Pentagon awards AI contracts to xAI and others after Grok controversy

The US Department of Defence has awarded contracts to four major AI firms, including Elon Musk’s xAI, as part of a strategy to boost military AI capabilities.

Each contract is valued at up to $200 million and involves developing advanced AI workflows for critical national security tasks.

Alongside xAI, Anthropic, Google, and OpenAI have also secured contracts. Pentagon officials said the deals aim to integrate commercial AI solutions into intelligence, business, and defence operations instead of relying solely on internal systems.

Chief Digital and AI Officer Doug Matty states that these technologies will help maintain the US’s strategic edge over rivals.

The decision comes as Musk’s AI company faces controversy after its Grok chatbot was reported to have published offensive content on social media. Critics, including Democratic lawmakers, have raised ethical concerns about awarding national security contracts to a company under public scrutiny.

xAI insists its Grok for Movement platform will help speed up government services and scientific innovation.

Despite political tensions and Musk’s past financial support for Donald Trump’s campaign, the Pentagon has formalised its relationship with xAI and other AI leaders instead of excluding them due to reputational risks.

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Nvidia to restart China AI chip sales after US talks

Nvidia has announced plans to resume sales of its H20 AI chip in China, following meetings between CEO Jensen Huang and US President Donald Trump in Beijing.

The move comes after US export controls previously banned sales of the chip on national security grounds, costing Nvidia an estimated $15 billion in lost revenue.

The company confirmed it is filing for licences with the US government to restart deliveries of the H20 graphics processing unit, expecting approval shortly.

Nvidia also revealed a new RTX Pro GPU designed specifically for China, compliant with US export rules, offering a lower-cost alternative instead of risking further restrictions.

Huang, attending a supply chain expo in Beijing, described China as essential to Nvidia’s growth, despite rising competition from local firms like Huawei.

Chinese companies remain highly dependent on Nvidia’s CUDA platform, while US lawmakers have raised concerns about Nvidia engaging with Chinese entities linked to military or intelligence services.

Nvidia’s return to the Chinese market comes as Washington and Beijing show signs of easing trade tensions, including relaxed rare earth export rules from China and restored chip design services from the US.

Analysts note, however, that Chinese firms are likely to keep diversifying suppliers instead of relying solely on US chips for supply chain security.

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Mexican voice actors demand AI regulation over cloning threat

Mexican actors have raised alarm over the threat AI poses to their profession, calling for stronger regulation to prevent voice cloning without consent.

From Mexico City’s Monument to the Revolution, dozens of audiovisual professionals rallied with signs reading phrases like ‘I don’t want to be replaced by AI.’ Lili Barba, president of the Mexican Association of Commercial Announcements, said actors are urging the government to legally recognise the voice as a biometric identifier.

She cited a recent video by Mexico’s National Electoral Institute that used the cloned voice of the late actor Jose Lavat without family consent. Lavat was famous for dubbing stars like Al Pacino and Robert De Niro. Barba called the incident ‘a major violation we can’t allow.’

Actor Harumi Nishizawa described voice dubbing as an intricate art form. She warned that without regulation, human dubbing could vanish along with millions of creative jobs.

Last year, AI’s potential to replace artists sparked major strikes in Hollywood, while Scarlett Johansson accused OpenAI of copying her voice for a chatbot.

Streaming services like Amazon Prime Video and platforms such as YouTube are now testing AI-assisted dubbing systems, with some studios promoting all-in-one AI tools,

In South Korea, CJ ENM recently introduced a system combining audio, video and character animation, highlighting the pace of AI adoption in entertainment.

Despite the tech’s growth, many in the industry argue that AI lacks the creative depth of real human performance, especially in emotional or comedic delivery. ‘AI can’t make dialogue sound broken or alive,’ said Mario Heras, a dubbing director in Mexico. ‘The human factor still protects us.’

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AI fake news surge tests EU Digital Services Act

Europe is facing a growing wave of AI-powered fake news and coordinated bot attacks that overwhelm media, fact-checkers, and online platforms instead of relying on older propaganda methods.

According to the European Policy Centre, networks using advanced AI now spread deepfakes, hoaxes, and fake articles faster than they can be debunked, raising concerns over whether EU rules are keeping up.

Since late 2024, the so-called ‘Overload’ operation has doubled its activity, sending an average of 2.6 fabricated proposals each day while also deploying thousands of bot accounts and fake videos.

These efforts aim to disrupt public debate through election intimidation, discrediting individuals, and creating panic instead of open discussion. Experts warn that without stricter enforcement, the EU’s Digital Services Act risks becoming ineffective.

To address the problem, analysts suggest that Europe must invest in real-time threat sharing between platforms, scalable AI detection systems, and narrative literacy campaigns to help citizens recognise manipulative content instead of depending only on fact-checkers.

Publicly naming and penalising non-compliant platforms would give the Digital Services Act more weight.

The European Parliament has already acknowledged widespread foreign-backed disinformation and cyberattacks targeting EU countries. Analysts say stronger action is required to protect the information space from systematic manipulation instead of allowing hostile narratives to spread unchecked.

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CISA 2015 expiry threatens private sector threat sharing

Congress has under 90 days to renew the Cybersecurity Information Sharing Act (CISA) of 2015 and avoid a regulatory setback. The law protects companies from liability when they share cyber threat indicators with the government or other firms, fostering collaboration.

Before CISA, companies hesitated due to antitrust and data privacy concerns. CISA removed ambiguity by offering explicit legal protections. Without reauthorisation, fear of lawsuits could silence private sector warnings, slowing responses to significant cyber incidents across critical infrastructure sectors.

Debates over reauthorisation include possible expansions of CISA’s scope. However, many lawmakers and industry groups in the United States now support a simple renewal. Health care, finance, and energy groups say the law is crucial for collective defence and rapid cyber threat mitigation.

Security experts warn that a lapse would reverse years of progress in information sharing, leaving networks more vulnerable to large-scale attacks. With only 35 working days left for Congress before the 30 September deadline, the pressure to act is mounting.

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AI can reshape the insurance industry, but carries real-world risks

AI is creating new opportunities for the insurance sector, from faster claims processing to enhanced fraud detection.

According to Jeremy Stevens, head of EMEA business at Charles Taylor InsureTech, AI allows insurers to handle repetitive tasks in seconds instead of hours, offering efficiency gains and better customer service. Yet these opportunities come with risks, especially if AI is introduced without thorough oversight.

Poorly deployed AI systems can easily cause more harm than good. For instance, if an insurer uses AI to automate motor claims but trains the model on biassed or incomplete data, two outcomes are likely: the system may overpay specific claims while wrongly rejecting genuine ones.

The result would not simply be financial losses, but reputational damage, regulatory investigations and customer attrition. Instead of reducing costs, the company would find itself managing complaints and legal challenges.

To avoid such pitfalls, AI in insurance must be grounded in trust and rigorous testing. Systems should never operate as black boxes. Models must be explainable, auditable and stress-tested against real-world scenarios.

It is essential to involve human experts across claims, underwriting and fraud teams, ensuring AI decisions reflect technical accuracy and regulatory compliance.

For sensitive functions like fraud detection, blending AI insights with human oversight prevents mistakes that could unfairly affect policyholders.

While flawed AI poses dangers, ignoring AI entirely risks even greater setbacks. Insurers that fail to modernise may be outpaced by more agile competitors already using AI to deliver faster, cheaper and more personalised services.

Instead of rushing or delaying adoption, insurers should pursue carefully controlled pilot projects, working with partners who understand both AI systems and insurance regulation.

In Stevens’s view, AI should enhance professional expertise—not replace it—striking a balance between innovation and responsibility.

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AI technology drives sharp rise in synthetic abuse material

AI is increasingly being used to produce highly realistic synthetic abuse videos, raising alarm among regulators and industry bodies.

According to new data published by the Internet Watch Foundation (IWF), 1,286 individual AI-generated abuse videos were identified during the first half of 2025, compared to just two in the same period last year.

Instead of remaining crude or glitch-filled, such material now appears so lifelike that under UK law, it must be treated like authentic recordings.

More than 1,000 of the videos fell into Category A, the most serious classification involving depictions of extreme harm. The number of webpages hosting this type of content has also risen sharply.

Derek Ray-Hill, interim chief executive of the IWF, expressed concern that longer-form synthetic abuse films are now inevitable unless binding safeguards around AI development are introduced.

Safeguarding minister Jess Phillips described the figures as ‘utterly horrific’ and confirmed two new laws are being introduced to address both those creating this material and those providing tools or guidance on how to do so.

IWF analysts say video quality has advanced significantly instead of remaining basic or easy to detect. What once involved clumsy manipulation is now alarmingly convincing, complicating efforts to monitor and remove such content.

The IWF encourages the public to report concerning material and share the exact web page where it is located.

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EU urges stronger AI oversight after Grok controversy

A recent incident involving Grok, the AI chatbot developed by xAI, has reignited European Union calls for stronger oversight of advanced AI systems.

Comments generated by Grok prompted criticism from policymakers and civil society groups, leading to renewed debate over AI governance and voluntary compliance mechanisms.

The chatbot’s responses, which circulated earlier this week, included highly controversial language and references to historical figures. In response, xAI stated that the content was removed and that technical steps were being taken to prevent similar outputs from appearing in the future.

European policymakers said the incident highlights the importance of responsible AI development. Brando Benifei, an Italian lawmaker who co-led the EU AI Act negotiations, said the event illustrates the systemic risks the new regulation seeks to mitigate.

Christel Schaldemose, a Danish member of the European Parliament and co-lead on the Digital Services Act, echoed those concerns. She emphasised that such incidents underline the need for clear and enforceable obligations for developers of general-purpose AI models.

The European Commission is preparing to release guidance aimed at supporting voluntary compliance with the bloc’s new AI legislation. This code of practice, which has been under development for nine months, is expected to be published this week.

Earlier drafts of the guidance included provisions requiring developers to share information on how they address systemic risks. Reports suggest that some of these provisions may have been weakened or removed in the final version.

A group of five lawmakers expressed concern over what they described as the last-minute removal of key transparency and risk mitigation elements. They argue that strong guidelines are essential for fostering accountability in the deployment of advanced AI models.

The incident also brings renewed attention to the Digital Services Act and its enforcement, as X, the social media platform where Grok operates, is currently under EU investigation for potential violations related to content moderation.

General-purpose AI systems, such as OpenAI’s GPT, Google’s Gemini and xAI’s Grok, will be subject to additional requirements under the EU AI Act beginning 2 August. Obligations include disclosing training data sources, addressing copyright compliance, and mitigating systemic risks.

While these requirements are mandatory, their implementation is expected to be shaped by the Commission’s voluntary code of practice. Industry groups and international stakeholders have voiced concerns over regulatory burdens, while policymakers maintain that safeguards are critical for public trust.

The debate over Grok’s outputs reflects broader challenges in balancing AI innovation with the need for oversight. The EU’s approach, combining binding legislation with voluntary guidance, seeks to offer a measured path forward amid growing public scrutiny of generative AI technologies.

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Grok AI chatbot suspended in Turkey following court order

A Turkish court has issued a nationwide ban on Grok, the AI chatbot developed by Elon Musk’s company xAI, following recent developments involving the platform.

The ruling, delivered on Wednesday by a criminal court in Ankara, instructed Turkey’s telecommunications authority to block access to the chatbot across the country. The decision came after public filings under Turkey’s internet law prompted a judicial review.

Grok, which is integrated into the X platform (formerly Twitter), recently rolled out an update to make the system more open and responsive. The update has sparked broader global discussions about the challenges of moderating AI-generated content in diverse regulatory environments.

In a brief statement, X acknowledged the situation and confirmed that appropriate content moderation measures had been implemented in response. The ban places Turkey among many countries examining the role of generative AI tools and the standards that govern their deployment.

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The rise and risks of synthetic media

Synthetic media transforms content creation across sectors

The rapid development of AI has enabled significant breakthroughs in synthetic media, opening up new opportunities in healthcare, education, entertainment and many more.

Instead of relying on traditional content creation, companies are now using advanced tools to produce immersive experiences, training simulations and personalised campaigns. But what exactly is synthetic media?

Seattle-based ElastixAI raised $16 million to build a platform that improves how large language models run, focusing on efficient inference rather than training.

Synthetic media refers to content produced partly or entirely by AI, including AI-generated images, music, video and speech. Tools such as ChatGPT, Midjourney and voice synthesisers are now widely used in both creative and commercial settings.

The global market for synthetic media is expanding rapidly. Valued at USD 4.5 billion in 2023, it is projected to reach USD 16.6 billion by 2033, driven mainly by tools that convert text into images, videos or synthetic speech.

The appeal lies in its scalability and flexibility: small teams can now quickly produce a wide range of professional-grade content and easily adapt it for multiple audiences or languages.

However, as synthetic media becomes more widespread, so do the ethical challenges it poses.

How deepfakes threaten trust and security

The same technology has raised serious concerns as deepfakes – highly realistic but fake audio, images and videos – become harder to detect and more frequently misused.

Deepfakes, a subset of synthetic media, go a step further by creating content that intentionally imitates real people in deceptive ways, often for manipulation or fraud.

The technology behind deepfakes involves face swapping through variational autoencoders and voice cloning via synthesised speech patterns. The entry barrier is low, making these tools accessible to the general public.

computer keyboard with red deepfake button key deepfake dangers online

First surfacing on Reddit in 2017, deepfakes have quickly expanded into healthcare, entertainment, and education, yet they also pose a serious threat when misused. For example, a major financial scam recently cost a company USD 25 million due to a deepfaked video call with a fake CFO.

Synthetic media fuels global political narratives

Politicians and supporters have often openly used generative AI to share satirical or exaggerated content, rather than attempting to disguise it as real.

In Indonesia, AI even brought back the likeness of former dictator Suharto to endorse candidates, while in India, meme culture thrived but failed to significantly influence voters’ decisions.

In the USA, figures like Elon Musk and Donald Trump have embraced AI-generated memes and voice parodies to mock opponents or improve their public image.

AI, US elections, Deepfakes

While these tools have made it easier to create misinformation, researchers such as UC Berkeley’s Hany Farid argue that the greater threat lies in the gradual erosion of trust, rather than a single viral deepfake.

It is becoming increasingly difficult for users to distinguish truth from fiction, leading to a contaminated information environment that harms public discourse. Legal concerns, public scrutiny, and the proliferation of ‘cheapfakes’—manipulated media that do not rely on AI—may have limited the worst predictions.

Nonetheless, experts warn that the use of AI in campaigns will continue to become more sophisticated. Without clear regulation and ethical safeguards, future elections may not be able to prevent the disruptive influence of synthetic media as easily.

Children use AI to create harmful deepfakes

School-aged children are increasingly using AI tools to generate explicit deepfake images of their classmates, often targeting girls. What began as a novelty has become a new form of digital sexual abuse.

With just a smartphone and a popular app, teenagers can now create and share highly realistic fake nudes, turning moments of celebration, like a bat mitzvah photo, into weapons of humiliation.

Rather than being treated as simple pranks, these acts have severe psychological consequences for victims and are leaving lawmakers scrambling.

Educators and parents are now calling for urgent action. Instead of just warning teens about criminal consequences, schools are starting to teach digital ethics, consent, and responsible use of technology.

kids using laptops in class

Programmes that explain the harm caused by deepfakes may offer a better path forward than punishment alone. Experts say the core issues—respect, agency, and safety—are not new.

The tools may be more advanced, but the message remains the same: technology must be used responsibly, not to exploit others.

Deepfakes become weapons of modern war

Deepfakes can also be deployed to sow confusion, falsify military orders, and manipulate public opinion. While not all such tactics will succeed, their growing use in psychological and propaganda operations cannot be ignored.

Intelligence agencies are already exploring how to integrate synthetic media into information warfare strategies, despite the risk of backfiring.

A new academic study from University College Cork examined how such videos spread on social media and how users reacted.

While many responded with scepticism and attempts at verification, others began accusing the real footage of being fake. The growing confusion risks creating an online environment where no information feels trustworthy, exactly the outcome hostile actors might seek.

While deception has long been part of warfare, deepfakes challenge the legal boundaries defined by international humanitarian law.

 Crowd, Person, Adult, Male, Man, Press Conference, Head, Face, People

Falsifying surrender orders to launch ambushes could qualify as perfidy—a war crime—while misleading enemies about troop positions may remain lawful.

Yet when civilians are caught in the crossfire of digital lies, violations of the Geneva Conventions become harder to ignore.

Regulation is lagging behind the technology, and without urgent action, deepfakes may become as destructive as conventional weapons, redefining both warfare and the concept of truth.

The good side of deepfake technology

Yet, not all applications are harmful. In medicine, deepfakes can aid therapy or generate synthetic ECG data for research while protecting patient privacy. In education, the technology can recreate historical figures or deliver immersive experiences.

Journalists and human rights activists also use synthetic avatars for anonymity in repressive environments. Meanwhile, in entertainment, deepfakes offer cost-effective ways to recreate actors or build virtual sets.

These examples highlight how the same technology that fuels disinformation can also be harnessed for innovation and the public good.

Governments push for deepfake transparency

However, the risks are rising. Misinformation, fraud, nonconsensual content, and identity theft are all becoming more common.

The danger of copyright infringement and data privacy violations also looms large, particularly when AI-generated material pulls content from social media or copyrighted works without permission.

Policymakers are taking action, but is it enough?

The USA has banned AI robocalls, and Europe’s AI Act aims to regulate synthetic content. Experts emphasise the need for worldwide cooperation, with regulation focusing on consent, accountability, and transparency.

eu artificial intelligence act 415652543

Embedding watermarks and enforcing civil liabilities are among the strategies being considered. To navigate the new landscape, a collaborative effort across governments, industry, and the public is crucial, not just to detect deepfakes but also to define their responsible use.

Some emerging detection methods include certifying content provenance, where creators or custodians attach verifiable information about the origin and authenticity of media.

Automated detection systems analyse inconsistencies in facial movements, speech patterns, or visual blending to identify manipulated media. Additionally, platform moderation based on account reputation and behaviour helps filter suspicious sources.

Systems that process or store personal data must also comply with privacy regulations, ensuring individuals’ rights to correct or erase inaccurate data.

Yet, despite these efforts, many of these systems still struggle to reliably distinguish synthetic content from real one.

As detection methods lag, some organisations like Reality Defender and Witness work to raise awareness and develop countermeasures.

The rise of AI influencers on social media

Another subset of synthetic media is the AI-generated influencers. AI (or synthetic) influencers are virtual personas powered by AI, designed to interact with followers, create content, and promote brands across social media platforms.

Unlike traditional influencers, they are not real people but computer-generated characters that simulate human behaviour and emotional responses. Developers use deep learning, natural language processing, and sophisticated graphic design to make these influencers appear lifelike and relatable.

Finfluencers face legal action over unregulated financial advice.

Once launched, they operate continuously, often in multiple languages and across different time zones, giving brands a global presence without the limitations of human engagement.

These virtual influencers offer several key advantages for brands. They can be precisely controlled to maintain consistent messaging and avoid the unpredictability that can come with human influencers.

Their scalability allows them to reach diverse markets with tailored content, and over time, they may prove more cost-efficient due to their ability to produce content at scale without the ongoing costs of human talent.

Brands can also experiment with creative storytelling in new and visually compelling ways that might be difficult for real-life creators.

Synthetic influencers have also begun appearing in the healthcare sector, although their widespread popularity in the sector remains limited. However, it is expected to grow rapidly.

Their rise also brings significant challenges. AI influencers lack genuine authenticity and emotional depth, which can hinder the formation of meaningful connections with audiences.

Their use raises ethical concerns around transparency, especially if followers are unaware that they are interacting with AI.

Data privacy is another concern, as these systems often rely on collecting and analysing large amounts of user information to function effectively.

Additionally, while they may save money in the long run, creating and maintaining a sophisticated AI influencer involves a substantial upfront investment.

Study warns of backlash from synthetic influencers

A new study from Northeastern University urges caution when using AI-powered influencers, despite their futuristic appeal and rising prominence.

While these digital figures may offer brands a modern edge, they risk inflicting greater harm on consumer trust compared to human influencers when problems arise.

The findings show that consumers are more inclined to hold the brand accountable if a virtual influencer promotes a faulty product or spreads misleading information.

Rather than viewing these AI personas as independent agents, users tend to see them as direct reflections of the company behind them. Instead of blaming the influencer, audiences shift responsibility to the brand itself.

Interestingly, while human influencers are more likely to be held personally liable, virtual influencers still cause deeper reputational damage.

 Accessories, Jewelry

People assume that their actions are fully scripted and approved by the business, making any error seem deliberate or embedded in company practices rather than a personal mistake.

Regardless of the circumstances, AI influencers are reshaping the marketing landscape by providing an innovative and highly adaptable tool for brands. While they are unlikely to replace human influencers entirely, they are expected to play a growing role in digital marketing.

Their continued rise will likely force regulators, brands, and developers to establish clearer ethical standards and guidelines to ensure responsible and transparent use.

Shaping the future of synthetic media

In conclusion, the growing presence of synthetic media invites both excitement and reflection. As researchers, policymakers, and creators grapple with its implications, the challenge lies not in halting progress but in shaping it thoughtfully.

All forms of synthetic media, like any other form of technology, have a dual capacity to empower and exploit, demanding a new digital literacy — one that prioritises critical engagement, ethical responsibility, and cross-sector collaboration.

On the one hand, deepfakes threaten democratic stability, information integrity, and civilian safety, blurring the line between truth and fabrication in conflict, politics, and public discourse.

On the other hand, AI influencers are transforming marketing and entertainment by offering scalable, controllable, and hyper-curated personas that challenge notions of authenticity and human connection.

Rather than fearing the tools themselves, we as human beings need to focus on cultivating the norms and safeguards that determine how, and for whom, they are used. Ultimately, these tools are meant to enhance our way of life, not undermine it.

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