Digital cooperation

South Korea unveils megagrowth plan with AI expressway and energy reform

President Lee Jae-myung has announced a sweeping national megagrowth plan that positions South Korea at the forefront of AI and energy transformation.

The initiative includes the creation of an ‘AI expressway’, starting with the Ulsan AI data centre, underpinned by bold tax incentives and regulatory reforms to attract private sector investment. Complementing this is a proposed investment of 100 trillion won to accelerate AI innovation, next-generation semiconductors, and the development of AI infrastructure and innovation zones.

On the energy front, the government has launched a dedicated task force to develop an AI-powered next-generation power grid. This ‘electric highway’ aims to integrate AI technology into renewable energy distribution and grid modernisation without needing vast new infrastructure.

Complementing the power grid overhaul, Korea Electric Power Corp. (KEPCO) plans to invest around 73 trillion won by 2038 to expand transmission lines and upgrade the power infrastructure serving major semiconductor complexes.

Together, these measures form a robust blueprint that aligns digital transformation with energy security, aimed at keeping South Korea globally competitive while responding to rising electricity demands from AI and other tech industries.

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India must ramp up AI and chip production to meet global competition

At the Emkay Confluence in Mumbai, Chief Economic Adviser V. Anantha Nageswaran emphasised that while trade-related concerns remain significant, they must not obscure the urgent need for India to boost its AI and semiconductor sectors.

He pointed to AI’s transformative economic potential and strategic importance, warning that India must act decisively to remain competitive as the United States and China advance aggressively in these domains.

By focusing on energy transition, energy security, and enhanced collaboration across sectors, Nageswaran argued that India can strengthen its innovation capacity and technological self-reliance.

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New digital headquarters aims to embed AI across Kazakhstan’s public services

Prime Minister Olzhas Bektenov established a digital transformation group, or digital headquarters, to advance AI integration across Kazakhstan, following President Tokayev’s directives on 11 August 2025.

The group includes senior officials, such as the deputy prime minister, the head of strategic planning, the minister of digital development, innovation, and aerospace industry, and the presidential digitalisation advisor. The group is tasked with implementing nine priority areas outlined by the president.

These span AI deployment in the economy, public administration, and healthcare; digital strategy development; IT architecture modernisation; cybersecurity; support for IT startups; the national QazTech platform; and innovative city initiatives.

A significant plan component involves crafting a roadmap with the Samruk Kazyna Sovereign Wealth Fund to embed AI in production and boost labour productivity. AI solutions are expected to improve diagnostics, personalise treatment, enable continuous patient monitoring, and streamline workflows in healthcare. Startups will gain access to the Ministry of Health infrastructure and integration into a unified medical database.

Consolidating government communication via the Aitu national messenger, IT modernisation, and strengthened cybersecurity aims to create a seamless, safe digital environment for citizens. The emphasis is swift collaboration to address AI integration challenges across all sectors.

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China debuts quantum-embedded GNN for drug discovery

According to Science and Technology Daily, Chinese researchers have reported a breakthrough in quantum drug discovery using edge encoding. Origin Quantum, USTC, and the Hefei AI Institute built a quantum-embedded graph neural network (GNN) to predict drug-molecule properties.

In drug development, graph neural networks model molecules as atoms and bonds. Classical and some quantum approaches handle atoms well but struggle with bonds. The gap limits accuracy and screening speed.

The team from China introduced quantum edge and node embeddings to process bonds and atoms simultaneously at the quantum level. The quantum-embedded GNN unifies both signals in one pass. Results show sharper predictions for the properties of candidate drugs.

Validation on the Origin Wukong quantum computer indicates stable performance despite today’s noisy hardware. Benchmarking suggests efficiency gains for molecular screening pipelines. Researchers say the approach is production-oriented as devices scale.

Findings appear in the Journal of Chemical Information and Modelling. Collaboration highlights China’s push to integrate quantum computing with biopharmaceutical research and development. More exhaustive testing on larger qubit counts is anticipated.

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OpenAI updates GPT-5 with new personality and modes

OpenAI has introduced updates to its GPT-5 model following user feedback. CEO Sam Altman announced that users can now choose between Auto, Fast, and Thinking modes, along with an updated personality for the AI.

The changes aim to enhance user experience by providing greater control over the model’s behaviour. Altman noted that while more users work with reasoning-focused models, they still represent a relatively small portion of the total user base.

The update reflects OpenAI’s ongoing commitment to tailoring AI interactions based on user preferences and feedback, ensuring the flagship model remains adaptable and responsive to diverse needs.

GPT-5 faced a rocky launch as users found it surprisingly less capable than GPT-4o, due to a malfunctioning real-time router that misrouted queries. Sam Altman acknowledged the issue, restoring GPT-4o access and doubling rate limits for Plus subscribers.

The episode has also sparked debate in the AI community about balancing innovation with emotional resonance, as some users note GPT-5’s colder tone despite its safer, more aligned behaviour.

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AI agents face prompt injection and persistence risks, researchers warn

Zenity Labs warned at Black Hat USA that widely used AI agents can be hijacked without interaction. Attacks could exfiltrate data, manipulate workflows, impersonate users, and persist via agent memory. Researchers said knowledge sources and instructions could be poisoned.

Demos showed risks across major platforms. ChatGPT was tricked into accessing a linked Google Drive via email prompt injection. Microsoft Copilot Studio agents leaked CRM data. Salesforce Einstein rerouted customer emails. Gemini and Microsoft 365 Copilot were steered into insider-style attacks.

Vendors were notified under coordinated disclosure. Microsoft stated that ongoing platform updates have stopped the reported behaviour and highlighted built-in safeguards. OpenAI confirmed a patch and a bug bounty programme. Salesforce said its issue was fixed. Google pointed to newly deployed, layered defences.

Enterprise adoption of AI agents is accelerating, raising the stakes for governance and security. Aim Labs, which had previously flagged similar zero-click risks, said frameworks often lack guardrails. Responsibility frequently falls on organisations deploying agents, noted Aim Labs’ Itay Ravia.

Researchers and vendors emphasise layered defence against prompt injection and misuse. Strong access controls, careful tool exposure, and monitoring of agent memory and connectors remain priorities as agent capabilities expand in production.

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Staff welcome AI but call for clear boundaries

New research shows that most workers are open to using AI tools at work, but resist the idea of being managed by them. Workers are far more positive about AI recommending skills or collaborating alongside them.

The Workday study found that while 82% of organisations are expanding AI agent use, only 30% of employees feel comfortable being overseen by such systems.

Nine in ten respondents believe AI can boost productivity, yet nearly half fear it could erode critical thinking and add to workloads. Trust in the technology grows with experience, with 95% of regular users expressing confidence compared with 36% of those new to AI.

Sensitive functions such as hiring, finance, and legal work remain areas where human oversight is preferred. Many see AI as a partner that complements judgement and empathy rather than replacing them entirely.

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UK minister defends use of live facial recognition vans

Dame Diana Johnson, the UK policing minister, has reassured the public that expanded use of live facial recognition vans is being deployed in a measured and proportionate manner.

She emphasised that the tools aim only to assist police in locating high-harm offenders, not to create a surveillance society.

Addressing concerns raised by Labour peer Baroness Chakrabarti, who argued the technology was being introduced outside existing legal frameworks, Johnson firmly rejected such claims.

She stated that UK public acceptance would depend on a responsible and targeted application.

By framing the technology as a focused tool for effective law enforcement rather than pervasive monitoring, Johnson seeks to balance public safety with civil liberties and privacy.

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Russia to phase out Mastercard and Visa

The Bank of Russia is preparing to phase out Mastercard and Visa cards and to switch to the domestic Mir payment system. Authorities plan a gradual timeline for banks to replace international cards, letting consumers switch at their own pace while keeping access to current accounts.

Visa and Mastercard have operated only domestically since leaving the Russian market after the 2022 invasion of Ukraine. The share of these cards in circulation is declining as more Russians adopt Mir.

The Central Bank has extended its validity temporarily, but a clear deadline for complete replacement is now being discussed.

Russia plans to launch the digital rouble alongside the card transition in September 2026. Only a limited framework for digital coins in foreign trade is expected to remain, highlighting Russia’s broader push for financial sovereignty.

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Crypto crime unit expands with Binance

Tron, Tether, and TRM Labs have announced the expansion of their T3 Financial Crime Unit (T3 FCU) with Binance as the first T3+ partner. The unit has frozen over $250 million in illicit crypto assets since its launch in September 2024.

The T3 FCU works with global law enforcement to tackle money laundering, investment fraud, terrorism financing, and other financial crimes. The new T3+ programme unites exchanges and institutions to share intelligence and tackle threats in real time.

Recent reports highlight the urgency of these efforts. Over $3 billion in crypto was stolen in the first half of 2025, with some hacks laundering funds in under three minutes. Only around 4% of stolen assets were recovered during this period, underscoring the speed and sophistication of modern attacks.

Debate continues over the role of stablecoin issuers and exchanges in freezing funds. Tether’s halt of $86,000 in stolen USDt highlights fast recovery but raises concerns over decentralised principles amid calls for stronger industry-wide security.

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