Privacy and data protection Archives | Page 149 of 329

European Commission proposes mutual data flow agreement with Brazil

The European Commission has initiated the adoption of a data protection adequacy decision with Brazil, recognising that the country offers a level of data protection comparable to the EU’s General Data Protection Regulation (GDPR).

The agreement will enable seamless data transfers between the EU and Brazil across sectors, including business, government, and research.

This mutual decision marks one of the broadest scopes of data adequacy granted by the EU and is expected to boost economic ties between the two regions, which together serve 670 million consumers, Tech Sovereignty, Security, and Democracy Executive Vice President Henna Virkkunen said.

Brazil is also advancing its adequacy decision to allow data flows to the EU. Virkkunen described Brazil as a ‘natural partner’ and stressed the importance of collaboration amid global uncertainty.

Commissioner Michael McGrath praised Brazil’s privacy framework, emphasising that robust data protection ensures consumer trust, rights, and transparency.

The draft decision will now undergo review by the European Data Protection Board (EDPB) and require approval from the EU member states and scrutiny by the European Parliament.

Once adopted, the adequacy decision will be subject to regular evaluations to ensure continued compliance with the EU standards.

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Mental health concerns over chatbots fuel AI regulation calls

The impact of AI chatbots on mental health is emerging as a serious concern, with experts warning that such cases highlight the risks of more advanced systems.

Nate Soares, president of the US-based Machine Intelligence Research Institute, pointed to the tragic case of teenager Adam Raine, who took his own life after months of conversations with ChatGPT, as a warning signal for future dangers.

Soares, a former Google and Microsoft engineer, said that while companies design AI chatbots to be helpful and safe, they can produce unintended and harmful behaviour.

He warned that the same unpredictability could escalate if AI develops into artificial super-intelligence, systems capable of surpassing humans in all intellectual tasks. His new book with Eliezer Yudkowsky, If Anyone Builds It, Everyone Dies, argues that unchecked advances could lead to catastrophic outcomes.

He suggested that governments adopt a multilateral approach, similar to nuclear non-proliferation treaties, to halt a race towards super-intelligence.

Meanwhile, leading voices in AI remain divided. Meta’s chief AI scientist, Yann LeCun, has dismissed claims of an existential threat, insisting AI could instead benefit humanity.

The debate comes as OpenAI faces legal action from Raine’s family and introduces new safeguards for under-18s.

Psychotherapists and researchers also warn of the dangers of vulnerable people turning to chatbots instead of professional care, with early evidence suggesting AI tools may amplify delusional thoughts in those at risk.

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Anthropic settles $1.5 billion copyright case with authors

The AI startup, Anthropic, has agreed to pay $1.5 billion to settle a copyright lawsuit accusing the company of using pirated books to train its Claude AI chatbot.

The proposed deal, one of the largest of its kind, comes after a group of authors claimed the startup deliberately downloaded unlicensed copies of around 500,000 works.

According to reports, Anthropic will pay about $3,000 per book and add interest while agreeing to destroy datasets containing the material. A California judge will review the settlement terms on 8 September before finalising them.

Lawyers for the plaintiffs described the outcome as a landmark, warning that using pirated websites for AI training is unlawful.

The case reflects mounting legal pressure on the AI industry, with companies such as OpenAI and Microsoft also facing copyright disputes. The settlement followed a June ruling in which a judge said using the books to train Claude was ‘transformative’ and qualified as fair use.

Anthropic said the deal resolves legacy claims while affirming its commitment to safe AI development.

Despite the legal challenges, Anthropic continues to grow rapidly. Earlier in August, the company secured $13 billion in funding for a valuation of $183 billion, underlining its rise as one of the fastest-growing players in the global technology sector.

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Google avoids breakup as court ruling fuels AI Mode expansion

A US district judge has declined to order a breakup of Google, softening the blow of a 2024 ruling that found the company had illegally monopolised online search.

The decision means Google can press ahead with its shift from a search engine into an answer engine, powered by generative AI.

Google’s AI Mode replaces traditional blue links with direct responses to queries, echoing the style of ChatGPT. While the feature is optional for now, it could become the default.

That alarms publishers, who depend on search traffic for advertising revenue. Studies suggest chatbots reduce referral clicks by more than 90 percent, leaving many sites at risk of collapse.

Google is also experimenting with inserting ads into AI Mode, though it remains unclear how much revenue will flow to content creators. Websites can block their data from being scraped, but doing so would also remove them from Google search entirely.

Despite these concerns, Google argues that competition from ChatGPT, Perplexity, and other AI tools shows that new rivals are reshaping the search landscape.

The judge even cited the emergence of generative AI as a factor that altered the case against Google, underlining how the rise of AI has become central to the future of the internet.

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OpenAI boss, Sam Altman, fuels debate over dead internet theory

Sam Altman, chief executive of OpenAI, has suggested that the so-called ‘dead internet theory’ may hold some truth. The idea, long dismissed as a conspiracy theory, claims much of the online world is now dominated by computer-generated content rather than real people.

Altman noted on X that he had not previously taken the theory seriously but believed there were now many accounts run by large language models.

His remark drew criticism from users who argued that OpenAI itself had helped create the problem by releasing ChatGPT in 2022, which triggered a surge of automated content.

The spread of AI systems has intensified debate over whether online spaces are increasingly filled with artificially generated voices.

Some observers also linked Altman’s comments to his work on World Network, formerly Worldcoin, a project launched in 2019 to verify human identity online through biometric scans. That initiative has been promoted as a potential safeguard against the growing influence of AI-driven systems.

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Google Cloud study shows AI agents driving global business growth

A new Google Cloud study indicates that more than half of global enterprises are already using AI agents, with many reporting consistent revenue growth and faster return on investment.

The research, based on a survey of 3,466 executives across 24 countries, suggests agentic AI is moving from trial projects to large-scale deployment.

The findings by Google Cloud reveal that 52% of executives said their organisations actively use AI agents, while 39% reported launching more than ten. A group of early adopters, representing 13% of respondents, have gone further by dedicating at least half of their future AI budgets to agentic AI.

These companies are embedding agents across operations and are more likely to report returns in customer service, marketing, cybersecurity and software development.

The report also highlights how industries are tailoring adoption. Financial services focus on fraud detection, retail uses agents for quality control, and telecom operators apply them for network automation.

Regional variations are notable: European companies prioritise tech support, Latin American firms lean on marketing, while Asia-Pacific enterprises emphasise customer service.

Although enthusiasm is strong, challenges remain. Executives cited data privacy, security and integration with existing systems as key concerns.

Google Cloud executives said that early adopters are not only automating tasks but also reshaping business processes, with 2025 expected to mark a shift towards embedding AI intelligence directly into operations.

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Coinbase relies on AI for nearly half of its code

Coinbase CEO Brian Armstrong said AI now generates around 40 per cent of the exchange’s code, expected to surpass 50 per cent by October 2025. He emphasised that human oversight remains essential, as AI cannot be uniformly applied across all areas of the platform.

Armstrong confirmed that engineers were instructed to adopt AI development tools within a week, with those resisting the mandate dismissed. The move places Coinbase ahead of technology giants such as Microsoft and Google, which use AI for roughly 30 per cent of their code.

Security experts have raised concerns about the heavy reliance on AI. Industry figures warn that AI-generated code could contain bugs or miss critical context, posing risks for a platform holding over $420 billion in digital assets.

Larry Lyu called the strategy ‘a giant red flag’ for security-sensitive businesses.

Supporters argue that Coinbase’s approach is measured. Richard Wu of Tensor said AI could generate up to 90 per cent of high-quality code within five years if paired with thorough review and testing, similar to junior engineer errors.

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Perplexity AI teams up with PayPal for fintech expansion

PayPal has partnered with Perplexity AI to provide PayPal and Venmo users in the US and select international markets with a free 12-month Perplexity Pro subscription and early access to the AI-powered Comet browser.

The $200 subscription allows unlimited queries, file uploads and advanced search features, while Comet offers natural language browsing to simplify complex tasks.

Industry analysts see the initiative as a way for PayPal to strengthen its position in fintech by integrating AI into everyday digital payments.

By linking accounts, users gain access to AI tools and cash back incentives and subscription management features, signalling a push toward what some describe as agentic commerce, where AI assistants guide financial and shopping decisions.

The deal also benefits Perplexity AI, a rising search and browser market challenger. Exposure to millions of PayPal customers could accelerate the adoption of its technology and provide valuable data for refining models.

Analysts suggest the partnership reflects a broader trend of payment platforms evolving into service hubs that combine transactions with AI-driven experiences.

While enthusiasm is high among early users, concerns remain about data privacy and regulatory scrutiny over AI integration in finance.

Market reaction has been positive, with PayPal shares edging upward following the announcement. Observers believe such alliances will shape the next phase of digital commerce, where payments, browsing, and AI capabilities converge.

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UK factories closed as cyberattack disrupts Jaguar Land Rover

Jaguar Land Rover (JLR) has ordered factory staff to work from home until at least next Tuesday as it recovers from a major cyberattack. Production remains suspended at key UK sites, including Halewood, Solihull, and Wolverhampton.

The disruption, first reported earlier this week, has ‘severely impacted’ production and sales, according to JLR. Reports suggest that assembly line workers have been instructed not to return before 9 September, while the situation remains under review.

The hack has hit operations beyond manufacturing, with dealerships unable to order parts and some customer handovers delayed. The timing is particularly disruptive, coinciding with the September release of new registration plates, which traditionally boosts demand.

A group of young hackers on Telegram, calling themselves Scattered Lapsus$ Hunters, has claimed responsibility for the incident. Linked to earlier attacks on Marks & Spencer and Harrods, the group reportedly shared screenshots of JLR’s internal IT systems as proof.

The incident follows a wider spate of UK retail and automotive cyberattacks this year. JLR has stated that it is working quickly to restore systems and emphasised that there is ‘no evidence’ that customer data has been compromised.

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Fintech CISO says AI is reshaping cybersecurity skills

Financial services firms are adapting rapidly to the rise of AI in cybersecurity, according to David Ramirez, CISO at Broadridge. He said AI is changing the balance between attackers and defenders while also reshaping the skills security teams require.

On the defensive side, AI is already streamlining governance, risk management and compliance tasks, while also speeding up incident detection and training. He highlighted its growing role in areas like access management and data loss prevention.

He also stressed the importance of aligning cyber strategy with business goals and improving board-level visibility. While AI tools are advancing quickly, he urged CISOs not to lose sight of risk assessments and fundamentals in building resilient systems.

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