EU AI Act changes aim to ease high-risk compliance pressure

The European Commission has proposed a series of amendments to the EU AI Act to ensure a timely, smooth, and proportionate rollout of the bloc’s landmark AI rules.

Set out in the Digital Omnibus on AI published in November, the changes would delay some of the most demanding obligations of the AI Act, particularly for high-risk AI systems, linking compliance deadlines to the availability of supporting standards and guidance.

The proposal also introduces new grace periods for certain transparency requirements, especially for generative AI and deepfake systems, while leaving existing prohibitions on manipulative or exploitative uses of AI fully intact.

Other revisions include removing mandatory AI literacy requirements for providers and deployers and expanding the powers of the European AI Office, allowing it to directly supervise some general-purpose AI systems and AI embedded in large online platforms.

While the package includes simplification measures designed to ease burdens on smaller firms and encourage innovation, the amendments now face a complex legislative process, adding uncertainty for companies preparing to comply with the AI Act’s long-term obligations.

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Teen chatbot use surges across the US

Nearly a third of US teenagers engage with AI chatbots each day, according to new Pew data. Researchers say nearly 70% have tried a chatbot, reflecting growing dependence on digital tools during schoolwork and leisure time. Concerns remain over exposure to mature content and possible mental health harms.

Pew surveyed almost 1,500 US teens aged 13 to 17, finding broadly similar usage patterns across gender and income. Older teens reported higher engagement, while Black and Hispanic teens showed slightly greater adoption than White peers.

Experts warn that frequent chatbot use may hinder development or encourage cheating in academic settings. Safety groups have urged parents to limit access to companion-like AI tools, citing risks posed by romantic or intimate interactions with minors.

Companies are now rolling out safeguards in response to public scrutiny and legal pressure. OpenAI and Character.AI have tightened controls, while Meta says it has adjusted policies following reports of inappropriate exchanges.

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Mitigated ads personalisation coming to Meta platforms in the EU

Meta has agreed to introduce a less personalised ads option for Facebook and Instagram users in the EU, as part of efforts to comply with the bloc’s Digital Markets Act and address concerns over data use and user consent.

Under the revised model, users will be able to access Meta’s social media platforms without agreeing to extensive personal data processing for fully personalised ads. Instead, they can opt for an alternative experience based on significantly reduced data inputs, resulting in more limited ad targeting.

The option is set to roll out across the EU from January 2026. It marks the first time Meta has offered users a clear choice between highly personalised advertising and a reduced-data model across its core platforms.

The change follows months of engagement between Meta and Brussels after the European Commission ruled in April that the company had breached the DMA. Regulators stated that Meta’s previous approach had failed to provide users with a genuine and effective choice over how their data was used for advertising.

Once implemented, the Commission said it will gather evidence and feedback from Meta, advertisers, publishers, and other stakeholders. The goal is to assess the extent to which the new option is adopted and whether it significantly reshapes competition and data practices in the EU digital advertising market.

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Google faces renewed EU scrutiny over AI competition

The European Commission has opened a formal antitrust investigation into whether AI features embedded in online search are being used to unfairly squeeze competitors in newly emerging digital markets shaped by generative AI.

The probe targets Alphabet-owned Google, focusing on allegations that the company imposes restrictive conditions on publishers and content creators while giving its own AI-driven services preferential placement over rival technologies and alternative search offerings.

Regulators are examining products such as AI Overviews and AI Mode, assessing how publisher content is reused within AI-generated summaries and whether media organisations are compensated in a clear, fair, and transparent manner.

EU competition chief Teresa Ribera said the European Commission’s action reflects a broader effort to protect online media and preserve competitive balance as artificial intelligence increasingly shapes how information is produced, discovered, and monetised.

The case adds to years of scrutiny by the European Commission over Google’s search and advertising businesses, even as the company proposes changes to its ad tech operations and continues to challenge earlier antitrust rulings.

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Argentina weighs letting banks offer crypto services

Argentina may soon shift its digital-asset policy as the central bank considers rules allowing banks to offer crypto trading and custody services. The proposal marks a move towards integrating a market that has largely operated through exchanges and fintech platforms.

Industry sources say approval could arrive by April 2026 if the process stays on schedule.

Crypto usage in Argentina remains far above regional averages, driven by years of inflation and strict currency controls. Many households use digital assets as a store of value, and regulated banks could provide clearer safeguards and easier access for everyday users.

Regulators are still debating sensitive issues such as custody requirements, capital treatment and which tokens banks would be permitted to handle.

The conversation continues in the shadow of the Libra meme-coin scandal, which left thousands of Argentines with steep losses and highlighted the risks of politically amplified speculation.

Regulators are weighing custody, capital, and token rules while aiming to formalise the market without boosting volatility.

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Instacart deepens partnership with OpenAI for real-time AI shopping

OpenAI and Instacart are expanding their longstanding collaboration by introducing a fully integrated grocery shopping experience inside ChatGPT.

Users can receive meal inspiration, browse products and place orders in one continuous conversation instead of switching across separate platforms.

A service that brings together Instacart’s real-time retail network with OpenAI’s most advanced models to produce an experience that feels like a direct link between a simple request and completed delivery.

The Instacart app becomes the first service to offer a full checkout flow inside ChatGPT by using the Agentic Commerce Protocol. When users mention food, ingredients or recipe ideas, ChatGPT can surface the app immediately.

Once the user connects an Instacart account, the system selects suitable items from nearby retailers and builds a complete cart that can be reviewed before payment. Users then pay securely inside the chat while Instacart manages collection and delivery through its established network.

The update also reflects broader cooperation between the two companies. Instacart continues to rely on OpenAI APIs to support personalised suggestions and real time guidance across its customer experience.

ChatGPT Enterprise assists internal teams, while Codex powers an internal coding agent that shortens development cycles instead of slowing them down with manual tasks. The partnership builds on Instacart’s early involvement in the Operator research preview, where it helped refine emerging agentic technologies.

A renewed partnership that strengthens OpenAI’s growing enterprise ecosystem. The company already works with major global brands across sectors such as retail, financial services and telecommunications.

The Instacart integration offers a view of how conversational agents may act as a bridge between everyday intent and immediate real-world action.

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New spyware threat alerts issued by Apple and Google

Apple and Google have issued a fresh round of cyber threat notifications, warning users worldwide they may have been targeted by sophisticated surveillance operations linked to state-backed actors.

Apple said it sent alerts on 2 December, confirming it has now notified users in more than 150 countries, though it declined to disclose how many people were affected or who was responsible.

Google followed on 3 December, announcing warnings for several hundred accounts targeted by Intellexa spyware across multiple countries in Africa, Central Asia, and the Middle East.

The Alphabet-owned company said Intellexa continues to evade restrictions despite US sanctions, highlighting persistent challenges in limiting the spread of commercial surveillance tools.

Researchers say such alerts raise costs for cyber spies by exposing victims, often triggering investigations that can lead to public scrutiny and accountability over spyware misuse.

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ASEAN weighs efficiency against sovereignty as e-CNY spreads

The digital yuan’s planned 2025 expansion marks a shift in Asia’s financial plumbing, linking new regional payment channels to settle transactions faster than legacy systems and reduce reliance on the US dollar.

Usage data points to broader ambitions. Renminbi settlements in cross-border trade are rising, signalling that e-CNY has moved beyond domestic trials and is now a tool for currency internationalisation.

Beijing’s strategy becomes clearer in Southeast Asia, where the system promises efficiency while embedding influence. Deeper integration could narrow ASEAN monetary policy options and increase dependence on infrastructure controlled by China.

Responses across the region are uneven. Some states pursue national digital currencies or alternative payment projects, while others engage selectively, reflecting diverging priorities around efficiency, sovereignty and innovation.

Analysts warn that, without coordination, widespread e-CNY adoption could create a structural reliance. ASEAN faces a choice between fragmented pragmatism and collective action to shape its digital financial future.

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Japan weighs easing rules on personal data use

Japan is preparing to relax restrictions on personal data use to support rapid AI development. Government sources say a draft bill aims to expand third-party access to sensitive information.

Plans include allowing medical histories and criminal records to be obtained without consent for statistical purposes. Japanese officials argue such access could accelerate research while strengthening domestic competitiveness.

New administrative fines would target companies that profit from unlawfully acquired data affecting large groups. Penalties would match any gains made through misconduct, reflecting growing concern over privacy abuses.

A government panel has reviewed the law since 2023 and intends to present reforms soon. Debate is expected to intensify as critics warn of increased risks to individual rights if support for AI development in this regard continues.

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Noyb study points to demand for tracking-free option

A new study commissioned by noyb reports that most users favour a tracking-free advertising option when navigating Pay or Okay systems. Researchers found low genuine support for data collection when participants were asked without pressure.

Consent rates rose sharply when users were presented only with payment or agreement to tracking, leading most to select consent. Findings indicate that the absence of a realistic alternative shapes outcomes more than actual preference.

Introduction of a third option featuring advertising without tracking prompted a strong shift, with most participants choosing that route. Evidence suggests users accept ad-funded models provided their behavioural data remains untouched.

Researchers observed similar patterns on social networks, news sites and other platforms, undermining claims that certain sectors require special treatment. Debate continues as regulators assess whether Pay or Okay complies with EU data protection rules such as the GDPR.

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