Digital business models

Meta under pressure after small business loses thousands

A New Orleans bar owner lost $10,000 after cyber criminals hijacked her Facebook business account, highlighting the growing threat of online scams targeting small businesses. Despite efforts to recover the account, the company was locked out for weeks, disrupting sales.

The US-based scam involved a fake Meta support message that tricked the owner into giving hackers access to her page. Once inside, the attackers began running ads and draining funds from the business account linked to the platform.

Cyber fraud like this is increasingly common as small businesses rely more on social media to reach their customers. The incident has renewed calls for tech giants like Meta to implement stronger user protections and improve support for scam victims.

Meta says it has systems to detect and remove fraudulent activity, but did not respond directly to this case. Experts argue that current protections are insufficient, especially for small firms with fewer resources and little recourse after attacks.

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Hackers steal $500K via malicious Cursor AI extension

A cyberattack targeting the Cursor AI development environment has resulted in the theft of $500,000 in cryptocurrency from a Russian developer. Despite strong security practices and a fresh operating system, the victim downloaded a malicious extension named ‘Solidity Language’ in June 2025.

Masquerading as a syntax highlighting tool, the fake extension exploited search rankings to appear more legitimate than actual alternatives. Once installed, the extension served as a dropper for malware rather than offering any development features.

It contacted a command-and-control server and began deploying scripts designed to check for remote desktop software and install backdoors. The malware used PowerShell scripts to install ScreenConnect, granting persistent access to the victim’s system through a relay server.

Securelist analysts found that the extension exploited Open VSX registry algorithms by publishing with a more recent update date. Further investigation revealed the same attack methods were used in other packages, including npm’s ‘solsafe’ and three VS Code extensions.

The campaign reflects a growing trend of supply chain attacks exploiting AI coding tools to distribute persistent, stealthy malware.

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AI can reshape the insurance industry, but carries real-world risks

AI is creating new opportunities for the insurance sector, from faster claims processing to enhanced fraud detection.

According to Jeremy Stevens, head of EMEA business at Charles Taylor InsureTech, AI allows insurers to handle repetitive tasks in seconds instead of hours, offering efficiency gains and better customer service. Yet these opportunities come with risks, especially if AI is introduced without thorough oversight.

Poorly deployed AI systems can easily cause more harm than good. For instance, if an insurer uses AI to automate motor claims but trains the model on biassed or incomplete data, two outcomes are likely: the system may overpay specific claims while wrongly rejecting genuine ones.

The result would not simply be financial losses, but reputational damage, regulatory investigations and customer attrition. Instead of reducing costs, the company would find itself managing complaints and legal challenges.

To avoid such pitfalls, AI in insurance must be grounded in trust and rigorous testing. Systems should never operate as black boxes. Models must be explainable, auditable and stress-tested against real-world scenarios.

It is essential to involve human experts across claims, underwriting and fraud teams, ensuring AI decisions reflect technical accuracy and regulatory compliance.

For sensitive functions like fraud detection, blending AI insights with human oversight prevents mistakes that could unfairly affect policyholders.

While flawed AI poses dangers, ignoring AI entirely risks even greater setbacks. Insurers that fail to modernise may be outpaced by more agile competitors already using AI to deliver faster, cheaper and more personalised services.

Instead of rushing or delaying adoption, insurers should pursue carefully controlled pilot projects, working with partners who understand both AI systems and insurance regulation.

In Stevens’s view, AI should enhance professional expertise—not replace it—striking a balance between innovation and responsibility.

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Intel concedes defeat in AI race with Nvidia

Intel CEO Lip-Bu Tan has admitted the company can no longer compete with Nvidia in the AI training processor market. Speaking candidly to staff during a company-wide meeting, Tan said Nvidia’s lead is too great to overcome.

His comments mark a rare public admission of Intel’s slipping position in the global semiconductor industry.

The internal broadcast coincided with major job cuts across Intel’s global operations. Entire divisions are being downsized or shut down, including its automotive arm and parts of its manufacturing units.

Around 200 roles are being cut in Israel, along with hundreds more across other departments, as the company aims to simplify its structure and improve agility.

Tan noted that Intel has fallen out of the top 10 semiconductor firms by market value, a stark contrast to its former dominance. Once worth over $200 billion, Intel is now valued at around $100 billion.

Nvidia, meanwhile, briefly became the first company to surpass a $4 trillion valuation.

Despite the setbacks, Tan is steering Intel toward edge AI and agentic AI as areas of future growth. He stressed the need for cultural change within Intel, urging faster decision-making and a stronger focus on customer needs.

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Samsung confirms core Galaxy AI tools remain free

Samsung has confirmed that core Galaxy AI features will continue to be available free of charge for all users.

Speaking during the recent Galaxy Unpacked event, a company representative clarified that any AI tools installed on a device by default—such as Live Translate, Note Assist, Zoom Nightography and Audio Eraser—will not require a paid subscription.

Instead of leaving users uncertain, Samsung has publicly addressed speculation around possible Galaxy AI subscription plans.

While there are no additional paid AI features on offer at present, the company has not ruled out future developments. Samsung has already hinted that upcoming subscription services linked to Samsung Health could eventually include extra AI capabilities.

Alongside Samsung’s announcement, attention has also turned towards Google’s freemium model for its Gemini AI assistant, which appears on many Android devices. Users can access basic features without charge, but upgrading to Google AI Pro or Ultra unlocks advanced tools and increased storage.

New Galaxy Z Fold 7 and Z Flip 7 handsets even come bundled with six months of free access to premium Google AI services.

Although Samsung is keeping its pre-installed Galaxy AI features free, industry observers expect further changes as AI continues to evolve.

Whether Samsung will follow Google’s path with a broader subscription model remains to be seen, but for now, essential Galaxy AI functions stay open to all users without extra cost.

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Bank of Korea sounds alarm over unregulated stablecoins

Bank of Korea Governor Lee Chang-yong warned that letting non-banks issue won-based stablecoins could spark economic confusion similar to the 19th-century US Free Banking Era. His remarks follow President Lee Jae Myung’s push to launch domestic stablecoins under his economic agenda.

Governor Lee noted that handing over payment and settlement services to non-banks might disrupt the profit models of traditional banks and conflict with foreign exchange policies. He stressed that stablecoin policy requires coordination across government, as the central bank lacks sole authority.

Meanwhile, President Lee’s support for stablecoins has sparked a flurry of activity among fintech and banking firms, with many filing trademark applications linked to KRW stablecoin symbols. KakaoPay, one of South Korea’s largest payment platforms, has seen its stock surge by more than 120% since Lee’s election.

The BOK recently announced it will pause its central bank digital currency (CBDC) pilot, citing legal uncertainty surrounding the coexistence of CBDCs, stablecoins, and deposit tokens. Lee stated the trial had considered stablecoin interaction from the beginning, and further action will depend on legislative developments.

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Huawei challenges Nvidia in global AI chip market

Huawei Technologies is exploring AI chip exports to the Middle East and Southeast Asia in a bid to compete with Nvidia, according to a Bloomberg News report published Thursday.

The Chinese telecom firm has contacted potential buyers in the United Arab Emirates, Saudi Arabia, and Thailand to promote its Ascend 910B chips, an earlier-generation AI processor.

The offer involves a limited number of chips, reportedly in the low thousands, although specific quantities remain undisclosed. No deals have been finalised so far. Sources cited in the report said there is limited interest in the UAE, and the status of talks in Thailand remains uncertain.

Government representatives in Thailand and Saudi Arabia did not immediately respond to Reuters’ requests for comment. Huawei also declined to comment. The initiative is part of a broader strategy to expand into markets where US chipmakers have long held dominance.

Huawei also promotes remote access to CloudMatrix 384, a China-based AI system built using its more advanced chipsets. However, due to supply limitations, the company cannot export these high-end models outside China.

The Middle East has quickly become a high-demand region for AI infrastructure, attracting interest from leading technology companies. Nvidia has already struck several regional deals, positioning itself as a major player in AI development across Saudi Arabia and neighbouring countries.

Huawei is simultaneously focusing on domestic sales of its newer 910C chips, offering them to Chinese firms that cannot purchase US AI chips due to ongoing export restrictions imposed by Washington.

US administrations have long cited national security concerns in limiting China’s access to cutting-edge chip technologies, fearing their potential use in military applications.

‘With the current export controls, we are effectively out of the China datacenter market, which is now served only by competitors such as Huawei,’ an Nvidia spokesperson told Reuters.

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New Gemini AI tool animates photos into short video clips

Google has rolled out a new feature for Gemini AI that transforms still photos into short, animated eight-second videos with sound. The capability is powered by Veo 3, Google’s latest video generation model, and is currently available to Gemini Advanced Ultra and Pro subscribers.

The tool supports background noise, ambient audio, and even spoken dialogue, with support gradually expanding to users in select countries, including India. At launch, access to the web interface is limited, though Google has announced that mobile support will follow later in the week.

To use the tool, users upload a photo, describe the intended motion, and optionally add prompts for sound effects or narration. Gemini then generates a 720p MP4 video in a 16:9 landscape format, automatically synchronising visuals and audio.

Josh Woodward, Vice President of the Gemini app and Google Labs, showcased the feature on X (formerly Twitter), animating a child’s drawing. ‘Still experimental, but we wanted our Pro and Ultra members to try it first,’ he said, calling the result fun and expressive.

To maintain authenticity, each video includes a visible ‘Veo’ watermark in the bottom-right corner and an invisible SynthID watermark. This hidden digital signature, developed by Google DeepMind, helps identify AI-generated content and preserve transparency around synthetic media.

The company has emphasised its commitment to responsible AI deployment by embedding traceable markers in all output from this tool. These safeguards come amid increasing scrutiny of generative video tools and deepfakes across digital platforms.

To animate a photo using Gemini AI’s new tool, users should follow these steps: Click on the ‘tools’ icon in the prompt bar, then choose the ‘video’ option from the menu. Upload the still image, describe the desired motion, and provide sound or narration instructions, optionally.

The underlying Veo 3 model was first introduced at Google I/O as the company’s most advanced video generation engine. It can produce high-quality visuals, simulate real-world physics, and even lip-sync dialogue from text and image-based prompts.

A Google blog post explains: ‘Veo 3 excels from text and image prompting to real-world physics and accurate lip syncing.’ The company says users can craft short story prompts and expect realistic, cinematic responses from the model.

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Report shows China outpacing the US and EU in AI research

AI is increasingly viewed as a strategic asset rather than a technological development, and new research suggests China is now leading the global AI race.

A report titled ‘DeepSeek and the New Geopolitics of AI: China’s ascent to research pre-eminence in AI’, authored by Daniel Hook, CEO of Digital Science, highlights how China’s AI research output has grown to surpass that of the US, the EU and the UK combined.

According to data from Dimensions, a primary global research database, China now accounts for over 40% of worldwide citation attention in AI-related studies. Instead of focusing solely on academic output, the report points to China’s dominance in AI-related patents.

In some indicators, China is outpacing the US tenfold in patent filings and company-affiliated research, signalling its capacity to convert academic work into tangible innovation.

Hook’s analysis covers AI research trends from 2000 to 2024, showing global AI publication volumes rising from just under 10,000 papers in 2000 to 60,000 in 2024.

However, China’s influence has steadily expanded since 2018, while the EU and the US have seen relative declines. The UK has largely maintained its position.

Clarivate, another analytics firm, reported similar findings, noting nearly 900,000 AI research papers produced in China in 2024, triple the figure from 2015.

Hook notes that governments increasingly view AI alongside energy or military power as a matter of national security. Instead of treating AI as a neutral technology, there is growing awareness that a lack of AI capability could have serious economic, political and social consequences.

The report suggests that understanding AI’s geopolitical implications has become essential for national policy.

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EU finalises AI code as 2025 compliance deadline approaches

The European Commission has released its finalised Code of Practice for general-purpose AI models, laying the groundwork for implementing the landmark AI Act. The new Code sets out transparency, copyright, and safety rules that developers must follow before deadlines.

Approved in March 2024 and effective from August, the AI Act introduces the EU’s first binding rules for AI. It bans high-risk applications such as real-time biometric surveillance, predictive policing, and emotion recognition in schools or workplaces.

Stricter obligations will apply to general-purpose models from August 2025, including mandatory documentation of training data, provided this does not violate intellectual property or trade secrets.

The Code of Practice, developed by experts with input from over 1,000 stakeholders, aims to guide AI providers through the AI Act’s requirements. It mandates model documentation, lawful content sourcing, risk management protocols, and a point of contact for copyright complaints.

However, industry voices, including the CCIA, have criticised the Code, saying it disproportionately burdens AI developers.

Member States and the European Commission will assess the effectiveness of the Code in the coming months. From August 2026, enforcement will begin for existing models, while new ones will be subject to the rules a year earlier.

The Commission says these steps are vital to ensure GPAI models are safe, transparent, and rights-respecting across the EU.

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