Ofcom probes AI companion chatbot over age checks

Ofcom has opened an investigation into Novi Ltd over age checks on its AI companion chatbot. The probe focuses on duties under the Online Safety Act.

Regulators will assess whether children can access pornographic content without effective age assurance. Sanctions could include substantial fines or business disruption measures under the UK’s Online Safety Bill.

In a separate case, Ofcom confirmed enforcement pressure led Snapchat to overhaul its illegal content risk assessment. Revised findings now require stronger protections for UK users.

Ofcom said accurate risk assessments underpin online safety regulation. Platforms must match safeguards to real world risks, particularly when AI and children are concerned.

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Regulators press on with Grok investigations in Britain and Canada

Britain and Canada are continuing regulatory probes into xAI’s Grok chatbot, signalling that official scrutiny will persist despite the company’s announcement of new safeguards. Authorities say concerns remain over the system’s ability to generate explicit and non-consensual images.

xAI said it had updated Grok to block edits that place real people in revealing clothing and restricted image generation in jurisdictions where such content is illegal. The company did not specify which regions are affected by the new limits.

Reuters testing found Grok was still capable of producing sexualised images, including in Britain. Social media platform X and xAI did not respond to questions about how effective the changes have been.

UK regulator Ofcom said its investigation remains ongoing, despite welcoming xAI’s announcement. A privacy watchdog in Canada also confirmed it is expanding an existing probe into both X and xAI.

Pressure is growing internationally, with countries including France, India, and the Philippines raising concerns. British Technology Secretary Liz Kendall said the Online Safety Act gives the government tools to hold platforms accountable for harmful content.

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Brazil excluded from WhatsApp rival AI chatbot ban

WhatsApp has excluded Brazil from its new restriction on third-party general-purpose chatbots, allowing AI providers to continue operating on the platform despite a broader policy shift affecting other markets.

The decision follows action by the competition authority of Brazil, which ordered Meta to suspend elements of the policy while assessing whether the rules unfairly disadvantage rival chatbot providers in favour of Meta AI.

Developers have been informed that services linked to Brazilian phone numbers do not need to stop responding to users or issue service warnings.

Elsewhere, WhatsApp has introduced a 90-day grace period starting in mid-January, requiring chatbot developers to halt responses and notify users that services will no longer function on the app.

The policy applies to tools such as ChatGPT and Grok, while customer service bots used by businesses remain unaffected.

Italy has already secured a similar exemption after regulatory scrutiny, while the EU has opened an antitrust investigation into the new rules.

Meta continues to argue that general-purpose AI chatbots place technical strain on systems designed for business messaging instead of acting as an open distribution platform for AI services.

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How Switzerland can shape AI in 2026

Switzerland is heading into 2026 facing an AI transition marked by uncertainty, and it may not win a raw ‘compute race’ dominated by the biggest hardware buyers. In his blog ‘10 Swiss values and practices for AI & digitalisation in 2026,’ Jovan Kurbalija argues that Switzerland’s best response is to build resilience around an ‘AI Trinity’ of Zurich’s entrepreneurship, Geneva’s governance, and communal subsidiarity, using long-standing Swiss practices as a practical compass rather than a slogan.

A central idea is subsidiarity. When top-down approaches hit limits, Switzerland can push ‘bottom-up AI’ grounded in local knowledge and real community needs. Kurbalija points to practical steps such as turning libraries, post offices, and community centres into AI knowledge hubs, creating apprenticeship-style AI programmes, and small grants that help communities develop local AI tools. He also cites a proposal for a ‘Geneva stack’ of sovereign digital tools adopted across public institutions, alongside the notion of a decentralised ‘cyber militia’ capacity for defence.

The blog also leans heavily on entrepreneurship and innovation, especially Switzerland’s SME culture and Zurich’s tech ecosystem. The message for 2026 is to strengthen partnerships between Swiss startups and major global tech firms present in the region, while also connecting more actively with fast-growing digital economy actors from places like India and Singapore.

Instead of chasing moonshots alone, Kurbalija says Switzerland can double down on ‘precision AI’ in areas such as medtech, fintech, and cleantech, and expand its move toward open-source AI tools across the full lifecycle, from models to localised agents.

Another theme is trust and quality, and the challenge of translating Switzerland’s high-trust reputation into the AI era. Beyond cybersecurity, the question is whether Switzerland can help define ‘trustworthy AI,’ potentially even as an international verifier certifying systems.

At the same time, Kurbalija frames quality as a Swiss competitive edge in a world frustrated with low-grade ‘AI slop,’ arguing that better outcomes often depend less on new algorithms and more on well-curated knowledge and data.

He also flags neutrality and sovereignty as issues that will move from abstract debates to urgent policy questions, such as what neutrality means when cyber weapons and AI systems are involved, and how much control a country can realistically keep over data and infrastructure in an interdependent world. He notes that digital sovereignty is a key priority in Switzerland’s 2026 digital strategy, with a likely focus on mapping where critical digital assets are stored and on protecting sensitive domains, such as health, elections, and security, while running local systems when feasible.

Finally, the blog stresses solidarity and resilience as the social and infrastructural foundations of the transition. As AI-driven centralisation risks widening divides, Kurbalija calls for reskilling, support for regions and industries in transition, and digital tools that strengthen social safety nets rather than weaken them.

His bottom line is that Switzerland can’t, and shouldn’t, try to outspend others on hardware. Still, it can choose whether to ‘import the future as a dependency’ or build it as a durable capability, carefully and inclusively, on unmistakably Swiss strengths.

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Canada turns to AI to parse feedback on federal AI strategy consultation

Canada’s Innovation, Science and Economic Development (ISED) department saw an overwhelming volume of comments on its national AI strategy consultation, prompting officials to use AI tools to analyse and organise responses from citizens, organisations and stakeholders.

The consultation was part of a broader effort to shape Canada’s approach to AI governance, regulation and adoption, with the government seeking input on how to balance innovation, competitiveness and responsible AI development.

Analysts and advocates have highlighted Canadians’ demand for strong oversight, transparency, and protections related to privacy and data protection, misinformation and ethical uses of AI.

Public interest groups have urged that rights, privacy and sustainability be central pillars of the AI strategy rather than secondary considerations, and recommended risk-based, people-centred regulations similar to frameworks adopted in other jurisdictions.

The use of AI to process feedback illustrates both the scale of engagement and the government’s willingness to employ the very technology it seeks to govern in drafting its policy.

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SRB GDPR case withdrawn from EU court

A high-profile EU court case on pseudonymised data has ended without a final ruling. The dispute involved the Single Resolution Board and the European Data Protection Supervisor.

The case focused on whether pseudonymised opinions qualify as personal data under the GDPR. Judges were also asked to assess reidentification risks and notification duties.

After intervention by the Court of Justice of the European Union, the matter returned to the General Court. Both parties later withdrew the case, leaving no binding judgement.

Legal experts say the CJEU’s guidance continues to shape enforcement practice. Regulators are expected to reflect those principles in updated EU pseudonymisation guidelines.

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EU lawmakers push limits on AI nudity apps

More than 50 EU lawmakers have called on the European Commission to clarify whether AI-powered applications for nudity are prohibited under existing EU legislation, citing concerns about online harm and legal uncertainty.

The request follows public scrutiny of the Grok, owned by xAI, which was found to generate manipulated intimate images involving women and minors.

Lawmakers argue that such systems enable gender-based online violence and the production of child sexual abuse material instead of legitimate creative uses.

In their letter, lawmakers questioned whether current provisions under the EU AI Act sufficiently address nudification tools or whether additional prohibitions are required. They also warned that enforcement focused only on substantial online platforms risks leaving similar applications operating elsewhere.

While EU authorities have taken steps under the Digital Services Act to assess platform responsibilities, lawmakers stressed the need for broader regulatory clarity and consistent application across the digital market.

Further political debate on the issue is expected in the coming days.

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Australia’s social media age limit prompts restrictions on millions of under-16 accounts

Major social media platforms restricted access to approximately 4.7 million accounts linked to children under 16 across Australia during early December, following the introduction of the national social media minimum age requirement.

Initial figures collected by eSafety indicate that platforms with high youth usage are already engaging in early compliance efforts.

Since the obligation took effect on 10 December, regulatory focus has shifted towards monitoring and enforcement instead of preparation, targeting services assessed as age-restricted.

Early data suggests meaningful steps are being taken, although authorities stress it remains too soon to determine whether platforms have achieved full compliance.

eSafety has emphasised continuous improvement in age-assurance accuracy, alongside the industry’s responsibility to prevent circumvention.

Reports indicate some under-16 accounts remain active, although early signals point towards reduced exposure and gradual behavioural change rather than immediate elimination.

Officials note that the broader impact of the minimum age policy will emerge over time, supported by a planned independent, longitudinal evaluation involving academic and youth mental health experts.

Data collection will continue to monitor compliance, platform migration trends and long-term safety outcomes for children and families in Australia.

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Cerebras to supply large-scale AI compute for OpenAI

OpenAI has agreed to purchase up to 750 megawatts of computing power from AI chipmaker Cerebras over the next three years. The deal, announced on 14 January, is expected to be worth more than US$10 billion and will support ChatGPT and other AI services.

Cerebras will provide cloud services powered by its wafer-scale chips, which are designed to run large AI models more efficiently than traditional GPUs. OpenAI plans to use the capacity primarily for inference and reasoning models that require high compute.

Cerebras will build or lease data centres filled with its custom hardware, with computing capacity coming online in stages through 2028. OpenAI said the partnership would help improve the speed and responsiveness of its AI systems as user demand continues to grow.

The deal is also essential for Cerebras as it prepares for a second attempt at a public listing, following a 2025 IPO that was postponed. Diversifying its customer base beyond major backers such as UAE-based G42 could strengthen its financial position ahead of a potential 2026 flotation.

The agreement highlights the wider race among AI firms to secure vast computing resources, as investment in AI infrastructure accelerates. However, some analysts have warned that soaring valuations and heavy spending could resemble past technology bubbles.

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Gemini gains new features through Personal Intelligence

A new beta feature has been launched in the United States that lets users personalise the Gemini assistant by connecting Google apps such as Gmail, Photos, YouTube and Search. The tool, called Personal Intelligence, is designed to make the service more proactive and context-aware.

When enabled, Personal Intelligence allows Gemini to reason across a user’s emails, photos, and search history to answer questions or retrieve specific details. Google says users remain in control of which apps are connected and can turn the feature off at any time.

The company showed how Gemini can use connected data to offer tailored suggestions, such as identifying vehicle details from Photos or recommending trips based on past travel.

Google said the system includes privacy safeguards. Personal Intelligence is turned off by default, and Gemini does not train on users’ Gmail inboxes or photo libraries.

The beta is rolling out to Google AI Pro and AI Ultra subscribers in the US and will work across web, Android, and iOS. Google plans to expand access over time and bring the feature to more countries and users.

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