Economic Archives | Page 2 of 641 | Digital Watch Observatory

Finance ministry in South Korea pledges reform for public crypto management

South Korea’s finance minister, Koo Yun-cheol, has pledged urgent reforms to how government agencies manage digital assets following high-profile failures in state custody.

Recent incidents revealed that police and tax authorities mishandled seized cryptocurrency, highlighting weaknesses in oversight and security practices. Authorities will review current management methods and implement measures to prevent future losses.

Operational risks around securing crypto in public institutions have become increasingly apparent. A notable case involved Seoul police in Gangnam losing access to 22 BTC, worth around $1.4 million, after failing to retain private keys and allowing a third-party firm to manage the assets.

Prosecutors are now investigating potential bribery linked to the case.

The government says it holds only digital assets acquired through lawful enforcement, such as seizures for unpaid taxes or criminal cases. The reforms aim to strengthen security, improve operational controls, and restore confidence in the public sector’s handling of crypto amid growing scrutiny.

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Reddit surges as AI search drives a new era of online discovery

AI-generated search summaries are reshaping online discovery and pushing Reddit to the forefront of global information flows.

The rise of Google’s AI Overview feature places curated AI summaries above traditional search results, encouraging users to rely on machine-generated syntheses instead of browsing lists of websites.

Reddit’s visibility surged after the platform agreed to data access partnerships with Google and OpenAI, enabling large language models to train on its vast archive of human conversations.

The platform’s user-generated discussions are increasingly prioritised because they provide commentary viewed as more neutral and less commercially influenced.

Research from Profound identifies Reddit as the most cited source across major AI platforms. Reddit’s rapid expansion reflects such a shift.

It has overtaken TikTok in the UK, according to Ofcom and now reports 116 million daily active users and more than one billion monthly users.

Communities built around niche interests, combined with voting systems and karma-driven credibility, create a structure that appeals to AI systems searching for grounded, human-authored content.

The platform’s design, centred on subreddits run by volunteer moderators, reinforces trust signals that large models can evaluate when generating AI Overview results.

As AI-powered search becomes the dominant interface for navigating the internet, Reddit’s role as a primary corpus for training and citation continues to expand, reshaping how people discover and verify information.

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Samsung advances toward AI autonomous factories by 2030

The South Korean electronics corporation, Samsung, is preparing a major shift to autonomous manufacturing, converting global production sites into AI-driven factories by 2030.

As such, the company is moving toward a model in which AI systems understand on-site conditions and make operational decisions independently, rather than relying on fixed automation.

A transition that will use digital twin simulations across the whole manufacturing cycle, from materials warehousing to shipping.

Samsung will deploy AI agents for quality control, production and logistics, aiming for stronger data-driven verification and improved efficiency. Wider adoption of AI in environmental health and safety is expected to raise workplace safety standards.

The firm plans to integrate agentic AI, first introduced with the Galaxy S26, into industrial operations, enabling systems to set and execute their own tasks. Humanoid manufacturing robots will be rolled out in phases as Samsung builds fully optimised smart factories.

Samsung will present its manufacturing vision at Mobile World Congress 2026, followed by the Samsung Mobile Business Summit, where executives will detail governance strategies for managing the rise of agentic AI across industries.

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Singapore and South Korea expand AI partnership

South Korean President Lee Jae Myung used the opening day of his state visit to Singapore to set out plans for deeper cooperation in emerging technologies and renewable energy.

He framed the partnership as a chance to build a future-oriented agenda shaped by a shared reliance on human capital rather than natural resources.

The visit precedes a summit with Lawrence Wong, their second meeting in four months following the upgrade of bilateral ties to a strategic partnership. Both governments want to broaden collaboration across AI, energy, the green transition and defence while maintaining strong trade and investment links.

Lee told Korean residents in Singapore that the strengthened partnership could guide relations for the next fifty years by opening new routes for collaboration across strategic sectors. He added that expanding cooperation would support wider regional stability and long-term technological development.

The programme also includes a meeting with Tharman Shanmugaratnam and attendance at AI Connect. This forum connects business leaders and entrepreneurs from both countries seeking opportunities in AI research and commercial innovation.

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OpenAI and Microsoft strengthen their long-term AI collaboration

Microsoft and OpenAI have reaffirmed their long-standing collaboration after new funding and partnerships raised speculation about their relationship.

Both firms stressed that recent announcements leave their original agreements intact, preserving a framework built on technical integration, trust and shared ambitions for AI development.

Microsoft’s exclusive licence to OpenAI’s intellectual property remains untouched, as does its position as the sole cloud provider for stateless APIs powering OpenAI models.

These APIs can be accessed through either company. Yet all such calls, including those arising from third-party partnerships such as OpenAI’s work with Amazon, continue to run on Azure rather than on alternative clouds. OpenAI’s own products, including Frontier, also stay hosted on Azure.

Revenue-sharing arrangements are unchanged, alongside the contractual definition and evaluation process for artificial general intelligence.

Both companies emphasised that the partnership was designed to allow independent initiatives while preserving deep cooperation across research, engineering and product innovation.

OpenAI retains the freedom to secure additional compute capacity elsewhere, supported by large-scale initiatives such as the Stargate project.

Even with broader collaborations emerging across the industry, both firms present their alliance as central to advancing responsible AI and expanding access to powerful tools worldwide.

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Japanese bank Mizuho plans major AI shift across administrative operations

Mizuho Financial Group plans to reduce work equivalent to 5,000 administrative positions over the next decade by introducing AI systems to improve operational efficiency. Around one-third of its 15,000 clerical staff nationwide will see their duties reshaped rather than eliminated.

Administrative employees currently manage processes such as document checks and data entry when opening accounts at subsidiary branches. Management expects many of these routine activities to be handled by AI as automation expands across operations.

Company leaders confirmed no layoffs are planned, with affected employees set to move into roles requiring direct customer interaction. Staff will transition towards investment product sales, corporate services and other positions where human engagement remains essential.

Mizuho intends to invest up to 100 billion yen by fiscal 2028 to develop and deploy AI technologies supporting business reform. An internal department overseeing clerical work will also be renamed the ‘Process Design Group’, signalling a stronger focus on AI-driven transformation.

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Karnataka chief minister says AI should support not replace artists

Speaking at the Bengaluru GAFX Conference, a major event for the Games, Animation, Visual Effects and Extended Reality (AVGC-XR) sector, Karnataka Chief Minister Siddaramaiah positioned AI as a tool to augment artistic work rather than replace human creators.

He highlighted the importance of ethical AI adoption, respect for intellectual property, data privacy, and ensuring fair compensation for artists and creative professionals as the sector grows.

Siddaramaiah underscored that the ‘soul of storytelling’ and human emotion cannot be fully replicated by algorithms, stressing that technology should amplify human potential without erasing it.

He also urged industry leaders to invest in original content, educational institutions to modernise curricula, and global partners to collaborate with Karnataka’s burgeoning creative ecosystem.

The remarks came amid efforts to develop the AVGC-XR sector through policy support, infrastructure, skill development, and the creation of digital creative clusters beyond Bengaluru in cities like Mysuru, Mangaluru and Hubballi-Dharwad.

Siddaramaiah framed this approach as both an economic and cultural opportunity that must be inclusive and ethically grounded.

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FTC signals flexibility on COPPA age checks

The US FTC has issued a policy statement signalling greater flexibility in enforcing parts of the Children’s Online Privacy Protection Act when companies deploy age verification tools. The agency said it will not take enforcement action where personal data is collected solely for age verification purposes.

The FTC framed age assurance as a key safeguard to prevent children from accessing inappropriate content online in the US. Officials said the approach is intended to encourage broader adoption of age verification technologies by online services.

While offering flexibility, the US regulator stressed that organisations must maintain strong safeguards, including data deletion practices and clear notice to parents and children. The FTC also warned that personal data used beyond age verification could still trigger enforcement action under COPPA.

Similar to previous 2023 amendments, legal experts cautioned that companies using age assurance may face additional compliance duties under state youth privacy laws, even as federal requirements evolve.

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Action-capable AI highlights new security challenges

AI agents are evolving from demos into autonomous tools, with OpenClaw emerging as a leading example. Unlike chatbots, these agents execute tasks directly, interacting with software and systems without constant human input.

The rise of action-capable AI introduces new security challenges. Agents can be manipulated through untrusted input or prompt injection. Persistent memory can also prolong mistakes or unintended behaviour.

The combination of access to sensitive data, external actions, and unverified content, sometimes called the ‘lethal trifecta’, amplifies risks, making careful configuration and oversight essential.

Self-hosted agents offer more control, while cloud-based versions simplify setup but shift security responsibility. Experts recommend running agents in isolated environments, limiting permissions, and requiring approval for sensitive actions.

These precautions reduce the chance of accidental or malicious harm while allowing users to experiment safely.

OpenClaw illustrates the potential of AI agents to automate workflows, handle repetitive tasks, and act proactively rather than passively advising. These tools show the future of consumer AI, but broader adoption requires stronger safety measures and awareness of risks.

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OpenAI expands London research hub

OpenAI is turning its London office into its largest research hub outside the US, marking a strategic shift towards deeper engagement with the UK’s rapidly developing AI landscape. The move places the company in direct competition with Google DeepMind for scientific talent.

An expansion that strengthens OpenAI’s long-term presence in Europe by building a substantial research base rather than relying on satellite operations. The firm aims to attract researchers seeking strong academic links, regulatory clarity and access to the UK’s growing AI ecosystem.

The enlarged London team is expected to support frontier model development and experimental work that aligns with OpenAI’s international ambitions. Senior leadership framed the decision as a vote of confidence in the UK’s capacity to become one of the most influential centres for advanced AI research.

The announcement intensifies debate over global competition for expertise, as major labs seek locations that balance research freedom with responsible oversight.

OpenAI’s investment signals a belief that the UK can offer such conditions while positioning itself as a key player in shaping the next generation of AI capabilities.

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