Digital standards

Florida renews effort to create state crypto reserve

Florida has reintroduced its push to establish a state crypto reserve, with Representative Webster Barnaby filing House Bill 183 to permit limited investment of public funds in digital assets. The proposal comes after his earlier attempt was withdrawn in June.

Under the new bill, Florida could invest up to 10% of state and public entity funds in assets such as Bitcoin, crypto ETFs, tokenised securities and other blockchain-based products. The legislation adds stricter standards to improve oversight of digital holdings.

Unlike its predecessor, the bill broadens investment options beyond Bitcoin, aiming to provide greater flexibility for portfolio diversification. If passed, HB 183 would take effect on 1 July 2026, allowing digital assets in state pension and trust funds.

Barnaby also introduced a separate measure, HB 175, which seeks to clarify regulations for stablecoin issuers. The proposal exempts recognised payment stablecoin issuers from additional licensing, provided they maintain full collateral in dollars or treasuries and conduct monthly reserve audits.

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Microsoft warns of a surge in ransomware and extortion incidents

Financially motivated cybercrime now accounts for the majority of global digital threats, according to Microsoft’s latest Digital Defense Report.

The company’s analysts found that over half of all cyber incidents with known motives in the past year were driven by extortion or ransomware, while espionage represented only a small fraction.

Microsoft warns that automation and accessible off-the-shelf tools have allowed criminals with limited technical skills to launch widespread attacks, making cybercrime a constant global threat.

The report reveals that attackers increasingly target critical services such as hospitals and local governments, where weak security and urgent operational demands make them easy victims.

Cyberattacks on these sectors have already led to real-world harm, from disrupted emergency care to halted transport systems. Microsoft highlights that collaboration between governments and private industry is essential to protect vulnerable sectors and maintain vital services.

While profit-seeking criminals dominate by volume, nation-state actors are also expanding their reach. State-sponsored operations are growing more sophisticated and unpredictable, with espionage often intertwined with financial motives.

Some state actors even exploit the same cybercriminal networks, complicating attribution and increasing risks for global organisations.

Microsoft notes that AI is being used by both attackers and defenders. Criminals are employing AI to refine phishing campaigns, generate synthetic media and develop adaptive malware, while defenders rely on AI to detect threats faster and close security gaps.

The report urges leaders to prioritise cybersecurity as a strategic responsibility, adopt phishing-resistant multifactor authentication, and build strong defences across industries.

Security, Microsoft concludes, must now be treated as a shared societal duty rather than an isolated technical task.

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Music and AI unite to power new mental health innovations

MIT PhD student Kimaya Lecamwasam is blending neuroscience, artificial intelligence, and music to pioneer new approaches to mental health care. Her research explores how music impacts the brain and emotions to develop scalable non-drug therapies.

Lecamwasam combines her neuroscience background and love of music to study how performances, composition, and listening affect emotional and physical well-being. Her work validates music as a mental health tool and explores AI-generated music for therapy.

Lecamwasam studies AI- and human-composed music, exploring ethical ways to use AI in emotional health without compromising creativity. She collaborates with institutions like Carnegie Hall and Myndstream to test music-based applications in real-world settings.

Beyond research, Lecamwasam contributes to building supportive communities at MIT. Through mentoring and student initiatives, she promotes inclusion and collaboration among emerging scientists and artists who share her belief in music’s power to heal and connect.

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Lehane backs OpenAI’s Australia presence as AI copyright debate heats up

OpenAI signalled a break with Australia’s tech lobby on copyright, with global affairs chief Chris Lehane telling SXSW Sydney the company’s models are ‘going to be in Australia, one way or the other’, regardless of reforms or data-mining exemptions.

Lehane framed two global approaches: US-style fair use that enables ‘frontier’ AI, versus a tighter, historical copyright that narrows scope, saying OpenAI will work under either regime. Asked if Australia risked losing datacentres without loser laws, he replied ‘No’.

Pressed on launching and monetising Sora 2 before copyright issues are settled, Lehane argued innovation precedes adaptation and said OpenAI aims to ‘benefit everyone’. The company paused videos featuring Martin Luther King Jr.’s likeness after family complaints.

Lehane described the US-China AI rivalry as a ‘very real competition’ over values, predicting that one ecosystem will become the default. He said US-led frontier models would reflect democratic norms, while China’s would ‘probably’ align with autocratic ones.

To sustain a ‘democratic lead’, Lehane said allies must add gigawatt-scale power capacity each week to build AI infrastructure. He called Australia uniquely positioned, citing high AI usage, a 30,000-strong developer base, fibre links to Asia, Five Eyes membership, and fast-growing renewables.

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New method helps AI models locate personalised objects in scenes

MIT and the MIT-IBM Watson AI Lab have developed a training approach that enables generative vision-language models to localise personalised objects (for example, a specific cat) across new scenes, a task at which they previously performed poorly.

While vision-language models (VLMs) are good at recognising generic object categories (dogs, chairs, etc.), they struggle when asked to point out your specific dog or chair under different conditions.

To remedy this, the researchers framed a fine-tuning regime using video-tracking datasets, where the same object appears in multiple frames.

Crucially, they used pseudo-names (e.g. ‘Charlie’) instead of real object names to prevent the model from relying on memorised label associations. This encourages it to reason about context, scene layout, appearance cues, and relative position, rather than shortcut to category matches.

AI models trained with the method showed a 12% average improvement in personalised localization. In some settings, especially with pseudo-naming, gains reached 21%. Importantly, this enhanced ability did not degrade the model’s overall object recognition performance.

Potential applications include smart home cameras recognising your pet, assistive devices helping visually impaired users find items, robotics, surveillance, and ecological monitoring (e.g. tracking particular animals). The approach helps models better generalise from a few example images rather than needing full retraining for each new object.

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Adaptive optics meets AI for cellular-scale eye care

AI is moving from lab demos to frontline eye care, with clinicians using algorithms alongside routine fundus photos to spot disease before symptoms appear. The aim is simple: catch diabetic retinopathy early enough to prevent avoidable vision loss and speed referrals for treatment.

New imaging workflows pair adaptive optics with machine learning to shrink scan times from hours to minutes while preserving single-cell detail. At the US National Eye Institute, models recover retinal pigment epithelium features and clean noisy OCT data to make standard scans more informative.

Duke University’s open-source DCAOSLO goes further by combining multiplexed light signals with AI to capture cellular-scale images quickly. The approach eases patient strain and raises the odds of getting diagnostic-quality data in busy clinics.

Clinic-ready diagnostics are already changing triage. LumineticsCore, the first FDA-cleared AI to detect more-than-mild diabetic retinopathy from primary-care images, flags who needs urgent referral in seconds, enabling earlier laser or pharmacologic therapy.

Researchers also see the retina as a window on wider health, linking vascular and choroidal biomarkers to diabetes, hypertension and cardiovascular risk. Standardised AI tools promise more reproducible reads, support for trials and, ultimately, home-based monitoring that extends specialist insight beyond the clinic.

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AI system links hidden signals in patient records to improve diagnosis

Researchers at Mount Sinai and UC Irvine have developed a novel AI system, InfEHR, which creates a dynamic network of an individual’s medical events and relationships over time. The system detects disease patterns that traditional approaches often miss.

InfEHR transforms time-ordered data, visits, labs, medications, and vital signs, into a graphical network for each patient. It then learns which combinations of clues across that network tend to correlate with hidden disease states.

In testing, with only a few physician-annotated examples, the AI system identified neonatal sepsis without positive blood cultures at rates 12–16× higher than current methods, and post-operative kidney injury with 4–7× more sensitivity than baseline clinical rules.

As a safety feature, InfEHR can also respond ‘not sure’ when the record lacks enough signal, reducing the risk of overconfident errors.

Because it adapts its reasoning per patient rather than applying the same rules to all, InfEHR shows promise for personalized diagnostics across hospitals and populations, even with relatively small annotated datasets.

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Oracle and Microsoft partner to bring real-time AI insights into supply chains

Oracle announced a collaboration with Microsoft aimed at improving supply chain responsiveness and efficiency. The project centres on a new integration blueprint that bridges Oracle Fusion Cloud SCM with Microsoft Azure IoT Operations and Microsoft Fabric.

Under this plan, sensor and equipment data from factory floors is captured in real time via Azure IoT and forwarded through Fabric. That data will then feed directly into Oracle SCM workflows.

The goal: more visibility, faster decisions and automated responses, such as triggering maintenance, quality checks or inventory adjustments.

Among the features highlighted are secure, real-time intelligence and data flows from shop floor equipment into enterprise systems, automated business events that respond to changes (e.g. imbalance, faults, demand shifts), standardised best practices with reference architectures and prescriptive guidance for integration and embedded AI assistant capabilities in SCM to augment decision making and resilience.

Oracle frames this as part of its Smart Operations vision, where systems are more connected and responsive by design. Microsoft emphasises that Azure’s edge processing and Fabric’s real-time analytics are critical to turning raw IoT signals into actionable business events.

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Capita hit with £14 million fine after major data breach

The UK outsourcing firm Capita has been fined £14 million after a cyber-attack exposed the personal data of 6.6 million people. Sensitive information, including financial details, home addresses, passport images, and criminal records, was compromised.

Initially, the fine was £45 million, but it was reduced after Capita improved its cybersecurity, supported affected individuals, and engaged with regulators.

A breach that affected 325 of the 600 pension schemes Capita manages, highlighting risks for organisations handling large-scale sensitive data.

The Information Commissioner’s Office (ICO) criticised Capita for failing to secure personal information, emphasising that proper security measures could have prevented the incident.

Experts note that holding companies financially accountable reinforces the importance of data protection and sends a message to the market.

Capita’s CEO said the company has strengthened its cyber defences and remains vigilant to prevent future breaches.

The UK government has advised companies like Capita to prepare contingency plans following a rise in nationally significant cyberattacks, a trend also seen at Co-op, M&S, Harrods, and Jaguar Land Rover earlier in the year.

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Apple launches M5 with bigger AI gains

Apple unveiled the M5 chip, targeting a major jump in on-device AI. Apple says peak GPU compute for AI is over four times M4, with a Neural Accelerator in each of the 10 GPU cores.

The CPU pairs up to four performance cores with six efficiency cores for up to 15 percent faster multithreaded work versus M4. A faster 16-core Neural Engine and higher unified memory bandwidth at 153 GB/s aim to speed Apple Intelligence features.

Graphics upgrades include third-generation ray tracing and reworked caching for up to 45 percent higher performance than M4 in supported apps. With the help of AI, Apple notes smoother gameplay and quicker 3D renders, plus Vision Pro refresh up to 120 Hz.

The M5 chip reaches the 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro, with pre-orders open. Apple highlights tighter tie-ins with Core ML, Metal 4 and Tensor APIs, and support for larger local models via unified memory up to 32 GB.

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