Digital identities Archives | Digital Watch Observatory

EU digital wallet nears rollout

Interoperability tests for the European Digital Identity Wallet have marked a significant step towards deployment, following a major industry-wide exercise. Systems were tested under real conditions to ensure compatibility across providers.

The initiative forms part of the EU’s plan to provide citizens with a secure digital wallet for identification and online services. The system will allow users to store identity data and access services, including electronic signatures.

Results showed that most test scenarios were successfully completed, confirming that independent systems can work together effectively. The exercise also highlighted areas requiring further refinement ahead of wider implementation.

EU officials and industry leaders said the progress supports the development of a unified digital ecosystem. The wallet is expected to simplify everyday services while strengthening security and trust in digital identity solutions.

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AI agent causes internal data leak at Meta

Meta recently confirmed that an AI agent inadvertently exposed sensitive company and user data to some employees. The leak happened when an engineer followed the AI agent’s forum suggestion, exposing data for about two hours.

Meta stated that no user data was mishandled and emphasised that human errors could cause similar issues.

The incident reflects broader challenges in deploying agentic AI tools within major tech companies. Amazon faced similar issues, with internal AI tools causing outages and operational errors, showing risks of quickly integrating AI into critical workflows.

Experts describe these deployments as experimental, with companies testing AI at scale without fully assessing potential risks.

Security specialists note that AI agents lack the contextual awareness that human engineers accumulate over years of experience. Lacking long-term operational knowledge, AI can make decisions that compromise security, a factor in the Meta breach.

Analysts warn that such errors are likely to recur as AI adoption accelerates.

The episode comes amid growing attention on agentic AI’s potential to disrupt workflows, affect productivity, and introduce new vulnerabilities. Industry observers caution that AI tools must be carefully monitored and accompanied by robust safeguards to prevent future incidents.

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Agentic Ready programme by Visa launched to prepare for AI-driven payments

Visa has launched Agentic Ready, a global programme preparing the payments ecosystem for AI agents to initiate transactions for consumers. The programme builds on Visa Intelligent Commerce, the company’s framework for secure, AI-driven payment experiences.

The first phase, launching in Europe, including the UK, focuses on issuer readiness. Participating banks and financial institutions can test and validate agent-initiated transactions in controlled production environments, ensuring they remain secure, reliable, and scalable.

Visa’s trust layer integrates tokenisation, identity verification, risk controls, and biometric authentication to maintain consumer consent and protection throughout transactions.

Controlled testing with selected merchants allows issuers to gain practical experience of agentic commerce in real-world settings. Early participants, including Barclays, HSBC UK, Revolut, and Banco Santander, help Visa test and refine safe AI-driven payments across channels.

The programme advances Visa’s vision of AI-driven commerce, enabling flexible payments while keeping consumers in control. Expansion beyond Europe is planned, leveraging lessons from the initial rollout to accelerate agentic commerce globally.

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Horizon Worlds remains active as Meta reconsiders VR plans

Meta has reversed its earlier decision to discontinue virtual reality support for Horizon Worlds, allowing the platform to remain available on VR headsets despite previous plans to prioritise mobile and web access.

The decision follows an internal reassessment of user engagement trends, which indicate limited adoption of VR-based social platforms.

While Horizon Worlds was once positioned as central to the company’s metaverse ambitions, demand has remained relatively low, raising questions about the long-term viability of immersive social environments.

Financial pressures also continue to shape strategy.

Meta’s Reality Labs division has recorded substantial losses since 2021, reflecting high investment in virtual and augmented reality technologies without corresponding commercial returns.

Industry data further suggests declining headset sales, reinforcing uncertainty around VR as a mainstream consumer platform.

In contrast, mobile usage of Horizon Worlds is growing faster. Increasing downloads point to broader accessibility and improved product-market alignment, though revenue generation remains limited.

As a result, Meta is prioritising mobile development instead of fully abandoning VR, maintaining a dual approach while seeking more sustainable engagement models.

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UNESCO promotes safe AI use and gender equality in Caribbean workshop

A regional workshop in Kingston has been organised by UNESCO to explore the relationship between AI, gender equality and online safety, reflecting wider efforts to support inclusive digital governance across the Caribbean.

Discussions examined the impact of technology-facilitated gender-based violence, including harassment, impersonation and image-based abuse, which continue to affect women and girls disproportionately.

Generative AI was presented as both an opportunity and a risk, with concerns linked to bias, deepfakes, misinformation and non-consensual content.

More than 50 participants from government, civil society and youth organisations engaged in practical sessions aimed at strengthening awareness and digital skills. A participatory approach encouraged peer learning and critical thinking, aligning with UNESCO’s ethical AI principles.

‘Technology reflects the hands that build it and the society that feeds it data. If we are not careful, AI will not just mirror our existing inequalities; it will magnify them.‘

The Honourable Olivia Grange, Minister of Culture, Gender, Entertainment and Sport of Jamaica.

‘The pursuit of equality must extend into every space where women live, work, and where they connect and express themselves – including the digital world,‘

For Eric Falt, Regional Director and Representative of UNESCO.

The initiative forms part of broader efforts to ensure that digital transformation supports inclusion rather than reinforcing existing disparities, while equipping stakeholders with tools for safe and responsible AI use.

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New iPhone vulnerability raises concerns over advanced mobile cyber threats

A newly identified cyberattack known as ‘DarkSword’ is raising concerns about the security of iPhone devices, following reports that millions of users could be exposed to rapid data extraction techniques.

Cybersecurity researchers indicate that the attack targets specific iOS versions, exploiting vulnerabilities in the Safari browser and a graphics processing feature known as WebGPU.

Once access is gained, attackers can retrieve sensitive information, including messages, emails and location data, within minutes, while removing traces of the intrusion almost immediately.

Estimates suggest that a significant share of global iPhone users may be affected, with hundreds of millions of devices running vulnerable software versions.

The scale of exposure remains uncertain, particularly as experts continue to assess whether additional versions of iOS may also be impacted.

Researchers have associated the campaign with a threat actor previously identified by Google, with observed activity across multiple regions.

Such a development highlights growing concerns about the evolution of mobile cyber threats, where increasingly sophisticated techniques are being deployed beyond traditional state-level operations.

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TikTok disinformation study raises concerns over AI content and EU regulation

A new study by Science Feedback indicates that TikTok has a higher proportion of misleading content than other major platforms operating in the EU.

The analysis covered France, Poland, Slovakia and Spain, assessing content across multiple thematic areas including health, politics and climate.

Findings suggest that approximately one in four posts on TikTok contained misleading elements, placing the platform ahead of competitors such as Facebook, YouTube and X. Health-related narratives were the most prominent category, reflecting broader patterns observed across digital ecosystems.

Researchers describe disinformation as a persistent feature embedded within platform structures instead of an isolated occurrence.

The study also highlights a growing presence of AI-generated content, particularly in video formats, where synthetic material accounted for a significant share of misleading posts. Despite existing platform policies, most identified content lacked clear labelling.

The regulatory context remains under development.

While the Digital Services Act integrates voluntary commitments from the EU disinformation code, it does not impose mandatory requirements for identifying AI-generated material.

Ongoing debates therefore focus on transparency, accountability and the evolving responsibilities of digital platforms within the European information environment.

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Malaysia tightens rules on data centres

Malaysia has quietly restricted new data centre approvals to projects linked to AI, signalling a strategic shift in its digital economy. Authorities confirmed that non-AI development has been halted for nearly 2 years.

The policy reflects mounting pressure on energy and water resources as demand for data centres accelerates. Officials aim to ensure infrastructure supports high-value AI projects rather than lower-impact investments.

Rapid growth has positioned Malaysia as a key regional hub, attracting major global technology firms. Concerns remain over whether the country risks hosting infrastructure without building local innovation capacity.

Leaders say future efforts will focus on balancing investment with domestic benefits and energy sustainability. Plans include expanding power supply and strengthening national AI capabilities to secure long term gains.

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UK drops AI copyright opt-out plan amid growing industry divide

The UK Government has abandoned its previous preference for an AI copyright opt-out model, signalling a shift in policy following strong opposition from creative industries.

Ministers now acknowledge that there is no clear consensus on how AI developers should access copyrighted material.

Concerns from writers, artists and rights holders focused on the use of their work in training AI systems without permission.

Liz Kendall confirmed that extensive consultation exposed significant disagreement, prompting the government to step back from its earlier position that would have allowed the use of copyrighted content unless creators opted out.

A joint report from the Department for Science, Innovation and Technology and the Department for Culture, Media and Sport states that further evidence is required before any legislative change.

Policymakers in the UK will assess how copyright frameworks influence AI development, while also examining international regulation, licensing models and ongoing legal disputes.

Government strategy now centres on balancing innovation with fair compensation.

Officials emphasise that creators must retain control over how their work is used, while AI developers require access to high-quality data to remain competitive. Potential measures include labelling AI-generated content to reduce risks linked to disinformation and deepfakes.

No timeline has been set for reform, reflecting the complexity of aligning economic growth with intellectual property protection.

The debate unfolds alongside broader ambitions outlined by Rachel Reeves, who has identified AI as a central driver of future economic expansion, with the UK aiming to lead adoption across the G7.

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Amazon upgrades Alexa with AI features

Amazon is rolling out an AI upgrade to its Alexa assistant, aiming to make interactions more conversational and responsive. The new version is designed to follow the context and respond more naturally.

The update comes as Amazon seeks to compete with advanced AI chatbots that have gained popularity in recent years. Critics have argued that smart speakers have fallen behind newer AI tools.

Users in the UK are expected to notice more personalised and proactive responses from the upgraded assistant. This will be based on user and customer personal data. The service will be included with Prime subscriptions or offered as a standalone monthly option.

Analysts say the update could help Amazon gather even more user data and improve engagement by picking up on customers’ habits through conversations. However, questions remain about whether the changes will drive revenue or revive interest in smart speakers.

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