Digital identities

AI toys change the way children learn and play

AI-powered stuffed animals are transforming children’s play by combining cuddly companionship with interactive learning.

Toys such as Curio’s Grem and Mattel’s AI collaborations offer screen-free experiences instead of tablets or smartphones, using chatbots and voice recognition to engage children in conversation and educational activities.

Products like CYJBE’s AI Smart Stuffed Animal integrate tools such as ChatGPT to answer questions, tell stories, and adapt to a child’s mood, all under parental controls for monitoring interactions.

Developers say these toys foster personalised learning and emotional bonds instead of replacing human engagement entirely.

The market has grown rapidly, driven by partnerships between tech and toy companies and early experiments like Grimes’ AI plush Grok.

At the same time, experts warn about privacy risks, the collection of children’s data, and potential reductions in face-to-face interaction.

Regulators are calling for safeguards, and parents are urged to weigh the benefits of interactive AI companions against possible social and ethical concerns.

The sector could reshape childhood play and learning, blending imaginative experiences with algorithmic support instead of solely relying on traditional toys.

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Indonesia promises to bolster digital sovereignty and AI talent on Independence Day

Indonesia marked its 80th Independence Day by reaffirming its commitment to digital sovereignty and technology-driven inclusion.

The Ministry of Communication and Digital Affairs, following President Prabowo Subianto’s ‘Indonesia Incorporated’ directive, highlighted efforts to build an inclusive, secure, and efficient digital ecosystem.

Priorities include deploying 4G networks in remote regions, expanding public internet services, and reinforcing the Palapa Ring broadband infrastructure.

On the talent front, the government launched a Digital Talent Scholarship and AI Talent Factory to nurture AI skills, from beginners to specialists, setting the stage for future AI innovation domestically.

In parallel, digital protection measures have been bolstered: over 1.2 million pieces of harmful content have been blocked, while new regulations under the Personal Data Protection Law, age-verification, content monitoring, and reporting systems have been introduced to enhance child safety online.

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Quiet cracking fuels debate on AI mental health role

A new workplace trend known as ‘quiet cracking’ describes employees who stay in their roles while feeling increasingly disengaged and emotionally drained.

Unlike quitting, where workers reduce effort, quiet cracking refers to those who continue to meet expectations yet feel like they are breaking inside.

Experts say the phenomenon usually develops gradually, with workers reporting fatigue, stress and frustration instead of open dissatisfaction. Many feel unable to speak up for fear of losing their job or facing uncertainty in the broader labour market, leaving them silent.

Critics argue that labelling such behaviour risks encouraging weakness instead of resilience, but supporters warn that ignoring the issue may worsen mental health challenges.

Some workers are turning to AI for support instead of seeking human assistance. Generative AI tools offer low-cost and constant access for advice and empathetic responses.

Advocates suggest AI could expand mental health support where professionals are scarce, while opponents caution that relying on AI instead of qualified therapists could carry significant risks.

Whether quiet cracking becomes a lasting workplace concern or fades as a passing trend remains uncertain, for now, it highlights the growing debate about how technology might play a role in addressing modern mental health struggles.

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ChatGPT dominates mobile AI market

ChatGPT’s mobile app has surpassed $2 billion in worldwide consumer spending since its launch in May 2023, according to Appfigures. Revenue from January to July 2025 alone reached $1.35 billion, a 673% increase from the same period in 2024.

The app has also dominated downloads, with an estimated 690 million lifetime installs, including 318 million added in 2025. India leads in total downloads at 13.7%, followed by the US, which accounts for 38% of revenue.

Competitors such as Grok, Claude, and Copilot remain far behind, with Grok generating just $25.6 million in 2025.

Consumer spending per download reinforces ChatGPT’s lead, averaging $2.91 globally and $10 in the US. The figures highlight OpenAI’s dominance in the mobile AI assistant market, despite ongoing criticism from X owner Elon Musk, who has alleged that the App Store suppresses competition.

Apple has rejected these claims.

The AI market continues to heat up as Microsoft integrates OpenAI’s GPT-5 into its Copilot offerings. Elon Musk has predicted intense competition, while OpenAI CEO Sam Altman has downplayed Musk’s criticism, emphasising innovation and collaboration as the sector expands.

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OpenAI’s GPT-5 faces backlash for dull tone

OpenAI’s GPT-5 launched last week to immense anticipation, with CEO Sam Altman likening it to the iPhone’s Retina display moment. Marketing promised state-of-the-art performance across multiple domains, but early user reactions suggested a more incremental step than a revolution.

Many expected transformative leaps, yet improvements mainly were in cost, speed, and reliability. GPT-5’s switch system, which automatically routes queries to the most suitable model, was new, but its writing style drew criticism for being robotic and less nuanced.

Social media buzzed with memes mocking its mistakes, from miscounting letters in ‘blueberry’ to inventing US states. OpenAI quickly reinstated GPT-4 for users who missed its warmer tone, underlining a disconnect between expectations and delivery.

Expert reviews mirrored public sentiment. Gary Marcus called GPT-5 ‘overhyped and underwhelming’, while others saw modest benchmark gains. Coding was the standout, with the model topping leaderboards and producing functional, if simple, applications.

OpenAI emphasised GPT-5’s practical utility and reduced hallucinations, aiming for steadiness over spectacle. At the same time, it may not wow casual users, its coding abilities, enterprise appeal, and affordability position it to generate revenue in the fiercely competitive AI market.

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Igor Babuschkin leaves Elon Musk’s xAI for AI safety investment push

Igor Babuschkin, cofounder of Elon Musk’s AI startup xAI, has announced his departure to launch an investment firm dedicated to AI safety research. Musk created xAI in 2023 to rival Big Tech, criticising industry leaders for weak safety standards and excessive censorship.

Babuschkin revealed his new venture, Babuschkin Ventures, will fund AI safety research and startups developing responsible AI tools. Before leaving, he oversaw engineering across infrastructure, product, and applied AI projects, and built core systems for training and managing models.

His exit follows that of xAI’s legal chief, Robert Keele, earlier this month, highlighting the company’s churn amid intense competition between OpenAI, Google, and Anthropic. The big players are investing heavily in developing and deploying advanced AI systems.

Babuschkin, a former researcher at Google DeepMind and OpenAI, recalled the early scramble at xAI to set up infrastructure and models, calling it a period of rapid, foundational development. He said he had created many core tools that the startup still relies on.

Last month, X CEO Linda Yaccarino also resigned, months after Musk folded the social media platform into xAI. The company’s leadership changes come as the global AI race accelerates.

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Age checks slash visits to top UK adult websites

Adult site traffic in the UK has fallen dramatically since the new age verification rules were enacted on 25 July under the Online Safety Act.

Figures from analytics firm Similarweb show Pornhub lost more than one million visitors in just two weeks, with traffic falling by 47%. XVideos saw a similar drop, while OnlyFans traffic fell by more than 10%.

The rules require adult websites to make it harder for under-18s to access explicit material, leading some users to turn to smaller and less regulated sites instead of compliant platforms. Pornhub said the trend mirrored patterns seen in other countries with similar laws.

The clampdown has also triggered a surge in virtual private network (VPN) downloads in the UK, as the tools can hide a user’s location and help bypass restrictions.

Ofcom estimates that 14 million people in the UK watch pornography and has proposed age checks using credit cards, photo ID, or AI analysis of selfies.

Critics argue that instead of improving safety, the measures may drive people towards more extreme or illicit material on harder-to-monitor parts of the internet, including the dark web.

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Study warns AI chatbots exploit trust to gather personal data

According to a new King’s College London study, AI chatbots can easily manipulate people into slinging personal details. Chatbots like ChatGPT, Gemini, and Copilot are popular, but they raise privacy concerns, with experts warning that they can be co-opted for harm.

Researchers built AI models based on Mistral’s Le Chat and Meta’s Llama, programming them to extract private data directly, deceptively, or via reciprocity. Emotional appeals proved most effective, with users disclosing more while perceiving fewer safety risks.

The ‘friendliness’ of chatbots established trust, which was later exploited to breach privacy. Even direct requests yielded sensitive details, despite discomfort. Participants often shared their age, hobbies, location, gender, nationality, and job title, and sometimes also provided health or income data.

The study shows a gap between privacy risk awareness and behaviour. AI firms claim they collect data for personalisation, notifications, or research, but some are accused of using it to train models or breaching EU data protection rules.

Last week, Google faced criticism after private ChatGPT chats appeared in search results, revealing sensitive topics. Researchers suggest in-chat alerts about data collection and stronger regulation to stop covert harvesting.

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Russia restricts Telegram and WhatsApp calls

Russian authorities have begun partially restricting calls on Telegram and WhatsApp, citing the need for crime prevention. Regulator Roskomnadzor accused the platforms of enabling fraud, extortion, and terrorism while ignoring repeated requests to act. Neither platform commented immediately.

Russia has long tightened internet control through restrictive laws, bans, and traffic monitoring. VPNs remain a workaround, but are often blocked. During this summer, further limits included mobile internet shutdowns and penalties for specific online searches.

Authorities have introduced a new national messaging app, MAX, which is expected to be heavily monitored. Reports suggest disruptions to WhatsApp and Telegram calls began earlier this week. Complaints cited dropped calls or muted conversations.

With 96 million monthly users, WhatsApp is Russia’s most popular platform, followed by Telegram with 89 million. Past clashes include Russia’s failed Attempt to ban Telegram (2018–20) and Meta’s designation as an extremist entity in 2022.

WhatsApp accused Russia of trying to block encrypted communication and vowed to keep it available. Lawmaker Anton Gorelkin suggested that MAX should replace WhatsApp. The app’s terms permit data sharing with authorities and require pre-installation on all smartphones sold in Russia.

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