bitcoin, $431 in Solana, and more than $3 million in Ethereum were stolen and moved through centralised exchanges and cross‑chain bridges for laundering. Hundreds of users were affected.

Analysts suggest the incident may involve an insider or a nation-state actor, exploiting leaked Chrome Web Store API keys.

Trust Wallet has launched a support process for victims and warned against impersonation scams. CEO Eowyn Chen said the malicious extension bypassed the standard release checks and that investigation and remediation are ongoing.

The incident highlights ongoing security risks for browser-based cryptocurrency wallets and the importance of user vigilance, including avoiding unofficial links and never sharing recovery phrases.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

The AI terms that shaped debate and disruption in 2025

AI continued to dominate public debate in 2025, not only through new products and investment rounds, but also through a rapidly evolving vocabulary that captured both promise and unease.

From ambitious visions of superintelligence to cultural shorthand like ‘slop’, language became a lens through which society processed another turbulent year for AI.

Several terms reflected the industry’s technical ambitions. Concepts such as superintelligence, reasoning models, world models and physical intelligence pointed to efforts to push AI beyond text generation towards deeper problem-solving and real-world interaction.

Developments by companies including Meta, OpenAI, DeepSeek and Google DeepMind reinforced the sense that scale, efficiency and new training approaches are now competing pathways to progress, rather than sheer computing power alone.

Other expressions highlighted growing social and economic tensions. Words like hyperscalers, bubble and distillation entered mainstream debate as data centres expanded, valuations rose, and cheaper model-building methods disrupted established players.

At the same time, legal and ethical debates intensified around fair use, chatbot behaviour and the psychological impact of prolonged AI interaction, underscoring the gap between innovation speed and regulatory clarity.

Cultural reactions also influenced the development of the AI lexicon. Terms such as vibe coding, agentic and sycophancy revealed how generative systems are reshaping work, creativity and user trust, while ‘slop’ emerged as a blunt critique of low-quality, AI-generated content flooding online spaces.

Together, these phrases chart a year in which AI moved further into everyday life, leaving society to wrestle with what should be encouraged, controlled or questioned.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

New AI directorates signal Türkiye’s push for AI

Türkiye has announced new measures to expand its AI ecosystem and strengthen public-sector adoption of the technology. The changes were published in the Official Gazette, according to Industry and Technology Minister Mehmet Fatih Kacir.

The Ministry’s Directorate General of National Technology has been renamed the Directorate General of National Technology and AI. The unit will oversee policies on data centres, cloud infrastructure, certification standards, and regulatory processes.

The directorate will also coordinate national AI governance, support startups and research, and promote the ethical and reliable use of AI. Its remit includes expanding data capacity, infrastructure, workforce development, and international cooperation.

Separately, a Public AI Directorate General has been established under the Presidency’s Cybersecurity Directorate. The new body will guide the use of AI across government institutions and lead regulatory work on public-sector AI applications.

Officials say the unit will align national legislation with international frameworks and set standards for data governance and shared data infrastructure. The government aims to position Türkiye as a leading country in the development of AI.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

La Poste suffers DDoS attack as Noname057 claims responsibility

Authorities in France are responding to a significant cyber incident after a pro-Russian hacker group, Noname057, claimed responsibility for a distributed denial-of-service attack on the national postal service, La Poste.

The attack began on 22 December and forced core computer systems offline, delaying parcel deliveries during the busy Christmas period instead of allowing normal operations to continue.

According to reports, standard letter delivery was not affected. However, postal staff lost the ability to track parcels, and customers experienced disruptions when using online payment services connected to La Banque Postale.

Recovery work was still underway several days later, underscoring the increasing reliance of critical services on uninterrupted digital infrastructure.

Noname057 has previously been linked to cyberattacks across Europe, mainly targeting Ukraine and countries seen as supportive of Kyiv instead of neutral states.

Europol led a significant operation against the group earlier in the year, with the US Department of Justice also involved, highlighting growing international coordination against cross-border cybercrime.

The incident has renewed concerns about the vulnerability of essential logistics networks and public-facing services to coordinated cyber disruption. European authorities continue to assess long-term resilience measures to protect citizens and core services from future attacks.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

How AI in 2026 will transform management roles and organisational design

In 2026, AI will transform management structures and automate tasks as companies strive to demonstrate real value. By 2026, AI is expected to move beyond experimentation and pilot projects and begin reshaping how companies are actually run.

According to researchers and professors at IMD, the focus will shift from testing AI tools to redesigning organisational structures, decision-making processes, and management roles themselves. After several years of hype-driven investment, many companies are now under pressure to show clear returns from AI.

Those that remain stuck in proof-of-concept mode risk falling behind competitors who are willing to make more significant operational changes. Several corporate functions are set to become AI native by the end of the year.

Human roles in these areas will focus more on interpersonal judgement, oversight and complex decision-making, while software forms the operational backbone. Workforce structures are also likely to change. Middle management roles are expected to shrink gradually as AI systems take over reporting, forecasting and coordination tasks.

At the same time, risks associated with AI are growing. Highly realistic synthetic media is expected to fuel a rise in misinformation, exposing organisations to reputational and governance challenges. To respond, companies will need faster monitoring systems, clearer crisis-response protocols and closer cooperation with digital platforms to counter fabricated content.

Economic uncertainty is adding further pressure. Organisations that remain stuck in pilot mode may be forced to scale back, while those committing to bigger operational change are expected to gain an advantage.

Operational areas are expected to deliver the highest returns on investment. Supply chains, core operations and internal processes are expected to outperform customer-facing applications in efficiency, resilience and cost reduction.

As a result, chief operating officers may emerge as the most influential leaders of AI within executive teams. Ultimately, by 2026, competitive advantage will depend less on whether a company uses advanced AI and more on how deliberately it integrates these systems into everyday decision-making, roles, and organisational structures.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

EU targets addictive gaming features

Video gaming has become one of Europe’s most prominent entertainment industries, surpassing a niche hobby, with over half the population regularly engaging in it.

As the sector grows, the EU lawmakers are increasingly worried about addictive game design and manipulative features that push players to spend more time and money online.

Much of the concern focuses on loot boxes, where players pay for random digital rewards that resemble gambling mechanics. Studies and parliamentary reports warn that children may be particularly vulnerable, with some lawmakers calling for outright bans on paid loot boxes and premium in-game currencies.

The European Commission is examining how far design choices contribute to digital addiction and whether games are exploiting behavioural weaknesses rather than offering fair entertainment.

Officials say the risk is higher for minors, who may not fully understand how engagement-driven systems are engineered.

The upcoming Digital Fairness Act aims to strengthen consumer protection across online services, rather than leaving families to navigate the risks alone. However, as negotiations continue, the debate over how tightly gaming should be regulated is only just beginning.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Kazakhstan climbs global AI readiness ranking

Kazakhstan has risen to 60th place out of 195 countries in the 2025 Government AI Readiness Index, marking a 16-place improvement and highlighting a year of accelerated institutional and policy development.

The ranking, compiled by Oxford Insights, measures governments’ ability to adopt and manage AI across public administration, the economy, and social systems.

At a regional level, Kazakhstan now leads Central Asia in AI readiness. A strong performance in the Public Sector Adoption pillar, with a score of 73.59, reflects the widespread use of digital services, e-government platforms, and a shift toward data-led public service delivery.

The country’s advanced digital infrastructure, high internet penetration, and mature electronic government ecosystem provide a solid foundation for scaling AI nationwide.

Political and governance initiatives have further strengthened Kazakhstan’s position. In 2025, the government enacted its first comprehensive AI law, which covers ethics, safety, and digital innovation.

At the same time, the Ministry of Digital Development, Innovation and Aerospace Industry was restructured into a dedicated Ministry of Artificial Intelligence and Digital Development, signalling the government’s commitment to making AI a central policy priority.

Kazakhstan’s progress demonstrates how a focused policy, infrastructure, and institutional approach can enhance AI readiness, enabling the responsible and effective integration of AI across public and economic sectors.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Japan to boost spending on semiconductors and AI

Japan’s Ministry of Economy, Trade and Industry is set to significantly increase funding for advanced semiconductors and AI in the coming fiscal year.

Spending on chips and AI is expected to nearly quadruple to ¥1.23 trillion ($7.9 billion), accounting for the majority of the ministry’s ¥3.07 trillion budget, a 50% increase from last year. The budget, approved by Prime Minister Sanae Takaichi’s Cabinet, will be debated in parliament early next year.

The funding boost reflects Japan’s push to strengthen its position in frontier technologies amid global competition with the US and China. The government will fund most of the additional support through regular budgets, ensuring more stable backing for semiconductor and AI development.

Key initiatives include ¥150 billion for chip venture Rapidus and ¥387.3 billion for domestic foundation AI models, data infrastructure, and ‘physical AI’ for robotics and machinery control.

The budget also allocates ¥5 billion for critical minerals and ¥122 billion for decarbonisation, including next-generation nuclear power. Special bonds worth ¥1.78 trillion will also support Japanese investment in the US, reinforcing the trade agreement between the two countries.

The increase in funding demonstrates Japan’s strategic focus on achieving technological self-sufficiency and enhancing global competitiveness in emerging industries, thereby ensuring long-term support for innovation and critical infrastructure.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!