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AI cyber capabilities raise risk of correlated financial system failures, IMF warns

AI is rapidly reshaping the global financial system’s cyber risk landscape, according to analysis associated with the International Monetary Fund. While AI improves defence, it also helps attackers find and exploit vulnerabilities more quickly, increasing the risk of systemic disruption.

Financial infrastructure is highly interconnected, relying on shared software, cloud services, and payment networks. IMF analysis suggests that AI-enabled cyberattacks could trigger correlated institutional failures, leading to funding stress, solvency risks, and disruptions to payments and market operations.

Recent developments in advanced AI models demonstrate how quickly offensive capabilities are evolving, with systems now able to identify weaknesses across widely used platforms.

At the same time, defensive AI tools are being deployed to detect threats and strengthen resilience, but their effectiveness depends on governance, oversight, and integration within financial institutions.

Authorities are now being urged to treat cyber risk as a core financial stability issue rather than a purely technical challenge. Stronger supervision, resilience standards, and international coordination are viewed as essential, particularly as cyber threats increasingly cross borders and exploit shared global infrastructure.

Why does it matter?

Cyber risks related to AI are a macroeconomic threat that can affect liquidity, confidence, and core financial intermediation. At the same time, the same technology is essential for defence, meaning resilience now depends on how quickly supervision, governance, and international coordination can keep pace with rapidly scaling offensive capabilities.

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OSCE chairpersonship opens Geneva conference on AI and quantum risks

The Swiss OSCE Chairpersonship has opened a high-level conference in Geneva on how emerging technologies are affecting security, international governance, and co-operation across the OSCE region.

The two-day event, titled ‘Anticipating technologies – for a safe and humane future’, brings together about 200 participants from OSCE participating States and Partners for Co-operation, alongside representatives from international organisations, academia, the private sector, and civil society.

The conference focuses on the security implications of rapid technological change, including AI and quantum technologies. The discussions are intended to examine how anticipation, dialogue, and cooperation can help reduce misunderstandings, build trust, and strengthen security in a fast-changing technological environment.

Opening the conference, OSCE Chairman-in-Office and Swiss Federal Councillor Ignazio Cassis said: ‘Technology will not wait for us. Geopolitics will not slow down. If we want to remain relevant, we must anticipate – not react. This is the responsibility we share across the OSCE region. The OSCE still offers something rare: a space where adversaries can speak, where differences can be managed, and where common ground can still be built.’

The organisation’s Secretary General, Feridun H. Sinirlioğlu, also stressed the need for dialogue as emerging technologies evolve faster than governance frameworks. He said: ‘Today, emerging technologies are evolving faster than the frameworks that govern them. This creates a widening gap between what technology can do and how we manage it. This gap must be addressed through dialogue – our most important stabilizing force in uncertain times – and this is where the OSCE has a vital role to play.’

The programme includes discussions on anticipating technological change and its geopolitical impact, water and energy security in the digital age, and the role of AI in early warning and conflict prevention. The conference also highlights Geneva’s role as a meeting point for science and diplomacy, including through institutions such as CERN, the Geneva Science and Diplomacy Anticipator, and the Open Quantum Institute.

The event forms part of the Chairpersonship’s priority to connect scientific and technological anticipation with policy action. It is the second of four international conferences Switzerland is hosting under its chairpersonship, ahead of the OSCE Ministerial Council meeting in Lugano in December.

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WTO members form duty-free pact after e-commerce moratorium lapses

The United States and 18 other World Trade Organization members have moved to create a separate pact pledging not to impose customs duties on electronic transmissions, after members failed to renew the wider WTO e-commerce moratorium.

According to the document cited in the report, the group includes the United States, Ja p an, South Korea, Singapore, Australia, Norway, and Argentina. The 19 members said they would not impose duties on electronic transmissions for an unspecified period and expressed disappointment that the multilateral moratorium had lapsed.

Members of the group said they remained committed to providing businesses and consumers with a measure of predictability and certainty in the absence of the WTO-wide moratorium. They also invited other WTO members to join the arrangement.

First agreed in 1998 and renewed repeatedly since then, the moratorium prevents WTO members from imposing customs duties on cross-border electronic transmissions, including streaming, downloads and software transfers.

At MC13 in March 2024, WTO members adopted the most recent ministerial decision on the issue, extending the practice of not imposing customs duties on electronic transmissions until the 14th Ministerial Conference or 31 March 2026, whichever came earlier.

Its lapse followed failed efforts to extend the arrangement, with Brazil maintaining its opposition to a four-year renewal.

US Ambassador to the WTO Joseph Barloon told delegates that Washington was launching the plurilateral agreement to give businesses and consumers greater certainty and predictability. He said the move did not close the door to multilateral engagement, but that the United States would not wait for all WTO members to agree before responding to stakeholder needs.

Business groups warned that the failure to preserve a WTO-wide moratorium would raise concerns about global digital trade. Sabina Ciofu of techUK said the 19-member pact offered a way forward but that the absence of a multilateral agreement was worrying. At the same time, International Chamber of Commerce Secretary General John Denton described the pact as a temporary fix rather than a substitute for a WTO-wide deal.

Why does it matter?

The lapse of the WTO e-commerce moratorium weakens one of the longest-standing global understandings underpinning digital trade. A 19-member pact may preserve duty-free treatment among participating economies, but it also points to a more fragmented environment in which rules for electronic transmissions could increasingly depend on partial arrangements rather than WTO-wide consensus.

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US and China reportedly weigh AI risk talks ahead of leaders’ summit

The United States and China are considering launching official discussions on AI risk management, The Wall Street Journal reported, citing people familiar with the matter.

According to the report, the White House and the Chinese government are also considering whether to place AI on the agenda for a planned summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. If agreed, the talks would mark the first AI-specific engagement between the two governments under the current US administration.

The possible dialogue could focus on risks linked to advanced AI systems, including unexpected model behaviour, autonomous military applications and misuse by non-state actors using powerful open-source tools, people familiar with the discussions told the newspaper. The report said Washington is waiting for Beijing to designate a counterpart for the talks.

The WSJ reported that US Treasury Secretary Scott Bessent is leading the US side, while Chinese Vice Finance Minister Liao Min has been involved in discussions on setting up such a channel. The newspaper added that the two presidents would ultimately decide whether AI appears on the formal summit agenda.

Liu Pengyu, spokesperson for the Chinese Embassy in Washington, was cited as saying that China is ready to engage in communication on AI risk mitigation. Analysts have raised the possibility that any future dialogue could support crisis-management tools, including an AI hotline between senior leaders.

The report places the latest deliberations in the context of earlier US-China engagement on AI. In 2023, then US President Joe Biden and Xi launched a formal AI dialogue, and both sides later said humans, not AI, would retain authority over nuclear-launch decisions. The WSJ said the earlier process produced limited results, but AI has remained a high-level focus in bilateral relations.

Non-governmental discussions have also reportedly continued in parallel, including exchanges involving former Microsoft research executive Craig Mundie and Chinese counterparts from Tsinghua University and major AI companies. Participants cited by the newspaper said those exchanges have focused on frontier-model safety, technical guardrails and broader questions of strategic stability.

Why does it matter?

A formal AI risk channel between Washington and Beijing would signal that both governments see advanced AI as a strategic stability issue, not only an economic or technological race. Even brief talks could matter if they create channels for crisis communication about military AI, frontier-model failures, or misuse by non-state actors. However, because the discussions are still only reported as under consideration, the significance lies in the possibility of a risk-management mechanism, not in any confirmed diplomatic breakthrough.

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EESC backs revised Cybersecurity Act with warnings on ENISA and supply chains

The European Economic and Social Committee has backed the EU’s proposed revision of the Cybersecurity Act, supporting reforms to ENISA, the cybersecurity certification framework and ICT supply-chain security, while warning that the next phase of the EU cyber policy must remain workable in practice.

In its opinion, the committee argues that cybersecurity and ICT supply-chain security should not be treated as narrow technical questions. Instead, it presents them as matters of economic security and geopolitical resilience, closely linked to the EU’s competitiveness, legal certainty and broader resilience.

The opinion welcomes the European Commission’s attempt to update the Cybersecurity Act and align related rules under NIS 2, particularly where the package aims to simplify compliance and reduce overlapping obligations. At the same time, the committee says that a stronger ENISA will require stronger backing. If the agency is expected to take on more responsibilities, those tasks should come with adequate resources, specialist staff and a mandatory workforce plan.

The committee also supports a single-entry point for incident reporting. It says parallel reporting requirements under NIS 2, DORA and sector-specific rules should be streamlined so that one comprehensive report can serve all relevant regulatory regimes.

On ICT supply-chain security, the opinion supports a structured EU framework for identifying key assets and addressing high-risk suppliers. However, it warns that restrictions and phase-outs should be transparent, proportionate and supported by realistic transition plans that account for replacement timelines, service continuity, costs, labour-market effects and the risk of shifting compliance burdens onto smaller firms outside the regulation’s scope.

The committee also calls for the cyber debate to address democratic resilience. A proposed amendment would give ENISA a clearer role in supporting election security, democratic resilience and public awareness of cyber threats, disinformation and safe digital behaviour.

Why does it matter?

The opinion supports a more centralised and strategic EU cybersecurity framework, but also highlights the practical risks of expanding cyber regulation faster than institutions and companies can implement it. The debate around ENISA’s mandate, incident reporting and ICT supply-chain restrictions will shape how far the EU can strengthen cyber resilience without creating fragmented obligations or disproportionate burdens for smaller firms.

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India and France discuss expanding AI and space cooperation

India and France have discussed expanding cooperation in space, AI, applied mathematics and advanced technologies following a bilateral meeting between Indian Minister of State for Science and Technology Dr Jitendra Singh and French Minister for Higher Education, Research and Space Philippe Baptiste.

The talks reviewed the countries’ growing strategic partnership in science, technology and space, with the 2026 Indo-French Year of Innovation identified as an opportunity to deepen collaboration in emerging technology fields.

Both sides discussed stronger links between Indian and French research institutions, including initiatives related to AI, advanced materials and digital sciences. Space cooperation also featured prominently, building on long-standing collaboration between the Indian Space Research Organisation and France’s Centre National d’études Spatiales through joint missions such as Megha-Tropiques and SARAL, and ongoing work on TRISHNA.

France also expressed interest in expanding cooperation on human spaceflight, microgravity experiments and ocean-related data-sharing initiatives.

Indian officials highlighted the expansion of the country’s space ecosystem following recent reforms, noting that nearly 400 space start-ups are now active in the sector. The discussions also covered opportunities linked to India’s Deep Ocean Mission and future engagement around the International Space Summit planned in Paris in September 2026.

Why does it matter?

The meeting reflects how AI, space, ocean data and advanced research are increasingly being treated as linked areas of strategic technology cooperation. For India and France, the agenda goes beyond scientific exchange: it connects national innovation ecosystems, space-sector reforms, research partnerships and the use of data-intensive technologies for climate, ocean and public-interest applications.

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ATxSummit 2026 to focus on AI governance and digital growth in Asia

ATxSummit 2026 will take place in Singapore on 20 and 21 May 2026 as part of Asia Tech x Singapore. Organisers state that the event will convene more than 4,000 participants from over 50 countries, including policymakers, technology companies, researchers, and industry representatives.

The programme will focus on five themes related to AI deployment and governance. These include agentic systems in enterprise operations, AI applications for public-sector and national use, scientific research and embodied intelligence, workforce and organisational changes, and the implementation of AI governance approaches.

Participants include representatives from organisations such as the World Bank Group, NVIDIA, Google, Amazon, and OpenAI. The programme also includes academic and policy discussions involving AI research, security, and digital governance.

The summit will include technical workshops, government roundtables, and the Digital Frontier Forum, focused on AI, deep technology, and digital growth strategies. ATxEnterprise will also take place alongside the summit, with sessions addressing infrastructure investment, digital trust, cross-border connectivity, and responsible AI deployment.

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ICESCO and Morocco sign agreement on AI and digital capacity building

The Islamic World Educational, Scientific and Cultural Organisation (ICESCO) and Morocco’s Ministry of Digital Transition and Administrative Reform have signed a memorandum of understanding on cooperation in digital transformation, AI and strategic foresight.

The agreement was signed in Rabat on the sidelines of the African Open Government Conference by ICESCO Director-General Dr Salim M. AlMalik and Dr Amal El Fallah, Minister Delegate to the Head of Government in charge of Digital Transition and Administrative Reform of Morocco.

The memorandum provides for workshops, training programmes and joint seminars aimed at building capacity among public and private sector professionals in digital transformation, AI, strategic foresight and digital diplomacy. It also covers the exchange of expertise and open data, the preparation of reference materials, and research related to future skills and professions in ICESCO member states.

The agreement further includes cooperation with universities and research centres to support a knowledge ecosystem aligned with the requirements of the digital economy. It also refers to innovation laboratories and digital tools for the digitisation, indexing, research and analysis of cultural and scientific heritage materials.

Why does it matter?

The agreement places AI within a broader capacity-building agenda that includes public-sector skills, digital diplomacy, open data, foresight and heritage digitisation. Also, the policy relevance lies in how international organisations and national governments are using AI cooperation not only for technology adoption, but also for institutional readiness and future skills development across member states.

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French CNIL hosts global privacy talks in Paris

The French Commission Nationale de l’Informatique et des Libertés will host the G7 roundtable of data protection and privacy authorities in June 2026. The meeting aims to strengthen international cooperation amid rapid digital and AI developments.

The roundtable, created in 2021, brings together data protection authorities from G7 countries and the EU. It focuses on sharing legal and technological developments and encouraging coordinated approaches to common challenges.

Key areas of work for 2026 include emerging technologies, enforcement cooperation and the free flow of data. The discussions are expected to address growing concerns about data protection amid expanding AI use.

The CNIL stated that the French presidency will prioritise dialogue and practical cooperation, aiming to support global governance that respects fundamental rights, and that the event will take place in Paris.

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Uganda to host Digital Government Africa 2026 summit

Uganda has announced that it will host the 2026 Digital Government Africa conference, presenting the event as a platform for continental dialogue on digital transformation, public service modernisation, and government innovation.

The announcement was made at a press conference in Kampala by the Ministry of ICT and National Guidance, the National Information Technology Authority of Uganda, and representatives of African Brains Global.

According to the organisers, the summit will bring together ministers, regulators, cybersecurity experts, cloud and data centre providers, digital finance institutions, investors, innovators, and development partners from across Africa and beyond. The event is scheduled to take place in Kampala from 6 to 8 October 2026.

Uganda’s Minister of ICT and National Guidance, Chris Baryomunsi, said the conference reflects growing confidence in the country’s digital transformation efforts and offers an opportunity to showcase how ICT is shaping service delivery and national development. The government linked the summit to Uganda’s wider Digital Transformation Roadmap, which focuses on digital infrastructure, e-government services, cybersecurity resilience, digital skills, and innovation.

Officials also pointed to Uganda’s expanding digital infrastructure. According to the ministry, the National Backbone Infrastructure now exceeds 5,000 kilometres of fibre-optic cable, connecting government institutions, districts, and urban centres, while more than 1,500 government sites use high-speed internet to support systems such as financial management, e-procurement, and online tax services.

The government also cited broader indicators of digital growth, including more than 44.3 million active mobile connections, expanding internet access through 4G and emerging 5G trials, and an ICT sector contributing more than 9% to GDP. Officials said hosting the summit should strengthen engagement between policymakers and innovators and raise Uganda’s profile as an ICT investment destination.

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