Australia eSafety warns on AI companion harms

Australia’s online safety regulator has found major gaps in how popular AI companion chatbots protect children from harmful and sexually explicit material. The transparency report assessed four services and concluded that age verification and content filters were inadequate for users under 18.

Regulator Julie Inman Grant said many AI companions marketed as offering friendship or emotional support can expose young users to explicit chat and encourage harmful thoughts without effective safeguards. Most failed to guide users to support when self-harm or suicide issues appeared.

The report also showed several platforms lacked robust content monitoring or dedicated trust and safety teams, leaving children vulnerable to inappropriate inputs and outputs from AI systems. Firms relied on basic age self-declaration at signup rather than reliable checks.

New enforceable safety codes now require AI chatbots to block age-inappropriate content and offer crisis support tools, with potential civil penalties for breaches. Some providers have already updated age assurance features or restricted access in Australia following the regulator’s notices.

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UK’s CMA sets AI consumer law guidance

The UK Competition and Markets Authority has issued guidance warning firms that AI agents must follow the same consumer protection laws as human staff. Businesses remain legally responsible for AI actions, even when third parties supply tools.

Companies are advised to be transparent when customers interact with AI systems, particularly where people might assume a human response. Clear labelling and honest explanations of capabilities are considered essential for informed consumer decisions.

Proper training and testing of AI tools should ensure respect for refund rights, contract terms and accurate product information. Human oversight is recommended to prevent errors, misleading claims and so-called hallucinated outputs.

Rapid fixes are expected when problems emerge, especially for services affecting large audiences or vulnerable users. In the UK, breaches of consumer law can trigger enforcement action, heavy fines and mandatory compensation.

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Data watchdogs seek safeguards in biotech law

The European Data Protection Board and the European Data Protection Supervisor have issued a joint opinion on the proposed European Biotech Act. Both bodies support efforts to streamline biotech regulation and modernise clinical trial rules.

Regulators welcome plans to harmonise the application of the Clinical Trials Regulation and create a single legal basis for processing personal data in trials. Greater legal clarity for sponsors and investigators is seen as a key benefit.

Strong safeguards are urged due to the sensitivity of health and genetic data. Recommendations include clearer definitions of data controller roles and limiting the proposed 25-year retention rule to essential trial files.

Further advice calls for defined purposes when reusing trial data, alignment with the AI Act, routine pseudonymisation, and lawful frameworks for regulatory sandboxes under the GDPR.

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AI-EFFECT builds EU testing facility for AI in critical energy infrastructure

As Europe moves towards its climate-neutrality goals, integrating AI into energy systems is being presented as a way to improve efficiency, resilience, and sustainability. The EU-funded AI-EFFECT project is developing a European testing and experimentation facility (TEF) to support the development and adoption of AI solutions for the energy industry while ensuring safety, reliability, and compliance with EU regulations.

The TEF is described as a virtual network linking existing laboratories and computing resources across several EU countries. It is designed to provide standardised testing environments, risk and certification workflows, and replicable methods for developing, testing, and validating AI applications for critical energy infrastructures under diverse, real-world conditions.

The facility operates through four national nodes in Denmark, Germany, the Netherlands, and Portugal, each focused on a different set of energy challenges. In Denmark, the node led by the Technical University of Denmark is testing AI in virtual and physical multi-energy systems, including coordination between electric power grid operations and district heating systems in the Triangle Region in Jutland and on the island of Bornholm.

In the Netherlands, the node at Delft University of Technology is extending the university’s ‘control room of the future’ with AI capabilities to address grid congestion as renewable generation increases.

In Portugal, the node led by INESC TEC is developing a trusted local energy data space intended to address privacy concerns and connectivity gaps through secure, consent-based energy data sharing. The AI-EFFECT project says consumers and prosumers will be able to manage data rights and permissions in line with EU regulations while working with AI-driven service providers on co-creation and testing.

In Germany, the Fraunhofer-led node is focused on AI for power distribution systems and is developing a near-realistic cyber-physical model to benchmark AI performance in congestion management and distributed energy resource integration against traditional engineering approaches.

Alberto Dognini, project coordinator of EPRI Europe, Ireland, wrote in an Enlit news item: ‘Together, these four nodes form the backbone of AI-EFFECT’s mission to make AI a trusted partner in Europe’s energy transition.’ He added: ‘From optimising multi-energy systems to enabling secure data sharing and improving grid resilience, these nodes will accelerate innovation while reducing risk for operators and consumers alike.’

AI-EFFECT is also sharing its work through public-facing initiatives, including the EPRI Current Podcast. In the episode ‘Exploring the AI-EFFECT on Europe’s Energy Future’, participants discuss the architecture and building blocks supporting distributed nodes across multiple countries and examine how the TEF could shape the future of Europe’s energy systems.

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Anthropic outlines AI agent workflows for scientific computing

Anthropic has published a post describing how AI agents can be used in multi-day coding workflows for well-scoped, measurable scientific computing tasks that do not require constant human supervision. In the article, Anthropic researcher Siddharth Mishra-Sharma explains how tools such as progress files, test oracles, and orchestration methods can be used to manage long-running software work.

Mishra-Sharma writes that many scientists still use AI agents in a tightly managed conversational loop, while newer models are enabling the assignment of high-level goals and allowing agents to work more autonomously over longer periods. He says this approach can be useful for tasks such as reimplementing numerical solvers, converting legacy scientific software, and debugging large codebases against reference implementations.

As a case study, the Anthropic post describes using Claude Opus 4.6 to implement a differentiable cosmological Boltzmann solver in JAX. Boltzmann solvers such as CLASS and CAMB are used in cosmology to model the Cosmic Microwave Background and support the analysis of survey data. According to the post, a differentiable implementation can support gradient-based inference methods while also benefiting from automatic differentiation and compatibility with accelerators such as GPUs.

The post says the project required a different workflow from Anthropic’s earlier C compiler experiment because a Boltzmann solver is a tightly coupled numerical pipeline in which small errors can affect downstream outputs. Rather than relying mainly on parallel agents, Mishra-Sharma writes that this kind of task may be better suited to a single agent working sequentially, while using subagents when needed and comparing results against a reference implementation.

To manage long-running work, the article recommends keeping project instructions in a root-level ‘CLAUDE.md’ file and maintaining a ‘CHANGELOG.md’ file as portable long-term memory. It also highlights the importance of a test oracle, such as a reference implementation or existing test suite, so that AI agents can measure whether they are making progress and avoid repeating failed approaches.

The Anthropic post also presents Git as a coordination tool, recommending that the agent commit and push after every meaningful unit of work and run tests before each commit. For execution, Mishra-Sharma describes running Claude Code inside a tmux session on an HPC cluster using the SLURM scheduler, allowing the agent to continue working across multiple sessions with periodic human check-ins.

One orchestration method described in the article is the ‘Ralph loop,’ which prompts the agent to continue working until a stated success criterion is met. Mishra-Sharma writes that this kind of scaffolding can still help when models stop early or fail to complete all parts of a complex task, even as they become more capable overall.

According to the post, Anthropic’s Claude worked on the solver project over several days and reached sub-percent agreement with the reference CLASS implementation across several outputs. At the same time, Mishra-Sharma notes that the system had limitations, including gaps in test coverage and mistakes that a domain expert might have identified more quickly. He writes that the resulting solver is ‘not production-grade’ and ‘doesn’t match the reference CLASS implementation to an acceptable accuracy in every regime’.

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ITU to host AI for Good Global Summit in Geneva

The International Telecommunication Union (ITU) will organise the AI for Good Global Summit from 7 to 10 July 2026 at Palexpo in Geneva, Switzerland, according to an official announcement by the Swiss authorities.

On 6 and 7 July, the United Nations Global Dialogue on AI Governance will take place ahead of the summit. The dialogue is convened within the framework of a UN General Assembly resolution and will bring together policymakers, experts, and representatives of civil society to discuss approaches to AI governance.

The events will be held in parallel with the World Summit on the Information Society (WSIS) Forum (from 6 to 10 July), which focuses on issues related to digital cooperation and the development of the information society.

According to the official announcement, the co-location of these events is intended to facilitate exchanges between technical and policy communities working on AI and digital governance.

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EU Market Integration Package prompts feedback from Circle

Circle has submitted feedback to the European Commission on its proposed Market Integration Package, aiming to strengthen capital markets integration and supervision across the EU.

The response praises digital finance reforms while recommending refinements to support institutional adoption and liquidity growth. Key recommendations include reforming the DLT Pilot Regime with adaptive thresholds, a clear path to permanent legislation, and accelerated updates.

Circle also calls for broader use of MiCA-compliant e-money tokens (EMTs) in securities settlement, ensuring alignment with the CSD Regulation and considering non-EU-issued stablecoins for cross-border interoperability.

The company urges careful calibration of centralised supervision under the European Securities and Markets Authority, focusing on systemic crypto firms and reducing administrative complexity for smaller providers.

Legal certainty regarding the use of EMTs as collateral is also highlighted, enabling the EU markets to remain competitive globally.

Circle emphasises the potential of clear and proportionate regulation to bridge traditional finance with on-chain infrastructure. The company positions regulated stablecoins like USDC and EURC as key tools for modernising Europe’s capital markets and unlocking new efficiency and liquidity.

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Europol-backed operation shuts down thousands of dark web fraud sites

A global law enforcement operation supported by Europol has led to the shutdown of more than 373,000 dark web websites linked to fraudulent activity and the advertisement of child sexual abuse material.

The operation, known as ‘Operation Alice’, was launched on 9 March 2026 under the leadership of German authorities, with participation from 23 countries. The investigation, which began in 2021, initially targeted a dark web platform referred to as ‘Alice with Violence CP’.

According to Europol, investigators identified a single operator responsible for managing a network of hundreds of thousands of onion domains. These websites advertised child sexual abuse material and cybercrime-as-a-service offerings, including access to stolen financial data and systems.

Authorities state that the services were fraudulent, designed to extract payments without delivering the advertised material.

The operation has so far resulted in the identification of 440 customers worldwide, with further investigations ongoing against more than 100 individuals. Law enforcement agencies also seized 105 servers and multiple electronic devices during the coordinated action.

Europol provided analytical support, facilitated information exchange, and assisted in tracing cryptocurrency transactions linked to the network.

Authorities also reported that measures were taken throughout the investigation to identify and protect children at risk. An international arrest warrant has been issued for the suspected operator, who is reported to have generated significant profits through the scheme.

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Sora strengthens AI video safety through consent and traceability controls

OpenAI has outlined a safety framework for Sora that embeds protections into how AI-generated video content is created, shared, and managed.

The system introduces visible and invisible provenance signals, including C2PA metadata and watermarks, designed to ensure that generated media can be identified and traced.

The framework emphasises consent and control. Users can generate video content from images of real individuals only after confirming they have permission, while the ‘characters’ feature enables controlled use of personal likeness, with the ability to revoke access at any time.

Additional safeguards apply to content involving minors or young-looking individuals, with stricter moderation rules and enforced watermarking.

Safety mechanisms operate across the entire lifecycle of content. Generation is subject to layered filtering that assesses prompts and outputs for harmful material, including sexual content, self-harm promotion, and illegal activity.

These automated systems are complemented by human review and continuous testing to address emerging risks linked to increasingly realistic video and audio outputs.

The system also introduces protections specific to audio and user interaction. Generated speech is analysed for policy violations, and attempts to replicate the style of living artists or existing works are restricted.

Users of Sora retain control over their content through reporting tools, sharing settings, and the ability to remove material, reflecting a broader approach that aligns AI-generated media with safety, transparency, and accountability standards.

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Australian regulator warns AI companions expose children to serious online risks

The eSafety Commissioner has reported that AI companion chatbots are failing to adequately protect children from harmful content, following a transparency review of services including Character.AI, Nomi, Chai, and Chub AI.

According to the report, these services did not implement robust safeguards against exposure to sexually explicit material or the generation of child sexual exploitation and abuse content.

The findings also indicate that most platforms relied on self-declared age verification and did not consistently monitor inputs or outputs across all AI models used.

eSafety Commissioner Julie Inman Grant stated that AI companions, often presented as sources of emotional or social support, are increasingly used by children but may expose them to harmful interactions.

She noted that none of the reviewed services had ‘meaningful age checks’ in place and highlighted concerns about the absence of safeguards related to self-harm and suicide content.

The report further identifies that several platforms in Australia did not refer users to crisis or mental health support services when harmful interactions were detected.

It also notes gaps in monitoring for unlawful content and limited investment in trust and safety staffing, with some providers reporting no dedicated moderation personnel.

The findings follow the implementation of Australia’s Age-Restricted Material Codes, which require online services, including AI chatbots, to prevent access to age-inappropriate content and provide appropriate safety measures.

These obligations complement existing Unlawful Material Codes and Standards, with non-compliance potentially leading to civil penalties.

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