E-commerce and trade

Digital assets set to double in portfolios

Investment institutions now allocate an average of 7% of their portfolios to digital assets, with projections indicating a rise to 16% within three years. Digital cash and tokenised equities or fixed income dominate, each comprising about 1% of portfolios.

Asset managers show greater exposure than asset owners, particularly in Bitcoin and Ethereum, with some even investing in smaller cryptocurrencies and NFTs.

Asset managers lead in adopting tokenised assets, holding 6% in public asset tokenisation and 5% in private assets, compared to just 1% and 2% for asset owners. Digital cash also sees higher adoption among managers at 7% versus 2% for owners.

Despite this, cryptocurrencies like Bitcoin and Ethereum drive the majority of returns, with 27% and 21% of respondents citing them as top performers, respectively.

Looking ahead, private assets are expected to lead the tokenisation trend, with most institutions anticipating digital assets will become mainstream within a decade. By 2030, over half of respondents expect 10-24% of investments in digital assets or tokenised instruments, showing cautious optimism.

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Google faces UK action over market dominance

Google faces new regulatory scrutiny in the UK after the competition watchdog designated it with strategic market status under a new digital markets law. The ruling could change how users select search engines and how Google ranks online content.

The Competition and Markets Authority said Google controls more than 90 percent of UK searches, giving it a position of unmatched influence. The designation enables the regulator to propose targeted measures to ensure fair competition, with consultations expected later in 2025.

Google argued that tighter restrictions could slow innovation, claiming its search tools contributed £118 billion to the UK economy in 2023. The company warned that new rules might hinder product development during rapid AI advancement.

The move adds to global scrutiny of the tech giant, which faces significant fines and court cases in the US and EU over advertising and app store practices. The CMA’s decision marks the first important use of its new powers to regulate digital platforms with strategic control.

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Tariffs and AI top the agenda for US CEOs over the next three years

US CEOs prioritise cost reduction and AI integration amid global economic uncertainty. According to KPMG’s 2025 CEO Outlook, leaders are reshaping supply chains while preparing for rapid AI transformation over the next three years.

Tariffs are a key factor influencing business strategies, with 89% of US CEOs expecting significant operational impacts. Many are adjusting sourcing models, while 86% say they will increase prices where needed. Supply chain resilience remains the top short-term pressure for decision-making.

AI agents are seen as major game-changers. 84% of CEOs expect a native AI company to become a leading industry player within 3 years, displacing incumbents. Companies are accelerating investment returns, with most expecting payoffs within one to three years.

Cybersecurity is a significant concern alongside AI integration. Forty-six percent have increased spending on digital risk resilience, focusing on fraud prevention and data privacy. CEOs recognise that AI and quantum computing introduce both opportunities and new vulnerabilities.

Workforce transformation is a clear priority. Eighty-six percent plan to embed AI agents into teams next year, while 73% focus on retaining and retraining high-potential talent. Upskilling, governance, and organisational redesign are emerging as essential strategies.

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Google Cloud to power Gap Inc.’s digital transformation with AI

Gap Inc. has announced a multi-year partnership with Google Cloud to power its human-centred, digitally enabled technology strategy. The collaboration aims to accelerate AI adoption across the company’s brands, including Old Navy, Gap, Banana Republic, and Athleta.

The partnership will give Gap Inc. access to Google’s AI stack, including Gemini, Vertex AI, and BigQuery. These tools will drive innovation in product design, pricing, marketing, and employee workflows, improving efficiency and enabling faster, more personalised retail experiences.

AI tools will accelerate product development and planning, support hyper-personalised shopping, and optimise marketing through smarter recommendations and storytelling. Gap Inc. is also using Google Ads to strengthen its omnichannel campaigns through AI-driven optimisation.

For employees, AI will act as a partner in decision-making and execution, making operations more agile and freeing teams to focus on creativity and customer engagement. This shift reflects a broader redesign of workflows to embed AI across the business.

Gap Inc. CTO Sven Gerjets said the partnership will bring AI to life across the company. Google Cloud CEO Thomas Kurian described it as a step towards reinventing retail with speed, personalisation, and industry-leading experiences.

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Malawi and Zambia join COMESA digital payment trials

The COMESA Clearing House (CCH) has reached a major milestone in its efforts to modernise regional trade, advancing its Digital Retail Payments Platform (DRPP) to user trials across Malawi and Zambia. The initiative, developed to simplify cross-border transactions using local currencies, aims to make payments faster, cheaper, and more accessible across the Common Market for Eastern and Southern Africa.

The latest phase involves two digital financial service providers and one foreign exchange provider, marking the successful transition from technical testing to real-world trials. Designed with inclusion and security in mind, the DRPP targets a wide range of users, from small businesses and informal traders to individual citizens, helping to remove long-standing barriers to regional commerce.

CCH has called on governments, financial institutions, and private-sector partners to join this pivotal stage of development, emphasising that collaboration is key to refining the system. Once fully operational, the platform will allow cross-border payments to function as seamlessly as domestic ones, fostering economic growth and trade integration across the region.

By combining innovation with financial cooperation, the COMESA Clearing House continues to build the foundation for a more connected and prosperous regional economy, one where inclusive, digital payments empower businesses and communities alike.

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OpenAI joins dialogue with the EU on fair and transparent AI development

The US AI company, OpenAI, has met with the European Commission to discuss competition in the rapidly expanding AI sector.

A meeting focused on how large technology firms such as Apple, Microsoft and Google shape access to digital markets through their operating systems, app stores and search engines.

During the discussion, OpenAI highlighted that such platforms significantly influence how users and developers engage with AI services.

The company encouraged regulators to ensure that innovation and consumer choice remain priorities as the industry grows, noting that collaboration between major and minor players can help maintain a balanced ecosystem.

An issue arises as OpenAI continues to partner with several leading technology companies. Microsoft, a key investor, has integrated ChatGPT into Windows 11’s Copilot, while Apple recently added ChatGPT support to Siri as part of its Apple Intelligence features.

Therefore, OpenAI’s engagement with regulators is part of a broader dialogue about maintaining open and competitive markets while fostering cooperation across the industry.

Although the European Commission has not announced any new investigations, the meeting reflects ongoing efforts to understand how AI platforms interact within the broader digital economy.

OpenAI and other stakeholders are expected to continue contributing to discussions to ensure transparency, fairness and sustainable growth in the AI ecosystem.

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Facebook and Instagram Reels get multilingual boost with Meta AI

Meta has introduced new AI-powered translation features that allow Facebook and Instagram users to enjoy reels from around the world in multiple languages.

Meta AI now translates, dubs, and lip-syncs short videos in English, Spanish, Hindi, and Portuguese, with more languages to be added soon.

A tool that reproduces a creator’s voice and tone while automatically syncing translated audio to their lip movements, providing a natural viewing experience. It is free for Facebook creators with over 1,000 followers and all public Instagram accounts in countries where Meta AI is available.

The expansion is part of Meta’s goal to make global content more accessible and to help creators reach wider audiences. By breaking language barriers, Meta aims to strengthen community connections and turn Reels into a platform for global cultural exchange.

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Retailers face new pressure under California privacy law

California has entered a new era of privacy and AI enforcement after the state’s privacy regulator fined Tractor Supply USD1.35 million for failing to honour opt-outs and ignoring Global Privacy Control signals. The case marks the largest penalty yet from the California Privacy Protection Agency.

In California, there is a widening focus on how companies manage consumer data, verification processes and third-party vendors. Regulators are now demanding that privacy signals be enforced at the technology layer, not just displayed through website banners or webforms.

Retailers must now show active, auditable compliance, with clear privacy notices, automated data controls and stronger vendor agreements. Regulators have also warned that businesses will be held responsible for partner failures and poor oversight of cookies and tracking tools.

At the same time, California’s new AI law, SB 53, extends governance obligations to frontier AI developers, requiring transparency around safety benchmarks and misuse prevention. The measure connects AI accountability to broader data governance, reinforcing that privacy and AI oversight are now inseparable.

Executives across retail and technology are being urged to embed compliance and governance into daily operations. California’s regulators are shifting from punishing visible lapses to demanding continuous, verifiable proof of compliance across both data and AI systems.

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PayPay and Binance Japan unite to advance digital finance

PayPay, Japan’s top cashless payment firm and a SoftBank company, has acquired 40% of Binance Japan to unite traditional finance with blockchain innovation. The partnership merges PayPay’s 70 million users and trusted network with Binance’s digital asset expertise and global Web3 leadership.

Under the new alliance, Binance Japan users will soon be able to purchase cryptocurrencies using PayPay Money and withdraw funds directly into their PayPay wallets. The integration seeks to simplify digital trading and connect cashless payments with decentralised finance.

Executives from both companies highlighted the significance of this collaboration. PayPay’s Masayoshi Yanase said the deal supports Japan’s financial growth, while Takeshi Chino called it a milestone for everyday Web3 adoption.

The alliance is expected to accelerate Japan’s digital finance landscape, strengthening its role as one of the world’s most advanced economies in financial technology. By combining secure payments with blockchain innovation, PayPay and Binance Japan aim to build a seamless digital economy.

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Ant Group launches trillion-parameter AI model Ling-1T

Ant Group has unveiled its Ling AI model family, introducing Ling-1T, a trillion-parameter large language model that has been open-sourced for public use.

The Ling family now includes three main series: the Ling non-thinking models, the Ring thinking models, and the multimodal Ming models.

Ling-1T delivers state-of-the-art performance in code generation, mathematical reasoning, and logical problem-solving, achieving 70.42% accuracy on the 2025 AIME benchmark.

A model that combines efficient inference with strong reasoning capabilities, marking a major advance in AI development for complex cognitive tasks.

Company’s Chief Technology Officer, He Zhengyu, said that Ant Group views AGI as a public good that should benefit society.

The release of Ling-1T and the earlier Ring-1T-preview underscores Ant Group’s commitment to open, collaborative AI innovation and the development of inclusive AGI technologies.

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