Digital identities

EU allocates $356 million for AI and digital technologies

The European Commission has announced €307.3 million ($356 million) in new funding to advance digital technologies across the EU. The initiative aims to strengthen Europe’s innovation, competitiveness, and strategic digital autonomy.

A total of €221.8 million will support projects in AI, robotics, quantum technologies, photonics, and virtual worlds. One focus is the development of trustworthy AI services and innovative data solutions to enhance EU digital leadership.

More than €40 million has been allocated to the Open Internet Stack Initiative, which aims to advance end-user applications and core stack technologies, boosting European digital sovereignty. A second call of €85.5 million will target open strategic autonomy in emerging digital technologies and raw materials.

The funding is open to businesses, academic institutions, public administrations, and other entities from EU member states and partner countries. Priority areas include next-generation AI agents, industrial and service robotics, and new materials with enhanced sensing capabilities.

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Ofcom probes AI companion chatbot over age checks

Ofcom has opened an investigation into Novi Ltd over age checks on its AI companion chatbot. The probe focuses on duties under the Online Safety Act.

Regulators will assess whether children can access pornographic content without effective age assurance. Sanctions could include substantial fines or business disruption measures under the UK’s Online Safety Bill.

In a separate case, Ofcom confirmed enforcement pressure led Snapchat to overhaul its illegal content risk assessment. Revised findings now require stronger protections for UK users.

Ofcom said accurate risk assessments underpin online safety regulation. Platforms must match safeguards to real world risks, particularly when AI and children are concerned.

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Regulators press on with Grok investigations in Britain and Canada

Britain and Canada are continuing regulatory probes into xAI’s Grok chatbot, signalling that official scrutiny will persist despite the company’s announcement of new safeguards. Authorities say concerns remain over the system’s ability to generate explicit and non-consensual images.

xAI said it had updated Grok to block edits that place real people in revealing clothing and restricted image generation in jurisdictions where such content is illegal. The company did not specify which regions are affected by the new limits.

Reuters testing found Grok was still capable of producing sexualised images, including in Britain. Social media platform X and xAI did not respond to questions about how effective the changes have been.

UK regulator Ofcom said its investigation remains ongoing, despite welcoming xAI’s announcement. A privacy watchdog in Canada also confirmed it is expanding an existing probe into both X and xAI.

Pressure is growing internationally, with countries including France, India, and the Philippines raising concerns. British Technology Secretary Liz Kendall said the Online Safety Act gives the government tools to hold platforms accountable for harmful content.

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Japan and ASEAN agree to boost AI collaboration

Japan and the Association of Southeast Asian Nations (ASEAN) have agreed to collaborate on developing new AI models and preparing related legislation. The cooperation was formalised in a joint statement at a digital ministers’ meeting in Hanoi on Thursday.

Proposed by Minister Hayashi, the initiative aims to boost regional AI capabilities amid US and Chinese competition. Japan emphasised its ongoing commitment to supporting ASEAN’s technological development.

The partnership follows last October’s Japan-ASEAN summit, where Prime Minister Takaichi called for joint research in semiconductors and AI. The agreement aims to foster closer innovation ties and regional collaboration in strategic technology sectors.

The collaboration will engage public and private stakeholders to promote research, knowledge exchange, and capacity-building across ASEAN. Officials expect the partnership to speed AI adoption while maintaining regional regulations and ethical standards.

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Council of Europe highlights legal frameworks for AI fairness

The Council of Europe recently hosted an online event to examine the challenges posed by algorithmic discrimination and explore ways to strengthen governance frameworks for AI and automated decision-making (ADM) systems.

Two new publications were presented, focusing on legal protections against algorithmic bias and policy guidelines for equality bodies and human rights institutions.

Algorithmic bias has been shown to exacerbate existing social inequalities. In employment, AI systems trained on historical data may unfairly favour male candidates or disadvantage minority groups.

Public authorities also use AI in law enforcement, migration, welfare, justice, education, and healthcare, where profiling, facial recognition, and other automated tools can carry discriminatory risks. Private-sector applications in banking, insurance, and personnel services similarly raise concerns.

Legal frameworks such as the EU AI Act (2024/1689) and the Council of Europe’s Framework Convention on AI, human rights, democracy, and the rule of law aim to mitigate these risks. The publications review how regulations protect against algorithmic discrimination and highlight remaining gaps.

National equality bodies and human rights structures play a key role in monitoring AI/ADM systems, ensuring compliance, and promoting human rights-based deployment.

The webinar highlighted practical guidance and examples for applying EU and Council of Europe rules to public sector AI initiatives, fostering more equitable and accountable systems.

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Brazil excluded from WhatsApp rival AI chatbot ban

WhatsApp has excluded Brazil from its new restriction on third-party general-purpose chatbots, allowing AI providers to continue operating on the platform despite a broader policy shift affecting other markets.

The decision follows action by the competition authority of Brazil, which ordered Meta to suspend elements of the policy while assessing whether the rules unfairly disadvantage rival chatbot providers in favour of Meta AI.

Developers have been informed that services linked to Brazilian phone numbers do not need to stop responding to users or issue service warnings.

Elsewhere, WhatsApp has introduced a 90-day grace period starting in mid-January, requiring chatbot developers to halt responses and notify users that services will no longer function on the app.

The policy applies to tools such as ChatGPT and Grok, while customer service bots used by businesses remain unaffected.

Italy has already secured a similar exemption after regulatory scrutiny, while the EU has opened an antitrust investigation into the new rules.

Meta continues to argue that general-purpose AI chatbots place technical strain on systems designed for business messaging instead of acting as an open distribution platform for AI services.

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SRB GDPR case withdrawn from EU court

A high-profile EU court case on pseudonymised data has ended without a final ruling. The dispute involved the Single Resolution Board and the European Data Protection Supervisor.

The case focused on whether pseudonymised opinions qualify as personal data under the GDPR. Judges were also asked to assess reidentification risks and notification duties.

After intervention by the Court of Justice of the European Union, the matter returned to the General Court. Both parties later withdrew the case, leaving no binding judgement.

Legal experts say the CJEU’s guidance continues to shape enforcement practice. Regulators are expected to reflect those principles in updated EU pseudonymisation guidelines.

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EU lawmakers push limits on AI nudity apps

More than 50 EU lawmakers have called on the European Commission to clarify whether AI-powered applications for nudity are prohibited under existing EU legislation, citing concerns about online harm and legal uncertainty.

The request follows public scrutiny of the Grok, owned by xAI, which was found to generate manipulated intimate images involving women and minors.

Lawmakers argue that such systems enable gender-based online violence and the production of child sexual abuse material instead of legitimate creative uses.

In their letter, lawmakers questioned whether current provisions under the EU AI Act sufficiently address nudification tools or whether additional prohibitions are required. They also warned that enforcement focused only on substantial online platforms risks leaving similar applications operating elsewhere.

While EU authorities have taken steps under the Digital Services Act to assess platform responsibilities, lawmakers stressed the need for broader regulatory clarity and consistent application across the digital market.

Further political debate on the issue is expected in the coming days.

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Australia’s social media age limit prompts restrictions on millions of under-16 accounts

Major social media platforms restricted access to approximately 4.7 million accounts linked to children under 16 across Australia during early December, following the introduction of the national social media minimum age requirement.

Initial figures collected by eSafety indicate that platforms with high youth usage are already engaging in early compliance efforts.

Since the obligation took effect on 10 December, regulatory focus has shifted towards monitoring and enforcement instead of preparation, targeting services assessed as age-restricted.

Early data suggests meaningful steps are being taken, although authorities stress it remains too soon to determine whether platforms have achieved full compliance.

eSafety has emphasised continuous improvement in age-assurance accuracy, alongside the industry’s responsibility to prevent circumvention.

Reports indicate some under-16 accounts remain active, although early signals point towards reduced exposure and gradual behavioural change rather than immediate elimination.

Officials note that the broader impact of the minimum age policy will emerge over time, supported by a planned independent, longitudinal evaluation involving academic and youth mental health experts.

Data collection will continue to monitor compliance, platform migration trends and long-term safety outcomes for children and families in Australia.

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Grok faces investigation over deepfake abuse claims

California Attorney General Rob Bonta has launched an investigation into xAI, the company behind the Grok chatbot, over the creation and spread of nonconsensual sexually explicit images.

Bonta’s office said Grok has been used to generate deepfake intimate images of women and children, which have then been shared on social media platforms, including X.

Officials said users have taken ordinary photos and manipulated them into sexually explicit scenarios without consent, with xAI’s ‘spicy mode’ contributing to the problem.

‘We have zero tolerance for the AI-based creation and dissemination of nonconsensual intimate images or child sexual abuse material,’ Bonta said in a statement.

The investigation will examine whether xAI has violated the law and follows earlier calls for stronger safeguards to protect children from harmful AI content.

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