Vietnam unveils draft AI law inspired by EU model

Vietnam is preparing to become one of Asia’s first nations with a dedicated AI law, following the release of a draft bill that mirrors key elements of the EU’s AI Act. The proposal aims to consolidate rules for AI use, strengthen rights protections and promote innovation.

The law introduces a four-tier system for classifying risks, from banned applications such as manipulative facial recognition to low-risk uses subject to voluntary standards. High-risk systems, including those in healthcare or finance, would require registration, oversight and incident reporting to a national database.

Under the law, companies deploying powerful general-purpose AI models must meet strict transparency, safety and intellectual property standards. The law would create a National AI Commission and a National AI Development Fund to support local research, sandboxes and tax incentives for emerging businesses.

Violations involving unsafe AI systems could lead to revenue-based fines and suspensions. The phased rollout begins in January 2026, with full compliance for high-risk systems expected by mid-2027. The government of Vietnam says the initiative reflects its ambition to build a trustworthy AI ecosystem.

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

Quebec man fined for using AI-generated evidence in court

A Quebec court has fined Jean Laprade C$5,000 (US$3,562) for submitting AI-generated content as part of his legal defence. Justice Luc Morin described the move as ‘highly reprehensible,’ warning that it could undermine the integrity of the judicial system.

The case concerned a dispute over a contract for three helicopters and an airplane in Guinea, where a clerical error awarded Laprade a more valuable aircraft than agreed. He resisted attempts by aviation companies to recover it, and a 2021 Paris arbitration ruling ordered him to pay C$2.7 million.

Laprade submitted fabricated AI-generated materials, including non-existent legal citations and inconsistent conclusions, in an attempt to strengthen his defence.

The judge emphasised that AI-generated information must be carefully controlled by humans, and the filing of legal documents remains a solemn responsibility. Morin acknowledged the growing influence of AI in courts but stressed the dangers of misuse.

While noting Laprade’s self-representation, the judge condemned his use of ‘hallucinated’ AI evidence and warned of future challenges from AI in courts.

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

Humanity AI launches $500M initiative to build a people-centred future

A coalition of ten leading philanthropic foundations has pledged $500 million over five years to ensure that AI evolves in ways that strengthen humanity rather than marginalise it.

The initiative, called Humanity AI, brings together organisations such as the Ford, MacArthur, Mellon, and Mozilla foundations to promote a people-driven vision for AI that enhances creativity, democracy, and security.

As AI increasingly shapes every aspect of daily life, the coalition seeks to place citizens at the centre of the conversation instead of leaving decisions to a few technology firms.

It plans to support new research, advocacy, and partnerships that safeguard democratic rights, protect creative ownership, and promote equitable access to education and employment.

The initiative also prioritises the ethical use of AI in safety and economic systems, ensuring innovation does not come at the expense of human welfare.

John Palfrey, president of the MacArthur Foundation, said Humanity AI aims to shift power back to the public by funding technologists and advocates committed to responsible innovation.

Michele Jawando of the Omidyar Network added that the future of AI should be designed by people collectively, not predetermined by algorithms or corporate agendas.

Rockefeller Philanthropy Advisors will oversee the fund, which begins issuing grants in 2026. Humanity AI invites additional partners to join in creating a future where people shape technology instead of being shaped by it.

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

UK and US freeze assets of Southeast Asian online scam network

The UK and US governments have jointly sanctioned a transnational network operating illegal scam centres across Southeast Asia. These centres use sophisticated methods, including fake romantic relationships, to defraud victims worldwide.

Many of the individuals forced to conduct these scams are trafficked foreign nationals, coerced under threat of torture. Authorities have frozen a £12 million North London mansion, along with a £100 million City office and several London flats.

Network leader Chen Zhi and his associates used corporate proxies and overseas companies to launder proceeds from their scams through London’s property market.

The sanctioned entities include the Prince Group, Jin Bei Group, Golden Fortune Resorts World Ltd., and Byex Exchange. Scam operations trap foreign nationals with fake job adverts, forcing them to commit online fraud, often through fake cryptocurrency schemes.

Proceeds are then laundered through a complex system of front businesses and gambling platforms.

Foreign Secretary Yvette Cooper and Fraud Minister Lord Hanson said the action protects human rights, UK citizens, and blocks criminals from storing illicit funds. Coordination with the US ensures these sanctions disrupt the network’s international operations and financial access.

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

Adult erotica tests OpenAI’s safety claims

OpenAI will loosen some ChatGPT rules, letting users make replies friendlier and allowing erotica for verified adults. Altman framed the shift as ‘treat adult users like adults’, tied to stricter age-gating. The move follows months of new guardrails against sycophancy and harmful dynamics.

The change arrives after reports of vulnerable users forming unhealthy attachments to earlier models. OpenAI has since launched GPT-5 with reduced sycophancy and behaviour routing, plus safeguards for minors and a mental-health council. Critics question whether evidence justifies loosening limits so soon.

Erotic role-play can boost engagement, raising concerns that at-risk users may stay online longer. Access will be restricted to verified adults via age prediction and, if contested, ID checks. That trade-off intensifies privacy tensions around document uploads and potential errors.

It is unclear whether permissive policies will extend to voice, image, or video features, or how regional laws will apply to them. OpenAI says it is not ‘usage-maxxing’ but balancing utility with safety. Observers note that ambitions to reach a billion users heighten moderation pressures.

Supporters cite overdue flexibility for consenting adults and more natural conversation. Opponents warn normalising intimate AI may outpace evidence on mental-health impacts. Age checks can fail, and vulnerable users may slip through without robust oversight.

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

Wider AI applications take centre stage at Japan’s CEATEC electronics show

At this year’s CEATEC exhibition in Japan, more companies and research institutions are promoting AI applications that stretch well beyond traditional factory or industrial automation.

Innovations on display suggest an increasing emphasis on ‘AI as companion’ systems, tools that help, advise, or augment human abilities in everyday settings.

Fujitsu’s showcase is a strong example. The company is using AI skeleton recognition and agent-based analysis to help people improve movement, whether for sports performance (such as refining a golf swing) or for healthcare settings. These systems give live feedback, coaching form, and offer suggestions, all in real time.

Other exhibits combine sensor tech, vision, and AI in consumer-friendly ways. For example, smart fridge compartments that monitor produce, earbuds or glasses that recognise real-world context (a flyer in a shop, say) and suggest recipes, or wearable systems that adapt to your motion.

These are not lab demos, they’re meant for direct, everyday interaction. Rising numbers of startups and university groups at CEATEC underscore Japan’s push toward embedding AI deeply in daily life.

The ‘AI for All’ theme and ‘Partner Parks’ at the show reflect a movement toward socially oriented technologies, with suggestions, health, ease, and personalisation. Japan seems to be leaning into AI not just for productivity gains but for lifestyle and well-being enhancements.

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

OpenAI forms Expert Council to guide well-being in AI

OpenAI has announced the establishment of an Expert Council on Well-Being and AI to help it shape ChatGPT, Sora and other products in ways that promote healthier interactions and better emotional support.

The council comprises eight distinguished figures from psychology, psychiatry, human-computer interaction, developmental science and clinical practice.

Members include David Bickham (Digital Wellness Lab, Harvard), Munmun De Choudhury (Georgia Tech), Tracy Dennis-Tiwary (Hunter College), Sara Johansen (Stanford), Andrew K. Przybylski (University of Oxford), David Mohr (Northwestern), Robert K. Ross (public health) and Mathilde Cerioli (everyone.AI).

OpenAI says this new body will meet regularly with internal teams to examine how AI should function in ‘complex or sensitive situations,’ advise on guardrails, and explore what constitutes well-being in human-AI interaction. For example, the council already influenced how parental controls and user-teen distress notifications were prioritised.

OpenAI emphasises that it remains accountable for its decisions, but commits to ongoing learning through this council, the Global Physician Network, policymakers and experts. The company notes that different age groups, especially teenagers, use AI tools differently, hence the need for tailored insights.

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

US seizes $15 billion crypto from Cambodia fraud ring

US federal prosecutors have seized $15 billion in cryptocurrency tied to a large-scale ‘pig butchering’ investment scam linked to forced labour compounds in Cambodia. Officials said it marks the biggest crypto forfeiture in Justice Department history.

Authorities charged Chinese-born businessman Chen Zhi, founder of the Prince Group, with money laundering and wire fraud. Chen allegedly used the conglomerate as cover for criminal operations that laundered billions through fake crypto investments. He remains at large.

Investigators say Chen and his associates operated at least ten forced labour sites in Cambodia where victims, many coerced workers, managed thousands of fake social media accounts to lure targets into fraudulent investment schemes.

The US Treasury also imposed sanctions on dozens of Prince Group affiliates, calling them transnational criminal organisations. FBI officials said the scam is part of a wider wave of crypto fraud across Southeast Asia, urging anyone targeted by online investment offers to contact authorities immediately.

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

An awards win for McAfee’s consumer-first AI defence

McAfee won ‘Best Use of AI in Cybersecurity’ at the 2025 A.I. Awards for its Scam Detector. The tool, which McAfee says is the first to automate deepfake, email, and text-scam detection, underscores a consumer-focused defence. The award recognises its bid to counter fast-evolving online fraud.

Scams are at record levels, with one in three US residents reporting victimisation and average losses of $1,500. Threats now range from fake job offers and text messages to AI-generated deepfakes, increasing the pressure on tools that can act in real time across channels.

McAfee’s Scam Detector uses advanced AI to analyse text, email, and video, blocking dangerous links and flagging deepfakes before they cause harm. It is included with core McAfee plans and available on PC, mobile, and web, positioning it as a default layer for everyday protection.

Adoption has been rapid, with the product crossing one million users in its first months, according to the company. Judges praised its proactive protection and emphasis on accuracy and trust, citing its potential to restore user confidence as AI-enabled deception becomes more sophisticated.

McAfee frames the award as validation of its responsible, consumer-first AI strategy. The company says it will expand Scam Detector’s capabilities while partnering with the wider ecosystem to keep users a step ahead of emerging threats, both online and offline.

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

New AI predicts future knee X-rays for osteoarthritis patients

In the UK, an AI system developed at the University of Surrey can predict what a patient’s knee X-ray will look like a year in the future, offering a visual forecast alongside a risk score for osteoarthritis progression.

The technology is designed to help both patients and doctors better understand how the condition may develop, allowing earlier and more informed treatment decisions.

Trained on nearly 50,000 knee X-rays from almost 5,000 patients, the system delivers faster and more accurate predictions than existing AI tools.

It uses a generative diffusion model to produce a future X-ray and highlights 16 key points in the joint, giving clinicians transparency and confidence in the areas monitored. Patients can compare their current and predicted X-rays, which can encourage adherence to treatment plans and lifestyle changes.

Researchers hope the technology could be adapted for other chronic conditions, including lung disease in smokers or heart disease progression, providing similar visual insights.

The team is seeking partnerships to integrate the system into real-world clinical settings, potentially transforming how millions of people manage long-term health conditions.

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