Digital cooperation

New AI pact between Sri Lanka and Singapore fosters innovation

Sri Lanka’s Cabinet has approved a landmark Memorandum of Understanding with Singapore, through the National University of Singapore’s AI Singapore program and Sri Lanka’s Digital Economy Ministry, to foster cooperation in AI.

The MoU establishes a framework for joint research, curriculum development, and knowledge-sharing initiatives to address local priorities and global tech challenges.

This collaboration signals a strategic leap in Sri Lanka’s digital transformation journey. It emerged during Asia Tech x Singapore 2025, where officials outlined plans for AI training, policy alignment, digital infrastructure support, and e‑governance development.

The partnership builds on Sri Lanka’s broader agenda, including fintech innovation and cybersecurity, to strengthen its national AI ecosystem.

With the formalisation of this MoU, Sri Lanka hopes to elevate its regional and global AI standing. The initiative aims to empower local researchers, cultivate tech talent, and ensure that AI governance and innovation are aligned with ethical and economic goals.

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UK and OpenAI deepen AI collaboration on security and public services

OpenAI has signed a strategic partnership with the UK government aimed at strengthening AI security research and exploring national infrastructure investment.

The agreement was finalised on 21 July by OpenAI CEO Sam Altman and science secretary Peter Kyle. It includes a commitment to expand OpenAI’s London office. Research and engineering teams will grow to support AI development and provide assistance to UK businesses and start-ups.

Under the collaboration, OpenAI will share technical insights with the UK’s AI Security Institute to help government bodies better understand risks and capabilities. Planned deployments of AI will focus on public sectors such as justice, defence, education, and national security.

According to the UK government, all applications will follow national standards and guidelines to improve taxpayer-funded services. Peter Kyle described AI as a critical tool for national transformation. ‘AI will be fundamental in driving the change we need to see across the country,’ he said.

He emphasised its potential to support the NHS, reduce barriers to opportunity, and power economic growth. The deal signals a deeper integration of OpenAI’s operations in the UK, with promises of high-skilled jobs, investment in infrastructure, and stronger domestic oversight of AI development.

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AI governance needs urgent international coordination

A GIS Reports analysis emphasises that as AI systems become pervasive, they create significant global challenges, including surveillance risks, algorithmic bias, cyber vulnerabilities, and environmental pressures.

Unlike legacy regulatory regimes, AI technology blurs the lines among privacy, labour, environmental, security, and human rights domains, demanding a uniquely coordinated governance approach.

The report highlights that leading AI research and infrastructure remain concentrated in advanced economies: over half of general‑purpose AI models originated in the US, exacerbating global inequalities.

Meanwhile, facial recognition or deepfake generators threaten civic trust, amplify disinformation, and even provoke geopolitical incidents if weaponised in defence systems.

The analysis calls for urgent public‑private cooperation and a new regulatory paradigm to address these systemic issues.

Recommendations include forming international expert bodies akin to the IPCC, and creating cohesive governance that bridges labour rights, environmental accountability, and ethical AI frameworks.

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How to keep your data safe while using generative AI tools

Generative AI tools have become a regular part of everyday life, both professionally and personally. Despite their usefulness, concern is growing about how they handle private data shared by users.

Major platforms like ChatGPT, Claude, Gemini, and Copilot collect user input to improve their models. Much of this data handling occurs behind the scenes, raising transparency and security concerns.

Anat Baron, a generative AI expert, compares AI models to Pac-Man—constantly consuming data to enhance performance. The more information they receive, the more helpful they become, often at the expense of privacy.

Many users ignore warnings not to share sensitive information. Baron advises against sharing anything with AI that one would not give to a stranger, including ID numbers, financial data, and medical results.

Some platforms offer options to reduce data collection. ChatGPT users can disable training under ‘Data Controls’, while Claude collects data only if users opt in. Perplexity and Gemini offer similar, though less transparent, settings.

Microsoft’s Copilot protects organisational data when logged in, but risks increase when used anonymously on the web. DeepSeek, however, collects user data automatically with no opt-out—making it a risky choice.

Users still retain control, but must remain alert. AI tools are evolving, and with digital agents on the horizon, safeguarding personal information is becoming even more critical. Baron sums it up simply: ‘Privacy always comes at a cost. We must decide how much we’re willing to trade for convenience.’

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Agentic AI gains ground as GenAI maturity grows in public sector

Public sector organisations around the world are rapidly moving beyond experimentation with generative AI (GenAI), with up to 90% now planning to explore, pilot, or implement agentic AI systems within the next two years.

Capgemini’s latest global survey of 350 public sector agencies found that most already use or trial GenAI, while agentic AI is being recognised as the next step — enabling autonomous, goal-driven decision-making with minimal human input.

Unlike GenAI, which generates content subject to human oversight, agentic AI can act independently, creating new possibilities for automation and public service delivery.

Dr Kirti Jain of Capgemini explained that GenAI depends on human-in-the-loop (HITL) processes, where users review outputs before acting. By contrast, agentic AI completes the final step itself, representing a future phase of automation. However, data governance remains a key barrier to adoption.

Data sovereignty emerged as a leading concern for 64% of surveyed public sector leaders. Fewer than one in four said they had sufficient data to train reliable AI systems. Dr Jain emphasised that governance must be embedded from the outset — not added as an afterthought — to ensure data quality, accountability, and consistency in decision-making.

A proactive approach to governance offers the only stable foundation for scaling AI responsibly. Managing the full data lifecycle — from acquisition and storage to access and application — requires strict privacy and quality controls.

Significant risks arise when flawed AI-generated insights influence decisions affecting entire populations. Capgemini’s support for government agencies focuses on three areas: secure infrastructure, privacy-led data usability, and smarter, citizen-centric services.

EPA Victoria CTO Abhijit Gupta underscored the need for timely, secure, and accessible data as a prerequisite for AI in the public sector. Accuracy and consistency, Dr Jain noted, are essential whether outcomes are delivered by humans or machines. Governance, he added, should remain technology-agnostic yet agile.

Strong data foundations require only minor adjustments to scale agentic AI that can manage full decision-making cycles. Capgemini’s model of ‘active data governance’ aims to enable public sector AI to scale safely and sustainably.

Singapore was highlighted as a leading example of responsible innovation, driven by rapid experimentation and collaborative development. The AI Trailblazers programme, co-run with the private sector, is tackling over 100 real-world GenAI challenges through a test-and-iterate model.

Minister for Digital Josephine Teo recently reaffirmed Singapore’s commitment to sharing lessons and best practices in sustainable AI development. According to Dr Jain, the country’s success lies not only in rapid adoption, but in how AI is applied to improve services for citizens and society.

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Malaysia pushes clean tech and innovation for growth

Malaysia is accelerating its transition to a low-carbon and digitally driven economy by channelling investments into green technologies and innovation.

At the National Economic Forum 2025, Minister Chang Lih Kang outlined the country’s strategy to support sustainable growth through carbon management, hydrogen energy, green materials and circular economic models.

The government is also exploring advanced nuclear technologies such as Small Modular Reactors to support decarbonisation and enhance research, talent development and technology transfer.

A 17% increase in private R&D investment last year, mainly in clean energy and digital health, has helped build investor confidence. Authorities are now encouraging further growth through co-investment strategies, grants and collaborative innovation platforms.

Malaysia’s National Biotechnology Policy is also supporting biopharmaceuticals and agricultural biotech, in line with sustainability and ESG objectives. The Malaysian government aims to create a resilient, inclusive and innovation-driven economy for the next phase of regional development.

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Stay True To The Act campaign defends music rights

More than 30 European musicians have launched a united video campaign urging the European Commission to preserve the integrity of the EU AI Act.

The Stay True To The Act campaign calls on policymakers to enforce transparency and uphold copyright protections.

Artists, including Spanish singer-songwriter Álex Ubago and Poland’s Eurovision 2025 entrant Justyna Steczkowska, have voiced concern over the unauthorised use of their work to train AI models. They demand the right to be informed and the power to refuse such usage.

The EU AI Act, passed in 2024, includes provisions requiring developers to disclose the content used in AI training. However, as implementation plans develop, artists fear the law may be diluted, weakening protections for creators.

The campaign appeals for vigorous enforcement of the Act’s original principles: transparency, copyright control and fair innovation. Artists say AI and music can coexist in Europe only if ethical boundaries are upheld.

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Most US teens use AI companion bots despite risks

A new national survey shows that roughly 72% of American teenagers, aged 13 to 17, have tried AI companion apps such as Replika, Character.AI, and Nomi, with over half interacting with them regularly.

Although some teens report benefits like practising conversation skills or emotional self-expression, significant safety concerns have emerged.

Around 34% have been left uncomfortable by the bot’s behaviour, and one-third have turned to AI for advice on serious personal issues. Worryingly, nearly a quarter of users disclosed their real names or locations in chats.

Despite frequent use, most teens still prefer real friendships—two-thirds say AI interactions are less satisfying, and 80% maintain stronger ties to human friends.

Experts warn that teens are especially vulnerable to emotional dependency, manipulative responses, and data privacy violations through these apps.

Youth advocates call for mandatory age verification, better content moderation, and expanded AI literacy education, arguing that minors should not use companionship bots until more regulations are in place and platforms become truly safe for young users.

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xAI eyes data centre deal with Humain

Elon Musk’s AI venture, xAI, has entered early discussions with Humain to secure data centre capacity instead of relying solely on existing infrastructure.

According to Bloomberg, the arrangement could involve several gigawatts of capacity, although Humain has yet to start building its facilities, meaning any deal would take years to materialise.

Humain is backed by Saudi Arabia’s Crown Prince Mohammed bin Salman and the Public Investment Fund (PIF). xAI is reportedly considering a fresh funding round where PIF might also invest.

At the same time, xAI is negotiating with a smaller company constructing a 200-megawatt data centre, offering a more immediate solution while waiting for larger projects.

Rather than operating in isolation, xAI joins AI competitors like Google, Meta and Microsoft in racing to secure vast computing power for training large AI models. The push for massive data centre capacity reflects the escalating demands of advanced AI systems.

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LEO becomes Africa’s first AI chatbot to enable remittances

United Bank for Africa (UBA) has introduced cross-border payments via its AI chatbot, LEO, enabling instant transfers across African nations in local currencies.

However, this marks the first time an AI-powered chatbot has facilitated such transactions on the continent.

The feature relies on the Pan-African Payment and Settlement System, developed by Afreximbank, which allows seamless fund transfers between African countries supported by their central banks. It eliminates the need for hard currencies and aims to reduce fees while supporting financial inclusion.

UBA said the service allows customers to send and receive money across borders within seconds through self-service channels, with zero charges for recipients.

The initiative also supports Africa’s wider economic ambitions under the African Continental Free Trade Area agreement.

The bank operates in 20 African countries and serves over 45 million customers worldwide. CEO Oliver Alawuba described the development as a bold step toward digital innovation and Pan-African integration.

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