Scotland considers new offence for AI intimate images

The Scottish government has launched a consultation proposing a specific criminal offence for creating AI-generated intimate images without consent. Existing Scots law covers the sharing of such photos, but ministers in Scotland say gaps remain around their creation.

The consultation in Scotland also seeks views on criminalising digital tools designed solely to produce intimate images and videos. Ministers aim to address harms linked to emerging AI technologies affecting women and girls across Scotland.

Additional proposals in Scotland include a statutory aggravation where domestic abuse involves a pregnant woman, requiring courts to treat such cases more seriously at sentencing. Measures to strengthen protections against spiking offences are also under review in Scotland.

Justice Secretary Angela Constance said responses in Scotland would inform future action to reduce violence against women and girls. The consultation also considers changes to non-harassment orders and examines whether further laws on non-fatal strangulation are needed in Scotland.

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Uni.lu expert urges schools to embrace AI

AI should be integrated into classrooms in Luxembourg rather than avoided, according to Gilbert Busana of the University of Luxembourg. Speaking to RTL Today in Luxembourg, he said ignoring AI would be a disservice to pupils and teachers alike.

Busana argued that AI should be taught both as a standalone subject and across disciplines in Luxembourg schools. Clear guidelines are needed to define when and how pupils may use AI, alongside transparency about its role in assignments.

He stressed that developing AI literacy in Luxembourg is essential to protect critical thinking. Assessment methods may shift away from focusing solely on final outputs towards evaluating the learning process itself.

Teachers in Luxembourg are increasingly becoming coaches rather than simple transmitters of knowledge. Busana said continuous professional training and collaboration within schools in Luxembourg will be vital as AI reshapes education.

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Binance targets Greece as EU gateway

Efforts to secure a foothold in Europe have led Binance to select Greece as its entry point for operating under the EU’s Markets in Crypto-Assets framework. A licence would let the exchange offer services across the European Union when the rules take effect in July 2026.

Strategic considerations outweigh speed in the decision. Co-chief executive Richard Teng cited workforce quality, safety, and long-term growth potential as decisive factors, even though several larger EU economies have already issued more licences.

Regulatory attention continues to shape the company’s trajectory. Founder Changpeng Zhao remains a shareholder, as leadership says reforms aim to make the platform one of the most regulated exchanges globally.

Expansion plans unfold amid turbulent market conditions.  Bitcoin’s prices remain well below last year’s highs, dampening retail sentiment, yet institutional participation has remained resilient, supporting liquidity amid volatility.

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OpenClaw creator Peter Steinberger urges playful approach to AI coding

Peter Steinberger, creator of the viral AI agent OpenClaw and now at OpenAI, urged developers to approach AI experimentation with curiosity rather than rigid plans. On the Builders Unscripted podcast, he said progress often comes from exploration rather than expertise.

He said OpenClaw began without a roadmap. Early tests included a WhatsApp integration he paused, expecting major labs to build similar tools. When that did not happen, he developed his own prototype and refined it through real-world use.

Using the tool in low-connectivity environments helped clarify its value. Through trial and iteration, he observed how modern AI models can generate workable solutions without explicit programming, reshaping how developers think about problem-solving and workflows.

He cautioned that coding with AI is a skill that requires practice. Comparing it to learning guitar, Steinberger said early frustration is common, but persistence leads to improved intuition and efficiency over time.

Steinberger argued that developers who focus on solving problems and creating useful tools will remain in demand. Treating AI as a collaborative instrument rather than a shortcut, he said, is essential in a rapidly shifting technology landscape.

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AI transforming the factory floor with smart automation and real-time oversight

According to industrial technology reporting, AI is being integrated across factory floor operations to improve efficiency, safety and productivity. Key applications include predictive maintenance, quality inspection, workflow optimisation and human-AI collaboration tools.

Machine learning models analyse sensor data from equipment (motors, conveyors, robots) to forecast failures before they occur, reducing unplanned downtime and lowering maintenance costs. Computer vision AI inspects products at high speed, detecting defects with greater accuracy than human inspection and enabling real-time corrective action.

AI systems analyse production workflows to identify bottlenecks, recommend adjustments to schedules and resource allocation, and help balance workload across stations. Augmented reality and AI assistants support factory workers with contextual guidance, safety alerts and hands-free documentation during complex tasks.

Manufacturers adopting these systems report gains in production reliability, reduced scrap rates and more flexible responsiveness to demand variability. However, the report notes challenges around data quality, legacy equipment integration and workforce upskilling.

Ensuring that AI tools are transparent and explainable for operators, rather than opaque ‘black box’ systems, is also highlighted as necessary for trust and operational safety.

These trends reflect a broader shift toward ‘smart factories’ within the framework of Industry 4.0, where digital tools across hardware, networks, data analytics and AI collaborate to support lean, adaptive and resilient manufacturing systems.

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Italy orders Amazon to stop processing sensitive employee data after privacy ruling

The Italian data protection authority has ordered Amazon Italia Logistics to halt processing of sensitive employee data after investigators found that the company gathered details ranging from health conditions to union involvement.

Information about workers’ private lives and family members had also been collected, often retained for a decade through internal tracking systems rather than being limited to what labour rules in Italy allow.

Regulators discovered that some data originated from cameras positioned near restrooms and staff break areas, a practice that breached EU privacy standards.

The watchdog concluded that the company’s monitoring went far beyond what employers are permitted to compile when assessing staff performance or workplace needs.

Amazon responded by stressing that protecting employee information remains a priority and said that internal rules and training programmes are designed to ensure compliance. The company added that any findings from the Italian authority would prompt a review of its procedures instead of being dismissed.

An order that arrives as Amazon attempts to regain its lobby badges at the European Parliament.

Access was suspended in 2024 after senior representatives declined to attend hearings on warehouse working conditions, and opposition from MEPs continues to place pressure on Parliament President Roberta Metsola to reject reinstatement.

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EU moves to enforce digital fairness rules with stronger consumer oversight

Regulatory scrutiny of the EU’s digital fairness framework is set to begin on 1 July as the European Commission moves to tighten its supervision of online platforms.

An initiative that forms part of a broader effort to ensure stronger consumer protection across digital markets, with officials signalling stricter oversight of commercial practices that disadvantage users.

The Commission is preparing a major upgrade of its consumer protection framework, expected by December 2026.

The reforms aim to reinforce enforcement tools under the Unfair Commercial Practices Directive and the Consumer Protection Cooperation Regulation, allowing regulators to intervene more effectively when platforms breach fairness standards.

Michael McGrath, Commissioner for Democracy, Justice and Rule of Law, has highlighted the need for greater transparency and accountability as digital markets expand rapidly.

The forthcoming scrutiny focuses on ensuring that platforms respect transparency obligations, avoid manipulating users and provide fair conditions in online transactions.

Regulators seek to replace fragmented enforcement with a more coordinated model that reflects the increasingly cross-border nature of digital commerce.

Stronger consumer safeguards are becoming central to the digital agenda of the EU.

The next phase of reforms is expected to streamline investigations across member states and deliver more predictable outcomes for affected consumers, offering steadier enforcement instead of reactive measures taken after violations escalate.

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New MIT system turns creative AI models into durable objects

Researchers at MIT have introduced a system designed to close the gap between imaginative AI designs and everyday-use objects.

The tool, known as MIT Computer Science and Artificial Intelligence Laboratory’s PhysiOpt, combines generative AI with physics simulations to produce 3D models that are both visually appealing and structurally reliable.

Generative models often produce complex shapes that fail in real-world use due to instability or material limitations. PhysiOpt uses finite element analysis to stress-test designs and identify weak points, while preserving their intended look and function.

Users can input an item, its load, and material, letting the system optimise designs like cups or hooks in seconds. Researchers say the system works faster than other methods while creating more realistic, 3D-print-ready designs.

Development continues with plans to automate constraint prediction and improve manufacturing compatibility. The project, supported by the MIT-IBM Watson AI Lab, was presented at SIGGRAPH Asia, highlighting its potential to streamline the path from concept to physical product.

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ESMA sets guidance for crypto perpetuals and CFDs

The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).

Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.

The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting inexperienced investors are inappropriate under its guidance.

Firms must ensure that derivatives falling within the CFD category comply with product intervention requirements. Requirements include leverage limits, risk warnings, margin close-outs, negative balance protection, and a ban on incentives or benefits.

Non-advised services must include an appropriateness assessment to protect investors from unsuitable offerings.

ESMA also emphasised the importance of identifying and managing conflicts of interest arising from these products. The statement seeks to ensure firms market and distribute leveraged crypto products responsibly.

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Microsoft backs Australia’s next phase of digital government with new AI and cloud agreement

Australia’s rise to second place in the OECD Digital Government Index signals renewed momentum for national digital transformation.

A shift that comes as Microsoft signs a new five-year Volume Sourcing Arrangement with the Federal Government, designed to underpin modernisation across public services and create a secure, future-ready foundation for responsible AI adoption.

The agreement led by the Digital Transformation Agency gives agencies access to Microsoft Copilot, Azure, Microsoft 365, Dynamics 365 and a strengthened security and compliance framework instead of continuing reliance on ageing systems.

The arrangement sets clearer strategic pathways for innovation, procurement and skills development through an enhanced governance structure.

It recommits both sides to national security requirements, including the Security of Critical Infrastructure legislation, the Cloud Hosting Certification Framework and IRAP.

These measures allow agencies to expand AI use while retaining control of data and meeting the expectations placed on government institutions.

A successful Copilot trial in 2024 already demonstrated personal productivity gains of around one hour per day for participating staff.

Microsoft is also establishing a $1.55 million training fund for the Australian Public Service to support capability building in ethical AI use and modern cloud operations.

The company emphasises that Australia’s partner ecosystem will gain new opportunities because the agreement simplifies how local firms engage with government agencies. Such an approach forms an important part of the wider public sector reform agenda announced last year.

The new deal aligns with national priorities set out in the Whole-of-Government Cloud Computing Policy and the National AI Plan.

Australia now enters a pivotal period in which digital transformation is guided not only by technological capacity but by the frameworks of trust, resilience and public benefit that shape how government services evolve.

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