Digital cooperation Archives | Page 19 of 224

AI and robotics could offset impact of aging populations in Asia

Declining fertility rates have long been considered a major risk to economic growth, but analysts suggest the outlook may not be entirely negative for several advanced Asian economies. Rising investment in AI and robotics is increasingly viewed as a way to offset labour shortages caused by ageing populations.

According to analysts at Bank of America Global Research, technological innovation driven by AI and robotics could support productivity growth even as workforces shrink. Strong ecosystems in semiconductors, technology hardware, and industrial machinery allow some countries in the region to deploy advanced technologies faster and at lower cost than many other parts of the world.

South Korea currently has the highest robot density in the world, with about 1,012 industrial robots per 10,000 manufacturing workers. Chi n a has 470 and Japan 419, both significantly above the global average of 162, according to 2024 figures from the International Federation of Robotics.

Analysts say governments across East Asia are accelerating the adoption of AI and robotics to address demographic pressures. In particular, China, South Korea, and Japan have expanded investments in robotics, AI systems, and advanced manufacturing technologies to maintain economic productivity.

Population projections highlight the scale of the challenge facing these economies. By 2050, about 37 percent of Japan’s population and nearly 40 percent of South Korea’s population are expected to be aged 65 or older, while China’s share could reach around 31 percent.

Despite concerns about slowing growth, economists argue that advances in AI and robotics could weaken the traditional link between economic output and workforce size. Automation technologies not only replace routine tasks but also enhance human productivity in many industries.

A study by the Bank of Korea estimated that demographic pressures could reduce the country’s gross domestic product by 16.5 percent between 2023 and 2050. However, wider adoption of AI and robotics could limit the decline to around 5.9 percent under favourable conditions.

Some analysts caution that the economic benefits of automation may not be evenly distributed. While AI and robotics can improve productivity, technological gains often benefit capital owners and highly skilled workers more than others.

Economists also warn that consumption may slow as the number of households declines, while governments may face greater fiscal pressure from higher pension and healthcare costs. Policymakers may need to invest in workforce retraining and education to help workers adapt to the growing role of AI and robotics in the economy.

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Meta removes encrypted messaging from Instagram DMs

Meta will discontinue end-to-end encryption for Instagram direct messages starting in May 2026. The company said the feature saw limited use among Instagram users.

Users with encrypted chats will receive instructions on how to download messages or media before the feature ends. Meta confirmed the change through updates to its support pages and in-app notifications.

The decision comes amid ongoing debate about encryption and online safety on major social platforms. Critics argue that encrypted messaging can make it harder to detect harmful activity involving minors.

Meta said users seeking encrypted communication can continue using WhatsApp or Messenger. The company maintains end-to-end encryption for messaging services outside Instagram.

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French court upholds €40 million GDPR fine for Criteo

France’s highest administrative court has upheld a €40 million GDPR fine against advertising technology company Criteo. Regulators in France concluded that the firm failed to obtain valid consent for tracking users across websites.

The investigation began in 2018 following complaints from privacy groups and examined Criteo’s behavioural advertising model. Authorities in France said the company did not properly respect rights to access, erasure and transparency.

The ruling in France also confirmed that pseudonymous identifiers linked to browsing data can still qualify as personal data. Judges rejected arguments that such identifiers were effectively anonymous.

Privacy advocates say the decision strengthens GDPR enforcement across Europe. Experts in France argue that the case highlights growing scrutiny of online tracking practices used in digital advertising.

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France pushes EU AI gigafactories to support European technology

In the EU, France is calling for planned European AI ‘gigafactories’ to focus on testing and scaling European technologies rather than primarily increasing demand for hardware from companies such as Nvidia.

The large computing facilities are intended to provide the infrastructure needed to train advanced AI systems. However, officials in France argue that the projects should strengthen Europe’s technological capabilities rather than reinforce reliance on foreign suppliers.

Several EU countries, including Poland, Austria and Lithuania, support using the infrastructure to improve Europe’s digital resilience.

The initiative forms part of the European Commission’s wider plans to expand computing capacity and support the development of a stronger European AI ecosystem.

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Major tech firms pledge to fight online fraud

Major technology and consumer-facing companies, including Google, Amazon, and OpenAI, have signed the ‘Industry Accord Against Online Scams and Fraud’ to share threat intelligence and strengthen defences against online fraud.

The voluntary pact brings together 11 signatories: Amazon, Adobe, Google, Levi Strauss & Co., LinkedIn, Match Group, Microsoft, Meta, OpenAI, Pinterest, and Target. It aims to improve coordination among companies and strengthen cooperation with governments, law enforcement, and NGOs.

The accord commits to sharing intelligence on criminal networks, using AI to detect fraud, and strengthening verification for financial transactions. Participating companies will also provide clearer reporting channels for users and encourage governments to prioritise scam prevention.

Executives emphasised that tackling scams requires collective effort. Meta’s Nathaniel Gleicher said the accord enables companies to share insights beyond individual cases, while Microsoft’s Steven Masada highlighted the need for faster collaboration to disrupt scams and track perpetrators globally.

The move comes as online scams grow in scale and sophistication, aided by AI-generated content and cross-platform operations. Consumers lost over $16 billion to online scams in 2024, prompting firms to boost safety features and push for stronger regulations and law enforcement.

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UK government and Microsoft support digital skills growth

Microsoft UK is the first industry partner in the UK government’s TechFirst program, offering 500 work placements and 5,000 volunteering hours over four years. The collaboration aims to develop AI and technology skills nationwide.

The Department for Science, Innovation and Technology (DSIT) said the partnership will expand digital capabilities in education and the workforce. Microsoft UK CEO Darren Hardman will serve as Social Mobility Champion, linking students and early-career talent with technology-sector opportunities.

TechFirst aims to reach one million secondary students and over 4,000 graduates and researchers, providing school programs, scholarships, doctoral support, and regional funding to connect businesses with local talent.

Microsoft’s commitment includes mentoring and placements to support students entering technology careers.

Scholarships include TechGrad for undergraduates and master’s students, and the Spärck AI Scholarship, supporting AI degrees at nine UK universities, including Cambridge, Oxford, Imperial College, and UCL.

Doctoral researchers benefit from the TechExpert initiative, while the Turing AI Fellowships attract top AI talent to UK institutions.

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AI technology set to reshape farming and rural life in South Korea

South Korea has launched a national agenda to expand AI across agriculture, aiming to boost productivity and improve living standards in rural communities. Officials from the Ministry of Agriculture, Food and Rural Affairs and the Ministry of Science and ICT presented the strategy as part of a wider digital transformation effort.

Plans include expanding smart farm models that reduce labour-intensive tasks and allow more farmers to benefit from automated technologies. Shared machinery centres and autonomous farming tools such as drones will be developed with support from the Rural Development Administration.

Authorities also intend to apply AI to agricultural distribution through smart logistics facilities that manage receiving, sorting and shipping processes. Around 300 smart Agricultural Products Processing Centres are expected to operate nationwide by 2030.

Livestock grading systems using AI will be introduced to improve accuracy and consumer trust across pork and beef processing facilities. Officials aim to raise the share of AI-graded meat from 19.4 percent in 2025 to 70 percent by 2030.

Beyond production, the programme seeks to expand ‘smart rural communities’ offering AI-based services such as transport, daily living support and farming assistance. Policymakers believe that a stronger digital infrastructure will help rural regions respond to climate pressures and an ageing population.

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Deepfake attacks push organisations to rethink cybersecurity strategies

Organisations are strengthening their cybersecurity strategies as deepfake attacks become more convincing and easier to produce using generative AI.

Security experts alert that enterprises must move beyond basic detection tools and adopt layered security strategies to defend against the growing threat of deepfake attacks targeting communications and digital identity.

Many existing tools for identifying manipulated media are still imperfect. Digital forensics expert Hany Farid estimates that some systems used to detect deepfake attacks are only about 80 percent effective and often fail to explain how they determine whether an image, video, or audio recording is authentic. The lack of explainability also raises challenges for legal investigations and public verification of suspicious media.

Cybersecurity companies are creating new technologies to improve the detection of deepfake attacks by analysing slight signals that are difficult for humans to notice. Firms such as GetReal Security, Reality Defender, Deep Media, and Sensity AI examine lighting consistency, shadow angles, voice patterns, and facial movements. Environmental indicators such as device location, metadata, and IP information can also help security teams spot potential deepfake attacks.

However, experts say detection alone cannot fully protect organisations from deepfake attacks. Companies are increasingly conducting internal red-team exercises that simulate impersonation scenarios to expose weaknesses in verification procedures. Multi-factor authentication techniques can reduce the risk of employees responding to fraudulent communications.

Another emerging defence involves digital provenance systems designed to track the origin and modification history of digital content. Initiatives such as the Coalition for Content Provenance and Authenticity (C2PA) embed cryptographically signed metadata into media files, allowing organisations to verify whether content linked to suspected deepfake attacks has been altered.

Recent experiments highlight how testing these threats can be. In February, cybersecurity company Reality Defender conducted an exercise with NATO by introducing deepfake media into a simulated military scenario. The findings showed how easily even experienced officials can struggle to identify manipulated communications, reinforcing calls for automated systems capable to detecting deepfake attacks across critical infrastructure.

As generative AI tools continue to advance, organisations are expected to combine detection technologies, stronger verification procedures, and provenance tracking to reduce the risks posed by deepfake attacks.

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Tesla moves to enter the British household electricity market

A licence that would allow Tesla to supply electricity directly to households and businesses across Great Britain has been applied for.

The application was submitted to the national energy regulator Ofgem, which oversees energy suppliers in England, Scotland and Wales.

Approval would enable the company to enter the retail electricity market as early as next year. The service is expected to operate under the brand ‘Tesla Electric’, extending the company’s strategy of combining electric vehicles, battery storage and energy supply into a single ecosystem.

Tesla’s UK energy subsidiary, Tesla Energy Ventures, filed the application through its Manchester-based operation. Regulatory review may take several months, as Ofgem typically requires up to nine months to evaluate electricity supplier licences.

A future electricity offer could primarily target households that already use Tesla technologies, including home batteries and electric vehicle charging systems.

The company sells Powerwall storage batteries in the UK, which allow homeowners to store electricity generated by solar panels or purchased during off-peak hours.

Such systems also allow surplus energy stored in batteries to be sold back to the grid.

Similar services are already available in the US, where Tesla launched a residential electricity supply programme in Texas in 2022.

The expansion into the energy supply market comes amid pressure on Tesla’s automotive business in Europe. Sales of Tesla vehicles in the UK declined significantly during 2025, reducing the company’s share of the national car market.

Diversifying into energy services could therefore represent a broader strategic shift for the company led by Elon Musk. Integrating electricity supply with electric vehicles and home energy systems could allow Tesla to build a more comprehensive energy platform for consumers.

If approved, the initiative would position Tesla as both a technology manufacturer and a direct energy supplier in the British market.

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DIGITALEUROPE urges changes to EU AI Act rules for industry

European industry representatives are urging policymakers to reconsider parts of the EU AI Act, arguing that the current framework could impose significant compliance costs on companies developing AI tools for industrial and medical technologies.

According to Cecilia Bonfeld-Dahl, director-general of DIGITALEUROPE, manufacturers of high-tech machines, medical devices, and radio equipment are already subject to strict product safety regulations. Adding AI-specific requirements could create unnecessary administrative burdens for companies already heavily regulated. She argues that policymakers should aim for balanced AI regulation that encourages innovation while maintaining safety standards.

Industry groups warn that classifying certain AI systems as high-risk under Annex I of the AI Act could be particularly costly for smaller firms. DIGITALEUROPE estimates that a company with around 50 employees developing an AI-based product could incur initial compliance costs of €320,000 to €600,000, followed by annual expenses of up to €150,000. According to the organisation, such costs could reduce profits significantly and discourage smaller companies from pursuing AI innovation.

Manufacturing and medical technology sectors across Europe employ millions of workers and increasingly rely on AI to improve product performance and safety. Industry representatives argue that many applications, such as AI systems used to enhance industrial equipment safety or improve medical devices, already operate under established regulatory frameworks. These existing frameworks could be adapted rather than introducing additional layers of regulation.

The broader regulatory landscape is also contributing to concerns among technology companies. Over the past six years, the EU has introduced nearly 40 new technology-related regulations, some of which overlap or impose similar compliance requirements. DIGITALEUROPE estimates that compliance with the AI Act could cost companies approximately €3.3 billion annually, while cybersecurity and data-sharing regulations add further financial obligations.

Industry leaders warn that rising compliance costs could affect investment in AI development across Europe. Current estimates suggest that the EU accounts for about 7.5% of global AI investment, significantly behind the United States and China.

DIGITALEUROPE has called on the EU institutions to consider postponing parts of the AI Act’s implementation timeline to allow further discussion on how high-risk AI systems should be defined. Supporters of this approach argue that additional consultation could help ensure the regulatory framework protects consumers while also enabling European companies to compete globally in the rapidly evolving AI sector.

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