National security concerns reshape US data policy

US policymakers are increasingly treating personal data as a dual use asset that carries both economic value and national security risks. Regulators have raised concerns about sensitive information, including geolocation data linked to military personnel.

Measures such as the Protecting Americans Data from Foreign Adversaries Act of 2024 and the Department of Justice Data Security Program aim to curb misuse by designated foreign adversaries. Both frameworks impose broad restrictions on cross border data transfers.

Experts warn that compliance remains complex and uncertain, with companies adapting in what one adviser described as a fog. Enforcement signals have already emerged, including a draft noncompliance letter from the Federal Trade Commission and litigation.

Organizations are being urged to integrate national security expertise into privacy and cybersecurity teams. Observers say early preparation is essential as selective enforcement risks increase under strict but evolving US data protection regimes.

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EDPS and regulators unite to address misuse of AI imagery across jurisdictions

The European Data Protection Supervisor (EDPS) and authorities from 61 jurisdictions issued a joint statement on AI-generated imagery, warning about tools that create realistic depictions of identifiable individuals without consent. The move underscores concerns over privacy, dignity and child safety.

Authorities said advances in AI image and video tools, especially when integrated into social media platforms, have enabled non-consensual intimate imagery, defamatory depictions, and other harmful content. Children and vulnerable groups are seen as particularly at risk.

The EDPS and the other signatories reminded organisations that AI content-generation systems must comply with applicable data protection and privacy laws. They stressed that creating non-consensual intimate imagery may constitute a criminal offence in many jurisdictions.

Organisations are urged to implement safeguards against misuse of personal data, ensure transparency about system capabilities and uses, and provide accessible mechanisms for swift content removal. Stronger protections and age-appropriate information are expected where children are involved.

Authorities signalled plans for coordinated responses, including enforcement, policy development and education initiatives. The EDPS and fellow signatories urged organisations to engage proactively with regulators and ensure innovation does not undermine fundamental rights.

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EU AI Act enforcement begins, reshaping startup compliance landscape

The first enforcement provisions of the EU AI Act entered into force on 2 February 2025, marking a turning point for Europe’s AI startup ecosystem. The initial phase targets ‘unacceptable risk’ systems, including social scoring, real-time biometric surveillance in public spaces, and manipulative AI practices.

Under the regulation, penalties can reach €35 million or 7% of global annual turnover, whichever is higher. Although the current enforcement covers only prohibited practices, the move signals that Europe’s AI rulebook is now operational rather than theoretical.

Broader obligations for high-risk AI systems, such as hiring tools, credit scoring, and medical diagnostics, will apply from August 2026. Separate rules for general-purpose AI models are scheduled to take effect in August 2025.

Surveys from European SME groups indicate that many smaller technology companies feel unprepared. A significant share of reports have not conducted formal risk classification of their AI systems, despite this being a foundational requirement under the EU AI Act’s tiered framework.

While some founders warn that compliance costs could slow innovation, others point to long-term benefits from clearer governance standards. For startups, the coming months will focus on aligning products with AI Act risk tiers and strengthening documentation and oversight before stricter rules apply.

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Reddit hit with a major ICO penalty over children’s privacy failures

The UK’s Information Commissioner’s Office has fined Reddit £14.47 million after finding that the platform unlawfully used children’s personal information and failed to put in place adequate age checks.

The regulator concluded that Reddit allowed children under 13 to access the platform without robust age-verification measures, leaving them exposed to content they were not able to understand or control.

Although Reddit updated its processes in July 2025, self-declaration remained easy to bypass, offering only a veneer of protection. Investigators also found that the company had not completed a data protection impact assessment until 2025, despite a large number of teenagers using the service.

Concerns were heightened by the volume of children affected and the risks created by relying on inadequate age checks.

The regulator noted that unlawful data processing occurred over a prolonged period, and that children were at risk of viewing harmful material while their information was processed without a lawful basis.

UK Information Commissioner John Edwards said companies must prioritise meaningful age assurance and understand the responsibilities set out in the Children’s Code.

The ICO said it will continue monitoring Reddit’s current controls and expects online platforms to align with robust age-assurance standards rather than rely on weak verification.

It will coordinate its oversight with Ofcom as part of broader efforts to strengthen online safety and ensure under-18s benefit from high privacy protections by default.

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Microsoft expands Sovereign Cloud with secure offline support for large AI models

Digital sovereignty is gaining urgency as organisations seek infrastructure that remains secure and reliable under strict regulatory conditions.

Microsoft is expanding its Sovereign Cloud to help public bodies, regulated industries and enterprises maintain control of data and operations even when environments must operate without external connectivity.

The updated portfolio allows customers to choose how each workload is governed, rather than relying on a single deployment model.

Azure Local now supports disconnected operations, keeping mission-critical systems running with full Azure governance within sovereign boundaries. Management, policies and workloads stay entirely on site, so services continue during periods of isolation.

Microsoft 365 Local extends the resilience to the productivity layer by enabling Exchange Server, SharePoint Server and Skype for Business Server to run locally, giving teams secure collaboration within the same protected boundary as their infrastructure.

Support for large multimodal AI models is delivered through Foundry Local, which enables advanced inference on customer-controlled hardware using technology from partners such as NVIDIA.

Such an approach helps organisations bring modern AI capabilities into highly restricted environments while preserving control over data, identities and operational procedures.

Microsoft positions it as a unified stack that works across connected, hybrid and fully disconnected modes without increasing operational complexity.

These additions create a framework designed for governments and regulated industries that regard sovereignty as a strategic priority.

With global availability for qualified customers, the Sovereign Cloud aims to preserve continuity, reinforce governance and expand AI capability while keeping every layer of the environment within local control.

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OURA launches AI model tailored to women’s physiology with privacy-first design

Guidance for women’s health is entering a new phase as ŌURA introduces a proprietary large language model designed specifically for reproductive and hormonal wellbeing.

The model sits within Oura Advisor and is available for testing through Oura Labs, drawing on clinical standards, peer-reviewed evidence and biometric signals collected through the Oura Ring to create personalised and context-aware responses.

The system interprets questions through women’s physiology instead of depending on general-purpose models that miss critical hormonal and life-stage variables.

It supports the full spectrum of reproductive health, from the earliest menstrual patterns to menopause, and is intentionally tuned to be non-dismissive and emotionally supportive.

By combining longitudinal sleep, activity, stress, cycle and pregnancy data with clinician-reviewed research, the model aims to strengthen understanding and preparation ahead of medical appointments.

Privacy forms the centre of the architecture, with all processing hosted on infrastructure controlled entirely by the company. Conversations are neither shared nor sold, reflecting ŌURA’s broader push for private AI.

Oura Labs operates as an opt-in experimental environment where new features are tested in collaboration with members who can leave at any time.

Women who take part influence the model’s evolution by contributing feedback that informs future development.

These interactions help refine personalised insights across fertility, cycle irregularities, pregnancy changes and other hormonal shifts, marking a significant step in how the Finland-founded company advances preventive, data-guided care for its global community.

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NVIDIA healthcare survey shows surge in AI adoption and strong ROI

AI is reshaping healthcare as organisations shift from trial projects to large-scale deployment.

The latest industry survey from NVIDIA shows widespread adoption across digital healthcare, biotechnology, pharmaceuticals and medical technology, signalling a sector that is now executing rather than experimenting.

Uptake is expanding rapidly, with generative AI and large language models becoming central tools for clinical and operational tasks.

The report highlights how medical imaging, drug discovery and clinical decision support are among the most prominent applications. Radiologists are using AI to accelerate image analysis, while research teams apply advanced models to speed early-stage drug development.

Organisations benefit from workflow optimisation instead of relying on manual administrative routines, with many citing improvements in patient coordination, documentation and coding.

Open-source models are increasingly important, with most respondents considering them vital for domain-specific development.

Experts argue that open-source innovation will guide exploration, whereas deployment in clinical environments will demand rigorous validation and accountability rather than unrestricted experimentation.

Agentic AI is emerging as a new capability for knowledge retrieval and literature analysis.

Evidence of return on investment is clear, prompting 85% of organisations to expand their AI budgets. Many report higher revenue, reduced costs and significant gains in back-office productivity.

Evaluation is becoming a core operational requirement, ensuring AI continues to improve safety, quality and overall clinical performance over time.

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New Relic advances AI agents for enterprise observability

The expansion into enterprise AI comes with a no-code platform from New Relic that allows companies to build and supervise their own observability agents.

A system that assembles AI-driven monitors designed to detect bugs and performance problems before they affect users, instead of leaving teams to rely on manual tracking.

It also supports the Model Context Protocol so organisations can link external data sources to the agents and integrate them with existing New Relic tools.

The company stresses that the platform is intended to complement other agent systems rather than replace them.

As AI agent software spreads across the market, enterprises are searching for ways to manage risk when giving automated tools access to internal systems.

Industry players such as Salesforce and OpenAI have already introduced their own agent platforms, and assessments from Gartner describe these frameworks as essential infrastructure for wider AI adoption.

New Relic also introduced new tools for the OpenTelemetry framework to remove friction around observability standards.

Its application performance monitoring agents now support OTel data, allowing enterprises to manage these streams in one place instead of operating separate collectors.

The update aims to reduce fragmentation that has slowed OTel deployment across large organisations and to simplify how engineering teams handle diverse observability pipelines.

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Sony targets AI music copyright use

Sony Group has developed technology designed to identify the original sources of music generated by AI. The move comes amid growing concern over the unauthorised use of copyrighted works in AI training.

According to Sony Group, the system can extract data from an underlying AI model and compare generated tracks with original compositions. The process aims to quantify how much specific works contributed to the output.

Composers, songwriters and publishers could use the technology to seek compensation from AI developers if their material was used without permission. Sony said the goal is to help ensure creators are properly rewarded.

Efforts to safeguard intellectual property have intensified across the music industry. Sony Music Entertainment in the US previously filed a copyright infringement lawsuit in 2024 over AI-generated music, underscoring wider tensions around AI and creative rights.

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Commission delays high risk AI guidance

The European Commission has confirmed it will again delay publishing guidance on high-risk AI systems under the EU AI Act. The guidelines were due by 2 February 2026, but will now follow a revised timeline.

According to Euractiv, the document is intended to clarify which AI systems fall into the high-risk category and therefore face stricter obligations. Officials said more time is needed to incorporate significant stakeholder feedback.

The delay marks the second missed deadline and adds to broader implementation setbacks surrounding the EU AI Act. Several member states have yet to designate national enforcement bodies, complicating oversight preparations.

Brussels is also considering postponing the application of high-risk rules through a digital simplification package. Parliament and Council appear supportive of moving the August deadline back by more than a year, easing pressure on companies awaiting guidance.

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