Hong Kong to speed up tech hub plan with China

One of S.A.R. of China, Hong Kong, is preparing to accelerate its cross-border technology hub plans with mainland China as the city seeks new growth drivers to offset its fragile economy.

Chief Executive John Lee is set to deliver his annual policy address on Wednesday, with the Northern Metropolis project expected to take centre stage.

The initiative aims to transform a sparsely populated area into a base for advanced industries and innovation, while reducing reliance on finance and real estate.

According to state-owned media, the government will ease financing rules to attract companies in AI, renewable energy and medical technology.

An urgency that comes despite signs of recovery, as the economy of Hong Kong grew at its fastest pace in over a year last quarter. Yet home prices continue to fall, unemployment has risen, and public finances remain stretched.

The administration is unlikely to offer sweeping property incentives, such as tax cuts or looser rules for mainland buyers, given fiscal constraints. Instead, it may revive the long-dormant Tenants Purchase Scheme, first launched in 1998, which allows public housing tenants to buy their flats at reduced prices.

Analysts say that without bold reforms, the housing market will stay under pressure as oversupply and weak sentiment weigh on values.

Hong Kong’s $7.2 trillion stock market could benefit if new listings and inflows are encouraged, especially as developers look to stimulus and lower mortgage rates to support sales.

However, with the economy of China also slowing down, doubts remain over whether deeper integration and technology investments can provide a lasting boost.

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AI search tools challenge Google’s dominance

AI tools are increasingly reshaping how people search online, with large language models like ChatGPT drawing millions away from traditional engines.

Montreal-based lawyer and consultant Anja-Sara Lahady says she now turns to ChatGPT instead of Google for everyday tasks such as meal ideas, interior decoration tips and drafting low-risk emails. She describes it as a second assistant rather than a replacement for legal reasoning.

ChatGPT’s weekly user base has surged to around 800 million, double the figure reported in 2025. Data shows that nearly 6% of desktop searches are already directed to language models, compared with barely half that rate a year ago.

Academics such as Professor Feng Li argue that users favour AI tools because they reduce cognitive effort by providing clear summaries instead of multiple links. However, he warns that verification remains essential due to factual errors.

Google insists its search activity continues to expand, supported by AI Overviews and AI Mode, which offer more conversational and tailored answers.

Yet, testimony in a US antitrust case revealed that Google searches on Apple devices via Safari declined for the first time in two decades, underlining the competitive pressure from AI.

The rise of language models is also forcing a shift in digital marketing. Agencies report that LLMs highlight trusted websites, press releases and established media rather than social media content.

This change may influence consumer habits, with evidence suggesting that referrals from AI systems often lead to higher-quality sales conversions. For many users, AI now represents a faster and more personal route to decisions on products, travel or professional tasks.

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Codex gets smarter with GPT-5, targets GitHub Copilot and rivals

OpenAI has optimised its new GPT-5 model for Codex, its agentic software development tool, boosting performance on both quick coding sessions and long, complex projects. CEO Sam Altman said Codex already accounts for 40% of platform traffic.

GPT-5 Codex can now build full projects, add features, run tests, refactor large codebases, and conduct detailed code reviews. It dynamically adjusts the time spent ‘thinking’ based on task complexity, allowing both interactive pair programming and extended autonomous work.

OpenAI stated that the model can run independently for over seven hours, completing refactorings, fixing test failures, and delivering finished code. Early tests indicate that it catches critical bugs more reliably, allowing developers to focus on the most important issues.

The upgraded Codex is available via terminal, IDE integrations, the web, and GitHub, and comes bundled with ChatGPT Plus, Pro, Business, Edu, and Enterprise subscriptions. OpenAI launched Codex CLI in April and a research preview in May.

With GPT-5 Codex, OpenAI aims to capture market share from GitHub Copilot, Google’s Gemini, Anthropic’s Claude, and startups such as Anysphere and Windsurf. The company claims the new version delivers faster, higher-quality results for developers at every stage of the software lifecycle.

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UK to benefit from Google’s £5 billion AI plan

Google has unveiled plans to invest £5 billion (around $6.8 billion) in the UK’s AI economy over the next two years.

An announcement comes just hours before US President Donald Trump’s official visit to the country, during which economic agreements worth more than $10 billion are expected.

The investment will include establishing a new AI data centre in Waltham Cross, Hertfordshire, designed to meet growing demand for services like Google Cloud.

Alongside the facility, funds will be channelled into research and development, capital expenditure, engineering, and DeepMind’s work applying AI to science and healthcare. The project is expected to generate 8,250 annual jobs for British companies.

Google also revealed a partnership with Shell to support grid stability and contribute to the UK’s energy transition. The move highlights the economic and environmental stakes tied to AI expansion, as the UK positions itself as a hub for advanced digital technologies.

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Google lays off over 200 AI contractors amid union tensions

The US tech giant, Google, has dismissed over 200 contractors working on its Gemini chatbot and AI Overviews tool. However, this sparks criticism from labour advocates and claims of retaliation against workers pushing for unionisation.

Many affected staff were highly trained ‘super raters’ who helped refine Google’s AI systems, yet were abruptly laid off.

The move highlights growing concerns over job insecurity in the AI sector, where companies depend heavily on outsourced and low-paid contract workers instead of permanent employees.

Workers allege they were penalised for raising issues about inadequate pay, poor working conditions, and the risks of training AI that could eventually replace them.

Google has attempted to distance itself from the controversy, arguing that subcontractor GlobalLogic handled the layoffs rather than the company itself.

Yet critics say that outsourcing allows the tech giant to expand its AI operations without accountability, while undermining collective bargaining efforts.

Labour experts warn that the cuts reflect a broader industry trend in which AI development rests on precarious work arrangements. With union-busting claims intensifying, the dismissals are now seen as part of a deeper struggle over workers’ rights in the digital economy.

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Telecom industry outlines vision for secure 6G

Telecom experts say 6G must be secure by design as planning for the next generation of mobile networks accelerates.

Industry leaders warn that 6G will vastly expand the attack surface, with autonomous vehicles, drones, industrial robots and AR systems all reliant on ultra-low latency connections. AI will be embedded at every layer, creating opportunities for optimisation but also new risks such as model poisoning.

Quantum threats are also on the horizon, with adversaries potentially able to decrypt sensitive data. Quantum-resistant cryptography is expected to be a cornerstone of 6G defences.

With standards due by 2029, experts stress cooperation among regulators, equipment vendors and operators. Security, they argue, must be as fundamental to 6G as speed and sustainability.

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Lumex chips bring advanced AI to mobile devices

Arm Holdings has unveiled Lumex, its next-generation chip designs built to bring advanced AI performance directly to mobile devices.

The new designs range from highly energy-efficient chips for wearables to high-performance versions capable of running large AI models on smartphones without cloud support.

Lumex forms part of Arm’s Compute Subsystems business, offering handset makers pre-integrated designs, while also strengthening Arm’s broader strategy to expand smartphone and data centre revenues.

The chips are tailored for 3-nanometre manufacturing processes provided by suppliers such as TSMC, whose technology is also used in Apple’s latest iPhone chips. Arm has indicated further investment in its own chip development to capitalise on demand.

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EdChat AI app set for South Australian schools amid calls for careful use

South Australian public schools will soon gain access to EdChat, a ChatGPT-style app developed by Microsoft in partnership with the state government. Education Minister Blair Boyer said the tool will roll out next term across public high schools following a successful trial.

Safeguards have been built into EdChat to protect student data and alert moderators if students type concerning prompts, such as those related to self-harm or other sensitive topics. Boyer said student mental health was a priority during the design phase.

Teachers report that students use EdChat to clarify instructions, get maths solutions explained, and quiz themselves on exam topics. Adelaide Botanic High School principal Sarah Chambers described it as an ‘education equaliser’ that provides students with access to support throughout the day.

While many educators in Australia welcome the rollout, experts warn against overreliance on AI tools. Toby Walsh of UNSW said students must still learn how to write essays and think critically, while others noted that AI could actually encourage deeper questioning and analysis.

RMIT computing expert Michael Cowling said generative AI can strengthen critical thinking when used for brainstorming and refining ideas. He emphasised that students must learn to critically evaluate AI output and utilise the technology as a tool, rather than a substitute for learning.

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Industry leaders urge careful AI use in research projects

The 2026 Adwanted Media Research Awards will feature a new category for Best Use of AI in Research Projects, reflecting the growing importance of this technology in the industry.

Head judge Denise Turner of IPA said AI should be viewed as a tool to expedite workflows, not replace human insight, emphasising that researchers remain essential to interpreting results and posing the right questions.

Route CEO Euan Mackay said AI enables digital twins, synthetic data, and clean-room integrations, shifting researchers’ roles from survey design to auditing and ensuring data integrity in an AI-driven environment.

OMD’s Laura Rowe highlighted AI’s ability to rapidly process raw data, transcribe qualitative research, and extend insights across strategy and planning — provided ethical oversight remains in place.

ITV’s Neil Mortensen called this the start of a ‘gold rush’, urging the industry to use AI to automate tedious tasks while preserving rigorous methods and enabling more time for deep analysis.

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German state pushes digital sovereignty

The northern German state of Schleswig-Holstein is pushing ahead with an ambitious plan to replace Microsoft software in its public administration with open-source alternatives.

With around 30,000 civil servants, a workforce comparable to the European Commission, the region has already migrated most staff to new systems. It expects to cut its Office licences by more than two-thirds before the end of the month.

Instead of relying on Word, Outlook or SharePoint, staff are switching to LibreOffice, Thunderbird, Open Xchange and Nextcloud. A Linux pilot is also underway, testing the replacement of Windows itself.

The digital minister, Dirk Schrödter, admitted the schedule is tight but said that 24,000 employees are already using the new setup. By 2029, only a handful of Microsoft licences should remain, kept for compatibility with federal services.

A transition that has not been free of challenges. Some judges have called for a return to Outlook, citing outages, while larger providers such as SAP have proven difficult to adapt.

Still, Schrödter argued the investment is about sovereignty rather than cost-cutting, comparing Europe’s reliance on Big Tech to its dependence on Russian gas before 2022. He urged Brussels to prioritise open-source solutions in procurement rules to reduce dependence on foreign tech giants.

Although Schleswig-Holstein is a relatively small region, its programme has already influenced wider German and European initiatives.

Similar efforts, including Germany’s OpenDesk project, have gained traction in France, Italy and the Netherlands, with several governments now watching the experiment closely.

Schrödter said the state’s progress surprises many observers, but he believes it shows how public administrations can regain control of their digital infrastructure.

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