Digital identities Archives | Digital Watch Observatory

Topshop unveils AI shoppable catwalk in Manchester

Topshop has staged what it describes as a world-first AI-driven shoppable catwalk in Manchester, as part of its UK brand revival. The Manchester event combined physical runway looks with real-time digital purchasing through a bespoke Front Row AI app.

Guests in Manchester were able to buy outfits instantly as models walked, while also trying on virtual versions after the show. The experience was adjudicated by the World Record Certification Agency and positioned as a new model for immersive retail in the UK.

The Manchester showcase formed part of Topshop’s regional strategy beyond London, highlighting the North West’s role in the UK fashion sector. Students from the University of Salford and Manchester Metropolitan University designed and presented the finale in Manchester.

Topshop’s broader comeback in the UK includes pop ups in John Lewis stores, a standalone website relaunch and a partnership with Liberty in London. Executives said Manchester marked a new phase where AI and commerce converge to reshape retail experiences.

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McKinsey claims agentic AI will reshape global banking

Agentic AI is set to transform banking operations in the US and Asia, according to a McKinsey podcast featuring senior partners from New York, Mumbai and London. The technology goes beyond traditional automation by handling less structured tasks and supporting end to end decision making.

Research cited in the discussion suggests many banks are experimenting with AI, yet few report material financial gains. Leaders in the US and Asia are urged to avoid narrow pilot projects and instead redesign workflows, teams and governance around AI at scale.

McKinsey partners said successful banks in the US and Asia are aligning chief executives, technology leaders and risk officers behind a shared strategy. Operations, risk management and frontline services are seen as areas where AI could deliver significant productivity and quality gains.

Banks in India and other Asian markets are also benefiting from regulatory engagement, including guidance from the Reserve Bank of India. Speakers argued that workforce training, cross functional collaboration and clear accountability will determine whether AI delivers lasting impact in the US.

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Action-capable AI highlights new security challenges

AI agents are evolving from demos into autonomous tools, with OpenClaw emerging as a leading example. Unlike chatbots, these agents execute tasks directly, interacting with software and systems without constant human input.

The rise of action-capable AI introduces new security challenges. Agents can be manipulated through untrusted input or prompt injection. Persistent memory can also prolong mistakes or unintended behaviour.

The combination of access to sensitive data, external actions, and unverified content, sometimes called the ‘lethal trifecta’, amplifies risks, making careful configuration and oversight essential.

Self-hosted agents offer more control, while cloud-based versions simplify setup but shift security responsibility. Experts recommend running agents in isolated environments, limiting permissions, and requiring approval for sensitive actions.

These precautions reduce the chance of accidental or malicious harm while allowing users to experiment safely.

OpenClaw illustrates the potential of AI agents to automate workflows, handle repetitive tasks, and act proactively rather than passively advising. These tools show the future of consumer AI, but broader adoption requires stronger safety measures and awareness of risks.

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European businesses gain AI-powered contract tools with local data hosting

Workday has rolled out its Contract Lifecycle Management (CLM) platform with EU-hosted data in Frankfurt, allowing European organisations to use AI contract tools while keeping all data within the EU.

German, French, and Spanish language support is live, with more languages planned. The update is part of Workday’s EU Sovereign Cloud strategy, targeting the CLM market, which is set to grow to $1.9 billion by 2033.

The platform uses AI agents to automate contracts. The Contract Intelligence Agent extracts terms, obligations, and renewal dates to create a searchable repository, while the Contract Negotiation Agent flags deviations, drafts redlines, and speeds approvals.

Multilingual support ensures smooth workflows across Europe’s largest commercial languages, improving compliance and efficiency.

GDPR compliance remains critical, with fines up to €20 million or 4% of global turnover. EU-hosted CLM removes offshore data risks, which are crucial for the finance, healthcare, and defence sectors. Workday combines AI efficiency with full legal compliance.

Decision-makers should focus on three priorities: EU data residency, leveraging AI agents to accelerate contracts, and integrating CLM with HR and finance systems to maximise value. Workday aims to capture market share in Europe against competitors such as Icertis and DocuSign.

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Australia begins a landmark study on social media minimum age

eSafety Commissioner has lau n ched a major evaluation of Australia’s Social Media Minimum Age to understand how platforms are applying the requirement and what effects it is having on children, young people and families.

The study aims to deliver robust evidence about both intended and unintended impacts as the national debate on youth, wellbeing and digital environments intensifies.

Over more than two years, the research will follow more than four thousand children and families in Australia, combining surveys, interviews, group discussions and privacy-protected smartphone tracking.

Administrative data from national literacy assessments and health systems will be linked to deepen understanding of online behaviour, wellbeing and exposure to risk. All research materials are publicly available through the Open Science Framework to maintain transparency.

The project is led by eSafety’s Research and Evaluation team in partnership with the Stanford University Social Media Lab and an Academic Advisory Group of specialists in mental health, youth development and digital technologies.

Young people themselves are shaping the study through the eSafety Youth Council, ensuring that the interpretation reflects lived experience rather than external assumptions. Full ethics approval underpins the methodology, which meets strict standards of integrity and privacy.

Findings will be released from late 2026 onward, with early reports analysing the experiences of children under sixteen.

The results will inform a legislative review conducted by Australia’s Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

eSafety expects the evaluation to become a major evidence source for policymakers, researchers and communities as the global conversation on minors and social media regulation continues.

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Pakistan’s digital transformation highlighted as UNESCO advances AI ethics

UNESCO used the Pakistan Governance Forum 2026 to highlight the need for a structured Ethical AI and Data Governance Framework as the country accelerates its digital transformation.

Federal leaders, provincial authorities and civil society convened to examine governance reforms, with UNESCO urging Pakistan to align its expanding digital public infrastructure with coherent standards that protect rights while enabling innovation.

Speaking at the Forum, Fuad Pashayev underlined that Pakistan’s reform priority should centre on the Recommendation on the Ethics of Artificial Intelligence, adopted unanimously by all 193 Member States.

Anchoring national systems in transparency, accountability and meaningful human oversight was framed as essential for maintaining public trust as digital services reshape access to benefits and interactions between citizens and the state.

To support the shift, UNESCO promoted its AI Readiness Assessment Methodology (RAM), which is already deployed in more than 50 countries. The tool helps governments identify regulatory gaps, strengthen institutional coordination and design safeguards against discrimination and algorithmic bias.

UNESCO has already contributed to Pakistan’s draft National AI Policy, ensuring alignment with international ethical frameworks while accommodating national development needs.

Capacity building formed a major pillar of UNESCO’s engagement. In partnership with the University of Oxford, the organisation launched a global course on AI and Digital Transformation in Government in 2025, attracting over nineteen thousand enrolments worldwide.

Pakistan leads participation globally, reflecting both the country’s momentum and growing demand for structured training.

UNESCO’s ongoing work aims to reinforce data governance, improve AI readiness and embed ethical safeguards across Pakistan’s digital transformation strategy.

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Financial crime risks are reshaped by the rise of autonomous AI agents

Autonomous AI agents are transforming finance by executing transactions independently and speeding up workflows in digital assets and programmable finance. Software can manage wallets and move funds across blockchains in seconds, narrowing detection windows.

AI agents don’t create new crimes but increase speed and complexity, making accountability essential. Responsibility rests with developers, operators, and beneficiaries, with investigators tracing control, configuration, and economic benefit to determine liability.

Weak oversight or misconfigured rules can lead to significant compliance and enforcement consequences.

Investigations face new challenges as autonomous agents operate across multiple blockchains, decentralised exchanges, and global jurisdictions.

Real-time analytics and automated tracing are essential to link transactions to accountable actors before funds move. Governance architecture and monitoring systems increasingly serve as evidence in regulatory or criminal actions.

Institutions and law enforcement are using AI monitoring, anomaly detection, and automated containment systems. Autonomous AI impacts sanctions and national security, emphasising the need for human oversight alongside automation.

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AI becomes central to biotech discovery and drug development

The biotechnology industry is moving from early AI experimentation to fully integrated discovery systems that embed AI into everyday research operations.

According to the 2026 Biotech AI Report from Benchling, leading organisations are reshaping data environments and R&D structures, making AI a core part of the drug development process.

Predictive models, such as protein structure prediction and docking simulations, are accelerating early-stage discovery, helping scientists identify targets faster and improve accuracy.

Challenges persist in generative design, biomarker analysis, and ADME prediction, where adoption lags due to fragmented or poor-quality data.

Organisations overcoming these hurdles invest in high-quality, well-annotated measurements and strong integration between wet and dry lab work. It creates a continuous learning cycle that drives faster insights and reduces experimental dead ends.

Talent strategies are evolving to place AI expertise directly in R&D teams. Many firms upskill existing scientific staff to act as ‘scientific translators,’ bridging biology, regulatory needs, and machine learning.

Embedding AI leadership within research teams or using hybrid models reduces handoffs and ensures AI tools remain practical in real-world experiments.

Biotech firms combine in-house development with commercial components, following a ‘build what differentiates, buy what scales’ strategy. Confidence in AI is rising, driving investment in infrastructure, modelling, and integrated AI workflows for research.

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AI use among students surges as chatbots reshape schoolwork

More than half of US teenagers use AI tools to help with schoolwork, according to a new Pew Research Center study. The survey found that 54% of students aged 13 to 17 have used chatbots such as OpenAI’s ChatGPT or Microsoft’s Copilot to research assignments or solve maths problems.

Usage has risen in recent years. In 2024, 26% of US teens reported using ChatGPT for schoolwork, up from 13% in 2023. The latest survey of 1,458 teens and parents found 44% use AI for some schoolwork, while 10% rely on chatbots for most tasks.

Researchers say AI assistance is becoming routine in classrooms. Colleen McClain, a senior researcher at Pew and co-author of the report, said chatbot use for schoolwork is now a common practice among teens.

Findings come amid an intensifying debate over generative AI in education. Supporters argue that schools should teach students to use and evaluate AI tools, while critics warn of misinformation, reduced critical thinking, and increased cheating.

Recent research has raised questions about learning outcomes. One study by Cambridge University Press & Assessment and Microsoft Research found that students who took notes without chatbot support showed stronger reading comprehension than those using AI assistance.

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ChatGPT Health under fire after study finds major failures in emergency detection

A new evaluation of ChatGPT Health has raised major safety concerns after researchers found it frequently failed to recognise urgent medical emergencies.

The independent study, published in Nature Medicine, reported that the system under-triaged more than half of the clinical scenarios tested, giving advice that could have delayed life-saving treatment.

The research team, led by Ashwin Ramaswamy, created sixty patient simulations ranging from minor illnesses to life-threatening conditions.

Three doctors agreed on the appropriate urgency for each case before comparing their judgement with the model’s responses. The AI performed adequately in straightforward emergencies such as strokes, yet frequently minimised danger in more complex presentations, including severe asthma and diabetic crises.

Experts also warned that ChatGPT Health struggled to detect suicidal ideation reliably. Minor changes to scenario details, such as adding normal lab results, caused safeguards to disappear entirely.

Critics, including health-misinformation researcher Alex Ruani, described the behaviour as dangerously inconsistent and capable of creating a false sense of security.

OpenAI said the study did not reflect typical real-world use but acknowledged the need for continued research and improvement.

Policy specialists argue that the findings underline the need for clear safety standards, external audits and stronger transparency requirements for AI systems operating in sensitive medical contexts.

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