EU charts roadmap for tokenised financial markets

The European Central Bank (ECB) has unveiled Appia, a strategic roadmap for developing Europe’s tokenised financial ecosystem anchored in central bank money. The initiative aims to guide the shift from traditional finance to tokenised markets while ensuring stability and interoperability.

A key component of Appia is Pontes, the Eurosystem’s distributed ledger technology (DLT) settlement solution. Pontes, set for Q3 2026 pilots, will enable central bank money transactions and connect DLT infrastructures with the Eurosystem’s TARGET2, T2S, and TIPS services.

The ECB has opened a public consultation inviting feedback and proposals from both public and private sector stakeholders. Respondents’ input will help refine the roadmap and shape the long-term blueprint for Europe’s tokenised financial system.

Appia also complements ongoing efforts on the digital €, with payment service provider selection planned for 2026 and a 12-month pilot trial in the second half of 2027.

The initiative highlights the ECB’s commitment to integrating emerging technologies while preserving financial stability.

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UK watchdog demands stronger child safety on social platforms

The British communications regulator Ofcom has called on major technology companies to enforce stricter age controls and improve safety protections for children using online platforms.

The warning targets services widely used by young audiences, including Facebook, Instagram, Roblox, Snapchat, TikTok and YouTube.

Regulators said that despite existing minimum age policies, large numbers of children under the age of 13 continue to access platforms intended for older users.

According to Ofcom research, more than 70 percent of children aged 8 to 12 regularly use such services.

Authorities have asked companies to demonstrate how they will strengthen protections and ensure compliance with minimum age requirements.

Platforms must present their plans by 30 April, after which Ofcom will publish an assessment of their responses and determine whether further regulatory action is necessary.

The regulator also outlined several key areas requiring improvement.

Companies in the UK are expected to implement more effective age-verification systems, strengthen protections against online grooming and ensure that recommendation algorithms do not expose children to harmful content.

Another concern involves product development practices.

Ofcom warned that new digital features, including AI tools, should not be tested on children without adequate safety assessments. Platforms are required to evaluate potential risks before launching significant updates.

The measures are part of the UK’s broader regulatory framework introduced under the Online Safety Act, which aims to reduce exposure to harmful online material.

The law requires platforms to prevent children from accessing content linked to pornography, suicide, self-harm and eating disorders, while limiting the promotion of violent or abusive material in recommendation feeds.

Ofcom indicated that enforcement action may follow if companies fail to demonstrate meaningful improvements. Regulators argue that stronger safeguards are necessary to restore public trust and ensure that digital platforms prioritise child safety in their design and operation.

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AI-powered Copilot Health platform introduced by Microsoft

Microsoft has introduced Copilot Health, a new feature that uses AI to help users interpret personal health data and prepare for medical consultations.

The tool will operate as a separate and secure environment within Microsoft’s Copilot ecosystem, allowing users to combine health records, wearable data, and medical history into a single profile. The system then uses AI to analyse patterns and generate personalised insights intended to support conversations with healthcare professionals.

Microsoft said the feature aims to help people better understand existing medical information rather than replace clinical care. Users can review trends such as sleep patterns, activity levels, and vital signs gathered from wearable devices, alongside test results and visit summaries from healthcare providers.

Copilot Health can integrate data from more than 50 wearable devices, including systems connected through platforms such as Apple Health, Fitbit, and Oura. The platform can also access health records from over 50,000 US hospitals and provider organisations through HealthEx, as well as laboratory test results from Function.

According to Microsoft, the system builds on ongoing research into medical AI systems, including work on the Microsoft AI Diagnostic Orchestrator (MAI-DxO). The company said future publications will explore how such systems could assist in analysing complex medical cases.

Privacy and security are central elements of the design. Microsoft stated that Copilot Health data and conversations are stored separately from standard Copilot interactions and protected through encryption and access controls. The company also noted that health information used in the service will not be used to train AI models.

Development of the system involves Microsoft’s internal clinical team and an external advisory group of more than 230 physicians from 24 countries. The company said Copilot Health has also achieved ISO/IEC 42001 certification, a standard focused on the governance of AI management systems.

The feature is being introduced through a phased rollout, beginning with a waitlist for early users who will help shape the service as it develops.

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EU competition regulators expand scrutiny across the entire AI ecosystem

Competition authorities in the EU are broadening their oversight of the AI sector, examining every layer of the technology’s value chain.

Speaking at a conference in Berlin, Teresa Ribera explained that regulators are analysing the full ‘AI stack’ instead of focusing solely on consumer applications.

According to the competition chief, scrutiny extends beyond visible AI tools to the systems that support them. Investigations are assessing underlying models, the data used to train those models, as well as cloud infrastructure and energy resources that power AI systems.

Regulatory attention has already reached the application layer.

The European Commission opened an investigation in 2025 involving Meta after concerns emerged that the company could restrict competing AI assistants on its messaging platform WhatsApp.

Following regulatory pressure, Meta proposed allowing rival AI chatbots on the platform in exchange for a fee. European regulators are now assessing the proposal to determine whether additional intervention is necessary to preserve fair competition in rapidly evolving digital markets.

Authorities have also examined concentration risks across other parts of the AI ecosystem, including the infrastructure layer dominated by companies such as Nvidia.

Regulators argue that effective competition oversight must address the entire technology stack as AI markets expand quickly.

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EU privacy watchdogs warn over US plans to expand traveller data collection

European privacy authorities have raised concerns about proposed changes to the Electronic System for Travel Authorisation that could require travellers to the US to disclose extensive personal information, including social media activity.

The European Data Protection Board, which coordinates national data protection authorities across the EU, sent a letter to the European Commission asking whether the institution plans to intervene or respond to the updated requirements.

A proposal that would apply to visitors entering the US through the visa-waiver programme for short stays of up to 90 days.

Under the proposed changes, travellers may be required to provide details about their social media accounts covering the previous five years.

Authorities could also request personal data about family members, including addresses, phone numbers and dates of birth, information that privacy regulators argue is unrelated to travel authorisation.

Watchdogs also questioned how EU citizens could exercise their data protection rights once such information is transferred to US authorities, particularly regarding storage periods and potential misuse.

Parallel negotiations between the EU and the US have also attracted attention.

Discussions around a potential Enhanced Border Security Partnerships framework could allow US authorities to seek access to biometric databases held by European countries, including facial scans and fingerprint records.

European privacy regulators warned that such measures could raise significant concerns regarding fundamental rights and personal data protection for travellers from the EU.

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Deepfakes in campaign ads expose limits of Texas election law

AI-generated political advertisements are becoming increasingly visible in Texas election campaigns, highlighting gaps in existing laws designed to regulate deepfakes in political messaging.

Texas was the first state in the United States to adopt legislation restricting the use of deepfakes in campaign advertisements. However, the law applies only to state-level races. It does not cover federal contests, including the US Senate race that has dominated advertising spending in Texas and featured several AI-generated campaign ads.

Some lawmakers and experts warn that the growing use of AI-generated political content could complicate election campaigns. During recent primary contests, campaign advertisements featuring manipulated or synthetic images of political figures circulated widely across media platforms.

State Senator Nathan Johnson, who has proposed legislation to strengthen the state’s rules regarding deepfakes, said the rapid evolution of AI technology makes the issue increasingly urgent. Johnson argues that voters should be able to make decisions based on accurate information rather than manipulated media.

The current Texas law, adopted in 2019, contains several limitations. It only applies to video content, requires proof of intent to deceive or harm a candidate, and covers material distributed within 30 days of an election. Critics say these restrictions make the law difficult to enforce and limit its practical impact.

Lawmakers from both parties attempted to address some of these issues during the most recent legislative session. Proposed reforms included removing the 30-day restriction, requiring clear disclosure when AI is used in political advertising, and allowing candidates to pursue legal action to block misleading ads. Although both chambers of the Texas legislature passed versions of the legislation, the proposals ultimately failed to become law.

Supporters of stricter regulation argue that the rapid advancement of generative AI tools is making it harder to distinguish synthetic media from authentic content. Some political leaders warn that increasingly realistic deepfakes could eventually influence election outcomes.

Others, however, caution that regulating political content raises constitutional concerns. Some lawmakers argue that many AI-generated political ads resemble satire or parody, forms of political speech protected by the First Amendment.

At the federal level, regulation of congressional campaign advertising falls under the Federal Election Commission’s authority. In 2024, the agency declined to begin a formal rulemaking process on AI-generated political ads, leaving states and policymakers to continue debating how to address the emerging issue.

Experts warn that as AI tools continue to improve, distinguishing authentic political messaging from deepfakes and other forms of synthetic content will likely become more complex.

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BeatBanker malware targets Android users in Brazil

A new Android malware called BeatBanker is targeting users in Brazil through fake Starlink and government apps. The malware hijacks devices, steals banking credentials, tampers with cryptocurrency transactions, and secretly mines Monero.

Infection begins on phishing websites mimicking the Google Play Store or the ‘INSS Reembolso’ app. Users are tricked into installing trojanised APKs, which evade detection through memory-based decryption and by blocking analysis environments.

Fake update screens maintain persistence while silently downloading additional malicious payloads.

BeatBanker initially combined a banking trojan with a cryptocurrency miner. It uses accessibility permissions to monitor browsers and crypto apps, overlaying fake screens to redirect Tether and other crypto transfers.

A foreground service plays silent audio loops to prevent the device from shutting down, while Firebase Cloud Messaging enables remote control of infected devices.

The latest variant replaces the banking module with the BTMOB RAT, providing full control over devices. Capabilities include automatic permissions, background persistence, keylogging, GPS tracking, camera access, and screen-lock credential capture.

Kaspersky warns that BeatBanker demonstrates the growing sophistication of mobile threats and multi-layered malware campaigns.

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Biased AI suggestions shift societal attitudes

AI-powered writing tools may do more than speed up typing- they can influence the way people think. A Cornell study found that biassed autocomplete suggestions can subtly shift users’ opinions on issues like the death penalty, fracking, GMOs, and voting rights.

Experiments with over 2,500 participants revealed that users’ views gravitated toward the AI’s predetermined bias. Attempts to warn participants about the AI’s bias, either before or after writing, did not prevent the shifts.

Researchers noted that the effect occurs because users effectively write biassed viewpoints themselves, a process psychology research shows can alter personal attitudes.

The influence was consistent across political topics and participants of all leanings. Compared with simply providing pre-written arguments, biassed AI suggestions had a stronger effect on shaping opinions.

Researchers warn that as autocomplete and generative AI tools become increasingly prevalent, covert persuasion through AI may pose serious societal risks.

The study, led by Sterling Williams-Ceci and Mor Naaman of Cornell Tech, highlights the potential for AI to shape beliefs without users noticing. Findings highlight the need for oversight as AI writing assistants enter everyday communication.

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AI browsers expose new cybersecurity attack surfaces

Security researchers have demonstrated that agentic browsers, powered by AI, may introduce new cybersecurity vulnerabilities.

Experiments targeting the Comet AI browser, developed by Perplexity AI, showed that attackers could manipulate the system into executing phishing scams in only a few minutes.

The attack exploits the reasoning process used by AI agents when interacting with websites. These systems continuously explain their actions and observations, revealing internal signals that attackers can analyse to refine malicious strategies and bypass built-in safeguards.

Researchers showed that phishing pages can be iteratively trained using adversarial machine learning methods, such as Generative Adversarial Networks.

By observing how the AI browser responds to suspicious signals, attackers can optimise fraudulent pages until the system accepts them as legitimate.

The findings highlight a shift in the cybersecurity threat landscape. Instead of deceiving human users directly, attackers increasingly focus on manipulating the AI agents that perform online actions on behalf of users.

Security experts warn that prompt injection vulnerabilities remain a fundamental challenge for large language models and agentic systems.

Although new defensive techniques are being developed, researchers believe such weaknesses may remain difficult to eliminate.

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EU platform law expands data access rights

European regulators are examining how the Digital Markets Act interacts with the General Data Protection Regulation across major digital platforms. The EU rules apply to designated gatekeepers that operate core platform services used by millions of users.

Policy specialists in the EU say the Digital Markets Act complements GDPR protections by strengthening user control over personal data. The framework also supports rights related to data access, portability and transparency for both consumers and business users.

The regulatory overlap affects areas including consent requirements, third-party software installation and interoperability between services. Authorities are also coordinating enforcement between competition and data protection regulators.

Analysts say the combined application of both laws could reshape the responsibilities of major technology platforms. Policymakers aim to increase user choice while reinforcing safeguards for the integrity and confidentiality of personal data in the GDPR.

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