Future of work Archives | Digital Watch Observatory

Hyundai invests in AI, robotics and hydrogen infrastructure

Hyundai will invest 9 trillion won ($6.3B) to build an AI data centre, robot hub, and hydrogen plant in Saemangeum. The project is part of Hyundai’s 125.2 trillion won domestic investment plan through 2030. Shares surged 10.7% following the announcement.

The AI data centre, costing 5.8 trillion won and due in 2029, will host up to 50,000 GPUs to process data from Hyundai’s automotive, steel, logistics, and defence units. The facility enables ‘physical AI,’ adding intelligence to vehicles and robots, not just software.

Hyundai will invest 400 billion won in a robot manufacturing complex with a capacity of 30,000 units annually. The fully automated facility integrates assembly, parts production, and logistics.

Robotics is central to Hyundai’s shift from automaker to AI platform operator, building on innovations such as the Atlas humanoid robot.

The plan includes a 200-megawatt hydrogen plant powered by solar energy, gigawatt-scale solar generation, and a pilot AI Hydrogen City zone. Hyundai estimates 16 trillion won in economic impact and 71,000 jobs.

President Lee Jae Myung highlighted the project as key to South Korea’s AI, robotics, and clean energy ambitions, promising regulatory support.

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Topshop unveils AI shoppable catwalk in Manchester

Topshop has staged what it describes as a world-first AI-driven shoppable catwalk in Manchester, as part of its UK brand revival. The Manchester event combined physical runway looks with real-time digital purchasing through a bespoke Front Row AI app.

Guests in Manchester were able to buy outfits instantly as models walked, while also trying on virtual versions after the show. The experience was adjudicated by the World Record Certification Agency and positioned as a new model for immersive retail in the UK.

The Manchester showcase formed part of Topshop’s regional strategy beyond London, highlighting the North West’s role in the UK fashion sector. Students from the University of Salford and Manchester Metropolitan University designed and presented the finale in Manchester.

Topshop’s broader comeback in the UK includes pop ups in John Lewis stores, a standalone website relaunch and a partnership with Liberty in London. Executives said Manchester marked a new phase where AI and commerce converge to reshape retail experiences.

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AI data centre planned for East Manchester

Latos Data Centres is preparing plans for a 28,000 sq ft data centre in Monsall, East Manchester, aimed at serving rising demand for AI computing. The scheme would occupy a three acre brownfield site at Bower Street and Ten Acres Lane in Manchester.

The East Manchester project is designed as a neural edge data centre, bringing AI processing closer to end users than traditional cloud facilities. Latos said the Manchester development would form part of a broader plan to deliver 30 UK sites by 2030.

A live consultation in Manchester will run until 16 March, with Create Architecture leading the design. Advisers on the Manchester scheme include Euan Kellie Property Solutions on planning and SK Transport Planning on transport matters.

Latos said the Manchester facility would regenerate a vacant industrial plot and operate to high environmental and safety standards. The developer is also delivering a separate data centre in Tees Valley as it expands its AI-focused portfolio across the UK.

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McKinsey claims agentic AI will reshape global banking

Agentic AI is set to transform banking operations in the US and Asia, according to a McKinsey podcast featuring senior partners from New York, Mumbai and London. The technology goes beyond traditional automation by handling less structured tasks and supporting end to end decision making.

Research cited in the discussion suggests many banks are experimenting with AI, yet few report material financial gains. Leaders in the US and Asia are urged to avoid narrow pilot projects and instead redesign workflows, teams and governance around AI at scale.

McKinsey partners said successful banks in the US and Asia are aligning chief executives, technology leaders and risk officers behind a shared strategy. Operations, risk management and frontline services are seen as areas where AI could deliver significant productivity and quality gains.

Banks in India and other Asian markets are also benefiting from regulatory engagement, including guidance from the Reserve Bank of India. Speakers argued that workforce training, cross functional collaboration and clear accountability will determine whether AI delivers lasting impact in the US.

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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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Nano Banana 2 brings Flash speed to Gemini image generation

Google has introduced Nano Banana 2, branded Gemini 3.1 Flash Image, combining Flash speed with advanced reasoning. The update narrows the gap between rapid generation and visual quality, enabling faster edits. Improved instruction-following enhances the handling of complex prompts.

Nano Banana 2 integrates real-time web grounding to improve subject accuracy and contextual awareness. The model supports more precise text rendering and in-image translation for marketing and localisation tasks. It can also assist with diagrams, infographics, and data visualisations.

Upgrades include stronger subject consistency across multiple characters and objects within a single workflow. Users can create assets in aspect ratios and resolutions from 512px to 4K. Google highlighted improvements in lighting, textures, and photorealism while maintaining Flash-level speed.

The model is rolling out across the Gemini app, Search, Lens, AI Studio, Vertex AI, Flow, and Google Ads. In Gemini, Nano Banana 2 replaces Nano Banana Pro by default, though Pro remains available for specialised tasks. Availability is expanding to additional countries and languages.

Google also reinforced its provenance strategy by combining SynthID watermarking with C2PA Content Credentials. The company said verification tools in Gemini have been used millions of times to identify AI-generated media. C2PA verification will be added to the app in a future update.

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European businesses gain AI-powered contract tools with local data hosting

Workday has rolled out its Contract Lifecycle Management (CLM) platform with EU-hosted data in Frankfurt, allowing European organisations to use AI contract tools while keeping all data within the EU.

German, French, and Spanish language support is live, with more languages planned. The update is part of Workday’s EU Sovereign Cloud strategy, targeting the CLM market, which is set to grow to $1.9 billion by 2033.

The platform uses AI agents to automate contracts. The Contract Intelligence Agent extracts terms, obligations, and renewal dates to create a searchable repository, while the Contract Negotiation Agent flags deviations, drafts redlines, and speeds approvals.

Multilingual support ensures smooth workflows across Europe’s largest commercial languages, improving compliance and efficiency.

GDPR compliance remains critical, with fines up to €20 million or 4% of global turnover. EU-hosted CLM removes offshore data risks, which are crucial for the finance, healthcare, and defence sectors. Workday combines AI efficiency with full legal compliance.

Decision-makers should focus on three priorities: EU data residency, leveraging AI agents to accelerate contracts, and integrating CLM with HR and finance systems to maximise value. Workday aims to capture market share in Europe against competitors such as Icertis and DocuSign.

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Pakistan’s digital transformation highlighted as UNESCO advances AI ethics

UNESCO used the Pakistan Governance Forum 2026 to highlight the need for a structured Ethical AI and Data Governance Framework as the country accelerates its digital transformation.

Federal leaders, provincial authorities and civil society convened to examine governance reforms, with UNESCO urging Pakistan to align its expanding digital public infrastructure with coherent standards that protect rights while enabling innovation.

Speaking at the Forum, Fuad Pashayev underlined that Pakistan’s reform priority should centre on the Recommendation on the Ethics of Artificial Intelligence, adopted unanimously by all 193 Member States.

Anchoring national systems in transparency, accountability and meaningful human oversight was framed as essential for maintaining public trust as digital services reshape access to benefits and interactions between citizens and the state.

To support the shift, UNESCO promoted its AI Readiness Assessment Methodology (RAM), which is already deployed in more than 50 countries. The tool helps governments identify regulatory gaps, strengthen institutional coordination and design safeguards against discrimination and algorithmic bias.

UNESCO has already contributed to Pakistan’s draft National AI Policy, ensuring alignment with international ethical frameworks while accommodating national development needs.

Capacity building formed a major pillar of UNESCO’s engagement. In partnership with the University of Oxford, the organisation launched a global course on AI and Digital Transformation in Government in 2025, attracting over nineteen thousand enrolments worldwide.

Pakistan leads participation globally, reflecting both the country’s momentum and growing demand for structured training.

UNESCO’s ongoing work aims to reinforce data governance, improve AI readiness and embed ethical safeguards across Pakistan’s digital transformation strategy.

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Financial crime risks are reshaped by the rise of autonomous AI agents

Autonomous AI agents are transforming finance by executing transactions independently and speeding up workflows in digital assets and programmable finance. Software can manage wallets and move funds across blockchains in seconds, narrowing detection windows.

AI agents don’t create new crimes but increase speed and complexity, making accountability essential. Responsibility rests with developers, operators, and beneficiaries, with investigators tracing control, configuration, and economic benefit to determine liability.

Weak oversight or misconfigured rules can lead to significant compliance and enforcement consequences.

Investigations face new challenges as autonomous agents operate across multiple blockchains, decentralised exchanges, and global jurisdictions.

Real-time analytics and automated tracing are essential to link transactions to accountable actors before funds move. Governance architecture and monitoring systems increasingly serve as evidence in regulatory or criminal actions.

Institutions and law enforcement are using AI monitoring, anomaly detection, and automated containment systems. Autonomous AI impacts sanctions and national security, emphasising the need for human oversight alongside automation.

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