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AI and cyber priorities headline massive US defence budget bill

The US House of Representatives has passed an $848 billion defence policy bill with new provisions for cybersecurity and AI. Lawmakers voted 231 to 196 to approve the chamber’s version of the National Defence Authorisation Act (NDAA).

The bill mandates that the National Security Agency brief Congress on plans for its Cybersecurity Coordination Centre and requires annual reports from combatant commands on the levels of support provided by US Cyber Command.

It also calls for a software bill of materials for AI-enabled technology that the Department of Defence uses. The Pentagon will be authorised to create up to 12 generative AI projects to improve cybersecurity and intelligence operations.

An adopted amendment allows the NSA to share threat intelligence with the private sector to protect US telecommunications networks. Another requirement is that the Pentagon study the National Guard’s role in cyber response at the federal and state levels.

Proposals to renew the Cybersecurity Information Sharing Act and the State and Local Cybersecurity Grant Program were excluded from the final text. The Senate is expected to approve its version of the NDAA next week.

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EU considers social media restrictions for minors

European Commission President Ursula von der Leyen announced that the EU is considering tighter restrictions on children’s access to social media platforms.

During her annual State of the Union address, von der Leyen said the Commission is closely monitoring Australia’s approach, where individuals under 16 are banned from using platforms like TikTok, Instagram, and Snapchat.

‘I am watching the implementation of their policy closely,’ von der Leyen said, adding that a panel of experts will advise her on the best path forward for Europe by the end of 2025.

Currently, social media age limits are handled at the national level across the EU, with platforms generally setting a minimum age of 13. France, however, is moving toward a national ban for those under 15 unless an EU-wide measure is introduced.

Several EU countries, including the Netherlands, have already warned against children under 15 using social media, citing health risks.

In June, the European Commission issued child protection guidelines under the Digital Services Act, and began working with five member states on age verification tools, highlighting growing concern over digital safety for minors.

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Meta and TikTok win court challenge over EU fee

Europe’s General Court has backed challenges by Meta Platforms and TikTok against an EU supervisory fee imposed under the Digital Services Act (DSA). The companies argued that the levy was calculated unfairly and imposed a disproportionate financial burden.

The supervisory fee, introduced in 2022, requires large platforms to pay 0.05% of their annual global net income to cover monitoring costs. Meta and TikTok said the methodology relied on flawed data, inflated their fees, and even double-counted users.

Their lawyers told the court the process lacked transparency and produced ‘implausible’ results.

Lawyers for the European Commission defended the fee, arguing that group-wide financial resources justified the calculation method. They said the companies had adequate information about how the levy was determined.

The ruling reduces pressure on the two firms as they continue investing in the EU market. A final judgement from the General Court is expected next year and may shape how supervisory costs are applied to other major platforms.

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Cyberattack hits LNER passenger data, investigation under way

The contact details of rail passengers have been stolen in a cyberattack affecting London North Eastern Railway (LNER). The company stated that it had been notified of unauthorised access to files managed by a third-party supplier and advised customers to be vigilant against phishing attempts.

LNER stressed that no bank details, card numbers, or passwords had been compromised. The York-based operator stated that it was collaborating with cybersecurity experts and the supplier to investigate the breach and ensure necessary safeguards.

The company did not confirm the number of passengers affected. The incident comes as LNER reported revenues exceeding £1 billion, yet it continues to rely on government support since its nationalisation in 2018.

Passenger complaints rose 12.2 percent in 2025, reaching 24,015, and competition from private operators is driving losses—online ticket platforms such as Trainline direct passengers to cheaper rivals, costing LNER significant revenue.

The breach follows other attacks on UK transport services, including a 2024 incident in which the bank details of 5,000 Transport for London customers were exposed, resulting in weeks of disrupted online services.

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Cyberattack keeps JLR factories shut, hackers claim responsibility

Jaguar Land Rover (JLR) has confirmed that data was affected in a cyberattack that has kept its UK factories idle for more than a week. The company stated that it is contacting anyone whose data was involved, although it did not clarify whether the breach affected customers, suppliers, or internal systems.

JLR reported the incident to the Information Commissioner’s Office and immediately shut down IT systems to limit damage. Production at Midlands and Merseyside sites has been halted until at least Thursday, with staff instructed not to return before next week.

The disruption has also hit suppliers and retailers, with garages struggling to order spare parts and dealers facing delays registering vehicles. JLR said it is working around the clock to restore operations in a safe and controlled way, though the process is complex.

Responsibility for the hack has been claimed by Scattered Lapsus$ Hunters, a group linked to previous attacks on Marks & Spencer, the Co-op, and Las Vegas casinos in the UK and the US. The hackers posted alleged screenshots from JLR’s internal systems on Telegram last week.

Cybersecurity experts say the group’s claim that ransomware was deployed raises questions, as it appears to have severed ties with Russian ransomware gangs. Analysts suggest the hackers may have only stolen data or are building their own ransomware infrastructure.

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Small business revival could hinge on AI-driven tools

If AI is to matter in the economy, it must first matter to small businesses. Firms employ over 61 million people, nearly half the private workforce, yet most run on outdated technology. While smartphones update monthly, many small businesses still use systems built a decade ago.

Search fund entrepreneurs bridge this gap by upgrading established firms with modern tech. One deal turned a 50-person roadside assistance firm into Asurion, now a global tech-care provider. Others have scaled compliance firms into nationwide SaaS platforms.

Generative AI now accelerates these transformations, cutting work times by over 60% across supply chains, compliance, and document processing functions. Complex tasks can now be completed in hours, unlocking double-digit productivity gains and allowing small businesses to focus on growth.

Search funds are not the only path forward. AI consulting firms, tech studios, and AI-powered roll-up strategies bring enterprise-grade tools to family-run firms. For communities that have relied on traditional playbooks, decades of growth can be compressed into months.

The cost of AI has never been lower, and the opportunity is wide open. Once deployed at scale, AI could power a wave of productivity on Main Street, helping small businesses compete and strengthening the economy for half of their workforce.

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AI and AFM deliver real-time macrophage phenotyping

Macrophages drive immune responses, including inflammation, tissue repair, and tumour growth. Identifying their polarisation states is key for diagnosis and immunotherapy, but current methods, such as RNA sequencing and flow cytometry, are expensive, slow, and unsuitable for real-time use.

Atomic force microscopy (AFM) has emerged as a powerful tool for decoding mechanobiological signatures of cells. Combined with AI, AFM data can be rapidly analysed, but macrophage phenotyping has been relatively underexplored using this approach.

Researchers led by Prof Li Yang at the Shenzhen Institutes of Advanced Technology have now developed a label-free, non-invasive method combining AFM with deep learning. The system accurately profiles human macrophage mechanophenotypes and identifies polarisation states in real-time.

The AI model was trained on well-characterised macrophage subtypes and validated using flow cytometry. Results showed that pseudovirus stimulation mainly produced M1 macrophages, with smaller populations of M2 and mixed phenotypes, closely matching the model’s predictions.

The study, published in Small Methods, offers a promising diagnostic tool that could be extended beyond macrophages to other cell types. It could support new approaches in cancer, fibrosis, and infectious disease diagnostics based on mechanophenotypes.

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NotebookLM turns notes into flashcards podcasts and quizzes

Google’s learning-focused AI tool NotebookLM has gained a major update, making studying and teaching more interactive.

Instead of offering only static summaries, it now generates flashcards that condense key information into easy-to-remember notes, helping users recall knowledge more effectively.

Reports can also be transformed into quizzes with customisable topics and difficulty, which can then be shared with friends or colleagues through a simple link.

The update extends to audio learning, where NotebookLM’s podcast-style Audio Overviews are evolving with new formats. Instead of a single style, users can now create Brief, Debate, or Critique episodes, giving greater flexibility in how material is explained or discussed.

Google is also strengthening its teaching tools. A new Blog Post format offers contextual suggestions such as strategy papers or explainers, while the ability to create custom report formats allows users to design study resources tailored to their needs.

The most significant addition, however, is the Learning Guide. Acting like a personal tutor, it promotes deeper understanding by asking open-ended questions, breaking problems into smaller steps, and adapting explanations to suit each learner.

With these features, NotebookLM is moving closer to becoming a comprehensive learning assistant, offering a mix of interactive study aids and adaptable teaching methods that go beyond simple note-taking.

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Canadian news publishers clash with OpenAI in landmark copyright case

OpenAI is set to argue in an Ontario court that a copyright lawsuit by Canadian news publishers should be heard in the United States. The case, the first of its kind in Canada, alleges that OpenAI scraped Canadian news content to train ChatGPT without permission or payment.

The coalition of publishers, including CBC/Radio-Canada, The Globe and Mail, and Postmedia, says the material was created and hosted in Ontario, making the province the proper venue. They warn that accepting OpenAI’s stance would undermine Canadian sovereignty in the digital economy.

OpenAI, however, says the training of its models and web crawling occurred outside Canada and that the Copyright Act cannot apply extraterritorially. It argues the publishers are politicising the case by framing it as a matter of sovereignty rather than jurisdiction.

The dispute reflects a broader global clash over how generative AI systems use copyrighted works. US courts are already handling several similar cases, though no clear precedent has been established on whether such use qualifies as fair use.

Publishers argue Canadian courts must decide the matter domestically, while OpenAI insists it belongs in US courts. The outcome could shape how copyright laws apply to AI training and digital content across borders.

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Ransomware 3.0 raises alarm over AI-generated cyber threats

Researchers at NYU’s Tandon School of Engineering have demonstrated how large language models can be utilised to execute ransomware campaigns autonomously. Their prototype, dubbed Ransomware 3.0, simulated every stage of an attack, from intrusion to the generation of a ransom note.

The system briefly raised an alarm after cybersecurity firm ESET discovered its files on VirusTotal, mistakenly identifying them as live malware. The proof-of-concept was designed only for controlled laboratory use and posed no risk outside testing environments.

Instead of pre-written code, the prototype embedded text instructions that triggered AI models to generate tailored attack scripts. Each execution created unique code, evading traditional detection methods and running across Windows, Linux, and Raspberry Pi systems.

The researchers found that the system identified up to 96% of sensitive files and could generate personalised extortion notes, raising psychological pressure on victims. With costs as low as $0.70 per attack using commercial AI services, such methods could lower barriers for criminals.

The team stressed that the work was conducted ethically and aims to help defenders prepare countermeasures. They recommend monitoring file access patterns, limiting outbound AI connections, and developing defences against AI-generated attack behaviours.

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