Economic Archives | Page 40 of 677 | Digital Watch Observatory

OpenClaw creator Peter Steinberger urges playful approach to AI coding

Peter Steinberger, creator of the viral AI agent OpenClaw and now at OpenAI, urged developers to approach AI experimentation with curiosity rather than rigid plans. On the Builders Unscripted podcast, he said progress often comes from exploration rather than expertise.

He said OpenClaw began without a roadmap. Early tests included a WhatsApp integration he paused, expecting major labs to build similar tools. When that did not happen, he developed his own prototype and refined it through real-world use.

Using the tool in low-connectivity environments helped clarify its value. Through trial and iteration, he observed how modern AI models can generate workable solutions without explicit programming, reshaping how developers think about problem-solving and workflows.

He cautioned that coding with AI is a skill that requires practice. Comparing it to learning guitar, Steinberger said early frustration is common, but persistence leads to improved intuition and efficiency over time.

Steinberger argued that developers who focus on solving problems and creating useful tools will remain in demand. Treating AI as a collaborative instrument rather than a shortcut, he said, is essential in a rapidly shifting technology landscape.

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AT&T data breach settlement wins preliminary approval in $177 million deal

A federal judge in Texas has preliminarily approved a $177 million settlement resolving claims that AT&T failed to safeguard consumer data in two separate breaches. The company denies wrongdoing but agreed to establish compensation funds covering affected customers nationwide.

The agreement creates two non-reversionary funds: $149 million for individuals whose personal data appeared on the dark web, and $28 million for customers whose call and text logs were accessed. It covers a March 2024 breach and a separate incident between May 2022 and early 2023.

Eligible class members may submit claims for cash payments, with amounts depending on the number of valid submissions, and may also receive up to 24 months of credit monitoring. The deadline to opt out or object is 17 October 2025, with a final approval hearing set for 3 December 2025.

Legal and administrative costs, attorneys’ fees, and service awards will be paid from the settlement funds. The case resolves claims brought on behalf of all living US residents whose data was exposed in the two AT&T breaches.

The settlement follows other recent legal challenges facing AT&T, including class actions filed by New York pensioners alleging the company misled investors about the environmental impact of its lead-sheathed cables.

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AI transforming the factory floor with smart automation and real-time oversight

According to industrial technology reporting, AI is being integrated across factory floor operations to improve efficiency, safety and productivity. Key applications include predictive maintenance, quality inspection, workflow optimisation and human-AI collaboration tools.

Machine learning models analyse sensor data from equipment (motors, conveyors, robots) to forecast failures before they occur, reducing unplanned downtime and lowering maintenance costs. Computer vision AI inspects products at high speed, detecting defects with greater accuracy than human inspection and enabling real-time corrective action.

AI systems analyse production workflows to identify bottlenecks, recommend adjustments to schedules and resource allocation, and help balance workload across stations. Augmented reality and AI assistants support factory workers with contextual guidance, safety alerts and hands-free documentation during complex tasks.

Manufacturers adopting these systems report gains in production reliability, reduced scrap rates and more flexible responsiveness to demand variability. However, the report notes challenges around data quality, legacy equipment integration and workforce upskilling.

Ensuring that AI tools are transparent and explainable for operators, rather than opaque ‘black box’ systems, is also highlighted as necessary for trust and operational safety.

These trends reflect a broader shift toward ‘smart factories’ within the framework of Industry 4.0, where digital tools across hardware, networks, data analytics and AI collaborate to support lean, adaptive and resilient manufacturing systems.

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The New Delhi AI Summit between inclusion and fragmentation

The 2026 AI Summit in New Delhi was billed as a turning point for a more inclusive and development-focused approach to AI. As a rising ‘digital middle power’, India used its role as host to reframe the global AI debate around social empowerment, trust, energy efficiency, and equitable access to technology. Drawing on the concept of MANAV (a Sanskrit word for humanity), and a set of seven guiding pillars, the summit sought to place development and inclusion at the centre of global AI governance.

Yet, as Marília Maciel argues in her blog ‘The New Delhi AI Summit: Inclusive rhetoric, fractured reality,’ the event ultimately exposed growing fragmentation in the international AI landscape. While India succeeded in broadening the narrative, many of its priorities were pushed into working groups and voluntary initiatives rather than reflected in strong political commitments.

A proliferation of new charters, coalitions, and platforms added to an already crowded field of AI initiatives, raising concerns about duplication and a lack of follow-through from previous summits.

The language of the Delhi Declaration reinforced this impression. Its reliance on non-binding formulations and cautious diplomatic phrasing signalled a retreat from even modest collective ambition. At the same time, key UN-led processes on digital cooperation and AI governance were largely sidelined.

For Maciel, this omission risks weakening evidence-based multilateral efforts at a time when reliable data and coordinated policymaking are urgently needed to understand AI’s real impact on economies, labour markets, and education systems.

India’s decision to join the US-led ‘Pax Silica’ initiative on AI and supply chain reflects a broader trend in which AI governance is increasingly tied to economic security and strategic competition.

While the partnership may bring India investment and access to technology, it also embeds AI more deeply within bloc-based alignments and the securitisation of global supply chains.

The summit also highlighted the fluid and often contradictory meaning of ‘digital sovereignty.’ Although India is frequently seen as a champion of sovereign digital infrastructure, the concept received limited emphasis in Delhi.

Maciel notes that sovereignty is increasingly shaped by immediate political and economic calculations rather than anchored in clear strategies, metrics, or participatory governance frameworks. Without greater clarity, she warns, AI sovereignty risks drifting away from broader goals of autonomy, rights, and self-determination.

In the end, the New Delhi Summit may be remembered less for its inclusive rhetoric than for revealing a fractured reality. India demonstrated how middle powers can influence the AI agenda, but the event underscored how fragmented, securitised, and initiative-heavy global AI governance has become. Whether future summits and the United Nations can restore coherence and continuity to this landscape remains an open question.

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Italy orders Amazon to stop processing sensitive employee data after privacy ruling

The Italian data protection authority has ordered Amazon Italia Logistics to halt processing of sensitive employee data after investigators found that the company gathered details ranging from health conditions to union involvement.

Information about workers’ private lives and family members had also been collected, often retained for a decade through internal tracking systems rather than being limited to what labour rules in Italy allow.

Regulators discovered that some data originated from cameras positioned near restrooms and staff break areas, a practice that breached EU privacy standards.

The watchdog concluded that the company’s monitoring went far beyond what employers are permitted to compile when assessing staff performance or workplace needs.

Amazon responded by stressing that protecting employee information remains a priority and said that internal rules and training programmes are designed to ensure compliance. The company added that any findings from the Italian authority would prompt a review of its procedures instead of being dismissed.

An order that arrives as Amazon attempts to regain its lobby badges at the European Parliament.

Access was suspended in 2024 after senior representatives declined to attend hearings on warehouse working conditions, and opposition from MEPs continues to place pressure on Parliament President Roberta Metsola to reject reinstatement.

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EU moves to enforce digital fairness rules with stronger consumer oversight

Regulatory scrutiny of the EU’s digital fairness framework is set to begin on 1 July as the European Commission moves to tighten its supervision of online platforms.

An initiative that forms part of a broader effort to ensure stronger consumer protection across digital markets, with officials signalling stricter oversight of commercial practices that disadvantage users.

The Commission is preparing a major upgrade of its consumer protection framework, expected by December 2026.

The reforms aim to reinforce enforcement tools under the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Regulation, allowing regulators to intervene more effectively when platforms breach fairness standards.

Michael McGrath, Commissioner for Democracy, Justice and Rule of Law, has highlighted the need for greater transparency and accountability as digital markets expand rapidly.

The forthcoming scrutiny focuses on ensuring that platforms respect transparency obligations, avoid manipulating users and provide fair conditions in online transactions.

Regulators seek to replace fragmented enforcement with a more coordinated model that reflects the increasingly cross-border nature of digital commerce.

Stronger consumer safeguards are becoming central to the digital agenda of the EU.

The next phase of reforms is expected to streamline investigations across member states and deliver more predictable outcomes for affected consumers, offering steadier enforcement instead of reactive measures taken after violations escalate.

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ESMA sets guidance for crypto perpetuals and CFDs

The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).

Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.

The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting inexperienced investors are inappropriate under its guidance.

Firms must ensure that derivatives falling within the CFD category comply with product intervention requirements. Requirements include leverage limits, risk warnings, margin close-outs, negative balance protection, and a ban on incentives or benefits.

Non-advised services must include an appropriateness assessment to protect investors from unsuitable offerings.

ESMA also emphasised the importance of identifying and managing conflicts of interest arising from these products. The statement seeks to ensure firms market and distribute leveraged crypto products responsibly.

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Microsoft backs Australia’s next phase of digital government with new AI and cloud agreement

Australia’s rise to second place in the OECD Digital Government Index signals renewed momentum for national digital transformation.

A shift that comes as Microsoft signs a new five-year Volume Sourcing Arrangement with the Federal Government, designed to underpin modernisation across public services and create a secure, future-ready foundation for responsible AI adoption.

The agreement led by the Digital Transformation Agency gives agencies access to Microsoft Copilot, Azure, Microsoft 365, Dynamics 365 and a strengthened security and compliance framework instead of continuing reliance on ageing systems.

The arrangement sets clearer strategic pathways for innovation, procurement and skills development through an enhanced governance structure.

It recommits both sides to national security requirements, including the Security of Critical Infrastructure legislation, the Cloud Hosting Certification Framework and IRAP.

These measures allow agencies to expand AI use while retaining control of data and meeting the expectations placed on government institutions.

A successful Copilot trial in 2024 already demonstrated personal productivity gains of around one hour per day for participating staff.

Microsoft is also establishing a $1.55 million training fund for the Australian Public Service to support capability building in ethical AI use and modern cloud operations.

The company emphasises that Australia’s partner ecosystem will gain new opportunities because the agreement simplifies how local firms engage with government agencies. Such an approach forms an important part of the wider public sector reform agenda announced last year.

The new deal aligns with national priorities set out in the Whole-of-Government Cloud Computing Policy and the National AI Plan.

Australia now enters a pivotal period in which digital transformation is guided not only by technological capacity but by the frameworks of trust, resilience and public benefit that shape how government services evolve.

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AI misuse exposed as OpenAI details global disinformation and scam networks

OpenAI said criminal and state-linked groups misused ChatGPT for disinformation, scams and covert influence. Its latest threat report details coordinated account bans and highlights how AI tools are embedded within broader operational workflows rather than used in isolation.

One investigation linked accounts to Chinese law enforcement engaged in what were described as ‘cyber special operations’. Activities included planning influence campaigns, mass-reporting dissidents and drafting forged materials, with related efforts continuing through other tools despite model refusals.

The report also outlined a Cambodia-based romance scam targeting young men in Indonesia through a fake dating agency. Operators combined manual prompting with automated chatbots to sustain conversations and facilitate financial fraud, leading to account removals.

Separately, accounts tied to Russia’s ‘Rybar’ network used ChatGPT to draft and translate posts distributed across multiple platforms. OpenAI noted that campaign impact depended more on account reach and coordination than on AI-generated content alone.

Across China, Russia and parts of Southeast Asia, actors treated AI as one tool among many, alongside fake profiles, paid advertising and forged documents. OpenAI called for cross-industry vigilance, stressing the need to analyse behavioural patterns across platforms.

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Meta AI flood of unusable abuse tips overwhelms US investigators

Investigators in the US say that AI used by Meta is flooding child protection units with large volumes of unhelpful reports, thereby draining resources rather than assisting ongoing cases.

Officers in the Internet Crimes Against Children network told a New Mexico court that most alerts generated by the company’s platforms lack essential evidence or contain material that is not criminal, leaving teams unable to progress investigations.

Meta rejects the claim that it prioritises profit, stressing its cooperation with law enforcement and highlighting rapid response times to emergency requests.

Its position is challenged by officers who say the volume of AI-generated alerts has doubled since 2024, particularly after the Report Act broadened reporting obligations.

They argue that adolescent conversations and incomplete data now form a sizeable portion of the alerts, while genuine cases of child sexual abuse material are becoming harder to detect.

Internal company documents disclosed at trial show Meta executives raising concerns as early as 2019 about the impact of end-to-end encryption on the firm’s ability to identify child exploitation and support investigators.

Child safety groups have long warned that encryption could limit early detection, even though Meta says it has introduced new tools designed to operate safely within encrypted environments.

The growing influx of unusable tips is taking a heavy toll on investigative teams. Officers in the US say each report must still be reviewed manually, despite the low likelihood of actionable evidence, and this backlog is diminishing morale at a time when they say resources have not kept pace with demand.

They warn that meaningful cases risk being delayed as units struggle with a workload swollen by AI systems tuned to avoid regulatory penalties rather than investigative value.

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