Future of work

OpenAI backs AI-generated film Critterz for 2026 release

OpenAI is supporting the production of Critterz, an AI-assisted animated film set for a global theatrical release in 2026. The project aims to show that AI can streamline filmmaking, cutting costs and production time.

Partnering with Vertigo Films and Native Foreign, the film is being produced in nine months, far faster than the usual three years for animated features.

The film, budgeted under $30 million, combines OpenAI’s GPT-5 and DALL·E with traditional voice acting and hand-drawn elements. Building on the acclaimed 2023 short, Critterz will debut at the Cannes Film Festival and expand on a story where humans and AI creatures share the same world.

Writers James Lamont and Jon Foster, known for Paddington in Peru, have been brought in to shape the screenplay.

While producers highlight AI’s creative potential, concerns remain about authenticity and job security in the industry. Some fear AI films could feel impersonal, while major studios continue to defend intellectual property.

Warner Bros., Disney, and Universal are in court with Midjourney over alleged copyright violations.

Despite the debate, OpenAI remains committed to its role in pushing generative storytelling. The company is also expanding its infrastructure, forecasting spending of $115 billion by 2029, with $8 billion planned for this year alone.

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

Cyberattack forces Jaguar Land Rover to halt production

Production at Jaguar Land Rover (JLR) is to remain halted until at least next week after a cyberattack crippled the carmaker’s operations. Disruption is expected to last through September and possibly into October.

The UK’s largest car manufacturer, owned by Tata, has suspended activity at its plants in Halewood, Solihull, and Wolverhampton. Thousands of staff have been told to stay home on full pay while ‘banking’ hours are to be recovered later.

Suppliers, including Evtec, WHS Plastics, SurTec, and OPmobility, which employ more than 6,000 people in the UK, have also paused their operations. The Sunday Times reported speculation that the outage could drag on for most of September.

While there is no evidence of a data breach, JLR has notified the Information Commissioner’s Office about potential risks. Dozens of internal systems, including spare parts databases, remain offline, forcing dealerships to revert to manual processes.

Hackers linked to the groups Scattered Spider, Lapsus$, and ShinyHunters have claimed responsibility for the incident. JLR stated that it was collaborating with cybersecurity experts and law enforcement to restore systems in a controlled and safe manner.

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

Anthropic settles $1.5 billion copyright case with authors

The AI startup, Anthropic, has agreed to pay $1.5 billion to settle a copyright lawsuit accusing the company of using pirated books to train its Claude AI chatbot.

The proposed deal, one of the largest of its kind, comes after a group of authors claimed the startup deliberately downloaded unlicensed copies of around 500,000 works.

According to reports, Anthropic will pay about $3,000 per book and add interest while agreeing to destroy datasets containing the material. A California judge will review the settlement terms on 8 September before finalising them.

Lawyers for the plaintiffs described the outcome as a landmark, warning that using pirated websites for AI training is unlawful.

The case reflects mounting legal pressure on the AI industry, with companies such as OpenAI and Microsoft also facing copyright disputes. The settlement followed a June ruling in which a judge said using the books to train Claude was ‘transformative’ and qualified as fair use.

Anthropic said the deal resolves legacy claims while affirming its commitment to safe AI development.

Despite the legal challenges, Anthropic continues to grow rapidly. Earlier in August, the company secured $13 billion in funding for a valuation of $183 billion, underlining its rise as one of the fastest-growing players in the global technology sector.

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

Google avoids breakup as court ruling fuels AI Mode expansion

A US district judge has declined to order a breakup of Google, softening the blow of a 2024 ruling that found the company had illegally monopolised online search.

The decision means Google can press ahead with its shift from a search engine into an answer engine, powered by generative AI.

Google’s AI Mode replaces traditional blue links with direct responses to queries, echoing the style of ChatGPT. While the feature is optional for now, it could become the default.

That alarms publishers, who depend on search traffic for advertising revenue. Studies suggest chatbots reduce referral clicks by more than 90 percent, leaving many sites at risk of collapse.

Google is also experimenting with inserting ads into AI Mode, though it remains unclear how much revenue will flow to content creators. Websites can block their data from being scraped, but doing so would also remove them from Google search entirely.

Despite these concerns, Google argues that competition from ChatGPT, Perplexity, and other AI tools shows that new rivals are reshaping the search landscape.

The judge even cited the emergence of generative AI as a factor that altered the case against Google, underlining how the rise of AI has become central to the future of the internet.

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

Quantum era promises new breakthroughs in security and sensing

Quantum technology has moved from academic circles into public debate, with applications already shaping industries and daily life.

For decades, quantum mechanics has powered tools like semiconductors, GPS and fibre optics, a foundation often described as Quantum 1.0. The UN has declared 2025 the International Year of Quantum Science and Technology to mark its impact.

Researchers are now advancing Quantum 2.0, which manipulates atoms, ions and photons to exploit superposition and entanglement. Emerging tools include quantum encryption systems, distributed atomic clocks to secure networks against GPS failures, and sensing devices with unprecedented precision.

Experts warn that disruptions to satellite navigation could cost billions, but quantum clocks may keep economies and critical infrastructure synchronised. With quantum computing and AI developing in parallel, future breakthroughs could transform medicine, energy, and security.

Achieving this vision will require global collaboration across governments, academia and industry to scale up technologies, ensure supply chain resilience and secure international standards.

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

Australia moves to block AI nudify apps

Australia has announced plans to curb AI tools that generate nude images and enable online stalking. The government said it would introduce new legislation requiring tech companies to block apps designed to abuse and humiliate people.

Communications Minister Anika Wells said such AI tools are fuelling sextortion scams and putting children at risk. So-called ‘nudify’ apps, which digitally strip clothing from images, have spread quickly online.

A Save the Children survey found one in five young people in Spain had been targeted by deepfake nudes, showing how widespread the abuse has become.

Canberra pledged to use every available measure to restrict access, while ensuring that legitimate AI services are not harmed. Australia has already passed strict laws banning under-16s from social media, with the new measures set to build on its reputation as a leader in online safety.

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

Nigeria sets sights on top 50 AI-ready nations

Nigeria has pledged to become one of the top 50 AI-ready nations, according to presidential adviser Hadiza Usman. Speaking in Abuja at a colloquium on AI policy, she said the country needs strong leadership, investment, and partnerships to meet its goals.

She stressed that policies must address Nigeria’s unique challenges and not simply replicate foreign models. The government will offer collaboration opportunities with local institutions and international partners.

The Nigerian Deposit Insurance Commission reinforced its support, noting that technology should secure depositors without restricting innovators.

Private sector voices said AI could transform healthcare, agriculture, and public services if policies are designed with inclusion and trust in mind.

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

Google Cloud study shows AI agents driving global business growth

A new Google Cloud study indicates that more than half of global enterprises are already using AI agents, with many reporting consistent revenue growth and faster return on investment.

The research, based on a survey of 3,466 executives across 24 countries, suggests agentic AI is moving from trial projects to large-scale deployment.

The findings by Google Cloud reveal that 52% of executives said their organisations actively use AI agents, while 39% reported launching more than ten. A group of early adopters, representing 13% of respondents, have gone further by dedicating at least half of their future AI budgets to agentic AI.

These companies are embedding agents across operations and are more likely to report returns in customer service, marketing, cybersecurity and software development.

The report also highlights how industries are tailoring adoption. Financial services focus on fraud detection, retail uses agents for quality control, and telecom operators apply them for network automation.

Regional variations are notable: European companies prioritise tech support, Latin American firms lean on marketing, while Asia-Pacific enterprises emphasise customer service.

Although enthusiasm is strong, challenges remain. Executives cited data privacy, security and integration with existing systems as key concerns.

Google Cloud executives said that early adopters are not only automating tasks but also reshaping business processes, with 2025 expected to mark a shift towards embedding AI intelligence directly into operations.

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

Coinbase relies on AI for nearly half of its code

Coinbase CEO Brian Armstrong said AI now generates around 40 per cent of the exchange’s code, expected to surpass 50 per cent by October 2025. He emphasised that human oversight remains essential, as AI cannot be uniformly applied across all areas of the platform.

Armstrong confirmed that engineers were instructed to adopt AI development tools within a week, with those resisting the mandate dismissed. The move places Coinbase ahead of technology giants such as Microsoft and Google, which use AI for roughly 30 per cent of their code.

Security experts have raised concerns about the heavy reliance on AI. Industry figures warn that AI-generated code could contain bugs or miss critical context, posing risks for a platform holding over $420 billion in digital assets.

Larry Lyu called the strategy ‘a giant red flag’ for security-sensitive businesses.

Supporters argue that Coinbase’s approach is measured. Richard Wu of Tensor said AI could generate up to 90 per cent of high-quality code within five years if paired with thorough review and testing, similar to junior engineer errors.

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

Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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