Internet of things

ACCC lawsuit triggers Microsoft’s rethink and apology on Copilot subscription communications

Microsoft apologised after Australia’s regulator said it steered Microsoft 365 users to pricier Copilot plans while downplaying cheaper Classic tiers. The move follows APAC price-rise emails and confusion over Personal and Family increases.

ACCC officials said communications may have denied customers informed choices by omitting equivalent non-AI plans. Microsoft acknowledged it could have been clearer and accepted that Classic alternatives might have saved some subscribers money under the October 2024 changes.

Redmond is offering affected customers refunds for the difference between Copilot and Classic tiers and has begun contacting subscribers in Australia and New Zealand. The company also re-sent its apology email after discovering a broken link to the Classic plans page.

Questions remain over whether similar remediation will extend to Malaysia, Singapore, Taiwan, and Thailand, which also saw price hikes earlier this year. Consumer groups are watching for consistent remedies and plain-English disclosures across all impacted markets.

Regulators have sharpened scrutiny of dark patterns, bundling, and AI-linked upsells as digital subscriptions proliferate. Clear side-by-side plan comparisons and functional disclosures about AI features are likely to become baseline expectations for compliance and customer trust.

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Snap brings Perplexity’s answer engine into Chat for nearly a billion users

Starting in early 2026, Perplexity’s AI will be integrated into Snapchat’s Chat, accessible to nearly 1 billion users. Snapchatters can ask questions and receive concise, cited answers in-app. Snap says the move reinforces its position as a trusted, mobile-first AI platform.

Under the deal, Perplexity will pay Snap $400 million in cash and equity over a one-year period, tied to the global rollout. Revenue contribution is expected to begin in 2026. Snap points to its 943 million MAUs and reaches over 75% of 13–34-year-olds in 25+ countries.

Perplexity frames the move as meeting curiosity where it occurs, within everyday conversations. Evan Spiegel says Snap aims to make AI more personal, social, and fun, woven into friendships and conversations. Both firms pitch the partnership as enhancing discovery and learning on Snapchat.

Perplexity joins, rather than replaces, Snapchat’s existing My AI. Messages sent to Perplexity will inform personalisation on Snapchat, similar to My AI’s current behaviour. Snap claims the approach is privacy-safe and designed to provide credible, real-time answers from verifiable sources.

Snap casts this as a first step toward a broader AI partner platform inside Snapchat. The companies plan creative, trusted ways for leading AI providers to reach Snap’s global community. The integration aims to enable seamless, in-chat exploration while keeping users within Snapchat’s product experience.

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Material-level AI emerges in MIT–DeRucci sleep science collaboration

MIT’s Sensor and Ambient Intelligence group, led by Joseph Paradiso, unveiled ‘FiberCircuits’, a smart-fibre platform co-developed with DeRucci. It embeds sensing, edge inference, and feedback directly in fibres to create ‘weavable intelligence’. The aim is natural, low-intrusion human–computer interaction.

Teams embedded AI micro-sensors and sub-millimetre ICs to capture respiration, movement, skin conductance, and temperature, running tinyML locally for privacy. Feedback via light, sound, or micro-stimulation closes the loop while keeping power and data exposure low.

Sleep science prototypes included a mattress with distributed sensors for posture recognition, an eye mask combining PPG and EMG, and an IMU-enabled pillow. Prototypes were used to validate signal parsing and human–machine coupling across various sleep scenarios.

Edge-first design places most inference on the fibre to protect user data and reduce interference, according to DeRucci’s CTO, Chen Wenze. Collaboration covered architecture, algorithms, and validation, with early results highlighting comfort, durability, and responsiveness suitable for bedding.

Partners plan to expand cohorts and scenarios into rehabilitation and non-invasive monitoring, and to release selected algorithms and test protocols. Paradiso framed material-level intelligence as a path to gentler interfaces that blend into everyday environments.

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MAI-Image-1 arrives in Bing and Copilot with EU launch on the way

Microsoft’s in-house image generator, MAI-Image-1, now powers Bing Image Creator and Copilot Audio Expressions, with EU availability coming soon, according to Mustafa Suleyman. It’s optimised for speed and photorealism in food, landscapes, and stylised lighting.

In Copilot’s Story Mode, MAI-Image-1 pairs artwork with AI audio, linking text-to-image and text-to-speech. Microsoft pitches realism and fast iteration versus larger, slower models to shorten creative workflows.

The rollout follows August’s MAI-Voice-1 and MAI-1-preview. Copilot is shifting to OpenAI’s GPT-5 while continuing to offer Anthropic’s Claude, signalling a mixed-model strategy alongside homegrown systems.

Bing’s Image Creator lists three selectable models, which are MAI-Image-1, OpenAI’s DALL-E 3, and OpenAI’s GPT-4o. Microsoft says MAI-Image-1 enables faster ideation and hand-off to downstream tools for refinement.

Analysts see MAI-Image-1 as part of a broader effort to reduce dependence on third-party image systems while preserving user choice. Microsoft highlights safety tooling and copyright-aware practices across Copilot experiences as adoption widens.

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Bahrain’s 5G network expansion will boost connectivity

Bahrain’s 5G network expansion takes a major step forward as Ericsson renews its partnership with Batelco to enhance the kingdom’s digital infrastructure.

The agreement, finalised during the Gateway Gulf Investment Forum, aims to boost Bahrain’s 5G Network connectivity, drive digital transformation, and support Bahrain’s growing demand for high-speed mobile services.

The Bahrain 5G network expansion will extend 5G coverage to residential, commercial, hospitality, and industrial zones, including major areas such as Diyar Al Muharraq, Salman City, Bahrain Bay, and Ras Zuwaied. This rollout ensures faster, more reliable 5G connectivity, catering to both consumers and businesses across the kingdom.

Ericsson will deploy its latest Radio Access Network (RAN) technologies, featuring advanced radios, efficient power systems, and eco-friendly battery solutions. These upgrades optimise network performance, energy efficiency, and reduce hardware footprint.

Additionally, Batelco’s cloud infrastructure will be modernised, improving scalability, operational efficiency, and support for IoT, 5G Advanced applications, and AI-driven operations.

According to Batelco’s CEO, these initiatives will keep Bahrain’s 5G network innovative, reliable, and high-performing, delivering an exceptional digital experience for all users.

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Perplexity’s Comet hits Amazon’s policy wall

Amazon removed Perplexity’s Comet after receiving warnings that it was shopping without identifying itself. Perplexity says an agent inherits a user’s permissions. The fight turns a header detail into a question of who gets to intermediate online buying.

Amazon likens agents to delivery or travel intermediaries that announce themselves, and hints at blocking non-compliant bots. With its own assistant, Rufus, critics fear rules as competitive moats; Perplexity calls it gatekeeping.

Beneath this is a business-model clash. Retailers monetise discovery with ads and sponsored placement. Neutral agents promise price-first buying and fewer impulse ads. If bots dominate, incumbents lose margin and control of merchandising levers.

Interoperability likely requires standards, including explicit bot IDs, rate limits, purchase scopes, consented data access, and auditable logs. Stores could ship agent APIs for inventory, pricing, and returns, with 2FA and fraud checks for transactions.

In the near term, expect fragmentation as platforms favour native agents and restrictive terms, while regulators weigh transparency and competition. A workable truce: disclose the agent, honour robots and store policies, and use clear opt-in data contracts.

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Identifying AI-generated videos on social media

AI-generated videos are flooding social media, and identifying them is becoming increasingly difficult. Low resolution or grainy footage can hint at artificial creation, though even polished clips may be deceptive.

Subtle flaws often reveal AI manipulation, including unnatural skin textures, unrealistic background movements, or odd patterns in hair and clothing. Shorter, highly compressed clips can conceal these artefacts, making detection even more challenging.

Digital literacy experts warn that traditional visual cues will soon be unreliable. Viewers should prioritise the source and context of online videos, approach content critically, and verify information through trustworthy channels.

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Google Maps launches AI-powered live lane guidance for safer driving

Google has introduced AI-powered live lane guidance for cars with Google built in, marking a significant step toward intelligent in-vehicle navigation.

A new feature that enables Google Maps to interpret roads and lanes like a driver, offering real-time audio and visual cues to help motorists make timely lane changes and avoid missed exits.

Using AI that analyses lane markings and road signs through the vehicle’s front-facing camera, Google Maps integrates the live data with its navigation system, used by over two billion people monthly. The result is more accurate guidance alongside existing traffic, ETA, and hazard updates.

The feature will debut in Polestar 4 vehicles in the US and Sweden, with plans to expand across more models and road types in collaboration with major automakers.

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Cloudflare chief warns AI is redefining the internet’s business model

AI is inserting itself between companies and customers, Cloudflare CEO Matthew Prince warned in Toronto. More people ask chatbots before visiting sites, dulling brands’ impact. Even research teams lose revenue as investors lean on AI summaries.

Frontier models devour data, pushing firms to chase exclusive sources. Cloudflare lets publishers block unpaid crawlers to reclaim control and compensation. The bigger question, said Prince, is which business model will rule an AI-mediated internet.

Policy scrutiny focuses on platforms that blend search with AI collection. Prince urged governments to separate Google’s search access from AI crawling to level the field. Countries that enforce a split could attract publishers and researchers seeking predictable rules and payment.

Licensing deals with news outlets, Reddit, and others coexist with scraping disputes and copyright suits. Google says it follows robots.txt, yet testimony indicated AI Overviews can use content blocked by robots.txt for training. Vague norms risk eroding incentives to create high-quality online content.

A practical near-term playbook combines technical and regulatory steps. Publishers should meter or block AI crawlers that do not pay. Policymakers should require transparency, consent, and compensation for high-value datasets, guiding the shift to an AI-mediated web that still rewards creators.

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Microsoft deal signals pay-per-use path for AI access to People Inc. content

People Inc. has joined Microsoft’s publisher content marketplace in a pay-per-use deal that compensates media for AI access. Copilot will be the first buyer, while People Inc. continues to block most AI crawlers via Cloudflare to force paid licensing.

People Inc., formerly Dotdash Meredith, said Microsoft’s marketplace lets AI firms pay ‘Ă  la carte’ for specific content. The agreement differs from its earlier OpenAI pact, which the company described as more ‘all-you-can-eat’, but the priority remains ‘respected and paid for’ use.

Executives disclosed a sharp fall in Google search referrals: from 54% of traffic two years ago to 24% last quarter, citing AI Overviews. Leadership argues that crawler identification and paid access should become the norm as AI sits between publishers and audiences.

Blocking non-paying bots has ‘brought almost everyone to the table’, People Inc. said, signalling more licences to come. Such an approach by Microsoft is framed as a model for compensating rights-holders while enabling AI tools to use high-quality, authorised material.

IAC reported People Inc. digital revenue up 9% to $269m, with performance marketing and licensing up 38% and 24% respectively. The publisher also acquired Feedfeed, expanding its food vertical reach while pursuing additional AI content partnerships.

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