Jurisdiction

Google backs EU AI Code but warns against slowing innovation

Google has confirmed it will sign the European Union’s General Purpose AI Code of Practice, joining other companies, including major US model developers.

The tech giant hopes the Code will support access to safe and advanced AI tools across Europe, where rapid adoption could add up to €1.4 trillion annually to the continent’s economy by 2034.

Kent Walker, Google and Alphabet’s President of Global Affairs, said the final Code better aligns with Europe’s economic ambitions than earlier drafts, noting that Google had submitted feedback during its development.

However, he warned that parts of the Code and the broader AI Act might hinder innovation by introducing rules that stray from EU copyright law, slow product approvals or risk revealing trade secrets.

Walker explained that such requirements could restrict Europe’s ability to compete globally in AI. He highlighted the need to balance regulation with the flexibility required to keep pace with technological advances.

Google stated it will work closely with the EU’s new AI Office to help shape a proportionate, future-facing approach.

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EU AI Act begins as tech firms push back

Europe’s AI crackdown officially begins soon, as the EU enforces the first rules targeting developers of generative AI models like ChatGPT.

Under the AI Act, firms must now assess systemic risks, conduct adversarial testing, ensure cybersecurity, report serious incidents, and even disclose energy usage. The goal is to prevent harms related to bias, misinformation, manipulation, and lack of transparency in AI systems.

Although the legislation was passed last year, the EU only released developer guidance on 10 July, leaving tech giants with little time to adapt.

Meta, which developed the Llama AI model, has refused to sign the voluntary code of practice, arguing that it introduces legal uncertainty. Other developers have expressed concerns over how vague and generic the guidance remains, especially around copyright and practical compliance.

The EU also distinguishes itself from the US, where a re-elected Trump administration has launched a far looser AI Action Plan. While Washington supports minimal restrictions to encourage innovation, Brussels is focused on safety and transparency.

Trade tensions may grow, but experts warn that developers should not rely on future political deals instead of taking immediate steps toward compliance.

The AI Act’s rollout will continue into 2026, with the next phase focusing on high-risk AI systems in healthcare, law enforcement, and critical infrastructure.

Meanwhile, questions remain over whether AI-generated content qualifies for copyright protection and how companies should handle AI in marketing or supply chains. For now, Europe’s push for safer AI is accelerating—whether Big Tech likes it or not.

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Australia reverses its stance and restricts YouTube for children under 16

Australia has announced that YouTube will be banned for children under 16 starting in December, reversing its earlier exemption from strict new social media age rules. The decision follows growing concerns about online harm to young users.

Platforms like Facebook, Instagram, Snapchat, TikTok, and X are already subject to the upcoming restrictions, and YouTube will now join the list of ‘age-restricted social media platforms’.

From 10 December, all such platforms will be required to ensure users are aged 16 or older or face fines of up to AU$50 million (£26 million) for not taking adequate steps to verify age. Although those steps remain undefined, users will not need to upload official documents like passports or licences.

The government has said platforms must find alternatives instead of relying on intrusive ID checks.

Communications Minister Anika Wells defended the policy, stating that four in ten Australian children reported recent harm on YouTube. She insisted the government would not back down under legal pressure from Alphabet Inc., YouTube’s US-based parent company.

Children can still view videos, but won’t be allowed to hold personal YouTube accounts.

YouTube criticised the move, claiming the platform is not social media but a video library often accessed through TVs. Prime Minister Anthony Albanese said Australia would campaign at a UN forum in September to promote global backing for social media age restrictions.

Exemptions will apply to apps used mainly for education, health, messaging, or gaming, which are considered less harmful.

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India uses AI to catch crypto tax evaders

India’s Income Tax Department is using AI and data tools to identify tax evasion in cryptocurrency transactions. The government collected ₹437 crore in crypto taxes in 2022-2023 using machine learning and digital forensics to spot suspicious activity.

Tax authorities match deducted at source (TDS) data from crypto exchanges to improve compliance. The introduction of the Crypto-Asset Reporting Framework (CARF) also enables automated sharing of tax information, aligning India’s efforts with international tax agreements.

These moves mark a push for greater transparency in India’s digital asset market. Enhanced wallet visibility and automatic data exchange aim to reduce anonymity and curb tax evasion in the crypto space.

India continues to develop regulations focused on consumer protection, cross-border cooperation, and tax compliance, demonstrating a commitment to a more traceable and accountable crypto industry.

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Tech giants back Trump’s AI deregulation plan amid public concern over societal impacts

Donald Trump recently hosted an AI summit in Washington, titled ‘Winning the AI Race,’ geared towards a deregulated atmosphere for AI innovation. Key figures from the tech industry, including Nvidia’s CEO Jensen Huang and Palantir’s CTO Shyam Sankar, attended the event.

Co-hosted by the Hill and Valley Forum and the Silicon Valley All-in Podcast, the summit was a platform for Trump to introduce his ‘AI Action Plan‘, comprised of three executive orders focusing on deregulation. Trump’s objective is to dismantle regulatory restrictions he perceives as obstacles to innovation, aiming to re-establish the US as a leader in AI exportation globally.

The executive orders announced target the elimination of ‘ideological dogmas such as diversity, equity, and inclusion (DEI)’ in AI models developed by federally funded companies. Additionally, one order promotes exporting US-developed AI technologies internationally, while another seeks to lessen environmental restrictions and speed up approvals for energy-intensive data centres.

These measures are seen as reversing the Biden administration’s policies, which stressed the importance of safety and security in AI development. Technology giants Apple, Meta, Amazon, and Alphabet have shown significant support for Trump’s initiatives, contributing to his inauguration fund and engaging with him at his Mar-a-Lago estate. Leaders like OpenAI’s Sam Altman and Nvidia’s Jensen Huang have also pledged substantial investments in US AI infrastructure.

Despite this backing, over 100 groups, including labour, environmental, civil rights, and academic organisations, have voiced their opposition through a ‘People’s AI action plan’. These groups warn of the potential risks of unregulated AI, which they fear could undermine civil liberties, equality, and environmental safeguards.

They argue that public welfare should not be compromised for corporate gains, highlighting the dangers of allowing tech giants to dominate policy-making. That discourse illustrates the divide between industry aspirations and societal consequences.

The tech industry’s influence on AI legislation through lobbying is noteworthy, with a report from Issue One indicating that eight of the largest tech companies spent a collective $36 million on lobbying in 2025 alone. Meta led with $13.8 million, employing 86 lobbyists, while Nvidia and OpenAI saw significant increases in their expenditure compared to previous years. The substantial financial outlay reflects the industry’s vested interest in shaping regulatory frameworks to favour business interests, igniting a debate over the ethical responsibilities of unchecked AI progress.

As tech companies and pro-business entities laud Trump’s deregulation efforts, concerns persist over the societal impacts of such policies.

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China issues action plan for global AI governance and proposes global AI cooperation organisation

At the 2025 World AI Conference in Shanghai, Chinese Premier Li Qiang urged the international community to prioritise joint efforts in governing AI, making reference to a need to establish a global framework and set of rules widely accepted by the global community. He unveiled a proposal by the Chinese government to create a global AI cooperation organisation to foster international collaboration, innovation, and inclusivity in AI across nations.

‘China attaches great importance to global AI governance, and has been actively promoting multilateral and bilateral cooperation with a willingness to offer more Chinese solutions‘.

An Action Plan for AI Global Governance was also presented at the conference. The plan outlines, in its introduction, a call for ‘all stakeholders to take concrete and effective actions based on the principles of serving the public good, respecting sovereignty, development orientation, safety and controllability, equity and inclusiveness, and openness and cooperation, to jointly advance the global development and governance of AI’.

The document includes 13 points related to key areas of international AI cooperation, including promoting inclusive infrastructure development, fostering open innovation ecosystems, ensuring high-quality data supply, and advancing sustainability through green AI practices. It also calls for consensus-building around technical standards, advancing international cooperation on AI safety governance, and supporting countries – especially those in the Global South – in ‘developing AI technologies and services suited to their national conditions’.

Notably, the plan indicates China’s support for multilateralism when it comes to the governance of AI, calling for an active implementation of commitments made by UN member states in the Pact for the Future and the Global Digital Compact, and expressing support for the establishment of the International AI Scientific Panel and a Global Dialogue on AI Governance (whose terms of reference are currently negotiated by UN member states in New York).

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UK enforces age checks to block harmful online content for children

The United Kingdom has introduced new age verification laws to prevent children from accessing harmful online content, marking a significant shift in digital child protection.

The measures, enforced by media regulator Ofcom, require websites and apps to implement strict age checks such as facial recognition and credit card verification.

Around 6,000 pornography websites have already agreed to the new regulations, which stem from the 2023 Online Safety Act. The rules also target content related to suicide, self-harm, eating disorders and online violence, instead of just focusing on pornography.

Companies failing to comply risk fines of up to £18 million or 10% of global revenue, and senior executives could face criminal charges if they ignore Ofcom’s directives.

Technology Secretary Peter Kyle described the move as a turning point, saying children will now experience a ‘different internet for the first time’.

Ofcom data shows that around 500,000 children aged eight to fourteen encountered online pornography in just one month, highlighting the urgency of the reforms. Campaigners, including the NSPCC, called the new rules a ‘milestone’, though they warned loopholes could remain.

The UK government is also exploring further restrictions, including a potential daily two-hour time limit on social media use for under-16s. Kyle has promised more announcements soon, as Britain moves to hold tech platforms accountable instead of leaving children exposed to harmful content online.

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Trump pushes for ‘anti-woke’ AI in US government contracts

Tech firms aiming to sell AI systems to the US government will now need to prove their chatbots are free of ideological bias, following a new executive order signed by Donald Trump.

The measure, part of a broader plan to counter China’s influence in AI development, marks the first official attempt by the US to shape the political behaviour of AI in services.

It places a new emphasis on ensuring AI reflects so-called ‘American values’ and avoids content tied to diversity, equity and inclusion (DEI) frameworks in publicly funded models.

The order, titled ‘Preventing Woke AI in the Federal Government’, does not outright ban AI that promotes DEI ideas, but requires companies to disclose if partisan perspectives are embedded.

Major providers like Google, Microsoft and Meta have yet to comment. Meanwhile, firms face pressure to comply or risk losing valuable public sector contracts and funding.

Critics argue the move forces tech companies into a political culture war and could undermine years of work addressing AI bias, harming fair and inclusive model design.

Civil rights groups warn the directive may sideline tools meant to support vulnerable groups, favouring models that ignore systemic issues like discrimination and inequality.

Policy analysts have compared the approach to China’s use of state power to shape AI behaviour, though Trump’s order stops short of requiring pre-approval or censorship.

Supporters, including influential Trump-aligned venture capitalists, say the order restores transparency. Marc Andreessen and David Sacks were reportedly involved in shaping the language.

The move follows backlash to an AI image tool released by Google, which depicted racially diverse figures when asked to generate the US Founding Fathers, triggering debate.

Developers claimed the outcome resulted from attempts to counter bias in training data, though critics labelled it ideological overreach embedded by design teams.

Under the directive, companies must disclose model guidelines and explain how neutrality is preserved during training. Intentional encoding of ideology is discouraged.

Former FTC technologist Neil Chilson described the order as light-touch. It does not ban political outputs; it only calls for transparency about generating outputs.

OpenAI said its objectivity measures align with the order, while Microsoft declined to comment. xAI praised Trump’s AI policy but did not mention specifics.

The firm, founded by Elon Musk, recently won a $200M defence contract shortly after its Grok chatbot drew criticism for generating antisemitic and pro-Hitler messages.

Trump’s broader AI orders seek to strengthen American leadership and reduce regulatory burdens to keep pace with China in the development of emerging technologies.

Some experts caution that ideological mandates could set a precedent for future governments to impose their political views on critical AI infrastructure.

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Democratising inheritance: AI tool handles estate administration

Lauren Kolodny, who early backed Chime and earned a spot on the Forbes Midas list, is leading a $20 million Series A funding round into Alix, a San Francisco-based startup using AI to revolutionise estate settlement. Founder Alexandra Mysoor conceived the idea after spending nearly 1,000 hours over 18 months managing a friend’s family estate, highlighting a widespread, emotionally taxing administrative gap.

Using AI agents, Alix automates tedious elements of the estate process, including scanning documents, extracting data, pre-populating legal forms, and liaising with financial institutions. This contrasts sharply with the traditional, costly probate system. The startup’s pricing model charges around 1% of estate value, translating to approximately $9,000–$12,000 for smaller estates.

Kolodny sees Alix as part of a new wave of startups harnessing AI to democratise services once accessible only to high-net-worth individuals. As trillions of dollars transfer to millennials and Gen Z in the coming decades, Alix aims to simplify one of the most complex and emotionally fraught administrative tasks.

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Google’s AI Overviews reach 2 billion users monthly, reshaping the web’s future

Google’s AI Overviews, the generative summaries placed above traditional search results, now serve over 2 billion users monthly, a sharp rise from 1.5 billion just last quarter.

First launched in May 2023 and widely available in the US by mid-2024, the feature has rapidly expanded across more than 200 countries and 40 languages.

The widespread use of AI Overviews transforms how people search and who benefits. Google reports that the feature boosts engagement by over 10% for queries where it appears.

However, a study by Pew Research shows clicks on search results drop significantly when AI Overviews are shown, with just 8% of users clicking any link, and only 1% clicking within the overview itself.

While Google claims AI Overviews monetise at the same rate as regular search, publishers are left out unless users click through, which they rarely do.

Google has started testing ads within the summaries and is reportedly negotiating licensing deals with select publishers, hinting at a possible revenue-sharing shift. Meanwhile, regulators in the US and EU are scrutinising whether the feature violates antitrust laws or misuses content.

Industry experts warn of a looming ‘Google Zero’ future — a web where search traffic dries up and AI-generated answers dominate.

As visibility in search becomes more about entity recognition than page ranking, publishers and marketers must rethink how they maintain relevance in an increasingly post-click environment.

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