Pentagon AI dispute raises concerns for startups

A dispute between Anthropic and the Pentagon in the US has raised questions about whether startups will hesitate to pursue defence contracts. Negotiations over the use of Anthropic’s Claude AI technology collapsed, prompting the US administration to label the company a supply chain risk.

The situation in the US escalated as OpenAI secured its own agreement with the Pentagon. The development sparked backlash online, with reports of a surge in ChatGPT uninstalls after the defence partnership announcement.

Technology analysts in the US say the controversy highlights the unusual scrutiny facing high-profile AI firms. Companies such as OpenAI and Anthropic attract intense public attention because widely used AI products place their defence partnerships in the spotlight.

Startup founders in the US are now debating the risks of government contracts, particularly with the Pentagon. Industry observers in the US warn that defence authorities’ contract changes could make government collaboration more uncertain.

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EU and Canada begin negotiations on a digital trade agreement

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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Job losses study by Anthropic reveals 0 evidence of AI driven unemployment

A new Anthropic report finds AI has not yet caused significant job losses, introducing ‘observed exposure’ to measure actual workplace AI use.

Researchers combined language model capabilities with workplace data to identify occupations at risk of disruption. Although AI can perform many tasks, its actual adoption remains much lower across most industries, which is a main finding of the study.

Even in highly digital professions, only a fraction of potential automation results from AI use. For instance, computer and mathematics occupations rank among the most AI-exposed groups. Despite AI’s capability to assist with many tasks, it currently covers only about 33% of them in these fields.

Across the broader economy, many roles experience little or no impact from AI, which represents a key finding. About 30% of workers are in jobs such as cooking, bartending, mechanics, and lifeguarding, where physical tasks dominate, and measured AI exposure is almost zero.

The report also finds no clear evidence that AI adoption has increased unemployment or caused a spike in job losses since generative AI tools began spreading widely in 2022. Rather than triggering sudden job losses, researchers suggest labour-market effects emerge gradually, through slower hiring, shifting skill requirements, and changes in job composition.

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Berlin becomes home to Google AI research centre

Google has launched its new AI Centre in Berlin, creating a hub for researchers, developers, and leaders from Google DeepMind, Google Research, and Google Cloud. The centre aims to foster collaboration, debate, and innovation in AI.

The opening event highlighted the company’s work in advancing science and healthcare through AI-enabled agents and platforms. Google announced long-term research partnerships with the Technical University of Munich and Helmholtz Munich, backed by the Google.org AI for Science fund.

Built on Google’s existing research and engineering foundations in Germany and globally, the Berlin centre emphasises AI innovations with societal benefits. It will connect experts from science, business, academia, and politics to drive forward responsible AI development.

The centre will also serve as a platform for public engagement, hosting workshops, lectures, and events to raise awareness about AI applications, ethical considerations, and future opportunities across industries and communities.

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Debate grows over the future of privacy

Experts gathered in London, UK, to examine how the concept of privacy has evolved over centuries. Discussions in London, UK, highlighted that privacy was only widely recognised as a legal and social norm after the Second World War.

Speakers in London noted that earlier societies often viewed privacy with suspicion or did not recognise it at all. Historical examples discussed included practices from Roman society and the French monarchy.

Modern legal protections expanded rapidly in recent decades, with privacy laws now covering about 80 percent of the global population. Scholars said the concept remains relatively new despite its central role in modern democracies.

The debate also explored whether privacy will remain a stable social value as technology evolves. Analysts in London said emerging technologies such as AI are reshaping debates over personal data and surveillance.

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Calls grow to strengthen New Zealand privacy law

Pressure is growing in New Zealand to strengthen the Privacy Act following several high-profile data breaches. Debate in New Zealand intensified after a cyberattack exposed medical records from the Manage My Health patient portal.

The breach in New Zealand affected about 120,000 patients and involved threats to release documents on the dark web. Another incident forced the MediMap medication platform offline after unauthorised changes were detected in patient records.

Privacy specialists argue that current enforcement powers are too weak to deter serious failures. The Privacy Act allows only limited financial penalties, with fines generally capped at NZD10,000.

Officials are now considering reforms, including stronger penalties for privacy violations. Policymakers also warn that failure to strengthen the law could threaten the country’s EU data adequacy status.

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EU watchdog urges limits on US data access

The European Union’s data protection watchdog has urged stronger safeguards as negotiations continue with the US over access to biometric databases. European Data Protection Supervisor Wojciech Wiewiórowski said limits must ensure Europeans’ data is used only for agreed purposes.

Talks between the EU and the US involve potential arrangements that would allow US authorities to query national biometric systems. Databases across the EU contain sensitive information, including fingerprints and facial recognition data.

Past transatlantic data-sharing agreements between the two have faced legal challenges due to insufficient safeguards. European regulators are closely monitoring the Data Privacy Framework amid ongoing concerns about oversight.

Officials also warned that emerging AI technologies could create new surveillance risks linked to US data access. European authorities said they must negotiate as a unified bloc when dealing with the US.

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Sovereign AI becomes a strategic question for governments

Governments across the world are increasingly treating AI as a strategic capability that shapes economic development, public services and national security. Momentum behind the idea of ‘sovereign AI’ is growing as countries reassess who controls the chips, cloud infrastructure, data and models powering modern technology.

Complete control over the entire AI stack remains unrealistic for most economies because of the enormous financial and technological costs involved. Global infrastructure continues to rely heavily on US technology firms, which still operate a large share of data centres and AI systems worldwide.

Policy makers are therefore exploring different approaches to sovereignty across the AI ecosystem rather than pursuing total independence. Strategies range from building domestic computing capacity to adapting global AI models for national languages, regulations and public services.

Several countries already illustrate different approaches. The EU is investing billions in AI infrastructure, Canada protects sensitive computing resources while using global models, and India prioritises applications that serve its multilingual population through public digital systems.

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Nokia and Google Cloud bring AI agents to telecom network APIs

Scripts, manual rules, and layered software tools traditionally ran telecom networks. A new collaboration between Google Cloud and Nokia suggests a shift: software agents can respond to goals rather than just detailed instructions.

The companies are integrating agent-based AI into Nokia’s Network as Code platform, which exposes telecom capabilities through application programming interfaces (APIs). The system allows developers to build applications that interact directly with network features such as connectivity quality, device location checks, or network slicing.

The Google-Nokia partnership introduces an AI layer that enables software agents to determine which network functions to use to achieve a goal. Such changes make development more efficient, as the AI agent can interpret instructions, automatically select the appropriate network capabilities, and reduce the need for developers to call APIs one step at a time manually.

Such automation is increasingly being explored as telecom infrastructure grows more complex with 5G, edge computing, and billions of connected devices. New features such as network slicing provide flexibility for industrial applications, private enterprise networks, and specialised connectivity, but also add operational complexity for operators.

Industry groups, including the GSMA and the 3rd Generation Partnership Project, are developing frameworks to support network APIs and automation. While agent-based AI could help networks operate more like programmable platforms, telecom operators must still address questions around reliability, security, and interoperability before large-scale deployment becomes feasible.

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UK to launch new lab for breakthrough AI research

Researchers in the UK will gain a new AI lab designed to drive transformational breakthroughs in healthcare, transport, science, and everyday technology, supported by government funding.

The lab will provide up to £40 million in funding over six years, alongside substantial access to large-scale computing resources, inviting UK researchers to pitch their most ambitious ideas.

The Fundamental AI Research Lab will focus on tackling core AI challenges, including hallucinations, unreliable memory, and unpredictable reasoning.

The lab will support high-risk, blue-sky research rather than simply scaling existing systems. Its goal is to unlock entirely new capabilities that could improve medical diagnoses, infrastructure resilience, scientific discovery, and public services.

UK officials highlighted the country’s strength in world-class universities, AI talent, and a thriving sector attracting over £100 billion in private investment. Experts, including Raia Hadsell of Google DeepMind, will peer-review funding applications, prioritising bold, high-reward proposals.

The initiative is part of the UKRI AI Strategy, which is backed by £1.6 billion and aims to strengthen research and ensure AI benefits society and the economy. UK AI projects like RADAR for rail faults and the IXI Brain Atlas for Alzheimer’s research demonstrate the approach’s potential impact.

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