Human rights principles Archives | Digital Watch Observatory

McKinsey claims agentic AI will reshape global banking

Agentic AI is set to transform banking operations in the US and Asia, according to a McKinsey podcast featuring senior partners from New York, Mumbai and London. The technology goes beyond traditional automation by handling less structured tasks and supporting end to end decision making.

Research cited in the discussion suggests many banks are experimenting with AI, yet few report material financial gains. Leaders in the US and Asia are urged to avoid narrow pilot projects and instead redesign workflows, teams and governance around AI at scale.

McKinsey partners said successful banks in the US and Asia are aligning chief executives, technology leaders and risk officers behind a shared strategy. Operations, risk management and frontline services are seen as areas where AI could deliver significant productivity and quality gains.

Banks in India and other Asian markets are also benefiting from regulatory engagement, including guidance from the Reserve Bank of India. Speakers argued that workforce training, cross functional collaboration and clear accountability will determine whether AI delivers lasting impact in the US.

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Data sovereignty becomes an infrastructure strategy in the AI era

For most of the past decade, data governance was treated as a legal issue. IT built networks and bought tools, while regulators were someone else’s problem. That division no longer holds. Cloud adoption and AI have turned data sovereignty into a core infrastructure and strategy question.

Regulatory frameworks such as GDPR, NIS2, and DORA are expanding and being enforced more strictly. Governments are also scrutinising foreign cloud providers and cross-border access. Local data storage no longer ensures absolute data sovereignty if critical control layers remain outside national jurisdiction.

Traditional SASE and SSE models were not built for this environment. Many still separate outbound cloud traffic from inbound controls. That split creates blind spots in distributed architectures and complicates consistent policy enforcement.

AI workloads intensify the pressure. Retailers, banks, and manufacturers are deploying models locally, not just in hyperscale clouds. Securing east-west traffic across systems and APIs without undermining data sovereignty is becoming a central architectural challenge.

Managed sovereign infrastructure is one response. It reduces reliance on external cloud paths while preserving operational scale. Ultimately, organisations must align security, AI deployment, and governance with long-term resilience goals.

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Australia begins a landmark study on social media minimum age

eSafety Commissioner has lau n ched a major evaluation of Australia’s Social Media Minimum Age to understand how platforms are applying the requirement and what effects it is having on children, young people and families.

The study aims to deliver robust evidence about both intended and unintended impacts as the national debate on youth, wellbeing and digital environments intensifies.

Over more than two years, the research will follow more than four thousand children and families in Australia, combining surveys, interviews, group discussions and privacy-protected smartphone tracking.

Administrative data from national literacy assessments and health systems will be linked to deepen understanding of online behaviour, wellbeing and exposure to risk. All research materials are publicly available through the Open Science Framework to maintain transparency.

The project is led by eSafety’s Research and Evaluation team in partnership with the Stanford University Social Media Lab and an Academic Advisory Group of specialists in mental health, youth development and digital technologies.

Young people themselves are shaping the study through the eSafety Youth Council, ensuring that the interpretation reflects lived experience rather than external assumptions. Full ethics approval underpins the methodology, which meets strict standards of integrity and privacy.

Findings will be released from late 2026 onward, with early reports analysing the experiences of children under sixteen.

The results will inform a legislative review conducted by Australia’s Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.

eSafety expects the evaluation to become a major evidence source for policymakers, researchers and communities as the global conversation on minors and social media regulation continues.

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Pakistan’s digital transformation highlighted as UNESCO advances AI ethics

UNESCO used the Pakistan Governance Forum 2026 to highlight the need for a structured Ethical AI and Data Governance Framework as the country accelerates its digital transformation.

Federal leaders, provincial authorities and civil society convened to examine governance reforms, with UNESCO urging Pakistan to align its expanding digital public infrastructure with coherent standards that protect rights while enabling innovation.

Speaking at the Forum, Fuad Pashayev underlined that Pakistan’s reform priority should centre on the Recommendation on the Ethics of Artificial Intelligence, adopted unanimously by all 193 Member States.

Anchoring national systems in transparency, accountability and meaningful human oversight was framed as essential for maintaining public trust as digital services reshape access to benefits and interactions between citizens and the state.

To support the shift, UNESCO promoted its AI Readiness Assessment Methodology (RAM), which is already deployed in more than 50 countries. The tool helps governments identify regulatory gaps, strengthen institutional coordination and design safeguards against discrimination and algorithmic bias.

UNESCO has already contributed to Pakistan’s draft National AI Policy, ensuring alignment with international ethical frameworks while accommodating national development needs.

Capacity building formed a major pillar of UNESCO’s engagement. In partnership with the University of Oxford, the organisation launched a global course on AI and Digital Transformation in Government in 2025, attracting over nineteen thousand enrolments worldwide.

Pakistan leads participation globally, reflecting both the country’s momentum and growing demand for structured training.

UNESCO’s ongoing work aims to reinforce data governance, improve AI readiness and embed ethical safeguards across Pakistan’s digital transformation strategy.

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Google API keys exposed after Gemini privilege expansion

Security researchers warn that exposed Google API keys in public client-side code could be used to authenticate with the Gemini AI assistant and access private data. The issue arose after developers enabled the Generative Language API in existing projects without updating key permissions.

Truffle Security scanned the November 2025 Common Crawl dataset and identified more than 2,800 live Google API keys publicly exposed in website source code. Some belonged to financial institutions, security firms, recruitment companies, and Google infrastructure.

Before Gemini’s launch, Google Cloud API keys were widely treated as non-sensitive identifiers for services such as Maps, YouTube embeds, analytics, and Firebase. After Gemini was introduced, those duplicate Google API keys also acted as authentication credentials for the AI assistant, expanding their privileges.

Researchers demonstrated the risk by using one exposed key to query the Gemini API models endpoint and list available models. They warned that attackers could exploit such access to extract private data or generate substantial API charges on victim accounts.

Google was notified in November 2025 and later classified the issue as a single-service privilege escalation. The company said it has introduced controls to block leaked keys, limit new AI Studio keys to Gemini-only scope, and notify developers of detected exposure.

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AI use among students surges as chatbots reshape schoolwork

More than half of US teenagers use AI tools to help with schoolwork, according to a new Pew Research Center study. The survey found that 54% of students aged 13 to 17 have used chatbots such as OpenAI’s ChatGPT or Microsoft’s Copilot to research assignments or solve maths problems.

Usage has risen in recent years. In 2024, 26% of US teens reported using ChatGPT for schoolwork, up from 13% in 2023. The latest survey of 1,458 teens and parents found 44% use AI for some schoolwork, while 10% rely on chatbots for most tasks.

Researchers say AI assistance is becoming routine in classrooms. Colleen McClain, a senior researcher at Pew and co-author of the report, said chatbot use for schoolwork is now a common practice among teens.

Findings come amid an intensifying debate over generative AI in education. Supporters argue that schools should teach students to use and evaluate AI tools, while critics warn of misinformation, reduced critical thinking, and increased cheating.

Recent research has raised questions about learning outcomes. One study by Cambridge University Press & Assessment and Microsoft Research found that students who took notes without chatbot support showed stronger reading comprehension than those using AI assistance.

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ChatGPT Health under fire after study finds major failures in emergency detection

A new evaluation of ChatGPT Health has raised major safety concerns after researchers found it frequently failed to recognise urgent medical emergencies.

The independent study, published in Nature Medicine, reported that the system under-triaged more than half of the clinical scenarios tested, giving advice that could have delayed life-saving treatment.

The research team, led by Ashwin Ramaswamy, created sixty patient simulations ranging from minor illnesses to life-threatening conditions.

Three doctors agreed on the appropriate urgency for each case before comparing their judgement with the model’s responses. The AI performed adequately in straightforward emergencies such as strokes, yet frequently minimised danger in more complex presentations, including severe asthma and diabetic crises.

Experts also warned that ChatGPT Health struggled to detect suicidal ideation reliably. Minor changes to scenario details, such as adding normal lab results, caused safeguards to disappear entirely.

Critics, including health-misinformation researcher Alex Ruani, described the behaviour as dangerously inconsistent and capable of creating a false sense of security.

OpenAI said the study did not reflect typical real-world use but acknowledged the need for continued research and improvement.

Policy specialists argue that the findings underline the need for clear safety standards, external audits and stronger transparency requirements for AI systems operating in sensitive medical contexts.

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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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Vietnamese AI firm Namitech provides live translation support at Nikkei Digital Forum in Asia 2026

At the Nikkei Digital Forum in Asia 2026, held in Vietnam, local technology company Namitech showcased its AI-powered translation platform to deliver real-time language support for delegates, speakers and international attendees.

The system aimed to automatically translate speeches and discussions across languages such as Vietnamese, English and Japanese, enhancing accessibility and communication in a multilingual business context.

Namitech’s AI solution combines speech-to-text, natural language processing and translation models to provide near-instant interpretation, reducing reliance on traditional human interpreters and lowering language barriers at high-profile forums.

Organisers and participants highlighted the convenience and effectiveness of the tool, noting smoother engagement for non-native speakers and more inclusive participation.

The deployment reflects broader regional interest in AI-driven language technologies to support business, diplomacy and cross-border collaboration in Asia.

It also highlights Vietnam’s growing role in domestic AI development and its integration into international platforms, aligning with efforts to adopt digital tools that facilitate global dialogue and economic integration.

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