Generative AI fuels surge in online fraud risks in 2026

Online scams are expected to surge in 2026, overtaking ransomware as the top cyber-risk, the World Economic Forum warned, driven by the growing use of generative AI.

Executives are increasingly concerned about AI-driven scams that are easier to launch and harder to detect than traditional cybercrime. WEF managing director Jeremy Jurgens said leaders now face the challenge of acting collectively to protect trust and stability in an AI-driven digital environment.

Consumers are also feeling the impact. An Experian report found 68% of people now see identity theft as their main concern, while US Federal Trade Commission data shows consumer fraud losses reached $12.5 billion in 2024, up 25% year on year.

Generative AI is enabling more convincing phishing, voice cloning, and impersonation attempts. The WEF reported that 62% of executives experienced phishing attacks, 37% encountered invoice fraud, and 32% reported identity theft, with vulnerable groups increasingly targeted through synthetic content abuse.

Experts warn that many organisations still lack the skills and resources to defend against evolving threats. Consumer groups advise slowing down, questioning urgent messages, avoiding unsolicited requests for information, and verifying contacts independently to reduce the risk of generative AI-powered scams.

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Siri to receive major AI upgrade with powerful enhancements

Apple is reportedly preparing a major overhaul of Siri by replacing the current system with an AI chatbot powered by Google’s Gemini technology. The change could mark the most significant upgrade to the assistant since its original launch.

Internal reports suggest the project aims to make Siri more conversational, capable of handling complex requests and sustained dialogue, rather than simple commands.

Future versions of iOS, iPadOS, and macOS are expected to introduce the new system. Users would still activate Siri with familiar voice commands or device buttons, regardless of the underlying technology.

Improved understanding of personal data could allow the assistant to manage calendars, photos, files, and settings more intuitively. Content creation features such as email drafting and note summarisation are also expected.

Growing competition from AI chatbots like ChatGPT and Gemini has increased pressure on Apple to modernise its digital assistant. Reports suggest a formal reveal could take place at a future developer event, followed by a broader rollout with upcoming iPhone releases.

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UK launches software security ambassadors scheme

The UK government has launched the Software Security Ambassadors Scheme to promote stronger software security practices nationwide. The initiative is led by the Department for Science, Innovation and Technology and the National Cyber Security Centre.

In the UK, participating organisations commit to championing the new Software Security Code of Practice within their industries. Signatories agree to lead by example through secure development, procurement and advisory practices, while sharing lessons learned to strengthen national cyber resilience.

The scheme aims to improve transparency and risk management across UK digital supply chains. Software developers are encouraged to embed security throughout the whole lifecycle, while buyers are expected to incorporate security standards into procurement processes.

Officials say the approach supports the UK’s broader economic and security goals by reducing cyber risks and increasing trust in digital technologies. The government believes that better security practices will help UK businesses innovate safely and withstand cyber incidents.

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Jeff Bezos enters satellite broadband race

Blue Origin, founded by Jeff Bezos, has announced plans to launch a global satellite internet network called TeraWave in the US. The project aims to deploy more than 5,400 satellites to deliver high-speed data services.

In the US, TeraWave will target data centres, businesses and government users rather than households. Blue Origin says the system could reach speeds of up to 6 terabits per second, exceeding the speeds of current commercial satellite services.

The move positions the US company as a direct rival to Starlink, SpaceX’s satellite internet service. Starlink already operates thousands of satellites and focuses heavily on consumer internet access across the US and beyond.

Blue Origin plans to begin launching TeraWave satellites from the US by the end of 2027. The announcement adds to the intensifying competition in satellite communications as demand for global connectivity continues to grow.

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Microsoft restores Exchange and Teams after Microsoft 365 disruption

The US tech giant, Microsoft, investigated a service disruption affecting Exchange Online, Teams and other Microsoft 365 services after users reported access and performance problems.

An incident that began late on Wednesday affected core communication tools used by enterprises for daily operations.

Engineers initially focused on diagnosing the fault, with Microsoft indicating that a potential third-party networking issue may have interfered with access to Outlook and Teams.

During the disruption, users experienced intermittent connectivity failures, latency and difficulties signing in across parts of the Microsoft 365 ecosystem.

Microsoft later confirmed that service access had been restored, although no detailed breakdown of the outage scope was provided.

The incident underlined the operational risks associated with cloud productivity platforms and the importance of transparency and resilience in enterprise digital infrastructure.

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Anthropic releases new constitution shaping Claude’s AI behaviour

Anthropic has published a new constitution for its AI model Claude, outlining the values, priorities, and behavioural principles designed to guide its development. Released under a Creative Commons licence, the document aims to boost transparency while shaping Claude’s learning and reasoning.

The constitution plays a central role in training, guiding how Claude balances safety, ethics, compliance, and helpfulness. Rather than rigid rules, the framework explains core principles, enabling AI systems to generalise and apply nuanced judgment.

Anthropic says this approach supports more responsible decision-making while improving adaptability.

The updated framework also enables Claude to refine its own training through synthetic data generation and self-evaluation. Using the constitution in training helps future Claude models align behaviour with human values while maintaining safety and oversight.

Anthropic described the constitution as a living document that will evolve alongside AI capabilities. External feedback and ongoing evaluation will guide updates to strengthen alignment, transparency, and responsible AI development.

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EU urged to accelerate AI deployment under new Apply AI strategy

European policymakers are calling for urgent action to accelerate AI deployment across the EU, particularly among SMEs and scale-ups, as the bloc seeks to strengthen its position in the global AI race.

Backing the European Commission’s Apply AI Strategy, the European Economic and Social Committee said Europe must prioritise trust, reliability, and human-centric design as its core competitive advantages.

The Committee warned that slow implementation, fragmented national approaches, and limited private investment are hampering progress. While the strategy promotes an ‘AI first’ mindset, policymakers stressed the need to balance innovation with strong safeguards for rights and freedoms.

Calls were also made for simpler access to funding, lighter administrative requirements, and stronger regional AI ecosystems. Investment in skills, inclusive governance, and strategic procurement were identified as key pillars for scaling trustworthy AI and strengthening Europe’s digital sovereignty.

Support for frontier AI development was highlighted as essential for reducing reliance on foreign models. Officials argued that building advanced, sovereign AI systems aligned with European values could enable competitive growth across sectors such as healthcare, finance, and industry.

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From chips to jobs: Huang’s vision for AI at Davos 2026

AI is evolving into a foundational economic system rather than a standalone technology, according to NVIDIA chief executive Jensen Huang, who described AI as a five-layer infrastructure spanning energy, hardware, data centres, models and applications.

Speaking at the World Economic Forum in Davos, Huang argued that building and operating each layer is triggering what he called the most significant infrastructure expansion in human history, with job creation stretching from power generation and construction to cloud operations and software development.

Investment patterns suggest a structural shift instead of a speculative cycle. Venture capital funding in 2025 reached record levels, largely flowing into AI-native firms across healthcare, manufacturing, robotics and financial services.

Huang stressed that the application layer will deliver the most significant economic return as AI moves from experimentation to core operational use across industries.

Concerns around job displacement were framed as misplaced. AI automates tasks rather than replacing professional judgement, enabling workers to focus on higher-value activities.

In healthcare, productivity gains from AI-assisted diagnostics and documentation are already increasing demand for radiologists and nurses rather than reducing headcount, as improved efficiency enables institutions to treat more patients.

Huang positioned AI as critical national infrastructure, urging governments to develop domestic capabilities aligned with local language, culture and industrial strengths.

He described AI literacy as an essential skill, comparable to leadership or management, while arguing that accessible AI tools could narrow global technology divides rather than widen them.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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South Korea sets the global standard for frontier AI regulation

South Korea will begin enforcing its Artificial Intelligence Act on Thursday, becoming the first country to introduce formal safety requirements for high-performance, or frontier, AI systems, reshaping the global regulatory landscape.

The law establishes a national AI governance framework, led by the Presidential Council on National Artificial Intelligence Strategy, and creates an AI Safety Institute to oversee safety and trust assessments.

Alongside regulatory measures, the government is rolling out broad support for research, data infrastructure, talent development, startups, and overseas expansion, signalling a growth-oriented policy stance.

To minimise early disruption, authorities will introduce a minimum one-year grace period centred on guidance, consultation, and education rather than enforcement.

Obligations cover three areas: high-impact AI in critical sectors, safety rules for frontier models, and transparency requirements for generative AI, including disclosure of realistic synthetic content.

Enforcement remains light-touch, prioritising corrective orders over penalties, with fines capped at 30 million won for persistent noncompliance. Officials said the framework aims to build public trust while supporting innovation, serving as a foundation for ongoing policy development.

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GPT-5.2 shows how AI can generate real-world cyber exploits

Advanced language models have demonstrated the ability to generate working exploits for previously unknown software vulnerabilities. Security researcher Sean Heelan tested two systems built on GPT-5.2 and Opus 4.5 by challenging them to exploit a zero-day flaw in the QuickJS JavaScript interpreter.

Across multiple scenarios with varying security protections, GPT-5.2 completed every task, while Opus 4.5 failed only 2. The systems produced more than 40 functional exploits, ranging from basic shell access to complex file-writing operations that bypassed modern defences.

Most challenges were solved in under an hour, with standard attempts costing around $30. Even the most complex exploit, which bypassed protections such as address space layout randomisation, non-executable memory, and seccomp sandboxing, was completed in just over three hours for roughly $50.

The most advanced task required GPT-5.2 to write a specific string to a protected file path without access to operating system functions. The model achieved this by chaining seven function calls through the glibc exit handler mechanism, bypassing shadow stack protections.

The findings suggest exploit development may increasingly depend on computational resources rather than human expertise. While QuickJS is less complex than browsers such as Chrome or Firefox, the approach demonstrated could scale to larger and more secure software environments.

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