Future of work

AI Act strengthens training rules despite 2025 Digital Omnibus reforms

The European AI Regulation reinforces training and awareness as core compliance requirements, even as the EU considers simplifications through the proposed Digital Omnibus. Regulation (EU) 2024/1689 sets a risk-based framework for AI systems under the AI Act.

AI literacy is promoted through a multi-level approach. The EU institutions focus on public awareness, national authorities support voluntary codes of conduct, and organisations are currently required under the AI Act to ensure adequate AI competence among staff and third parties involved in system use.

A proposed amendment to Article 4, submitted in November 2025 under the Digital Omnibus, would replace mandatory internal competence requirements with encouragement-based measures. The change seeks to reduce administrative burden without removing AI Act risk management duties.

Even if adopted, the amendment would not eliminate the practical need for AI training. Competence in AI systems remains essential for governance, transparency, monitoring, and incident handling, particularly for high-risk use cases regulated by the AI Act.

Companies are therefore expected to continue investing in tailored AI training across management, technical, legal, and operational roles. Embedding awareness and competence into risk management frameworks remains critical to compliance and risk mitigation.

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Humanoid robots and AI take centre stage as Musk joins Davos 2026

Elon Musk made his first appearance at the World Economic Forum in Davos despite years of public criticism towards the gathering, arguing that AI and robotics represent the only realistic route to global abundance.

Speaking alongside BlackRock chief executive Larry Fink, Musk framed robotics as a civilisational shift rather than a niche innovation, claiming widespread automation will raise living standards and reshape economic growth.

Musk predicted a future where robots outnumber humans, with humanoid systems embedded across industry, healthcare and domestic life.

He highlighted elder care as a key use case in ageing societies facing labour shortages, suggesting that robotics could compensate for demographic decline rather than relying solely on migration or extended working lives.

Tesla’s Optimus humanoid robots are already performing simple factory tasks, with more complex functions expected within a year.

Musk indicated public sales could begin by 2027 once reliability thresholds are met. He also argued autonomous driving is largely resolved, pointing to expanding robotaxi deployments in the US and imminent regulatory decisions in Europe and China.

The global market for humanoid robotics remains relatively small, but analysts expect rapid expansion as AI capabilities improve and costs fall.

Musk at Davos 2026 presented robotics as an engine for economic acceleration, suggesting ubiquitous automation could unlock productivity gains on a scale comparable to past industrial revolutions.

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OpenAI ads in ChatGPT signal a shift in conversational advertising

The AI firm, OpenAI, plans to introduce advertising within ChatGPT for logged-in adult users, marking a structural shift in how brands engage audiences through conversational interfaces.

Ads would be clearly labelled and positioned alongside responses, aiming to replace interruption-driven formats with context-aware brand suggestions delivered during moments of active user intent.

Industry executives describe conversational AI advertising as a shift from exposure to earned presence, in which brands must provide clarity or utility to justify inclusion.

Experts warn that trust remains fragile, as AI recommendations carry the weight of personal consultation, and undisclosed commercial influence could prompt rapid user disengagement instead of passive ad avoidance.

Regulators and marketers alike highlight risks linked to dark patterns, algorithmic framing and subtle manipulation within AI-mediated conversations.

As conversational systems begin to shape discovery and decision-making, media planning is expected to shift toward intent-led engagement, authority-building, and transparency, reshaping digital advertising economics beyond search rankings and impression-based buying.

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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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