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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Morocco is preparing to unveil ‘Maroc IA 2030’, a national AI roadmap designed to structure the country’s AI ecosystem and strengthen digital transformation.
The strategy seeks to modernise public services, improve interoperability across digital systems and enhance economic competitiveness, according to officials ahead of the ‘AI Made in Morocco’ event in Rabat.
A central element of the plan involves the creation of Al Jazari Institutes, a national network of AI centres of excellence connecting academic research with innovation and regional economic needs.
A roadmap that prioritises technological autonomy, trusted AI use, skills development, support for local innovation and balanced territorial coverage instead of fragmented deployment.
The initiative builds on the Digital Morocco 2030 strategy launched in 2024, which places AI at the core of national digital policy.
Authorities expect the combined efforts to generate around 240,000 digital jobs and contribute approximately $10 billion to gross domestic product by 2030, while improving the international AI readiness ranking of Morocco.
Additional measures include the establishment of a General Directorate for AI and Emerging Technologies to oversee public policy and the development of an Arab African regional digital hub in partnership with the United Nations Development Programme.
Their main goal is to support sustainable and responsible digital innovation.
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The eSafety regulator in Australia has expressed concern over the misuse of the generative AI system Grok on social media platform X, following reports involving sexualised or exploitative content, particularly affecting children.
Although overall report numbers remain low, authorities in Australia have observed a recent increase over the past weeks.
The regulator confirmed that enforcement powers under the Online Safety Act remain available where content meets defined legal thresholds.
X and other services are subject to systemic obligations requiring the detection and removal of child sexual exploitation material, alongside broader industry codes and safety standards.
eSafety has formally requested further information from X regarding safeguards designed to prevent misuse of generative AI features and to ensure compliance with existing obligations.
Previous enforcement actions taken in 2025 against similar AI services resulted in their withdrawal from the Australian market.
Additional mandatory safety codes will take effect in March 2026, introducing new obligations for AI services to limit children’s exposure to sexually explicit, violent and self-harm-related material.
Authorities emphasised the importance of Safety by Design measures and continued international cooperation among online safety regulators.
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The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.
The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.
EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.
Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.
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UK Prime Minister Keir Starmer is consulting Canada and Australia on a coordinated response to concerns surrounding social media platform X, after its AI assistant Grok was used to generate sexualised deepfake images of women and children.
The discussions focus on shared regulatory approaches rather than immediate bans.
X acknowledged weaknesses in its AI safeguards and limited image generation to paying users. Lawmakers in several countries have stated that further regulatory scrutiny may be required, while Canada has clarified that no prohibition is currently under consideration, despite concerns over platform responsibility.
In the UK, media regulator Ofcom is examining potential breaches of online safety obligations. Technology secretary Liz Kendall confirmed that enforcement mechanisms remain available if legal requirements are not met.
Australian Prime Minister Anthony Albanese also raised broader concerns about social responsibility in the use of generative AI.
X owner Elon Musk rejected accusations of non-compliance, describing potential restrictions as censorship and suppression of free speech.
European authorities requested the preservation of internal records for possible investigations, while Indonesia and Malaysia have already blocked access to the platform.
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Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.
Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.
Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.
Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.
The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.
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Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.
Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.
The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.
Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.
Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.
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The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.
xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.
Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.
State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.
Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.
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