Economic

AI sovereignty test in South Korea reaches a critical phase

South Korea’s flagship AI foundation model project has entered a decisive phase after accusations that leading participants relied on foreign open source components instead of building systems entirely independently.

The controversy has reignited debate over how ‘from scratch’ development should be defined within government-backed AI initiatives aimed at strengthening national sovereignty.

Scrutiny has focused on Naver Cloud after developers identified near-identical similarities between its vision encoder and models released by Alibaba, alongside disclosures that audio components drew on OpenAI technology.

The dispute now sits with the Ministry of Science and ICT, which must determine whether independence applies only to a model’s core or extends to all major components.

An outcome that is expected to shape South Korea’s AI strategy by balancing deeper self-reliance against the realities of global open-source ecosystems.

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

X restricts Grok image editing after deepfake backlash

Elon Musk’s platform X has restricted image editing with its AI chatbot Grok to paying users, following widespread criticism over the creation of non-consensual sexualised deepfakes.

The move comes after Grok allowed users to digitally alter images of people, including removing clothing without consent. While free users can still access image tools through Grok’s separate app and website, image editing within X now requires a paid subscription linked to verified user details.

Legal experts and child protection groups said the change does not address the underlying harm. Professor Clare McGlynn said limiting access fails to prevent abuse, while the Internet Watch Foundation warned that unsafe tools should never have been released without proper safeguards.

UK government officials urged regulator Ofcom to use its full powers under the Online Safety Act, including possible financial restrictions on X. Prime Minister Sir Keir Starmer described the creation of sexualised AI images involving adults and children as unlawful and unacceptable.

The controversy has renewed pressure on X to introduce stronger ethical guardrails for Grok. Critics argue that restricting features to subscribers does not prevent misuse, and that meaningful protections are needed to stop AI tools from enabling image-based abuse.

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

Gmail enters the Gemini era with AI-powered inbox tools

Google is reshaping Gmail around its Gemini AI models, aiming to turn email into a proactive assistant for more than three billion users worldwide.

With inbox volumes continuing to rise, the focus shifts towards managing information flows instead of simply sending and receiving messages.

New AI Overviews allow Gmail to summarise long email threads and answer natural language questions directly from inbox content.

Users can retrieve details from past conversations without complex searches, while conversation summaries roll out globally at no cost, with advanced query features reserved for paid AI subscriptions.

Writing tools are also expanding, with Help Me Write, upgraded Suggested Replies, and Proofread features designed to speed up drafting while preserving individual tone and style.

Deeper personalisation is planned through connections with other Google services, enabling emails to reflect broader user context.

A redesigned AI Inbox further prioritises urgent messages and key tasks by analysing communication patterns and relationships.

Powered by Gemini 3, these features begin rolling out in the US in English, with additional languages and regions scheduled to follow during 2026.

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

EU faces pressure to strengthen Digital Markets Act oversight

Rivals of major technology firms have criticised the European Commission for weak enforcement of the Digital Markets Act, arguing that slow procedures and limited transparency undermine the regulation’s effectiveness.

Feedback gathered during a Commission consultation highlights concerns about delaying tactics, interface designs that restrict user choice, and circumvention strategies used by designated gatekeepers.

The Digital Markets Act entered into force in March 2024, prompting several non-compliance investigations against Apple, Meta and Google. Although Apple and Meta have already faced fines, follow-up proceedings remain ongoing, while Google has yet to receive sanctions.

Smaller technology firms argue that enforcement lacks urgency, particularly in areas such as self-preferencing, data sharing, interoperability and digital advertising markets.

Concerns also extend to AI and cloud services, where respondents say the current framework fails to reflect market realities.

Generative AI tools, such as large language models, raise questions about whether existing platform categories remain adequate or whether new classifications are necessary. Cloud services face similar scrutiny, as major providers often fall below formal thresholds despite acting as critical gateways.

The Commission plans to submit a review report to the European Parliament and the Council by early May, drawing on findings from the consultation.

Proposed changes include binding timelines and interim measures aimed at strengthening enforcement and restoring confidence in the bloc’s flagship competition rules.

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

Crypto crime report 2025 reveals record nation-state activity

Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.

Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.

North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.

Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.

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

Telegram bonds frozen amid ongoing international sanctions framework

Around $500 million in bonds issued by Telegram remain frozen within Russia’s financial settlement system following the application of international sanctions.

The situation reflects how global regulatory measures can continue to affect corporate assets even when companies operate across multiple jurisdictions.

According to reports, the frozen bonds were issued in 2021 and are held at Russia’s National Settlement Depository.

Telegram said its more recent $1.7 billion bond issuance in 2025 involved international investors, with no participation from Russian capital, and was purchased mainly by institutional funds based outside Russia.

Telegram stated that bond repayments follow established international procedures through intermediaries, meaning payment obligations are fulfilled regardless of whether individual bondholders face restrictions.

Financial results for 2025 also showed losses, linked in part to a decline in cryptocurrency valuations, which reflected broader market conditions rather than company-specific factors.

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

Rokid launches screenless AI smart glasses at CES 2026

The global pioneer firm in AR, Rokid, unveiled its new Style smart glasses at CES 2026, opting for a screenless, voice-first design instead of the visual displays standard across competing devices.

Weighing just 38.5 grams, the glasses are designed for everyday wear, with an emphasis on comfort and prescription readiness.

Despite lacking a screen, Rokid Style integrates AI through an open ecosystem that supports platforms such as ChatGPT, DeepSeek and Qwen. Global services, including Google Maps and Microsoft AI Translation, facilitate navigation and provide real-time language assistance across various regions.

The device adopts a prescription-first approach, supporting lenses from plano to ±15.00 diopters alongside photochromic, tinted and protective options.

Rokid has also launched a global online prescription service, promising delivery within seven to ten days.

Design features include titanium alloy hinges, silicone nose pads and a built-in camera capable of 4K video recording.

Battery life reaches up to 12 hours of daily use, with global pricing starting at $299, ahead of an online launch scheduled for January 19.

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

Lynx ransomware group claims Regis subsidiary on dark web leak site

Regis Resources, one of Australia’s largest unhedged gold producers, has confirmed it is investigating a cyber incident after its subsidiary was named on a dark web leak site operated by a ransomware group.

The Lynx ransomware group listed McPhillamys Gold on Monday, claiming a cyberattack and publishing the names and roles of senior company executives. The group did not provide technical details or evidence of data theft.

The Australia-based company stated that the intrusion was detected in mid-November 2025 through its routine monitoring systems, prompting temporary restrictions on access to protect internal networks. The company said its cybersecurity controls were designed to isolate threats and maintain business continuity.

A forensic investigation found no evidence of data exfiltration and confirmed that no ransom demand had been received. Authorities were notified, and Regis said the incident had no operational or commercial impact.

Lynx, which first emerged in July 2024, has claimed hundreds of victims worldwide. The group says it avoids targeting critical public services, though it continues to pressure private companies through data leak threats.

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

AI predicts heart failure risk in cattle

Researchers at the University of Wyoming in the US have developed an AI model that predicts the risk of congestive heart failure in cattle using heart images. The technology focuses on structural changes linked to pulmonary hypertension.

Developed by PhD researcher Chase Markel, the computer vision system was trained on nearly 7,000 manually scored images. The model correctly classifies heart risk levels in 92 percent of cases.

The images were collected in commercial cattle processing plants, allowing assessment at scale after slaughter. The findings support the need for improved traceability throughout the production cycle.

Industry use could enhance traceability and mitigate economic losses resulting from undetected disease. Patent protection is being pursued as further models are developed for other cattle conditions.

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

AI receptionist begins work at UK GP surgery

A GP practice in North Lincolnshire, UK, has introduced an AI receptionist named Emma to reduce long wait times on calls. Emma collects patient details and prioritises appointments for doctors to review.

Doctors say the system has improved efficiency, with most patients contacted within hours. Dr Satpal Shekhawat explained that the information from Emma helps identify clinical priorities effectively.

Some patients reported issues, including mistakes with dates of birth and difficulties explaining health problems. The practice reassured patients that human receptionists remain available and that the AI supports staff rather than replacing them.

The technology has drawn attention from other practices in the region. NHS officials are monitoring feedback to refine the system and improve patient experience.

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