Digital cooperation Archives | Digital Watch Observatory

IBM and ETH Zurich announce partnership on AI and quantum algorithms

International Business Machines Corporation and the Swiss Federal Institute of Technology Zurich have announced a decade-long partnership to develop algorithms that bridge classical computing, machine learning, and quantum systems.

The collaboration will focus on creating foundational algorithms to address complex business and scientific challenges as quantum computing becomes increasingly practical. IBM will support the establishment of new professorships and research initiatives at the institution.

The partnership will concentrate on four key areas: optimisation, differential equations, linear algebra and complex system modelling, strengthening the mathematical foundations required for AI and quantum progress.

This represents a significant commitment to shaping the algorithmic future of computing. Both institutions believe that algorithms, rather than hardware or software alone, will define the next computing revolution as quantum and AI technologies converge in Zurich.

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EIB highlights AI as key driver of Croatia’s economic growth

The European Investment Bank and the Croatian National Bank have emphasised the strategic importance of AI in strengthening Croatia’s economic competitiveness. Discussions at a joint conference focused on accelerating AI adoption through coordinated investment, policy development and skills enhancement.

Despite strong investment activity among firms in Croatia, the uptake of advanced technologies remains limited. Only a small share of companies systematically use generative AI, with applications largely confined to internal processes, highlighting significant untapped potential for productivity gains.

Participants identified key structural barriers, including limited access to finance, shortages of skilled workers and regulatory uncertainty.

Addressing these challenges requires a combined approach that mobilises private capital, improves access to funding for smaller firms and supports the development of a more robust innovation ecosystem.

The EIB continues to play a central role in Europe’s digital transformation, with major funding initiatives aimed at scaling AI technologies and strengthening strategic infrastructure.

By aligning financial instruments with policy priorities, the initiative seeks to enhance long-term growth, resilience and integration into global value chains.

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Microsoft announces $5.5 billion Singapore plan with free Copilot for students

Microsoft will invest $5.5 billion in Singapore from 2025 to 2029 to expand cloud and AI infrastructure and operations. The announcement was made by Vice Chair and President Brad Smith at the Asia Tech x Inspire event.

Every tertiary student in Singapore will receive free access to Microsoft 365 Copilot for 12 months. More than 200,000 students will use AI tools integrated into applications including Word, Excel, Outlook and PowerPoint.

Educators will receive free AI training through Microsoft Elevate for Educators across schools and higher education institutions. Nonprofit leaders will also be supported through Microsoft Elevate for Changemakers to build practical AI skills.

Officials said the initiatives aim to strengthen workforce readiness and support responsible AI adoption. The programmes align with Singapore’s National AI Strategy 2.0 and broader efforts to expand AI literacy.

LinkedIn data shows demand for AI literacy skills in Singapore has increased by more than 70% year on year. Microsoft said the investment reflects long term confidence in Singapore as a global digital leader.

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Mozambique explores AI role in strengthening electoral systems

Electoral stakeholders in Mozambique are examining the growing role of AI in democratic and electoral processes. AI tools are increasingly used to improve voter registration, logistics, and public engagement, yielding greater efficiency and accessibility.

Concerns remain around data protection, digital security, and institutional accountability. Officials and partners stressed that while AI can strengthen electoral administration, it also introduces risks that require careful governance and clear ethical safeguards.

A technical session organised under a UNDP-supported project provided a platform for national institutions, including the electoral commission, judiciary, and police, to discuss responsible AI adoption.

Participants highlighted the need for structured preparation, training, and due diligence before wider implementation.

The discussions also underscored growing interest in coordinated AI integration, while reinforcing the central role of transparency and public trust, which remains central to any technological adoption in electoral systems.

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UK expands efforts to boost digital inclusion

More than one million people have been helped to get online through a national digital inclusion plan led by the Department for Science, Innovation and Technology. The initiative targets groups including older people, jobseekers and rural communities.

The programme has delivered over 22,000 donated devices and funded more than 80 local projects with £11.9 million. Support includes improved connectivity, access to affordable services and training to build essential digital skills.

Efforts also focus on strengthening long-term capabilities, with the government taking control of the national digital skills framework. Updates will reflect changing needs, such as online safety and the growing role of AI in everyday life.

British officials say the plan is helping people find work, manage finances and access services more easily. Further expansion is expected as authorities work with industry and charities to reach more communities.

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Australia and Anthropic deepen AI safety cooperation

Anthropic has signed a Memorandum of Understanding with the Australian government to strengthen AI safety research and align with Australia’s National AI Plan. The agreement was formalised during a meeting in Canberra between Anthropic CEO Dario Amodei and Prime Minister Anthony Albanese.

The partnership establishes collaboration with Australia’s AI Safety Institute, including the sharing of model capability insights, joint safety evaluations and coordinated research with academic institutions.

The agreement also covers the exchange of Anthropic’s Economic Index data to help track AI adoption and its impact across key sectors such as healthcare, agriculture and financial services.

As part of its wider commitment, Anthropic is investing AUD$3 million in API credits for Australian research institutions, supporting projects in genomics, disease diagnosis and medical innovation.

Universities and institutes will apply Claude to areas such as rare disease analysis, precision medicine and scientific training for future developers.

Further initiatives include startup support programmes and exploration of infrastructure investments in Australia, including data centres and energy systems. The collaboration marks an expansion of Anthropic’s presence in the Asia-Pacific region, with a Sydney office planned in the near future.

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Dutch court bans harmful Grok AI-generated images

A judge in Amsterdam has ordered AI chatbot Grok and platform X to stop generating and distributing explicit deepfake images. The ruling targets so-called ‘undressing’ content and illegal material involving minors.

The case was brought by Offlimits, which argued that safeguards were failing. The Dutch judges found sufficient evidence that harmful images could still be created despite existing restrictions.

The court imposed a penalty of €100,000 per day for violations, with a maximum of €10 million. Access to Grok on X must also be suspended if the system does not comply with the order.

The decision highlights growing legal pressure on AI platforms to control the misuse of generative tools. Regulators and courts are increasingly demanding stronger protections against online abuse and illegal content.

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Google expands AI skills initiative to boost career mobility in the UK

Google has launched a nationwide initiative in the UK to improve access to AI skills and support career progression.

The programme, titled ‘AI Works for Britain’, seeks to address structural barriers that limit professional mobility despite widespread access to digital tools.

New research indicates that a significant proportion of the population feels unable to advance, citing gaps in skills, confidence and professional networks.

While a majority already use AI tools, only a minority report meaningful productivity gains, suggesting that effective utilisation remains uneven across the workforce.

An initiative by Google that focuses on practical upskilling through public training hubs, university partnerships and community outreach programmes.

These efforts aim to move users beyond basic interaction with AI tools toward more advanced applications that can enhance employability, efficiency and business development.

The programme in the UK aligns with broader efforts to position AI as a driver of economic inclusion rather than a source of inequality, with policymakers and industry stakeholders emphasising the importance of workforce readiness in an increasingly AI-driven economy.

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Agentic AI study begins through University of Glasgow and Lloyds partnership

The University of Glasgow and Lloyds Banking Group have launched a four-year research partnership to study how agentic AI tools could support software and data engineering work.

According to the announcement, engineers at Lloyds Banking Group in Bristol, Manchester, and Hyderabad will work with large-language-model-based coding tools on different tasks each quarter. The aim is to measure effects on delivery speed and quality.

The collaboration will also create a PhD position, a Master of Research position, and a postdoctoral research associate post at the University of Glasgow.

Dr Tim Storer said: ‘Agentic-driven software engineering is a fast-developing sector with the potential to enable human engineers to work more efficiently by automating some tasks and allowing them to focus their skills on higher-level work.’

However, there has been relatively little research in industry on how integrating agentic AI into software engineering practices can be done effectively in large-scale organisations.’

We’re delighted to be partnering with Lloyds Banking Group on this groundbreaking project. Together, we will enable the Group’s plans to increase their software development capacity, produce high-quality research for the benefit of all, and influence national policy and industry standards.’

Dr Shane Montague said: ‘Lloyds Banking Group’s mission to Help Britain Prosper means leading innovation that genuinely improves how engineering gets done, with a focus on delivering enhanced digital services for our customers.’

‘We’re excited to partner with the University of Glasgow to gather rigorous, real-world evidence from day-to-day engineering work, so we can understand what really works and how agentic AI can be applied effectively and responsibly at scale.’

The partners say they plan to publish regular research papers and best-practice documents as the project develops.

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Software development dominates AI agent tool usage

Researchers analysed 177,436 AI agent tools created between November 2024 and February 2026 using Model Context Protocol repositories. The study examines how AI agents use external tools to access and modify digital environments.

The tools are grouped into perception, reasoning and action categories based on their function. Perception tools access data, reasoning tools analyse information, and action tools modify systems such as files, emails or external platforms.

Software development accounts for 67% of all tools and 90% of downloads. The findings show that AI agents are primarily used to support coding tasks and related workflows.

The share of action tools increased from 27% to 65% over the 16 months analysed. Most action tools focus on medium-stakes tasks, though some are used for financial transactions and other higher-stakes activities.

The study also outlines a method to monitor AI agent usage through tool-level analysis. This approach can support oversight of risks linked to AI deployment in practical applications.

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