Future of work Archives | Page 2 of 244 | Digital Watch Observatory

HP adopts OpenAI Frontier for enterprise AI

HP has announced a strategic partnership with OpenAI to integrate OpenAI Frontier across parts of its customer-facing services and internal operations.

The company said the partnership supports its broader future-of-work strategy, with an initial focus on customer experience, partner services, employee productivity and software development.

HP plans to use OpenAI Frontier to create a more consistent experience across its retail, partner, chat and voice channels, helping customers and partners resolve routine queries and complete workflows more efficiently.

The company said it is among the first global enterprises to adopt the Frontier platform. While specific use cases will evolve over time, the initial focus includes customer and partner tools, telemetry insights through the Workforce Experience Platform, employee productivity and software development.

These include customer and partner-facing tools, customer telemetry insights and reporting through HP’s Workforce Experience Platform, employee productivity and software development.

The partnership follows an evaluation phase that began in February 2026, during which HP assessed OpenAI Frontier’s technical capabilities, enterprise integration, security features and potential business applications.

HP said it also tested agentic capabilities during the evaluation. The company said the results led it to conclude that OpenAI offers models and agent-based capabilities aligned with its strategic priorities.

HP and OpenAI now plan to co-develop future use cases. HP said these will need to meet its enterprise standards, particularly around data integration, governance and security.

OpenAI said HP had already used OpenAI APIs and tools such as ChatGPT and Codex in early projects. The companies said the new partnership is intended to move beyond pilots toward broader enterprise deployment.

HP also linked the partnership to its broader AI hardware strategy, saying it is developing agentic AI devices and dedicated hardware designed to support continuous AI inference and integrate seamlessly into workplace workflows.

For AI workloads that require continuous inference, HP said it is building devices with dedicated hardware optimised to run agentic AI workloads around the clock.

HP also pointed to its Workforce Experience Platform, which is used to manage device fleets and provide telemetry insights across PCs, workstations, printers and collaboration tools.

HP said the partnership reflects a broader shift from isolated AI pilots to enterprise-wide deployment, with AI increasingly serving as an operating layer embedded across customer services, software development and business operations.

Why does it matter?

The partnership illustrates how large enterprises are moving beyond experimental AI deployments towards organisation-wide integration. Rather than treating AI as a standalone application, companies are increasingly embedding it into customer support, software development, employee productivity and operational workflows.

It also highlights the growing importance of enterprise AI governance. As organisations deploy increasingly capable agentic systems, success will depend not only on model performance but also on secure integration, data governance and oversight that ensure AI can operate reliably within existing business processes.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Spain calls for stronger AI rules in labour relations

Spain’s Second Vice President and Minister of Labour and Social Economy, Yolanda Díaz, has called for stronger regulation of AI and algorithmic decision-making in the workplace.

Speaking at the University of Oxford, Díaz said the debate should no longer focus on whether AI should be used, but on how to organise its deployment so that labour rights and fundamental rights are protected.

She argued that AI and algorithms already influence recruitment, hiring, performance evaluation, promotion, contract changes, dismissals and pension-related decisions. According to Díaz, stronger oversight is needed to ensure transparency and accountability where algorithmic management affects workers.

Spain’s Rider Law was presented as an early example of algorithmic transparency in labour relations, requiring digital labour platforms to disclose information about algorithms that affect working conditions and access to work.

Díaz also criticised proposals to deregulate AI, arguing that technological development should serve the public good rather than concentrate power among a small number of technology companies.

Her intervention comes as the EU rules for high-risk AI systems in areas including employment are set to apply later than initially expected. The European Commission says these rules will apply from 2 December 2027 under the new AI Omnibus enforcement timeline.

Díaz said governments should actively shape how AI is used in the workplace through regulation and public policy, rather than leaving the future of work to market forces alone.

Why does it matter?

AI is increasingly used to manage recruitment, performance assessment, scheduling, promotion and dismissal decisions. Spain’s position places algorithmic transparency and worker rights at the centre of the European AI debate, especially as the EU’s employment-related high-risk AI obligations are delayed. The intervention also shows how member states may move ahead with stricter national rules when they believe EU-level protections are too slow or insufficient.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

ECB highlights gap between AI adoption and productivity

Firms across the euro area are increasingly adopting AI, but only a small share are integrating it deeply enough to generate meaningful productivity gains. Data from the European Central Bank’s SAFE survey shows that although more than 70% of firms report using AI in some form, only 7% have integrated it deeply into their core operations.

Firms that use AI intensively are more likely to embed it in core business processes rather than limiting it to routine or experimental tasks. They are also more likely to innovate, expand their product offerings and align AI investments with long-term growth strategies.

Competitive pressure is also driving deeper AI adoption, particularly among established firms responding to technologically advanced rivals. However, skills shortages, legacy systems and financing constraints continue to limit many companies’ ability to scale AI effectively.

Why does it matter?

The findings suggest that simply adopting AI is not enough to generate significant economic benefits. Productivity gains appear to depend on integrating AI into core business functions, innovation strategies and long-term investment plans rather than using it only for isolated or experimental tasks.

The survey also highlights structural challenges facing Europe’s digital transformation. Without investment in skills, financing and modern digital infrastructure, many firms may struggle to move beyond basic AI adoption, potentially widening the productivity gap between AI leaders and businesses that lack the resources to scale the technology.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

Microsoft and Europol disrupt Amadey and StealC malware infrastructure

Microsoft has disrupted more than 200 command-and-control servers linked to Amadey and StealC, two widely used cybercrime tools that support credential theft, fraud and ransomware attacks.

The company’s Digital Crimes Unit said the action targeted the shared infrastructure behind the two tools rather than treating them as separate threats. In the first two weeks of May, Amadey and StealC were linked to more than 140,000 infected computers worldwide.

Amadey is often used to gain access to devices, while StealC is used to steal passwords and sensitive information. Microsoft said the tools form part of a wider cybercrime supply chain in which specialised malware services help attackers turn initial access into fraud, ransomware, espionage or other operations.

Microsoft said investigators used AI, including Copilot, to analyse malware and identify connections between the two tools more quickly. The company said the analysis helped its legal team treat both malware families as part of a single conspiracy under the US Racketeer Influenced and Corrupt Organizations Act.

The action was carried out with Europol and industry partners, including ESET, BitSight, Lumen and Mitsui Bussan Secure Directions. Europol’s European Cybercrime Centre also investigated StealC as part of Operation Endgame, alongside European law enforcement partners and cybersecurity companies, including IBM X-Force and Proofpoint.

Microsoft said it has identified more than 18,000 victim computers since the start of the operation and is working with telecommunications providers to help protect affected users.

The company said findings from the case will feed into its Statutory Automated Disruption programme, which accelerates the removal of malicious domains and infrastructure.

Why does it matter?

The operation reflects a shift in cybercrime disruption strategy. Instead of targeting one malware family or service at a time, Microsoft and its partners focused on the shared infrastructure that allows criminal tools to work together. That matters because modern cybercrime increasingly operates as a modular supply chain: one tool gains access, another steals credentials, and other actors monetise that access through fraud, ransomware or espionage. The use of AI to accelerate malware analysis also points to how defenders are trying to match the speed and scale of cybercriminal operations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

UK’s FCA rethinks AI oversight for financial services

The UK’s Financial Conduct Authority (FCA) is rethinking how financial regulation should operate in the age of AI, according to a speech by chief executive Nikhil Rathi.

Speaking at techUK’s Agents of Change: Generative and Agentic AI in Financial Services 2026 event, Rathi said financial services will be central to making the UK a world-leading AI economy. He said the sector can provide the capital, infrastructure, and trust needed for AI to scale across the wider economy.

Rathi said more than 80% of financial services firms are already using or adopting AI, shifting the policy focus from adoption to large-scale deployment. He said AI is challenging the assumptions on which markets and regulation were built, making it necessary to preserve trust, competition, and resilience as technology moves faster than existing frameworks can keep pace.

The FCA chief identified two major scaling opportunities. The first is agentic AI, which Rathi said could evolve beyond summarisation and task automation into systems capable of coordinating workflows and executing transactions.

In retail markets, Rathi said agentic systems could support smarter bill management, personalised investment strategies, and reduced friction. In wholesale markets, they could support liquidity management, trading workflows, and other market functions.

Rathi stressed that accountability for regulated activities and their outcomes must remain clearly assigned, regardless of the degree of automation. He said investors may be reluctant to delegate important decisions to systems they do not understand, making human oversight and consumer confidence essential.

Rathi also identified tokenisation as a second major trend shaping financial markets. Rathi said tokenisation could lower costs, reduce risk, and unlock new services by creating more automated and programmable infrastructure for agentic finance.

He noted that banks are already piloting tokenized deposits and said the FCA had approved Baillie Gifford, alongside Bank of New York Mellon, to launch the UK’s first natively tokenised authorised fund.

Rathi said rapid AI progress raises fundamental questions for regulation. He argued that legislation alone cannot keep pace with technological change, requiring the FCA to evolve from a traditional rule-maker into a regulator focused on continuous supervision, stewardship and resilience.

The FCA is exploring agentic AI as a ‘first responder’ to speed up wholesale market monitoring. Rathi said the regulator could use its technology, large datasets, and supervisory judgement to tackle market abuse faster.

He said traditional rule-making will still be needed in some areas, but will not work everywhere. The FCA’s role will increasingly involve both stewardship and supervision, helping firms and markets navigate technological change and acting before legislation catches up.

Rathi also said AI will change competition in financial services. He said AI can lower barriers to entry and allow challengers to grow quickly, while some incumbents may fall behind.

The FCA chief said the regulator’s role is not to protect incumbents, but to ensure competition works in consumers’ and the economy’s interests. He said the FCA expects to use system-wide powers more frequently as part of its regular toolkit.

Operational resilience was another major theme of the speech. Rathi said financial services increasingly depend on cloud providers, model providers, data providers, and other parts of the AI stack, creating both opportunities and risks for systemic resilience, market integrity, and financial crime.

He said fraud increasingly sits at the intersection of financial services, technology, and telecoms. UK Finance’s Annual Fraud Report suggests the UK lost almost £1.3 billion through payment fraud last year, with two-thirds of authorised fraud cases linked to social media sites and messaging platforms.

Rathi said frontier AI could further magnify risks. Faster and more capable models could help firms identify vulnerabilities and strengthen defences, but could also help attackers move more quickly.

Boards and leadership teams must understand these risks, he said. Firms need to map and govern dependencies on model providers and other third parties, as the Critical Third Parties regime becomes more important.

Rathi said resilience will increasingly become a national security and system-wide challenge. He said no single firm, regulator or sector will be able to see all risks, making better information sharing essential.

The FCA is supporting AI adoption through tools including its Supercharged Sandbox, AI Lab, and the AI Consortium with the Bank of England. Rathi said these initiatives are intended to help firms build, test, and scale AI safely in UK financial services.

He said the FCA will publish more work soon, including the Mills Review on how AI could reshape retail financial services and later guidance on good and poor AI practice.

Rathi concluded that the key question is no longer whether AI will reshape financial services, but whether the UK can become the preferred location for developing and deploying AI safely, responsibly and at commercial scale. He said regulation must support innovation while keeping markets competitive, resilient, and fit for technological change.

Why does it matter?

The speech signals a broader shift in financial regulation from static rule-making towards continuous supervision in response to rapidly evolving AI technologies. As agentic AI, tokenisation and frontier models become more deeply embedded in financial services, regulators are increasingly focusing on governance, operational resilience, competition and accountability rather than relying solely on traditional legislative approaches.

It also illustrates how AI is becoming a strategic issue for financial stability and economic competitiveness. By combining regulatory sandboxes, supervisory innovation and collaboration with industry, the FCA aims to encourage responsible AI adoption while managing emerging risks related to fraud, third-party dependencies, cybersecurity and market integrity. The UK’s approach may influence how other financial regulators adapt to AI-driven transformation.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

MIT experts examine AI’s impact on work and democracy

MIT researchers have examined how AI is reshaping employment, democratic processes and everyday social life during the institute’s AI and Society Forum.

The forum brought together researchers from across MIT to discuss the benefits and risks of AI for work, civil discourse, election administration and other areas of public life.

MIT economist David Autor challenged the view that AI will eliminate jobs. He argued that the impact of AI on labour will depend on whether the technology makes human expertise more valuable or turns it into a commodity.

Speakers said AI could improve productivity and support new forms of work, but warned that its effects will vary across sectors and require proactive policies on training, worker support and adaptation.

A separate session focused on democracy and elections. MIT researcher Chara Podimata presented work auditing large language models for bias in election information. A study of 12 major models during the 2024 US presidential election season found that chatbot responses varied significantly depending on users’ stated demographics and political leanings.

Participants warned that AI could disrupt election processes, undermine trust and weaken democratic norms if systems are deployed without transparency and accountability. However, they also pointed to possible benefits, including tools that support deliberation and help people reflect on their views.

The forum highlighted the need for interdisciplinary research and governance as AI becomes more deeply embedded in workplaces, public institutions and democratic life.

Why does it matter?

The MIT discussion reinforces that AI’s social impact will depend less on the technology alone and more on how it is designed, deployed and governed. Employment effects, election integrity, public trust and democratic participation are now central AI policy questions. The forum also shows why technical research needs to be connected with economics, political science, ethics and institutional design.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!

NVIDIA launches robotics safety platform for autonomous AI systems

NVIDIA has unveiled Halos for Robotics, a new safety platform designed to support the deployment of autonomous robots and physical AI systems in industrial environments.

The announcement reflects growing industry attention to safety, governance and certification as AI-powered machines increasingly operate alongside human workers in factories, warehouses and logistics facilities.

NVIDIA describes Halos as a full-stack safety architecture that combines AI computing infrastructure, safety software, sensor integration and certification support.

The platform adapts technologies originally developed for autonomous vehicles, providing robotics developers with a common framework for designing, testing and validating safety-critical systems.

NVIDIA argues that standardised safety architectures will become increasingly important as robots gain greater autonomy and decision-making capabilities.

A key element of the launch is the participation of Agility, whose humanoid robot Digit is already being deployed in industrial settings. Agility will integrate components of Halos into its existing safety systems while working with NVIDIA’s newly established AI Systems Inspection Lab to pursue independent certification against international safety standards.

Why does it matter?

The announcement reflects the growing convergence of AI and robotics as autonomous systems move from controlled testing environments into real-world industrial operations. As robots gain greater autonomy and interact more directly with people, safety assurance, certification and risk management are becoming as important as performance and capability.

The launch also highlights a broader governance challenge for physical AI. Unlike generative AI systems that primarily operate in digital environments, autonomous robots can directly affect physical safety, workplace operations and critical infrastructure. Common safety architectures, certification frameworks and industry standards could therefore play an increasingly important role in building trust and supporting the large-scale deployment of AI-powered machines.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

World Bank says AI could boost Poland’s GDP by up to 12% by 2035

The World Bank Group says AI could increase Poland’s real GDP by between 1.3% and 12.1% by 2035, depending on the pace of business adoption, workforce adaptation and supportive public policies.

In its report, ‘Navigating the Age of AI: Implications for Poland’s Economy‘, the World Bank Group said AI-driven productivity gains could begin emerging within three years. However, with only 8% of Polish firms currently using AI, the report identifies substantial scope for further adoption and productivity gains.

The report suggests that AI‘s most significant impact is likely to be on how work is organised and performed rather than on the overall composition of the economy. The business services sector is expected to be among the first to experience significant change as routine and repetitive tasks become increasingly automated.

The report argues that capturing AI’s benefits will require sustained investment in digital infrastructure, skills development and innovation, alongside labour-market measures designed to support workforce transition and adaptation. The report was developed in collaboration with the Government of Poland, academia, think tanks and international partners in Warsaw.

Why does it matter?

The report highlights the growing importance of AI as a driver of productivity and economic growth. For countries such as Poland, the potential gains from AI will depend not only on technological adoption but also on the ability of businesses, workers and institutions to adapt to changing economic conditions.

The findings also reinforce a broader policy lesson emerging globally: AI’s economic impact is likely to be shaped as much by investments in skills, infrastructure and labour-market resilience as by the technology itself. Countries that successfully combine innovation with workforce development may be better positioned to capture productivity gains while limiting disruption and inequality during the transition.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

OECD report highlights AI’s growing role in workforce training

AI is beginning to reshape how vocational education and training (VET) systems design qualifications, update curricula and respond to rapidly changing labour market demands, according to a new OECD report.

As economies undergo digital and green transitions, education authorities face growing pressure to ensure training programmes remain aligned with evolving workforce needs.

The report finds that AI is already being used across parts of the vocational education ecosystem to analyse labour market trends, identify emerging skills gaps, map competencies and support curriculum development.

Countries, including the Netherlands, Switzerland, Estonia and Germany, have launched pilot initiatives using AI tools to accelerate and improve qualification design and revision processes.

AI is also being explored as a mechanism for supporting modular learning pathways and micro-credentials in sectors experiencing rapid technological change.

Despite growing interest, the OECD stresses that AI adoption remains uneven and largely experimental. Most systems continue to rely on traditional governance structures involving employers, industry representatives, educators and public authorities.

Rather than replacing existing governance processes, AI is currently being used to support evidence gathering, stakeholder consultations and administrative functions. The organisation notes that countries with strong digital infrastructures and advanced labour market intelligence systems are better positioned to move from isolated pilots to broader implementation.

The report also warns that broader AI adoption could introduce new risks for vocational education systems. Concerns include biased outputs, poor data quality, reduced transparency, cybersecurity vulnerabilities and the possibility of weakening collaborative decision-making.

To address these challenges, the OECD argues that AI deployment must remain human-centred and operate within robust governance frameworks. Maintaining accountability, ensuring stakeholder participation and protecting data integrity will be critical as governments increasingly integrate AI into education and workforce development policies.

Why does it matter?

Vocational education systems play a critical role in preparing workers for changing labour markets. As digitalisation, automation and the green transition reshape skills demand, governments are looking for ways to update qualifications and training programmes more quickly. The OECD report suggests that AI could help education systems identify emerging workforce needs, improve labour market intelligence and make curriculum development more responsive.

At the same time, the report highlights that technological innovation alone is unlikely to solve skills challenges. The effectiveness of AI in vocational education will depend on strong governance, reliable data, stakeholder participation and human oversight. How governments balance efficiency gains with transparency, accountability and trust could shape the future of workforce development and lifelong learning policies.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

AI is reshaping employment patterns across the US labour market

AI is increasingly influencing the structure of the US labour market, although its impact on overall employment growth remains limited so far. Evidence suggests that the impact is concentrated in specific occupational groups rather than evenly distributed across the economy.

Employment in occupations considered highly exposed to AI-driven substitution has declined in recent years, while occupations viewed as less vulnerable to automation have continued to expand. Since 2019, lower-exposure occupations such as electricians and teachers have recorded strong employment gains, while more AI-exposed occupations have experienced contraction.

The divergence between highly exposed and less exposed occupations has widened further since the emergence of generative AI tools in late 2022. Analysis indicates a growing divergence in employment trends, with job reallocation increasingly linked to technological exposure and automation potential.

Despite these shifts in employment patterns, wage growth has so far shown little evidence of significant variation based on AI exposure. Economists note that the full impact of AI on earnings and inequality may become more visible as adoption deepens and labour markets adjust over time.

Why does it matter?

The findings suggest that AI’s impact on the labour market may be emerging through occupational reallocation rather than widespread job losses. Instead of reducing total employment, AI appears to be changing demand for specific types of work, with occupations that rely heavily on routine cognitive tasks facing greater pressure than jobs requiring physical, interpersonal or complex problem-solving skills.

The trend has important implications for workforce development and economic policy. If AI continues to reshape demand across occupations, governments, employers and educational institutions may need to adapt training programmes, reskilling initiatives and career pathways to help workers transition into roles that complement rather than compete with increasingly capable AI systems. The longer-term effects on wages, productivity and inequality remain uncertain and will depend on how rapidly AI adoption spreads throughout the economy.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!