Future of work

New AI method boosts reasoning without extra training

Researchers at the University of California, Riverside, have introduced a technique that improves AI reasoning without requiring additional training data. Called Test-Time Matching, the approach enhances AI performance by enabling dynamic model adaptation.

The method addresses a persistent weakness in multimodal AI systems, which often struggle to interpret unfamiliar combinations of images and text. Traditional evaluation metrics rely on isolated comparisons that can obscure deeper reasoning capabilities.

By replacing these with a group-based matching approach, the researchers uncovered hidden model potential and achieved markedly stronger results.

Test-Time Matching lets AI systems refine predictions through repeated self-correction. Tests on SigLIP-B16 showed substantial gains, with performance surpassing larger models, including GPT-4.1, on key reasoning benchmarks.

The findings suggest that smarter evaluation and adaptation strategies may unlock powerful reasoning abilities even in smaller models. Researchers say the approach could speed AI deployment across robotics, healthcare, and autonomous systems.

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Higher education urged to lead on AI skills and ethics

AI is reshaping how people work, learn and participate in society, prompting calls for universities to take a more active leadership role. A new book by Juan M. Lavista Ferres of Microsoft’s AI Economy Institute argues that higher education institutions must move faster to prepare students for an AI-driven world.

Balancing technical training with long-standing academic values remains a central challenge. Institutions are encouraged to teach practical AI skills while continuing to emphasise critical thinking, communication and ethical reasoning.

AI literacy is increasingly seen as essential for both employment and daily life. Early labour market data suggests that AI proficiency is already linked to higher wages, reinforcing calls for higher education institutions to embed AI education across disciplines rather than treating it as a specialist subject.

Developers, educators and policymakers are also urged to improve their understanding of each other’s roles. Technical knowledge must be matched with awareness of AI’s social impact, while non-technical stakeholders need clearer insight into how AI systems function.

Closer cooperation between universities, industry and governments is expected to shape the next phase of AI adoption. Higher education institutions are being asked to set recognised standards for AI credentials, expand access to training, and ensure inclusive pathways for diverse learners.

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Adobe upgrades Premiere and After Effects with new AI features

New AI-powered upgrades have been unveiled for video creators, expanding tools in Premiere, After Effects, and Firefly Boards ahead of the Sundance Film Festival. The updates, introduced by Adobe, aim to streamline post-production, improve collaboration, and enhance creative control.

Premiere now offers AI-assisted object selection, redesigned shape masks, and tighter integration with Firefly Boards. Editors can brainstorm ideas, explore visuals, and move assets into workflows using AI models from Adobe, Google, OpenAI, and others.

After Effects is also receiving major updates, including native 3D parametric meshes, access to more than 1,300 Substance 3D materials, improved vector workflows, and expanded variable-font animation tools. The additions are designed to support more advanced motion design and visual storytelling.

Alongside the product upgrades, Adobe announced an extra $10 million in funding through its Film & TV Fund to support emerging filmmakers from underserved communities. New partners include Rideback RISE and Dimz Inc., with existing collaborations continuing.

According to the Sundance Institute, 85% of films submitted to the 2026 festival were created using Creative Cloud tools. Adobe said it will continue investing in AI-driven workflows, professional training, and industry partnerships to support the next generation of storytellers.

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AI tools reshape legal research and court efficiency in India

AI is rapidly reshaping India’s legal sector, as law firms and research platforms deploy conversational tools to address mounting caseloads and administrative strain.

SCC Online has launched an AI-powered legal research assistant that enables lawyers to ask complex questions in plain language, replacing rigid keyword-based searches and significantly reducing research time.

The need for speed and accuracy is pressing. India’s courts face a backlog exceeding 46 million cases, driven by procedural delays, documentation gaps, and limited judicial capacity.

Legal professionals routinely lose hours navigating precedents, limiting time for strategy, analysis, and client engagement.

Law firms are responding by embedding AI into everyday workflows. At Trilegal, AI supports drafting, document management, analytics, and collaboration, enabling lawyers to prioritise judgment and case strategy.

Secure AI platforms process high-volume legal material in minutes, improving productivity while preserving confidentiality and accuracy.

Beyond private practice, AI adoption is reshaping court operations and public access to justice. Real-time transcription, multilingual translation, and automated document analysis are shortening timelines and improving comprehension.

Incremental efficiency gains are beginning to translate into faster proceedings and broader legal accessibility.

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AI automation poses a major challenge for transport jobs

The transport sector is expected to be the first industry to face large-scale AI automation, particularly in frontline driving roles. Buses, taxis, trains, coaches and heavy goods vehicles are seen as especially vulnerable as autonomous technologies continue to mature.

Employers are increasingly attracted to AI automation, such as automated vehicles, because they can operate continuously without the driving-time limits imposed on human workers. However, this makes automation economically appealing, especially in freight and logistics, where efficiency and round-the-clock operation are critical.

The shift could lead to the displacement of hundreds of thousands, or even millions, of transport workers. Concerns are growing over the lack of alternative job opportunities, as investment in reskilling across the UK has remained limited despite ongoing discussions about labour shortages.

Beyond employment, AI automation may have broader economic implications. Large-scale job losses would reduce tax revenues, potentially forcing governments to reconsider taxation policies, including taxing activities that are currently untaxed to offset losses from employment income.

UK launches software security ambassadors scheme

The UK government has launched the Software Security Ambassadors Scheme to promote stronger software security practices nationwide. The initiative is led by the Department for Science, Innovation and Technology and the National Cyber Security Centre.

In the UK, participating organisations commit to championing the new Software Security Code of Practice within their industries. Signatories agree to lead by example through secure development, procurement and advisory practices, while sharing lessons learned to strengthen national cyber resilience.

The scheme aims to improve transparency and risk management across UK digital supply chains. Software developers are encouraged to embed security throughout the whole lifecycle, while buyers are expected to incorporate security standards into procurement processes.

Officials say the approach supports the UK’s broader economic and security goals by reducing cyber risks and increasing trust in digital technologies. The government believes that better security practices will help UK businesses innovate safely and withstand cyber incidents.

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Jeff Bezos enters satellite broadband race

Blue Origin, founded by Jeff Bezos, has announced plans to launch a global satellite internet network called TeraWave in the US. The project aims to deploy more than 5,400 satellites to deliver high-speed data services.

In the US, TeraWave will target data centres, businesses and government users rather than households. Blue Origin says the system could reach speeds of up to 6 terabits per second, exceeding the speeds of current commercial satellite services.

The move positions the US company as a direct rival to Starlink, SpaceX’s satellite internet service. Starlink already operates thousands of satellites and focuses heavily on consumer internet access across the US and beyond.

Blue Origin plans to begin launching TeraWave satellites from the US by the end of 2027. The announcement adds to the intensifying competition in satellite communications as demand for global connectivity continues to grow.

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Anthropic releases new constitution shaping Claude’s AI behaviour

Anthropic has published a new constitution for its AI model Claude, outlining the values, priorities, and behavioural principles designed to guide its development. Released under a Creative Commons licence, the document aims to boost transparency while shaping Claude’s learning and reasoning.

The constitution plays a central role in training, guiding how Claude balances safety, ethics, compliance, and helpfulness. Rather than rigid rules, the framework explains core principles, enabling AI systems to generalise and apply nuanced judgment.

Anthropic says this approach supports more responsible decision-making while improving adaptability.

The updated framework also enables Claude to refine its own training through synthetic data generation and self-evaluation. Using the constitution in training helps future Claude models align behaviour with human values while maintaining safety and oversight.

Anthropic described the constitution as a living document that will evolve alongside AI capabilities. External feedback and ongoing evaluation will guide updates to strengthen alignment, transparency, and responsible AI development.

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EU urged to accelerate AI deployment under new Apply AI strategy

European policymakers are calling for urgent action to accelerate AI deployment across the EU, particularly among SMEs and scale-ups, as the bloc seeks to strengthen its position in the global AI race.

Backing the European Commission’s Apply AI Strategy, the European Economic and Social Committee said Europe must prioritise trust, reliability, and human-centric design as its core competitive advantages.

The Committee warned that slow implementation, fragmented national approaches, and limited private investment are hampering progress. While the strategy promotes an ‘AI first’ mindset, policymakers stressed the need to balance innovation with strong safeguards for rights and freedoms.

Calls were also made for simpler access to funding, lighter administrative requirements, and stronger regional AI ecosystems. Investment in skills, inclusive governance, and strategic procurement were identified as key pillars for scaling trustworthy AI and strengthening Europe’s digital sovereignty.

Support for frontier AI development was highlighted as essential for reducing reliance on foreign models. Officials argued that building advanced, sovereign AI systems aligned with European values could enable competitive growth across sectors such as healthcare, finance, and industry.

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From chips to jobs: Huang’s vision for AI at Davos 2026

AI is evolving into a foundational economic system rather than a standalone technology, according to NVIDIA chief executive Jensen Huang, who described AI as a five-layer infrastructure spanning energy, hardware, data centres, models and applications.

Speaking at the World Economic Forum in Davos, Huang argued that building and operating each layer is triggering what he called the most significant infrastructure expansion in human history, with job creation stretching from power generation and construction to cloud operations and software development.

Investment patterns suggest a structural shift instead of a speculative cycle. Venture capital funding in 2025 reached record levels, largely flowing into AI-native firms across healthcare, manufacturing, robotics and financial services.

Huang stressed that the application layer will deliver the most significant economic return as AI moves from experimentation to core operational use across industries.

Concerns around job displacement were framed as misplaced. AI automates tasks rather than replacing professional judgement, enabling workers to focus on higher-value activities.

In healthcare, productivity gains from AI-assisted diagnostics and documentation are already increasing demand for radiologists and nurses rather than reducing headcount, as improved efficiency enables institutions to treat more patients.

Huang positioned AI as critical national infrastructure, urging governments to develop domestic capabilities aligned with local language, culture and industrial strengths.

He described AI literacy as an essential skill, comparable to leadership or management, while arguing that accessible AI tools could narrow global technology divides rather than widen them.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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