Digital business models

Small business revival could hinge on AI-driven tools

If AI is to matter in the economy, it must first matter to small businesses. Firms employ over 61 million people, nearly half the private workforce, yet most run on outdated technology. While smartphones update monthly, many small businesses still use systems built a decade ago.

Search fund entrepreneurs bridge this gap by upgrading established firms with modern tech. One deal turned a 50-person roadside assistance firm into Asurion, now a global tech-care provider. Others have scaled compliance firms into nationwide SaaS platforms.

Generative AI now accelerates these transformations, cutting work times by over 60% across supply chains, compliance, and document processing functions. Complex tasks can now be completed in hours, unlocking double-digit productivity gains and allowing small businesses to focus on growth.

Search funds are not the only path forward. AI consulting firms, tech studios, and AI-powered roll-up strategies bring enterprise-grade tools to family-run firms. For communities that have relied on traditional playbooks, decades of growth can be compressed into months.

The cost of AI has never been lower, and the opportunity is wide open. Once deployed at scale, AI could power a wave of productivity on Main Street, helping small businesses compete and strengthening the economy for half of their workforce.

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NotebookLM turns notes into flashcards podcasts and quizzes

Google’s learning-focused AI tool NotebookLM has gained a major update, making studying and teaching more interactive.

Instead of offering only static summaries, it now generates flashcards that condense key information into easy-to-remember notes, helping users recall knowledge more effectively.

Reports can also be transformed into quizzes with customisable topics and difficulty, which can then be shared with friends or colleagues through a simple link.

The update extends to audio learning, where NotebookLM’s podcast-style Audio Overviews are evolving with new formats. Instead of a single style, users can now create Brief, Debate, or Critique episodes, giving greater flexibility in how material is explained or discussed.

Google is also strengthening its teaching tools. A new Blog Post format offers contextual suggestions such as strategy papers or explainers, while the ability to create custom report formats allows users to design study resources tailored to their needs.

The most significant addition, however, is the Learning Guide. Acting like a personal tutor, it promotes deeper understanding by asking open-ended questions, breaking problems into smaller steps, and adapting explanations to suit each learner.

With these features, NotebookLM is moving closer to becoming a comprehensive learning assistant, offering a mix of interactive study aids and adaptable teaching methods that go beyond simple note-taking.

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Google Cloud scraps transfer fees to win multicloud users

Google Cloud has rolled out a new Data Transfer Essentials plan, allowing customers to move workloads across multiple clouds without paying transfer fees. The move comes ahead of the EU Data Act on 12 September 2025, intended to strengthen competition across the cloud market.

Under the new rules, providers must charge data transfer fees only ‘at cost.’ While Microsoft and Amazon have already taken steps to comply, Google has gone further by removing the charge altogether.

The company said the change is aimed at supporting businesses with multicloud strategies, offering more flexibility, and reducing downtime in critical workloads.

The initiative also positions Google as more aligned with regulatory goals, particularly compared with Microsoft, which has faced scrutiny over restrictive licensing practices. Google said qualifying traffic will now be billed at zero cost, while other transfers remain charged at existing rates.

The announcement follows strong growth in Google Cloud’s business, especially from AI firms like OpenAI and Anthropic. Alphabet’s cloud contracts are valued at around $106 billion, with CEO Thomas Kurian projecting $58 billion in revenue conversion within two years.

Alphabet’s stock price rose 2.47% following the update, reaching $239.94, as investors responded positively to both growth prospects and regulatory positioning.

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Photonic chips open the path to sustainable AI by training with light

A team of international researchers has shown how training neural networks directly with light on photonic chips could make AI faster and more sustainable.

A breakthrough study, published in Nature, involved collaboration between the Politecnico di Milano, EPFL Lausanne, Stanford University, the University of Cambridge, and the Max Planck Institute.

The research highlights how physical neural networks, which use analogue circuits that exploit the laws of physics, can process information in new ways.

Photonic chips developed at the Politecnico di Milano perform mathematical operations such as addition and multiplication through light interference on silicon microchips only a few millimetres in size.

By eliminating the need to digitise information, these chips dramatically cut both processing time and energy use. Researchers have also pioneered an ‘in-situ’ training technique that enables photonic neural networks to learn tasks entirely through light signals, instead of relying on digital models.

The result is a training process that is faster, more efficient and more robust.

Such advances could lead to more powerful AI models capable of running directly on devices instead of being dependent on energy-hungry data centres.

An approach that paves the way for technologies such as autonomous vehicles, portable intelligent sensors and real-time data processing systems that are both greener and quicker.

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South Korea to grant crypto firms venture company status

South Korea will grant cryptocurrency firms ‘venture company’ status from 16 September, giving them access to tax breaks, financing support, and other incentives. The move follows a partial revision of the Venture Business Act removing restrictions on crypto trading and brokerage.

The regulatory change aims to stimulate growth in the crypto and blockchain sectors. Advantages include research and development grants, credit guarantees, and the ability for existing venture companies to expand into crypto without losing their status.

Minister Han Seong-sook said the measure will help create a transparent and responsible ecosystem for venture capital and innovation.

Crypto firms were first restricted in October 2018, and the ban’s removal reflects industry maturity and better user protections. Officials expect the change to accelerate growth in virtual asset trading, blockchain technologies, smart contracts, and cybersecurity.

South Korea’s crypto industry has already benefited from a friendlier environment under President Lee Jae-myung. The market is projected to reach $1.1 billion in revenue in 2025 and $1.3 billion by 2026, with exchange users surpassing 16 million, over 30% of the population.

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Oracle and OpenAI drive record $300B investment in cloud for AI

OpenAI has finalised a record $300 billion deal with Oracle to secure vast computing infrastructure over five years, marking one of the most significant cloud contracts in history. The agreement is part of Project Stargate, OpenAI’s plan to build massive data centre capacity in the US and abroad.

The two companies will develop 4.5 gigawatts of computing power, equivalent to the energy consumed by millions of homes.

Backed by SoftBank and other partners, the Stargate initiative aims to surpass $500 billion in investment, with construction already underway in Texas. Additional plans include a large-scale data centre project in the United Arab Emirates, supported by Emirati firm G42.

The scale of the deal highlights the fierce race among tech giants to dominate AI infrastructure. Amazon, Microsoft, Google and Meta are also pledging hundreds of billions of dollars towards data centres, while OpenAI faces mounting financial pressure.

The company currently generates around $10 billion in revenue but is expected to spend far more than that annually to support its expansion.

Oracle is betting heavily on OpenAI as a future growth driver, although the risk is high given OpenAI’s lack of profitability and Oracle’s growing debt burden.

A gamble that rests on the assumption that ChatGPT and related AI technologies will continue to grow at an unprecedented pace, despite intense competition from Google, Anthropic and others.

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New iPhone security ups pressure on spyware

Apple is rolling out Memory Integrity Enforcement on the iPhone 17 line and iPhone Air, an always-on set of protections aimed at blocking memory-safety exploits used by mercenary spyware.

MIE builds on ARM’s Enhanced Memory Tagging Extension in Apple’s A19 chips, alongside secure allocators and tag-confidentiality measures.

Older devices without the new tagging hardware also receive memory-safety upgrades. Apple says new Spectre V1 leak mitigations arrive with virtually no CPU penalty.

Comparable ideas exist elsewhere, such as Windows 11’s memory integrity (HVCI) and Android’s MTE support on Pixel 8, but Apple’s approach is enabled by default across key attack surfaces. Security reporters note the move significantly complicates spyware operations.

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2025 State of the Union: Tech sovereignty amid geopolitical pressure

The European Commission President, Ursula von der Leyen, delivered her 2025 State of the Union address to the European Parliament in Strasbourg. The speech set out priorities for the coming year and was framed by growing geopolitical tensions and the push for a more self-reliant Europe.

Von der Leyen highlighted that global dynamics have shifted.

‘Battlelines for a new world order based on power are being drawn right now, ’ she said.

In this context, Europe must take a more assertive role in defending its own security and advancing the technologies that will underpin its economic future. The President characterised this moment as a turning point for European independence.

Digital policy appeared less prominently than expected in the address. Von der Leyen often referred to ‘technology sovereignty’ to encompass not only digital technologies, but also other types of technologies necessary for the green transition and to achieve energetic autonomy. In spite of that, some specific references to digital policy are worth highlighting.

  • Europe’s right to regulate. Von der Leyen defended Europe’s right to set its own standards and regulations. The assertion came right after her defence of the US-EU trade deal, making it a direct response to the mounting pressure and tariff threats from the US President Donald Trump’s administration.
  • Regulatory simplification. A specific regulatory package (omnibus) on digital was promised, under inspiration from the Draghi report on EU competitiveness. 
  • Investment in digital technology. Startups in key areas, such as quantum and AI, could receive particular attention, in order to enhance the availability of European capital and strengthen European sovereignty in these areas. According to her, the Commission ‘will partner with private investors on a multi-billion euro Scaleup Europe Fund’. No concrete figures were provided, however.
  • Artificial intelligence as key to European independence. In order to support this sector, von der Leyen highlighted the importance of some initiatives, such as the Cloud and AI Development Act, and the European AI Gigafactories. She praised the commitment of CEOs from some leading European companies to invest in digital in the recently launched AI and Tech Declaration. 
  • Mainstreaming information integrity. According to von der Leyen, Europe’s democracy is under attack, with the rise of information manipulation and disinformation. She proposed to create a new European Centre for Democratic Resilience, which will bring together all the expertise and capacity across member states and neighbouring countries. A new Media Resilience Programme aimed at supporting independent journalism and media literacy was also announced.
  • Limits to the use of social media by young people. The President of the Commission raised concerns about the impact of social media on children’s mental health and safety. She committed to convening a panel of experts to consider restrictions for social media access, referencing efforts that have been put in place in Australia.  

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Canadian news publishers clash with OpenAI in landmark copyright case

OpenAI is set to argue in an Ontario court that a copyright lawsuit by Canadian news publishers should be heard in the United States. The case, the first of its kind in Canada, alleges that OpenAI scraped Canadian news content to train ChatGPT without permission or payment.

The coalition of publishers, including CBC/Radio-Canada, The Globe and Mail, and Postmedia, says the material was created and hosted in Ontario, making the province the proper venue. They warn that accepting OpenAI’s stance would undermine Canadian sovereignty in the digital economy.

OpenAI, however, says the training of its models and web crawling occurred outside Canada and that the Copyright Act cannot apply extraterritorially. It argues the publishers are politicising the case by framing it as a matter of sovereignty rather than jurisdiction.

The dispute reflects a broader global clash over how generative AI systems use copyrighted works. US courts are already handling several similar cases, though no clear precedent has been established on whether such use qualifies as fair use.

Publishers argue Canadian courts must decide the matter domestically, while OpenAI insists it belongs in US courts. The outcome could shape how copyright laws apply to AI training and digital content across borders.

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Google launches AI Plus to expand access to Gemini tools

Google has introduced a new mid-tier subscription called AI Plus, designed to make its Gemini AI tools more accessible at a lower price. Positioned between the free and premium Pro plans, AI Plus offers broader access to Gemini 2.5 Pro, productivity features across Gmail, Docs, and Sheets, and 200GB of Google One cloud storage.

Subscribers will benefit from a larger 128,000-token context window, compared with 32,000 for free users, and tools such as Veo 3 Fast for video creation, Google Flow for video generation, and Whisk for image-to-video conversion. The plan also includes expanded use of NotebookLM, Google’s AI-powered research assistant.

The service has launched first in Indonesia at Rp. 75,000 ($4.56) per month, a fraction of the AI Pro plan’s price of Rp. 309,000 ($18.79). Google has not set a timeline for global rollout but said AI Plus will cost under $20 per month in other markets, with prices adjusted regionally.

After months of vague descriptions, the new tier follows Google’s move to publish clearer guidelines on Gemini’s usage limits across free, Pro, and Ultra plans. The update aims to bring greater transparency as the company pushes deeper into the competitive AI subscription market.

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