Digital standards

New Zealand central bank warns of AI risks

The Reserve Bank of New Zealand has warned that the swift uptake of AI in the financial sector could pose a threat to financial stability.

A report released on Monday highlighted how errors in AI systems, data privacy breaches and potential market distortions might magnify existing vulnerabilities instead of simply streamlining operations.

The central bank also expressed concern over the increasing dependence on a handful of third-party AI providers, which could lead to market concentration instead of healthy competition.

A reliance like this, it said, could create new avenues for systemic risk and make the financial system more susceptible to cyber-attacks.

Despite the caution, the report acknowledged that AI is bringing tangible advantages, such as greater modelling accuracy, improved risk management and increased productivity. It also noted that AI could help strengthen cyber resilience rather than weaken it.

The analysis was published just ahead of the central bank’s twice-yearly Financial Stability Report, scheduled for release on Wednesday.

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AI chip restrictions and tariffs weigh on Samsung’s global strategy

Samsung has warned that rising US tariffs could dampen global demand for its electronics, including smartphones and semiconductors.

Despite reporting record quarterly revenue of £41.6 billion and a modest profit rise driven by strong phone and chip sales, the company expressed concerns about the uncertain trade environment.

Executives cited possible risks to sales in the second half of 2025 due to escalating tariff tensions.

While some clients have accelerated orders to avoid incoming levies, Samsung said this may create a sales lull later in the year.

Delayed tariffs affecting countries like South Korea and Vietnam, where Samsung manufactures key components, are expected to take effect in July. US restrictions on AI chip sales to China are also weighing on the company’s outlook.

Samsung refrained from providing financial guidance for the next quarter, citing unpredictable global trade dynamics.

As tariff uncertainty continues, major tech companies like Apple are also reassessing supply chains, with many shifting chip production out of China in anticipation of further disruptions.

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US antitrust trial sees Google defend Chrome and data control

Google has warned that proposed remedies in the ongoing US antitrust case, including a possible sell-off of Chrome, could expose users to data breaches and national security threats. Arguing that Google’s infrastructure is key to protecting Chrome against rising cyberattacks.

Google cited past breaches to emphasise the risks of moving such tools to buyers lacking similar security standards. The Justice Department, however, maintains that breaking up Google’s dominance would encourage fairer competition.

Proposals include banning exclusive deals, sharing user data to support rivals, and enabling Apple or others to shift default search settings. An economic expert testified these remedies could reduce Google’s market share from 88% to 51%, though full impact would take years to materialise.

Judge Amit Mehta raised concerns that dismantling Google’s monopoly might simply replace it with another, such as Microsoft. Google CEO Sundar Pichai is set to testify next, as the case continues through 9 May in the US.

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Meta introduces face recognition to help UAE users recover hacked accounts

Meta is introducing facial recognition tools to help UAE users recover hacked accounts on Facebook and Instagram and stop scams that misuse public figures’ images. The technology compares suspicious ads to verified profile photos and removes them automatically if a match is found.

Well-known individuals in the region are automatically enrolled in the programme but can opt out if they choose. A new video selfie feature has also been rolled out to help users regain access to compromised accounts.

This allows identity verification through a short video matched with existing profile photos, offering a faster and more secure alternative to document-based checks.

Meta confirmed that all facial data used for verification is encrypted, deleted immediately after use, and never repurposed.

The company says this is part of a broader effort to fight impersonation scams and protect both public figures and regular users, not just in the UAE but elsewhere too.

Meta’s regional director highlighted the emotional and financial harm such scams can cause, reinforcing the need for proactive defences.

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Premium subscribers on X to get 4K video upload option

X is introducing support for 4K video uploads for select creators, aiming to enhance engagement and reduce reliance on rival platforms like YouTube.

The company announced that premium subscribers will soon gain access to this high-resolution feature, expanding beyond the existing 1080p limit.

Since Elon Musk acquired the platform, X has steadily increased video upload limits to encourage richer content sharing. Earlier this year, the company launched a vertical video feed with a dedicated shortcut in its mobile apps.

The move comes amid speculation around a potential TikTok ban in the US, offering X an opportunity to gain traction with video-focused users. X has not yet confirmed whether the current upload size or duration restrictions will change.

These updates reflect X’s broader push to position itself as a viable destination for video creators. By offering higher-quality uploads and a streamlined viewing experience, the platform aims to retain users and attract content from elsewhere

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Microsoft says AI now writes nearly a third of its code

Microsoft CEO Satya Nadella revealed that AI now writes between 20% and 30% of the company’s internal code.

He shared this figure during a fireside conversation with Meta CEO at the recent LlamaCon conference. Nadella added that AI-generated output varies by programming language.

Nadella’s comments came in response to a question from Zuckerberg, who admitted he didn’t know the figure for Meta. Google’s CEO Sundar Pichai recently reported similar figures, saying AI now generates over 30% of Google’s code.

Despite these bold claims, there’s still no industry-wide standard for measuring AI-written code. The ambiguity suggests such figures should be interpreted cautiously. Nevertheless, the trend highlights the growing impact of generative AI on software development.

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Trump administration eyes overhaul of Biden-era AI chip export rules

The Trump administration is reviewing a Biden-era rule that restricts global access to US-made advanced AI chips, with discussions underway to eliminate the current tiered system that governs chip exports, according to sources familiar with the matter.

The existing rule, known as the Framework for Artificial Intelligence Diffusion, was introduced by the US Department of Commerce in January and is set to take effect on 15 May.

It divides the world into three groups: trusted allies (like the EU and Taiwan) with unlimited access, Tier 2 countries with chip quotas, and restricted countries such as China, Russia, Iran and North Korea.

Officials are considering replacing this structure with a global licensing regime based on government-to-government agreements—aligning with Donald Trump’s broader trade strategy of negotiating bilateral deals and using US-made chips as leverage.

Other possible changes include tightening export thresholds: under current rules, orders under the equivalent of 1,700 Nvidia H100 chips only require notification, not a licence. The new proposal could reduce that threshold to around 500 chips.

Supporters of the change argue it would increase US bargaining power and simplify enforcement. Critics, however, warn that scrapping the tier system may complicate compliance and drive countries toward Chinese chip alternatives.

Tech firms such as Oracle and Nvidia, along with several US lawmakers, have criticised the current framework, saying it risks harming American competitiveness and pushing international buyers toward cheaper, unregulated Chinese substitutes.

The Commerce Department declined to comment.

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Microsoft outlines new commitments to Europe’s digital future

Microsoft has unveiled a set of five digital commitments aimed at supporting Europe’s technological and economic future.

Central to the announcement is a major expansion of its cloud and AI infrastructure, including plans to grow its datacentre capacity by 40% across 16 European countries.

The company says this will help nations strengthen digital sovereignty, boost economic competitiveness and ensure data remains under European jurisdiction.

They reaffirmed commitments to EU data privacy laws, expanding its EU Data Boundary and offering customers advanced encryption and control tools.

As geopolitical tensions persist, Microsoft pledges to uphold Europe’s digital resilience and continuity of service. However, this includes a legally binding Digital Resilience Commitment, European oversight of datacentre operations, and partnerships to ensure operational continuity in the event of disruption.

Cybersecurity remains a core focus, with a new Deputy Chief Information Security Officer for Europe and increased support for compliance with the EU’s evolving regulations.

Microsoft also recommitted to open access principles for AI development and support for local innovation, including open-source ecosystems.

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Amazon launches first Kuiper satellites to challenge Starlink

Amazon has launched the first 27 satellites of its Project Kuiper broadband network into low-Earth orbit, marking a major step in its $10bn plan to deliver global internet coverage and rival Elon Musk’s Starlink.

The satellites were launched aboard a United Launch Alliance Atlas V rocket from Cape Canaveral, Florida, after weather delays earlier this month. They are the first of over 3,200 that Amazon intends to deploy, with the aim of reaching underserved and remote areas around the world.

Project Kuiper, announced in 2019, has been slow to get off the ground. Amazon must deploy at least half its satellite constellation—1,618 units—by mid-2026 to meet US regulatory requirements, though analysts expect the company to seek an extension.

The launch puts Amazon into direct competition with SpaceX, which has already deployed over 8,000 Starlink satellites and serves more than 5 million users across 125 countries.

While SpaceX dominates the sector, Amazon hopes its strengths in cloud computing and consumer devices will give Kuiper an edge.

Jeff Bezos said he expects both Kuiper and Starlink to succeed, citing strong global demand for satellite internet. Kuiper consumer terminals will sell for under $400 and come in various sizes, including one comparable to a Kindle.

Amazon has booked 83 future launches with partners including ULA, Arianespace, and Bezos’s Blue Origin, making it the biggest satellite launch programme in history.

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UK refuses to include Online Safety Act in US trade talks

The UK government has ruled out watering down the Online Safety Act as part of any trade negotiations with the US, despite pressure from American tech giants.

Speaking to MPs on the Science, Innovation and Technology Committee, Baroness Jones of Whitchurch, the parliamentary under-secretary for online safety, stated unequivocally that the legislation was ‘not up for negotiation’.

‘There have been clear instructions from the Prime Minister,’ she said. ‘The Online Safety Act is not part of the trade deal discussions. It’s a piece of legislation — it can’t just be negotiated away.’

Reports had suggested that President Donald Trump’s administration might seek to make loosening the UK’s online safety rules a condition of a post-Brexit trade agreement, following lobbying from large US-based technology firms.

However, Baroness Jones said the legislation was well into its implementation phase and that ministers were ‘happy to reassure everybody’ that the government is sticking to it.

The Online Safety Act will require tech platforms that host user-generated content, such as social media firms, to take active steps to protect users — especially children — from harmful and illegal content.

Non-compliant companies may face fines of up to £18 million or 10% of global turnover, whichever is greater. In extreme cases, platforms could be blocked from operating in the UK.

Mark Bunting, a representative of Ofcom, which is overseeing enforcement of the new rules, said the regulator would have taken action had the legislation been in force during last summer’s riots in Southport, which were exacerbated by online misinformation.

His comments contrasted with tech firms including Meta, TikTok and X, which claimed in earlier hearings that little would have changed under the new rules.

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