Key Internet developments Archives | Digital Watch Observatory

Tesla moves to enter the British household electricity market

A licence that would allow Tesla to supply electricity directly to households and businesses across Great Britain has been applied for.

The application was submitted to the national energy regulator Ofgem, which oversees energy suppliers in England, Scotland and Wales.

Approval would enable the company to enter the retail electricity market as early as next year. The service is expected to operate under the brand ‘Tesla Electric’, extending the company’s strategy of combining electric vehicles, battery storage and energy supply into a single ecosystem.

Tesla’s UK energy subsidiary, Tesla Energy Ventures, filed the application through its Manchester-based operation. Regulatory review may take several months, as Ofgem typically requires up to nine months to evaluate electricity supplier licences.

A future electricity offer could primarily target households that already use Tesla technologies, including home batteries and electric vehicle charging systems.

The company sells Powerwall storage batteries in the UK, which allow homeowners to store electricity generated by solar panels or purchased during off-peak hours.

Such systems also allow surplus energy stored in batteries to be sold back to the grid.

Similar services are already available in the US, where Tesla launched a residential electricity supply programme in Texas in 2022.

The expansion into the energy supply market comes amid pressure on Tesla’s automotive business in Europe. Sales of Tesla vehicles in the UK declined significantly during 2025, reducing the company’s share of the national car market.

Diversifying into energy services could therefore represent a broader strategic shift for the company led by Elon Musk. Integrating electricity supply with electric vehicles and home energy systems could allow Tesla to build a more comprehensive energy platform for consumers.

If approved, the initiative would position Tesla as both a technology manufacturer and a direct energy supplier in the British market.

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EU lawmakers move forward on AI Act changes

Members of the European Parliament have reached a preliminary political agreement on amendments to the EU Artificial Intelligence Act. The compromise will be reviewed by parliamentary committees before a scheduled vote in Brussels.

Lawmakers in the EU agreed to extend compliance deadlines for some high risk AI systems. The changes aim to give companies and regulators more time to prepare technical standards and enforcement frameworks.

The proposed amendments also include a ban on AI systems that create non consensual explicit deepfakes. Officials in the EU say the measure aims to strengthen consumer protection and improve online safety for children.

Industry groups in the EU have raised concerns about compliance burdens linked to the revised rules. Policymakers in the EU continue negotiations as the legislation moves toward committee approval.

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AI browsers expose new cybersecurity attack surfaces

Security researchers have demonstrated that agentic browsers, powered by AI, may introduce new cybersecurity vulnerabilities.

Experiments targeting the Comet AI browser, developed by Perplexity AI, showed that attackers could manipulate the system into executing phishing scams in only a few minutes.

The attack exploits the reasoning process used by AI agents when interacting with websites. These systems continuously explain their actions and observations, revealing internal signals that attackers can analyse to refine malicious strategies and bypass built-in safeguards.

Researchers showed that phishing pages can be iteratively trained using adversarial machine learning methods, such as Generative Adversarial Networks.

By observing how the AI browser responds to suspicious signals, attackers can optimise fraudulent pages until the system accepts them as legitimate.

The findings highlight a shift in the cybersecurity threat landscape. Instead of deceiving human users directly, attackers increasingly focus on manipulating the AI agents that perform online actions on behalf of users.

Security experts warn that prompt injection vulnerabilities remain a fundamental challenge for large language models and agentic systems.

Although new defensive techniques are being developed, researchers believe such weaknesses may remain difficult to eliminate.

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EU platform law expands data access rights

European regulators are examining how the Digital Markets Act interacts with the General Data Protection Regulation across major digital platforms. The EU rules apply to designated gatekeepers that operate core platform services used by millions of users.

Policy specialists in the EU say the Digital Markets Act complements GDPR protections by strengthening user control over personal data. The framework also supports rights related to data access, portability and transparency for both consumers and business users.

The regulatory overlap affects areas including consent requirements, third-party software installation and interoperability between services. Authorities are also coordinating enforcement between competition and data protection regulators.

Analysts say the combined application of both laws could reshape the responsibilities of major technology platforms. Policymakers aim to increase user choice while reinforcing safeguards for the integrity and confidentiality of personal data in the GDPR.

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Spain expands digital oversight of online hate

Spain has launched a digital system designed to track hate speech and disinformation across social media platforms. Prime Minister Pedro Sánchez presented the tool in Madrid as part of a wider effort to improve oversight of online platforms.

The platform known as HODIO will analyse public posts and measure the spread and reach of hateful content. Authorities in Spain say the project will publish regular reports examining how platforms respond to harmful material.

The monitoring initiative is managed by Spain’s Observatory on Racism and Xenophobia. Officials in Spain say the data will help citizens understand the scale of online hate and assess how social networks address abusive content.

The initiative forms part of a broader digital policy agenda in Spain that also includes measures to protect minors online. Policymakers in Spain have discussed proposals such as restrictions on social media use by children under 16.

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Digital sovereignty in Asia moves beyond US versus non-US cloud debate

AI, cloud computing, and cross-border data flows have made questions about control and jurisdiction increasingly important for governments and businesses. In Asia, the debate around digital sovereignty often focuses on ‘US versus non-US cloud’ providers or data localisation.

Such simplifications miss the practical challenges organisations face when choosing hosting locations or training AI models while navigating diverse regulatory regimes.

At the same time, Asia’s digital economy is building its own regulatory foundations. In Vietnam and Indonesia, new rules such as Vietnam’s Decree 53 and Indonesia’s data protection framework show how governments are shaping data governance while still relying on global cloud and AI platforms. Most organisations across the region continue to operate using a mix of local, regional, and international providers.

Organisations must address key questions about data jurisdiction and workload mobility when risks change. They must also control who can access sensitive systems during incidents. Digital sovereignty is clearer when seen through three pillars: data sovereignty, technical sovereignty, and operational sovereignty.

Data sovereignty is about jurisdiction, not just data storage. As AI regulation expands, businesses need to know which authorities can access their data and how it may be used. Technical sovereignty is the ability to move or redesign systems as regulations or geopolitics shift. Multi-cloud and hybrid strategies help organisations remain adaptable.

Operational sovereignty focuses on governance and control. It addresses who can access systems, from where, and under what safeguards, thus linking sovereignty directly to cybersecurity and incident response.

For Asia-Pacific organisations, digital sovereignty should not be a simple procurement checklist. Instead, it should guide cloud and AI strategies from the start, ensuring legal clarity, technical flexibility, and operational trust as the digital landscape evolves.

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Microsoft launches Copilot Cowork to automate tasks across Microsoft 365

AI is moving from assistance to execution as Microsoft introduces Copilot Cowork, a system designed to perform tasks across the Microsoft 365 environment.

Instead of simply generating text or suggestions, the feature allows users to delegate real work by describing a desired outcome.

Copilot Cowork converts requests into structured plans that run in the background. The system analyses signals from workplace tools such as Microsoft Outlook, Microsoft Teams and Microsoft Excel to understand schedules, documents and ongoing projects.

Users can approve or modify each step while the AI coordinates actions across meetings, files and messages.

Several enterprise scenarios illustrate the system’s capabilities. Cowork can reorganise calendars by analysing meetings and automatically proposing schedule changes.

It can also prepare complete briefing materials for customer meetings by collecting relevant emails, files and data before generating presentations and research summaries.

The technology also supports deeper analysis tasks. Users can request company research and receive structured outputs that include summaries, financial data and supporting documents.

In product launch planning, Cowork can compile competitive intelligence, build presentations and outline project milestones, creating a coordinated workflow for teams.

Microsoft emphasises that the system operates within enterprise security boundaries. Identity, compliance policies and data permissions remain enforced while tasks execute in a protected cloud environment.

The platform also reflects a multi-model strategy, combining Microsoft AI capabilities with Anthropic technology through the integration of the model behind Claude.

Copilot Cowork is currently available to a limited group of customers through a research preview.

Wider availability is expected later in 2026 through Microsoft’s Frontier programme as the company expands AI-driven workplace automation.

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Malaysia expands AI learning across universities with Google tools

AI tools from Google are now available across all public universities in Malaysia after the nationwide deployment of Gemini for Education.

An initiative that integrates AI capabilities into university systems, providing digital research and learning support to nearly 600,000 students and 75,000 faculty members.

The rollout is coordinated with the Ministry of Higher Education Malaysia as part of the country’s broader strategy to become an AI-driven economy by 2030. Universities already using Google Workspace for

Education can now access advanced tools, including NotebookLM and the reasoning model Gemini 3.1 Pro, which are designed to support research, writing and personalised learning.

Several universities are already experimenting with AI-assisted teaching. At Universiti Malaysia Perlis, lecturers have created customised AI assistants to guide students through specialised engineering courses.

Meanwhile, researchers and students at Universiti Putra Malaysia are using AI tools to improve literature reviews and academic research workflows.

Other institutions are focusing on digital literacy and AI skills.

At Universiti Malaysia Sarawak, hundreds of lecturers and students are receiving AI certifications, while training programmes are expanding across campuses.

Officials believe the combination of AI tools, training and research support will strengthen the education system of Malaysia and prepare graduates for an increasingly AI-driven economy.

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Lenovo introduces rollable laptop and AI agent

Redefining how people interact with technology, Lenovo is advancing through rollable laptops, foldable devices and adaptive AI systems that anticipate user needs.

The company is shifting from manufacturing hardware to creating multi-platform systems that adapt seamlessly to workflows instead of relying solely on traditional devices.

Qira, Lenovo’s personal AI super-agent, transfers tasks across devices while maintaining context and history with user permission. It can suggest actions and predict needs, aiming to improve productivity and employee satisfaction, although security and privacy concerns remain significant.

The rollable laptop features a 14-inch screen that expands vertically to 16.7 inches, providing immersive experiences for gaming and content consumption while remaining portable.

Lenovo is also exploring voice-driven tools, including AI Workmate prototypes, allowing users to create presentations and digital content simply through speech.

By combining innovative screen designs with intelligent AI agents, Lenovo aims to create unified ecosystems that prioritise user experience and adaptability instead of focusing solely on device specifications.

The company believes these technologies will gradually become culturally accepted, similar to self-driving cars.

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Pentagon AI dispute raises concerns for startups

A dispute between Anthropic and the Pentagon in the US has raised questions about whether startups will hesitate to pursue defence contracts. Negotiations over the use of Anthropic’s Claude AI technology collapsed, prompting the US administration to label the company a supply chain risk.

The situation in the US escalated as OpenAI secured its own agreement with the Pentagon. The development sparked backlash online, with reports of a surge in ChatGPT uninstalls after the defence partnership announcement.

Technology analysts in the US say the controversy highlights the unusual scrutiny facing high-profile AI firms. Companies such as OpenAI and Anthropic attract intense public attention because widely used AI products place their defence partnerships in the spotlight.

Startup founders in the US are now debating the risks of government contracts, particularly with the Pentagon. Industry observers in the US warn that defence authorities’ contract changes could make government collaboration more uncertain.

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