The European Medicines Agency (EMA) and the US Food and Drug Administration (FDA) have released ten principles for good AI practice in the medicines lifecycle. The guidelines provide broad direction for AI use in research, clinical trials, manufacturing, and safety monitoring.
The principles are relevant to pharmaceutical developers, marketing authorisation applicants, and holders, and will form the basis for future AI guidance in different jurisdictions. EU guideline development is already underway, building on EMA’s 2024 AI reflection paper.
European Commissioner Olivér Várhelyi said the initiative demonstrates renewed EU-US cooperation and commitment to global innovation while maintaining patient safety.
AI adoption in medicine has grown rapidly in recent years. New pharmaceutical legislation and proposals, such as the European Commission’s Biotech Act, highlight AI’s potential to accelerate the development of safe and effective medicine.
A principles-based approach is seen as essential to manage risks while promoting innovation.
The EMA-FDA collaboration builds on prior bilateral work and aligns with EMA’s strategy to leverage data, digitalisation, and AI. Ethics and safety remain central, with a focus on international cooperation to enable responsible innovation in healthcare globally.
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Elon Musk’s X has limited the image editing functions of its Grok AI tool after criticism over the creation of sexualised images of real people.
The platform said technological safeguards have been introduced to block such content in regions where it is illegal, following growing concern from governments and regulators.
UK officials described the move as a positive step, although regulatory scrutiny remains ongoing.
Authorities are examining whether X complied with existing laws, while similar investigations have been launched in the US amid broader concerns over the misuse of AI-generated imagery.
International pressure has continued to build, with some countries banning Grok entirely instead of waiting for platform-led restrictions.
Policy experts have welcomed stronger controls but questioned how effectively X can identify real individuals and enforce its updated rules across different jurisdictions.
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SEC Chair Paul Atkins says US crypto market structure legislation is close to becoming law, with President Donald Trump expected to sign it soon. The move aims to end regulatory uncertainty and provide clear legal foundations for digital asset markets.
Atkins has openly backed Congress in defining the jurisdictional split between the Securities and Exchange Commission and the Commodity Futures Trading Commission, arguing that statutory clarity is essential for protecting investors and supporting institutional growth.
Supporters believe clear rules will replace enforcement-led interpretation and allow the sector to mature within established financial frameworks.
Progress is moving through Congress, with the Senate Banking Committee advancing the CLARITY Act while the Agriculture Committee continues negotiations. Despite disagreements and amendments, bipartisan support suggests the bill could reach the White House by the end of the first quarter.
Looking ahead, Atkins has linked the bill to long-term US competitiveness, stating that clear and principled regulation will encourage innovation and attract capital. Coordination between the SEC, CFTC and the White House is expected to be central to implementation.
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European Commission Executive Vice President Teresa Ribera has stated that the EU has a constitutional obligation under its treaties to uphold its digital rulebook, including the Digital Markets Act (DMA).
Speaking at a competition law conference, Ribera framed enforcement as a duty to protect fair competition and market balance across the bloc.
Her comments arrive amid growing criticism from US technology companies and political pressure from Washington, where enforcement of EU digital rules has been portrayed as discriminatory towards American firms.
Several designated gatekeepers have argued that the DMA restricts innovation and challenges existing business models.
Ribera acknowledged the right of companies to challenge enforcement through the courts, while emphasising that designation decisions are based on lengthy and open consultation processes. The Commission, she said, remains committed to applying the law effectively rather than retreating under external pressure.
Apple and Meta have already announced plans to appeal fines imposed in 2025 for alleged breaches of DMA obligations, reinforcing expectations that legal disputes around EU digital regulation will continue in parallel with enforcement efforts.
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The US Department of Defence plans to integrate Elon Musk’s AI tool Grok into Pentagon networks later in January, according to Defence Secretary Pete Hegseth.
The system is expected to operate across both classified and unclassified military environments as part of a broader push to expand AI capabilities.
Hegseth also outlined an AI acceleration strategy designed to increase experimentation, reduce administrative barriers and prioritise investment across defence technology.
An approach that aims to enhance access to data across federated IT systems, aligning with official views that military AI performance relies on data availability and interoperability.
The move follows earlier decisions by the Pentagon to adopt Google’s Gemini for an internal AI platform and to award large contracts to Anthropic, OpenAI, Google and xAI for agentic AI development.
Officials describe these efforts as part of a long-term strategy to strengthen US military competitiveness in AI.
Grok’s integration comes amid ongoing controversy, including criticism over generated imagery and previous incidents involving extremist and offensive content. Several governments and regulators have already taken action against the tool, adding scrutiny to its expanded role within defence systems.
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Keir Starmer has told Labour MPs that he is open to an Australian-style ban on social media for young people, following concerns about the amount of time children spend on screens.
Starmer previously opposed such a ban, arguing that enforcement would prove difficult and might instead push teenagers towards unregulated online spaces rather than safer platforms. Growing political momentum across Westminster, combined with Australia’s decision to act, has led to a reassessment of that position.
Speaking to MPs, Starmer said different enforcement approaches were being examined and added that phone use during school hours should be restricted.
UK ministers have also revisited earlier proposals aimed at reducing the addictive design of social media and strengthening safeguards on devices sold to teenagers.
Support for stricter measures has emerged across party lines, with senior figures from Labour, the Conservatives, the Liberal Democrats and Reform UK signalling openness to a ban.
A final decision is expected within months as ministers weigh child safety, regulation and practical implementation.
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Ireland’s Data Protection Commission is owed more than €4 billion in fines imposed on companies, primarily Big Tech firms. Most of the penalties remain unpaid due to ongoing legal challenges.
Figures released under Freedom of Information laws show the watchdog collected only €125,000 from over €530 million in fines issued last year. Similar patterns have persisted across several previous years.
Since 2020, the commission has levied €4.04 billion in data protection penalties. Just €20 million has been paid, while the remaining balance is tied up in appeals before Irish and EU courts.
The regulator states that legislation prevents enforcement until the court proceedings conclude. Several cases hinge on a landmark WhatsApp ruling at the EU’s top court, expected to shape future collections.
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The European Commission has warned X to address issues related to its Grok AI tool. Regulators say new features enabled the creation of sexualised images, including those of children.
EU Tech Sovereignty Commissioner Henna Virkkunen has stated that investigators have already taken action under the Digital Services Act. Failure to comply could result in enforcement measures being taken against the platform.
X recently restricted Grok’s image editing functions to paying users after criticism from regulators and campaigners. Irish and EU media watchdogs are now engaging with Brussels on the issue.
UK ministers also plan laws banning non-consensual intimate images and tools enabling their creation. Several digital rights groups argue that existing laws already permit criminal investigations and fines.
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Chinese AI start-up DeepSeek will launch a customised Italian version of its online chatbot following a probe by the Italian competition authority, the AGCM. The move follows months of negotiations and a temporary 2025 ban due to concerns over user data and transparency.
The AGCM had criticised DeepSeek for not sufficiently warning users about hallucinations or false outputs generated by its AI models.
The probe ended after DeepSeek agreed to clearer Italian disclosures and technical fixes to reduce hallucinations. The regulator noted that while improvements are commendable, hallucinations remain a global AI challenge.
DeepSeek now provides longer Italian warnings and detects Italian IPs or prompts for localised notices. The company also plans workshops to ensure staff understand Italian consumer law and has submitted multiple proposals to the AGCM since September 2025.
The start-up must provide a progress report within 120 days. Failure to meet the regulator’s requirements could lead to the probe being reopened and fines of up to €10 million (£8.7m).
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Efforts to reform US cryptocurrency regulation have hit another delay, as Senate senators pushed back the crucial markup of the CLARITY Act. The vote has been moved to the last week of January to secure bipartisan support.
Disagreements persist over stablecoin rewards, DeFi regulation, and regulatory authority between the SEC and CFTC. Without sufficient support, the bill risks stalling in committee and losing momentum for the year.
The CLARITY Act aims to bring structure to the US digital asset landscape, clarifying which tokens are classed as securities or commodities and expanding the CFTC’s supervisory role. It sets rules for market oversight and asset handling, providing legal clarity beyond the current enforcement-focused system.
The House passed its version in mid-2025, but the Senate has yet to agree on wording acceptable to all stakeholders. Delaying the markup gives Senate leaders time to refine the bill and rebuild support for potential 2026 reform.
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