Economic Archives | Page 170 of 683 | Digital Watch Observatory

Microsoft restores Azure services after global outage

The US tech giant, Microsoft, has resolved a global outage affecting its Azure cloud services, which disrupted access to Office 365, Minecraft, and numerous other websites.

The company attributed the incident to a configuration change that triggered DNS issues, impacting businesses and consumers worldwide.

An outage that affected high-profile services, including Heathrow Airport, NatWest, Starbucks, and New Zealand’s police and parliament websites.

Microsoft restored access after several hours, but the event highlighted the fragility of the internet due to the concentration of cloud services among a few major providers.

Experts noted that reliance on platforms such as Azure, Amazon Web Services, and Google Cloud creates systemic risks. Even minor configuration errors can ripple across thousands of interconnected systems, affecting payment processing, government operations, and online services.

Despite the disruption, Microsoft’s swift fix mitigated long-term impact. The company reiterated the importance of robust infrastructure and contingency planning as the global economy increasingly depends on cloud computing.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Global alliance strengthens response to crypto crime

Global experts are stepping up efforts to combat the misuse of cryptocurrencies as criminal networks become increasingly sophisticated.

The 9th Global Conference on Criminal Finances and Cryptoassets was held in Vienna and co-organised by Europol, the UNODC and the Basel Institute on Governance. The event brought together over 250 participants and 1,000 online attendees to discuss how to strengthen the global response.

Delegates emphasised the need for unified standards, stronger cooperation and greater investment in training to tackle the evolving threats posed by crypto-enabled crime.

Speakers warned that blockchain misuse has expanded beyond scams to include terrorism financing, sanctions evasion and organised money laundering. Europol’s Burkhard Mühl said tackling these complex crimes needs greater innovation and collaboration.

Advanced tracing tools and successful cross-border operations demonstrate progress, yet significant legislative and capacity gaps remain.

Participants urged harmonised standards and quicker information sharing between financial institutions and virtual asset providers. The Wolfsberg Group noted that private sector collaboration is as vital as public partnerships in disrupting illicit crypto activity.

Building capacity through hands-on training and peer learning was also identified as a priority. According to Elizabeth Andersen of the Basel Institute, equipping agencies with the skills to trace and recover illicit assets can transform how nations respond to crypto-related crime.

Experts agreed that continued dialogue, shared expertise and consistent standards are key to ensuring innovation in blockchain benefits society rather than enabling criminal networks.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Character.ai restricts teen chat access on its platform

The AI chatbot service, Character.ai, has announced that teenagers can no longer chat with its AI characters from 25 November.

Under-18s will instead be limited to generating content such as videos, as the platform responds to concerns over risky interactions and lawsuits in the US.

Character.ai has faced criticism after avatars related to sensitive cases were discovered on the site, prompting safety experts and parents to call for stricter measures.

The company cited feedback from regulators and safety specialists, explaining that AI chatbots can pose emotional risks for young users by feigning empathy or providing misleading encouragement.

Character.ai also plans to introduce new age verification systems and fund a research lab focused on AI safety, alongside enhancing role-play and storytelling features that are less likely to place teens in vulnerable situations.

Safety campaigners welcomed the decision but emphasised that preventative measures should have been implemented.

Experts warn the move reflects a broader shift in the AI industry, where platforms increasingly recognise the importance of child protection in a landscape transitioning from permissionless innovation to more regulated oversight.

Analysts note the challenge for Character.ai will be maintaining teen engagement without encouraging unsafe interactions.

Separating creative play from emotionally sensitive exchanges is key, and the company’s new approach may signal a maturing phase in AI development, where responsible innovation prioritises the protection of young users.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Top institutes team up with Google DeepMind to spearhead AI-assisted mathematics

AI for Math Initiative pairs Google DeepMind with five elite institutes to apply advanced AI to open problems and proofs. Partners include Imperial, IAS, IHES, the Simons Institute at UC Berkeley, and TIFR. The goal is to accelerate discovery, tooling, and training.

Google support spans funding and access to Gemini Deep Think, AlphaEvolve for algorithm discovery, and AlphaProof for formal reasoning. Combined systems complement human intuition, scale exploration, and tighten feedback loops between theory and applied AI.

Recent benchmarks show rapid gains. Deep Think enabled Gemini to reach gold-medal IMO performance, perfectly solving five of six problems for 35 points. AlphaGeometry and AlphaProof earlier achieved silver-level competence on Olympiad-style tasks.

AlphaEvolve pushed the frontiers of analysis, geometry, combinatorics, and number theory, improving the best results on 1/5 of 50 open problems. Researchers also uncovered a 4×4 matrix-multiplication method that uses 48 multiplications, surpassing the 1969 record.

Partners will co-develop datasets, standards, and open tools, while studying limits where AI helps or hinders progress. Workstreams include formal verification, conjecture generation, and proof search, emphasising reproducibility, transparency, and responsible collaboration.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

France moves to create a national Bitcoin reserve

France’s centre-right UDR party, led by Éric Ciotti, has introduced a groundbreaking proposal to create a national Bitcoin Strategic Reserve. The bill is France’s first major effort to integrate cryptocurrency and strengthen financial sovereignty through digital assets.

Under the plan, France would gradually acquire up to 2% of Bitcoin’s total supply- around 420,000 BTC- over seven to eight years. A new Public Administrative Establishment would oversee the reserve, mirroring the management of France’s gold and foreign currency holdings.

The proposal seeks to use surplus renewable and nuclear energy for Bitcoin mining to create economic value. The state would keep seized crypto and use national savings funds for daily Bitcoin purchases, potentially adding about 55,000 BTC yearly.

Beyond Bitcoin, the bill promotes euro-denominated stablecoins for everyday payments and rejects a European Central Bank-controlled digital euro, citing privacy concerns. It proposes tax exemptions for small transactions under €200 and allows certain taxes to be paid in Bitcoin or euro stablecoins.

Despite its ambition, the UDR’s limited representation in Parliament may slow progress on the proposal.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Humanoid robots set to power Foxconn’s new Nvidia server plant in Houston

Foxconn will add humanoid robots to a new Houston plant building Nvidia AI servers from early 2026. Announced at Nvidia’s developer conference, the move deepens their partnership and positions the site as a US showcase for AI-driven manufacturing.

Humanoid systems based on Nvidia’s Isaac GR00T N are built to perceive parts, adapt on the line, and work with people. Unlike fixed industrial arms, they handle delicate assembly and switch tasks via software updates. Goals include flexible throughput, faster retooling, and fewer stoppages.

AI models are trained in simulation using digital twins and reinforcement learning to improve accuracy and safety. On the line, robots self-tune as analytics predict maintenance and balance workloads, unlocking gains across logistics, assembly, testing, and quality control.

Texas, US, offers proximity to a growing semiconductor and AI cluster, as well as policy support for domestic capacity. Foxconn also plans expansions in Wisconsin and California to meet global demand for AI servers. Scaling output should ease supply pressures around Nvidia-class compute in data centres.

Job roles will shift as routine tasks automate and oversight becomes data-driven. Human workers focus on design, line configuration, and AI supervision, with safety gates for collaboration. Analysts see a template for Industry 4.0 factories running near-continuously with rapid changeovers.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Microsoft faces Australian lawsuit over hidden AI subscription option

In a legal move that underscores growing scrutiny of digital platforms, the Australian Competition and Consumer Commission (ACCC) has filed a lawsuit in the Federal Court against Microsoft Corporation, accusing the company of misleading approximately 2.7 million Australian personal and family-plan subscribers of its Microsoft 365 service after integrating its AI assistant Copilot.

According to the ACCC, Microsoft raised subscription prices by 45 % for the Personal plan and 29 % for the Family plan after bundling Copilot starting 31 October 2024.

The regulator says Microsoft told consumers their only options were to pay the higher price with AI or cancel their subscription, while failing to clearly disclose a cheaper ‘Classic’ version of the plan without Copilot that remained available.

The ACCC argues Microsoft’s communications omitted the existence of that lower-priced plan unless consumers initiated the cancellation process. Chair Gina Cass-Gottlieb described this omission as ‘very serious conduct’ that deprived customers of informed choice.

The regulator is seeking penalties, consumer redress, injunctions and costs, with potential sanctions of AUS $50 million (or more) per breach.

This action signals a broader regulatory push into how major technology firms bundle AI features, raise prices and present options to consumers, an issue that ties into digital economy governance, consumer trust and platform accountability.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Wikipedia founder questions Musk’s Grokipedia accuracy

Speaking at the CNBC Technology Executive Council Summit in New York, Wikipedia founder Jimmy Wales has expressed scepticism about Elon Musk’s new AI-powered Grokipedia, suggesting that large language models cannot reliably produce accurate wiki entries.

Wales highlighted the difficulties of verifying sources and warned that AI tools can produce plausible but incorrect information, citing examples where chatbots fabricated citations and personal details.

He rejected Musk’s claims of liberal bias on Wikipedia, noting that the site prioritises reputable sources over fringe opinions. Wales emphasised that focusing on mainstream publications does not constitute political bias but preserves trust and reliability for the platform’s vast global audience.

Despite his concerns, Wales acknowledged that AI could have limited utility for Wikipedia in uncovering information within existing sources.

However, he stressed that substantial costs and potential errors prevent the site from entirely relying on generative AI, preferring careful testing before integrating new technologies.

Wales concluded that while AI may mislead the public with fake or plausible content, the Wiki community’s decades of expertise in evaluating information help safeguard accuracy. He urged continued vigilance and careful source evaluation as misinformation risks grow alongside AI capabilities.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Norway sees surge in cryptocurrency tax declarations

Norway’s efforts to improve cryptocurrency tax compliance have led to a significant increase in declarations. More than 73,000 residents reported owning digital assets in their 2024 filings, a 30% rise compared with 2023, according to the Norwegian Tax Administration.

Officials attribute the growth to enforcement measures, educational campaigns, and improved digital reporting systems.

The total reported value of these holdings exceeded US$4 billion, with gains of around US$550 million and losses near US$290 million. Tax director Nina Schanke Funnemark said higher participation reflects the success of recent initiatives and increased taxpayer awareness.

From January 2026, Norwegian crypto service providers, including exchanges and custodians, must share client transaction data under a new third-party reporting regime. The measure aims to close oversight gaps and ensure transparency across the sector.

The 2024 declaration figures contrast sharply with 2019, when only 6,470 individuals reported crypto ownership.

Norway’s sovereign wealth fund holds indirect crypto exposure through investments in companies such as Coinbase, Metaplanet, and Strategy, representing roughly 7,161 Bitcoin. Other countries are boosting crypto oversight, with the UK’s HMRC sending around 65,000 warning letters to suspected non-compliers.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Meta and TikTok agree to comply with Australia’s under-16 social media ban

Meta and TikTok have confirmed they will comply with Australia’s new law banning under-16s from using social media platforms, though both warned it will be difficult to enforce. The legislation, taking effect on 10 December, will require major platforms to remove accounts belonging to users under that age.

The law is among the world’s strictest, but regulators and companies are still working out how it will be implemented. Social media firms face fines of up to A$49.5 million if found in breach, yet they are not required to verify every user’s age directly.

TikTok’s Australia policy head, Ella Woods-Joyce, warned the ban could drive children toward unregulated online spaces lacking safety measures. Meta’s director, Mia Garlick, acknowledged the ‘significant engineering and age assurance challenges’ involved in detecting and removing underage users.

Critics including YouTube and digital rights groups have labelled the ban vague and rushed, arguing it may not achieve its aim of protecting children online. The government maintains that platforms must take ‘reasonable steps’ to prevent young users from accessing their services.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!