Future of work Archives | Digital Watch Observatory

EPO strengthens industry collaboration on European patent innovation

The European Patent Office (EPO) has reinforced cooperation with industry stakeholders through discussions with the German Association of Industry IP Experts, focusing on strengthening the European patent system and supporting innovation.

A meeting that brought together representatives from major industrial actors to align priorities and explore future collaboration.

Discussions between the EPO and the stakeholders centred on enhancing technology transfer, empowering startups and fostering economic growth across Europe.

Participants emphasised the importance of inclusive engagement among patent system users instead of fragmented approaches, ensuring that innovation strategies reflect both industrial and societal needs.

The Unitary Patent system was highlighted as gaining traction, particularly among smaller entities such as SMEs, individual inventors and research organisations. Such a trend reflects broader efforts to improve accessibility and scalability within the European innovation ecosystem.

AI also featured prominently, with both sides recognising its growing role in improving efficiency and quality in patent processes.

A human-centric approach remains essential, ensuring that AI deployment supports responsible innovation while maintaining high standards in patent examination and services.

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MIT uses AI to detect atomic material defects

Researchers at MIT have developed an AI model capable of identifying and quantifying atomic-scale defects in materials without damaging them. The approach aims to improve the design and performance of semiconductors, batteries, and solar cells.

The model analyses data from neutron-scattering experiments and can detect up to six different point defects simultaneously. Trained on 2,000 semiconductor materials, it analyses atomic vibrations to estimate defect types and concentrations that are hard for traditional methods to measure.

Conventional techniques such as X-ray diffraction or electron microscopy typically capture only limited aspects of material defects and often require destructive testing. The AI system uses pattern recognition to build a more complete picture, offering a non-invasive option for manufacturing quality control.

Researchers say the method could eventually be adapted to more widely used tools such as Raman spectroscopy, making industrial adoption more practical. Future work will also extend the model beyond point defects to larger structural features in materials.

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New Microsoft Copilot update brings deeper enterprise AI integration

Microsoft has expanded its Microsoft 365 Copilot platform with new AI capabilities designed to handle complex, multi-step workflows across workplace applications. The update integrates AI into business tools, combining multiple models to improve reasoning and execution.

A key addition is Copilot Cowork, a system designed to manage longer tasks by breaking down user requests into structured plans. It can coordinate actions across apps, manage schedules, and track progress while allowing users to intervene at each stage.

The feature is currently available through Microsoft’s Frontier programme.

Further upgrades come through Researcher, an AI tool that synthesises information from multiple sources to produce detailed reports with citations. A new Critique function uses two models, one generating outputs and the other refining them to improve accuracy and reliability.

Microsoft says the updates aim to shift Copilot from a content-generation tool to an execution-focused assistant capable of carrying out real work processes. Early adopters report better planning, scheduling, and structured deliverables in enterprise environments.

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ILO and World Bank paper says GenAI may deepen labour-market divides

A joint working paper by the International Labour Organization (ILO) and the World Bank says generative AI is likely to reshape labour markets globally, but not in the same way across countries.

The paper finds that advanced economies face greater overall exposure, while developing economies may see disruption arrive faster than productivity gains due to weaker digital infrastructure and differences in how work is organised.

Prepared as a background study for the World Development Report 2026, the paper examines labour-market exposure to GenAI across 135 countries, covering about two-thirds of global employment. According to the study, digital infrastructure and job-task composition are among the main factors shaping the distribution of risks and opportunities between advanced and developing economies.

Exposure is highest in advanced economies, especially in clerical and professional occupations. Lower-income countries are less exposed overall, but the paper says structural constraints reduce their ability to benefit from the technology. A central concern is that workers in jobs vulnerable to automation are often already online, even in poorer settings, meaning displacement could happen relatively quickly.

The paper also says many of the jobs most exposed to automation in developing economies are relatively higher-quality roles, including clerical and administrative work that has often provided a route into decent employment, especially for women and young workers. AI-driven automation, the study warns, could narrow those pathways.

Potential gains are also uneven. Many workers in jobs that could benefit from GenAI lack reliable internet access in lower-income settings. The paper adds that the same occupation title can involve different tasks depending on the country, with workers in poorer economies often carrying out fewer non-routine analytical tasks, relying less on computers, and doing more routine or manual work. Such differences reduce the scope for productivity gains from GenAI deployment.

ILO and the World Bank conclude in the paper that GenAI’s labour-market effects will depend not only on the technology itself, but also on digital connectivity, skills, task organisation, labour-market institutions, and social protection. Expanded digital access, stronger skills policies, and better labour protections are presented as necessary if the gains from GenAI are to be shared more broadly.

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South Korea sets ambition to become AI leader

South Korea has unveiled a national strategy to become one of the world’s top three AI powers by 2028. The plan combines investment in digital infrastructure, data systems and next-generation connectivity.

Authorities aim to expand networks by advancing 5G capabilities and preparing for the commercial deployment of 6G by 2030. Cybersecurity and data integration are also key priorities to support a stronger digital ecosystem.

The strategy includes developing talent across education levels and investing in core technologies such as semiconductors and quantum computing. AI adoption is expected to expand across sectors, including manufacturing, healthcare and agriculture.

The South Korean officials also plan to promote digital inclusion through learning centres and assistive technologies. Coordination between ministries will be strengthened to ensure effective delivery of the long-term roadmap.

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Microsoft expands cloud footprint in Denmark

Microsoft has opened a new data centre region in Denmark, marking a major investment in cloud infrastructure and digital resilience. The Denmark East region spans multiple sites and aims to support secure, local data processing.

The project is expected to boost economic activity, with billions of dollars in projected spending and strong spillover effects for local technology firms. Organisations adopting cloud services are likely to rely on domestic partners across IT, cybersecurity, and software development.

Businesses and public sector users will gain access to advanced cloud and AI tools, alongside improved data sovereignty under the EU rules. Local data storage and low-latency services are designed to strengthen compliance and operational efficiency.

Sustainability also plays a central role, with renewable energy use, zero-water-cooling systems, and waste-heat recovery supporting local Danish communities. Broader ambitions include reinforcing digital sovereignty while enabling innovation across industries.

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Boston schools expand AI learning initiative

A new partnership led by the City of Boston aims to expand AI literacy across public schools, supported by funding from tech entrepreneur Paul English. The initiative brings together government, academia and industry to strengthen digital skills.

The programme will introduce AI-focused learning in high schools, alongside teacher training and the development of industry-informed curricula. Plans include creating student ambassador roles and offering access to advanced courses.

University of Massachusetts Boston in the US will help design educational content and provide resources through its applied AI institute. The collaboration aims to prepare students for changing job markets shaped by emerging technologies.

Officials say the effort will support responsible and ethical use of AI while opening career pathways. An advisory board of industry experts will guide the programme and connect schools with the wider technology sector.

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UK regulator targets misleading online reviews in new crackdown

The Competition and Markets Authority has launched new investigations into five companies as part of a wider crackdown on fake and misleading online reviews, targeting practices that shape consumer decisions rather than reflect genuine customer experiences.

The cases involve Autotrader, Feefo, Dignity, Just Eat and Pasta Evangelists across sectors, including car sales, food delivery and funeral services.

CMA is examining whether negative reviews were suppressed, ratings inflated, or incentives offered in exchange for positive feedback without disclosure.

Concerns also extend to moderation practices and whether review systems provide a complete and accurate picture of customer experiences, rather than favouring reputational or commercial interests. No conclusions have yet been reached on whether consumer law has been breached.

Online reviews play a central role in consumer behaviour, influencing significant levels of spending across the UK economy.

Research indicates that a large majority of consumers rely on reviews when making purchasing decisions, raising concerns that misleading content can distort markets and undermine trust, particularly as AI makes it harder to detect fabricated reviews.

The investigations form part of a broader enforcement effort under the Digital Markets Competition and Consumers Act 2024, which introduced stricter rules on fake and misleading reviews.

Authorities aim to improve transparency and accountability across digital platforms, with potential penalties reaching up to 10% of global turnover for companies found to have breached consumer protection laws.

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Study highlights blind spots in digital regulation

A recent academic study argues that legal frameworks fail to fully capture the power of cloud infrastructure in the digital economy. The research suggests that regulators focus too heavily on services and outputs rather than on the underlying systems that shape markets.

Authors highlight how major cloud providers influence innovation, data flows and technological development. Existing laws are said to overlook the ability of these actors to structure markets and define how digital systems operate.

The paper links these gaps to fragmented legal approaches, specifically in the EU, that treat technology as a series of isolated issues. Such perspectives risk missing broader forms of control embedded in infrastructure and platform ecosystems.

Researchers call for a shift in legal thinking to better recognise infrastructure-level power and its societal impact. Stronger frameworks are seen as essential as global digital systems become increasingly central to economic and political life.

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Lille proposed as EU customs hub

France has submitted a bid to host the future EU Customs Authority in Lille, positioning itself at the centre of efforts to modernise the customs union. The proposal highlights national expertise and a leading role in shaping recent reforms.

Authorities argue the new body will strengthen internal market security, improve oversight of e-commerce and enhance cooperation between member states. France has supported initiatives to tackle illicit trade and improve risk management.

Officials also point to strong operational experience, including international customs networks and the use of AI tools to screen postal shipments. Such capabilities are presented as key to supporting the authority from its launch, but questions are raised concerning the use of AI and its biases.

Lille is promoted as a strategic logistics hub with strong transport links and access to skilled workers. Its location near major European trade routes is expected to support recruitment and coordination across the bloc.

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