A large-scale fraud scheme using AI-generated music has exposed vulnerabilities in streaming platforms and royalty systems. Billions of fake streams were used to divert payments away from legitimate artists and rights holders.
The scheme ran from 2017 to 2024 and involved uploading hundreds of thousands of AI-generated tracks. Automated programs were then used to stream the songs at scale, inflating play counts and generating revenue.
The operation relied on thousands of bot accounts, bulk email registrations and cloud-based systems. Streaming activity was spread across many tracks to reduce detection and maintain consistent earnings over time.
Michael Smith, a 54-year-old from North Carolina, has pleaded guilty to conspiracy to commit wire fraud in federal court. Prosecutors say he obtained more than $10 million and agreed to forfeit over $8 million in proceeds.
Authorities say the case highlights how AI and automation can be used to manipulate digital platforms. The court will determine the final sentence as concerns grow over similar schemes.
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Inspired Education has unveiled a new AI-enabled primary teaching model designed to modernise traditional learning systems. The programme aims to better align education with how children learn in a digital and fast-changing environment.
The model combines core academic subjects in the morning with applied learning in the afternoon. Students focus on life skills such as problem-solving, entrepreneurship and communication alongside standard curriculum content.
Learning is structured around mastery rather than age, allowing children to progress at their own pace. AI-powered tools are used to personalise lessons and support faster and more adaptive learning outcomes.
Developers say the approach responds to growing demand from parents for AI-integrated education. The initiative reflects broader efforts to prepare students with digital, practical and future-ready skills.
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A growing number of individuals worldwide are participating in a new digital economy built around supplying data for AI systems.
Through platforms such as Kled AI and Silencio, users upload videos, audio recordings and personal interactions in exchange for payment, contributing to the development of increasingly sophisticated AI models.
Such a trend reflects a broader shift in the AI industry, where demand for high-quality human-generated data is rising as traditional web-based sources become more limited.
Researchers suggest that human data remains essential for improving system performance and modelling behaviour beyond existing datasets. As a result, data marketplaces have emerged as an alternative supply mechanism.
Economic considerations often shape participation. In regions facing limited employment opportunities or currency instability, earning income in global currencies can provide a meaningful financial incentive.
At the same time, similar practices are expanding in higher-income countries, where individuals seek supplementary income streams amid rising living costs.
However, the model introduces complex trade-offs.
Contributors may grant extensive usage rights over their data, sometimes on a long-term or irreversible basis. Experts note that such arrangements can reduce control over how personal information is reused, including in contexts not initially anticipated.
Concerns also extend to issues such as data security, transparency and the potential for misuse in areas including synthetic media and identity replication.
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OpenAI will begin rolling out ChatGPT ads to Free and Go users in the United States in the coming weeks, marking a significant shift in how the company monetises its flagship AI product.
The ads will be shown to logged-in adult users on lower-tier plans, while paid subscriptions, including Plus, Pro, Business, Enterprise, and Education, will remain ad-free. The rollout in the US positions ChatGPT ads as a tiered feature, separating premium experiences from ad-supported access.
To support the initiative, OpenAI has integrated advertising technology firm Criteo into its pilot programme, enabling ad buying and more targeted placements. Advertisers are reportedly being offered entry commitments ranging from $50,000 to $100,000, reflecting early efforts to build a structured advertising marketplace.
The company has also launched a dedicated advertiser page that presents ChatGPT as a platform for reaching users during active research and decision-making. ChatGPT ads are being framed as part of conversational discovery, with OpenAI advising brands to provide multiple variations of creative content to improve performance.
The rollout comes as OpenAI seeks to diversify revenue amid rising compute costs and intensifying competition. Alongside subscriptions and API services, ChatGPT ads are expected to play an increasingly important role in supporting the platform’s long-term business model.
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Microsoft is scaling back the presence of Copilot across Windows 11, signalling a shift toward a more selective and user-focused approach to AI integration.
Microsoft said it will reduce Copilot features in several built-in applications, including Photos, Widgets, Notepad and the Snipping Tool. The company described the move as part of a broader effort to integrate AI only where it delivers clear value to users.
The decision follows growing concerns about ‘AI bloat’ and user trust, with recent research indicating rising scepticism around AI. Microsoft is responding by prioritising more practical and reliable use cases rather than widespread deployment.
The change also aligns with earlier adjustments to Copilot plans, including shelving some system-level integrations and delaying features such as Windows Recall due to privacy and security concerns. Even after launch, vulnerabilities in Recall have continued to surface, reinforcing the need for caution.
Beyond AI, Microsoft is introducing several usability improvements to Windows 11. These include allowing users to reposition the taskbar, enhancing File Explorer performance, refining Widgets, and giving users greater control over system updates.
The update signals a broader recalibration, as Microsoft balances innovation with user expectations, aiming to deliver AI features that are both useful and trusted within everyday computing environments.
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A global survey by Anthropic of over 80,000 Claude users across 159 countries highlights how AI is increasingly shaping work, learning, and everyday life. Respondents cite benefits in productivity, skill-building, and task management, with AI helping save time and reduce mental effort.
Users highlight AI’s role in learning and personal growth, helping them access knowledge, gain confidence, and pursue careers or entrepreneurship previously out of reach. The study also shows AI assisting in organisation, research synthesis, and emotional support.
Alongside these benefits, concerns remain widespread. Reliability issues, job disruption, cognitive dependence, and privacy risks are frequently cited.
Many users describe navigating both advantages and potential harms, reflecting Anthropic’s ‘light and shade’ concept: AI can empower, yet create new risks and expectations.
Regional views differ: South America, Africa, and parts of Asia see AI as an opportunity, while Europe and the US focus on complexity, workload, and economic impact.
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Emmanuel Macron has called for stronger enforcement of the EU digital rules, urging Ursula von der Leyen to act against risks linked to foreign interference in elections. The request comes amid growing concern over attempts to influence democratic processes across Europe.
In a letter addressed to the Commission, Macron stressed the importance of safeguarding electoral integrity in a challenging geopolitical environment.
He wrote:
‘In a geopolitical context marked by a multiplication of hostile stances against the European model and its democratic values, it is crucial that the Union… ensure the integrity of civic discourse and electoral processes’.
The proposal focuses on stricter enforcement instead of new legislation, particularly regarding the Digital Services Act. European authorities are encouraged to ensure that online platforms properly assess and mitigate systemic risks, including the spread of manipulated content and coordinated disinformation.
Attention is also directed toward algorithmic amplification, AI-generated content labelling and the removal of fake accounts.
As multiple elections approach across the EU, policymakers are considering how to apply existing regulatory tools more effectively to protect democratic systems.
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A US senator has introduced a draft framework to establish nationwide AI rules, with a focus on child safety and copyright protection. The proposal seeks to create a unified federal approach to replace state laws that differ.
The plan would require developers to implement safeguards for minors, including age verification, data protection and mechanisms to report harm. Companies could also face legal action over failures linked to AI system design.
Copyright measures include new standards for identifying AI-generated content and preventing tampering. Authorities would also develop cybersecurity guidelines to support the transparency and authenticity of content.
Debate over this in the US continues over the balance between regulation and innovation, with some stakeholders warning of legal and economic risks. Discussions between lawmakers and the administration are expected to shape a final framework.
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AI adoption is accelerating across UK businesses, with 78% now using the technology in some capacity, rising to 85% among mid-sized organisations. A further 14% are exploring or planning implementation by 2026, reflecting the continued momentum behind AI adoption.
Despite widespread use, tangible results remain limited. Just 31% of UK businesses report a positive return on investment, while 18% say their AI initiatives have failed to deliver expected benefits. Another 16% indicate it is still too early to assess outcomes, highlighting the long lead times often associated with AI deployments.
A major issue lies in defining success. Only 41% of organisations using AI say they have a clear understanding of what success looks like, suggesting that AI adoption is often not matched by clear strategic planning, even among mid-sized firms, the most active adopters; fewer than half can articulate measurable goals.
The findings suggest that rapid uptake has outpaced organisational readiness. Many businesses are deploying AI tools without defining how they fit into workflows, what decisions they are meant to support, or whether the goal is efficiency, cost reduction, or growth.
For AI adoption to translate into real business value, companies will need stronger governance, clearer objectives, and measurable success criteria. Without that foundation, AI risks remaining an expensive experiment rather than a driver of long-term transformation.
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An ambitious target to generate $100 billion in annual cloud and AI revenue within five years has been set, as Alibaba seeks to counter slowing growth in its once-dominant e-commerce business.
The push follows a sharp deterioration in financial performance, with quarterly earnings plunging and revenue growth missing expectations. The results underscore growing urgency within the company to extract meaningful returns from its AI investments, which have so far required heavy capital outlays.
Central to the strategy is a shift toward monetisation, with the rollout of agentic AI services such as Wukong and price increases of up to 34% across cloud and storage products. Alibaba is positioning its AI and cloud division as its primary growth engine, aiming to replicate the momentum seen in recent quarters, when AI-related revenues expanded by triple digits.
However, competitive pressures are intensifying. Domestic rivals including Tencent are leveraging vast ecosystems such as WeChat to gain an advantage in agentic AI, while a new wave of players like DeepSeek, MiniMax and Zhipu are offering low-cost, open-source models that compress margins across the industry.
At the same time, Alibaba faces structural challenges beyond AI. Core businesses such as e-commerce and food delivery remain under pressure from aggressive competition, while rising operational costs – subsidies and promotions to attract users – continue to weigh on profitability.
Leadership uncertainty and ongoing restructuring add further complexity. With major investment commitments exceeding $50 billion and increasing competition from both domestic and global players, Alibaba’s ability to execute on its AI strategy will be critical in determining whether it can sustain long-term growth and regain market confidence.
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