Economic

Anthropic uncovers large-scale AI model theft operations

Three AI laboratories have been found conducting large-scale illicit campaigns to extract capabilities from Anthropic’s Claude AI, the company revealed.

DeepSeek, Moonshot, and MiniMax used around 24,000 fraudulent accounts to generate more than 16 million interactions, violating terms of service and regional access restrictions. The technique, called distillation, trains a weaker model on outputs from a stronger one, speeding AI development.

Distilled models obtained in this manner often lack critical safeguards, creating serious national security concerns. Without protections, these capabilities could be integrated into military, intelligence, surveillance, or cyber operations, potentially by authoritarian governments.

The attacks also undermine export controls designed to preserve the competitive edge of US AI technology and could give a misleading impression of foreign labs’ independent AI progress.

Each lab followed coordinated playbooks using proxy networks and large-scale automated prompts to target specific capabilities such as agentic reasoning, coding, and tool use.

Anthropic attributed the campaigns using request metadata, infrastructure indicators, and corroborating observations from industry partners. The investigation detailed how distillation attacks operate from data generation to model launch.

In response, Anthropic has strengthened detection systems, implemented stricter access controls, shared intelligence with other labs and authorities, and introduced countermeasures to reduce the effectiveness of illicit distillation.

The company emphasises that addressing these attacks will require coordinated action across the AI industry, cloud providers, and policymakers to protect frontier AI capabilities.

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AI data centre surge pushes electricity demand in the UK to new heights

The UK faces rising pressure on its electricity system as about 140 new data centre projects could demand more power than the country’s current peak consumption, according to Ofgem.

The regulator said developers are seeking about 50 gigawatts of capacity, a level driven by rapid growth in AI and far beyond earlier forecasts.

Connection requests have surged since late 2024, placing strain on a grid already struggling to support vital renewable projects that are key to national climate targets.

Work needed to connect expanding data centre capacity could delay schemes considered essential for decarbonisation and economic growth, instead of supporting the transition at the required pace.

The growing electricity footprint of AI infrastructure also threatens the aim of creating a virtually carbon-free power system by 2030, particularly as high costs and slow grid integration continue to hinder progress.

A proposed data centre in Lincolnshire has already raised concerns by projecting emissions greater than those of several international airports combined.

Ofgem now warns that speculative grid applications are blocking more viable projects, including those tied to government AI growth zones.

The regulator is considering more stringent financial requirements and new fees for access to grid connections, arguing that developers may need to build their own routes to the network rather than rely entirely on existing infrastructure.

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OpenAI faces legal action in South Korea from top networks

South Korea’s leading terrestrial broadcasters have filed a lawsuit against OpenAI, claiming that the company trained its ChatGPT model using their news content without permission. KBS, MBC, and SBS are seeking an injunction to halt the alleged infringement and to recover damages.

The Korea Broadcasters Association said OpenAI generates significant revenue from its GPT services and has licensing agreements with media organisations worldwide.

Despite this, the company has refused to negotiate with the South Korean networks, leaving them without recourse to ensure proper use of their content.

The lawsuit emphasises the protection of intellectual property and creators’ rights, arguing that domestic copyright holders face high legal costs and barriers when confronting global technology companies. It also raises broader questions about South Korea’s data sovereignty in the age of AI.

Earlier action against Naver set a precedent for copyright enforcement in AI applications.

Although KBS subsequently partnered with Naver for AI-driven media solutions, the current case underscores continuing disputes over lawful access to broadcast content for generative AI training.

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Medical AI risks in Turkey highlight data bias and privacy challenges

Ankara is seeing growing debate over the risks and benefits of medical AI as experts warn that poorly governed systems could threaten patient safety.

Associate professor Agah Tugrul Korucu said AI offers meaningful potential for healthcare only when supported by rigorous ethical rules and strong oversight instead of rapid deployment without proper safeguards.

Korucu explained that data bias remains one of the most significant dangers because AI models learn directly from the information they receive. Underrepresented age groups, regions or social classes can distort outcomes and create systematic errors.

Turkey’s national health database e-Nabiz provides a strategic advantage, yet raw information cannot generate value unless it is processed correctly and supported by clear standards, quality controls and reliable terminology.

He added that inconsistent hospital records, labelling errors and privacy vulnerabilities can mislead AI systems and pose legal challenges. Strict anonymisation and secure analysis environments are needed to prevent harmful breaches.

Medical AI works best as a second eye in fields such as radiology and pathology, where systems can reduce workloads by flagging suspicious areas instead of leaving clinicians to assess every scan alone.

Korucu said physicians must remain final decision makers because automation bias could push patients towards unnecessary risks.

He expects genomic data combined with AI to transform personalised medicine over the coming decade, allowing faster diagnoses and accurate medication choices for rare conditions.

Priority development areas for Turkey include triage tools, intensive care early warning systems and chronic disease management. He noted that the long-term model will be the AI-assisted physician rather than a fully automated clinician.

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AWS warns of AI powered cybercrime

Amazon Web Services has revealed that a Russian-speaking threat actor used commercial AI tools to compromise more than 600 FortiGate firewalls across 55 countries. AWS described the campaign as an AI-powered assembly line for cybercrime.

According to AWS, the attacker relied on exposed management ports and weak single-factor credentials rather than exploiting software vulnerabilities. The campaign targeted FortiGate devices globally and focused on harvesting credentials and configuration data.

AWS said the potentially Russian group appeared unsophisticated but achieved scale through AI-assisted mass scanning and automation. When encountering stronger defences, the attackers reportedly shifted to easier targets rather than persist.

The company advised organisations using FortiGate appliances to secure management interfaces, change default credentials and enforce complex passwords. Amazon said it was not compromised during the campaign.

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Stanford speech warns of AI tsunami

Senator Bernie Sanders has warned at Stanford University in California that the US is unprepared for the speed and scale of the AI revolution. Speaking in California alongside Congressman Ro Khanna, he called the moment one of the most dangerous in modern US history.

At Stanford University, Sanders urged a moratorium on the expansion of AI data centres to slow development while lawmakers catch up. He argued that the American public lacks a clear understanding of the economic and social impact ahead and that New York is already considering a pause.

Khanna, who represents Silicon Valley in California, rejected a complete moratorium but called for steering AI growth through renewable energy and water efficiency standards. He outlined principles to prevent wealth from being concentrated among a small group of tech billionaires.

Sanders also raised concerns in California about job losses and emotional reliance on AI, citing projections of widespread automation. He called for a national debate in the US over whether AI will benefit the public or deepen inequality.

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Global microchip shortage pushes electronics prices higher

South African consumers may soon pay more for smartphones and laptops due to a global shortage of memory chips. The high demand is largely driven by AI data centres, which require powerful microchips to operate.

Tech experts report that major AI companies are acquiring large quantities of these chips for their own data centres, limiting supply for other industries. At the same time, importing chips from regions such as China has become more difficult because of trade tensions and tariffs.

Industry leaders, including Apple’s Tim Cook and Tesla’s Elon Musk, have expressed concern over the impact on production and business operations. The strain is being felt across the tech sector as companies compete for the limited supply of components.

With no immediate solution, the increased costs are expected to be passed down to consumers. Analysts warn that the combination of high demand, supply constraints, and global trade issues will make technology and appliances more expensive for consumers.

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Pension savers increasingly rely on AI for retirement planning

AI is becoming a preferred tool for those beginning their retirement planning. Data on searches and website traffic suggests AI is meeting early-stage needs for pension guidance.

Platforms offering general financial information, such as MoneyHelper, have seen traffic fall by 10% over the past six months. At the same time, AI-generated overviews of pension content are on the rise.

AI tools are mainly used to sense-check retirement decisions, model ‘what-if’ scenarios, simplify pension jargon, and assist with tax planning. Users view AI as a thinking partner rather than a replacement for regulated advice.

Despite the rise of AI, bespoke advisory services, such as Pension Wise, have remained relevant, providing personalised guidance that AI cannot fully replace. PensionBee highlights that AI is helpful for basic guidance, but services remain essential for more complex planning.

Experts warn that the retirement sector faces a challenge in maintaining trust and relevance as AI continues to improve. Savers increasingly rely on technology for guidance, signalling a shift in how pensions are researched and managed.

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Carrefour accelerates AI-enabled transformation to 2030, following Walmart’s strategic playbook

According to reporting by Diginomica, Carrefour, one of Europe’s largest retail groups, is accelerating the adoption of AI across its business as part of a strategic transformation aimed at 2030.

Inspired in part by the AI-driven overhaul undertaken by Walmart in the US, Carrefour’s initiative is intended to reshape its logistics, pricing, forecasting and store operations to become more data-driven, efficient and responsive to consumer trends.

Key elements of Carrefour’s AI focus include supply chain optimisation, dynamic pricing and promotions, customer engagement, and store and back-office automation.

First, using AI to predict demand, manage inventories and reduce waste across national and regional networks. Then, algorithms adjust pricing based on real-time data to improve competitiveness and margin performance.

Personalised offers and recommendations powered by machine learning work to enhance loyalty and user experience. Finally, AI tools streamline staffing, task allocation, and routine merchandising processes.

The transformation plan emphasises enterprise data strategy as a foundation, from consolidating disparate data sources to deploying machine learning models that inform business decisions in near-real time.

Carrefour executives view AI not just as a set of point solutions, but as core to future competitiveness, citing early gains in forecasting accuracy and reduced waste.

Carrefour’s approach is part of a broader retail AI arms race in which large grocers leverage scale and data to drive efficiency and customer centricity, with Walmart often cited as a pioneer whose playbook demonstrates the strategic value of enterprise-wide AI.

The report also notes challenges ahead, such as aligning organisational culture, ensuring data quality and addressing privacy concerns around personalised offers.

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Ashford Port Health Authority rolls out AI-powered compliance checks at UK border control

The Ashford Port Health Authority, operated by Ashford Borough Council at the Sevington Border Control Post in Kent, has deployed an AI-enabled system to support import compliance checks.

This technology uses Intelligent Document Processing to automatically extract, structure and evaluate import documentation for agricultural products and other regulated goods, reducing the need for manual review in early screening stages.

Officials describe the system as the first of its kind in the UK to fully automate initial documentary compliance checks for imported goods, including products of animal origin (POAO), high-risk food not of animal origin (HRFNAO) and other regulated consignments.

By mimicking the workflows of human officers, it helps improve productivity, consistency and speed of border controls while allowing staff to focus on frontline services.

The rollout also allows Ashford Borough Council to freeze official control charges for the 2026/27 financial year, as automation gains offset cost pressures. The council emphasises that the AI system augments rather than replaces expert oversight, strengthening compliance without sacrificing professional judgement.

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