Economic Archives | Page 227 of 684 | Digital Watch Observatory

Coinbase relies on AI for nearly half of its code

Coinbase CEO Brian Armstrong said AI now generates around 40 per cent of the exchange’s code, expected to surpass 50 per cent by October 2025. He emphasised that human oversight remains essential, as AI cannot be uniformly applied across all areas of the platform.

Armstrong confirmed that engineers were instructed to adopt AI development tools within a week, with those resisting the mandate dismissed. The move places Coinbase ahead of technology giants such as Microsoft and Google, which use AI for roughly 30 per cent of their code.

Security experts have raised concerns about the heavy reliance on AI. Industry figures warn that AI-generated code could contain bugs or miss critical context, posing risks for a platform holding over $420 billion in digital assets.

Larry Lyu called the strategy ‘a giant red flag’ for security-sensitive businesses.

Supporters argue that Coinbase’s approach is measured. Richard Wu of Tensor said AI could generate up to 90 per cent of high-quality code within five years if paired with thorough review and testing, similar to junior engineer errors.

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Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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UK factories closed as cyberattack disrupts Jaguar Land Rover

Jaguar Land Rover (JLR) has ordered factory staff to work from home until at least next Tuesday as it recovers from a major cyberattack. Production remains suspended at key UK sites, including Halewood, Solihull, and Wolverhampton.

The disruption, first reported earlier this week, has ‘severely impacted’ production and sales, according to JLR. Reports suggest that assembly line workers have been instructed not to return before 9 September, while the situation remains under review.

The hack has hit operations beyond manufacturing, with dealerships unable to order parts and some customer handovers delayed. The timing is particularly disruptive, coinciding with the September release of new registration plates, which traditionally boosts demand.

A group of young hackers on Telegram, calling themselves Scattered Lapsus$ Hunters, has claimed responsibility for the incident. Linked to earlier attacks on Marks & Spencer and Harrods, the group reportedly shared screenshots of JLR’s internal IT systems as proof.

The incident follows a wider spate of UK retail and automotive cyberattacks this year. JLR has stated that it is working quickly to restore systems and emphasised that there is ‘no evidence’ that customer data has been compromised.

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Advanced Pilot Assistance System enters year-long trial on CB Pacific

Mythos AI has installed its Advanced Pilot Assistance System (APAS) on the CB Pacific, a chemical tanker operated by CB Tankers under the Lomar group. The deployment marks the beginning of a year-long trial to introduce advanced bridge intelligence to the commercial shipping industry.

APAS uses a radar-first perception system that integrates with existing ship radars, processing multiple data streams to deliver prioritised alerts. By reducing its reliance on machine vision, the system aims to eliminate distractions, enhance decision-making, and improve navigation safety.

The CB Pacific, equipped with Furuno radar and consistent routes, will serve as a testbed to evaluate APAS performance in live conditions. Trials will assess collision prediction, safe navigation, signal processing, and compliance with maritime rules.

Mythos AI emphasises that APAS is designed to support crews, not replace them. CEO Geoff Douglass said the installation marks the company’s first operational use of the system on a tanker and a milestone in its wider commercial roadmap.

For LomarLabs, the pilot showcases its hands-on innovation model, offering vessel access and oversight to facilitate collaboration with startups. Managing Director Stylianos Papageorgiou said the radar-first architecture shows how modular autonomy can be advanced through trust, time, and fleet partnerships.

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Hollywood’s Warner Bros. Discovery challenge an AI firm over copyright claims

Warner Bros. Discovery has filed a lawsuit against AI company Midjourney, accusing it of large-scale infringement of its intellectual property. The move follows similar actions by Disney and Universal, signalling growing pressure from major studios on AI image and video generators.

The filing includes examples of Midjourney-produced images featuring DC Comics, Looney Tunes and Rick and Morty characters. Warner Bros. Discovery argues that such output undermines its business model, which relies heavily on licensed images and merchandise.

The studio also claims Midjourney profits from copyright-protected works through its subscription services and the ‘Midjourney TV’ platform.

A central question in the case is whether AI-generated material reproducing copyrighted characters constitutes infringement under US law. The courts have not decided on this issue, making the outcome uncertain.

Warner Bros. Discovery is also challenging how Midjourney trains its models, pointing to past statements from company executives suggesting vast quantities of material were indiscriminately collected to build its systems.

With three major Hollywood studios now pursuing lawsuits, the outcome of these cases could establish a precedent for how courts treat AI-generated content.

Warner Bros. Discovery seeks damages that could reach $150,000 per infringed work, or Midjourney’s profits linked to the alleged violations.

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GPT-5 flunks Kindergarten test despite PhD-level promise

Critics quickly derided OpenAI’s newly released GPT-5 for failing tasks that a five-year-old could ace, raising questions about the disparity between hype and performance.

Despite being promoted as ‘PhD-level’, the model produced a distorted, blob-like map of North America and invented mismatched portraits of US presidents with fictional names.

AI researcher Gary Marcus lowered the threshold by giving GPT-5 a kindergarten-level challenge. The result was a clear fail. He posted: ‘GPT-5 failed a kindergarten-level task. Speechless.’ He criticised the rushed rollout and the hype that may have obscured the model’s visual reasoning weaknesses.

Further tests exposed inconsistencies: when asked to map France and label its 12 most populous cities, GPT-5 returned inaccurate or incomplete results, omitting Paris entirely and naming Orléans despite its lower ranking.

Oddly, when the same queries were posed in text-only form, the model performed better, highlighting the weakness in its image generation and visual logic.

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EASA survey reveals cautious optimism over aviation AI ethics

The European Union Aviation Safety Agency (EASA) has published survey results probing the ethical outlook of aviation professionals on AI deployment, released during its AI Days event in Cologne.

The AI Days conference gathered nearly 200 on-site attendees from across the globe, with even more participating online.

The survey measured acceptance, trust and comfort across eight hypothetical AI use cases, yielding an average acceptance score of 4.4 out of 7. Despite growing interest, two-thirds of respondents declined at least one scenario.

Their key concerns included limitations of AI performance, privacy and data protection, accountability, safety risks and the potential for workforce de-skilling. A clear majority called for stronger regulation and oversight by EASA and national authorities.

In a keynote address, Christine Berg from the European Commission highlighted that AI in aviation is already practical, optimising air traffic flow and predictive maintenance, while emphasising the need for explainable, reliable and certifiable systems under the EU AI Act.

Survey findings will feed into EASA’s AI Roadmap and prompt public consultations as the agency advances policy and regulatory frameworks.

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Wikipedia publishes guide to spot AI-generated entries

Wikipedia editors have published a guide titled ‘Signs of AI Writing’ to support readers and contributors in detecting AI-generated content across the encyclopedia.

The field guide distils key linguistic and formatting traits commonly found in AI output, such as overblown symbolism, promotional tone, repetitive transitions, rule-of-three phrasing and editorial commentary that breaks Wikipedia’s standards.

The initiative stems from the community’s ongoing challenge against AI-generated content, which has grown enough to warrant the creation of a dedicated project named WikiProject AI Cleanup.

Volunteers have developed tools like speedy deletion policies to quickly remove suspicious entries and tagged over 500 articles for review.

While the guide aims to strengthen detection, editors caution that it should not be treated as a shortcut but should complement human judgement, oversight, and trusted community processes. Such layered scrutiny helps preserve Wikipedia’s reputation for reliability.

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Atlassian bets on AI browsers with $610m deal

The proprietary software firm Atlassian is entering the AI browser market with a $610 million deal to acquire The Browser Company of New York, creator of Arc and Dia. The move signals an attempt to turn browsers into intelligent assistants instead of leaving them as passive tools.

Traditional browsers are blank slates, forcing users to juggle tabs and applications without context. Arc and Dia promise a different approach by connecting tasks, offering in-line AI support, and adapting to user behaviour. Atlassian believes these features could transform productivity for knowledge workers.

Analysts note, however, that AI browsers are still experimental. While they offer potential to integrate workflows and reduce distractions, rivals like Chrome, Edge and Safari already dominate with established ecosystems and security features. Convincing users to change habits may prove difficult.

Industry observers suggest Atlassian’s move is more a long-term bet on natural language and agentic browsing than an immediate market shift. For now, AI browsers remain promising but unproven alternatives to conventional tools.

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WhatsApp fixes flaw exploited in Apple device hacks

WhatsApp has fixed a vulnerability that exposed Apple device users to highly targeted cyberattacks. The flaw was chained with an iOS and iPadOS bug, allowing hackers to access sensitive data.

According to researchers at Amnesty’s Security Lab, the malicious campaign lasted around 90 days and impacted fewer than 200 people. WhatsApp notified victims directly, which urged all users to update their apps immediately.

Apple has also acknowledged the issue and released security patches to close the cybersecurity loophole. Experts warn that other apps beyond WhatsApp may have been exploited in the same campaign.

The identity of those behind the spyware attacks remains unclear. Both companies have stressed that prompt updates are the best protection for users against similar threats.

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