Can AI replace therapists?

With mental health waitlists at record highs and many struggling to access affordable therapy, some are turning to AI chatbots for support.

Kelly, who waited months for NHS therapy, found solace in character.ai bots, describing them as always available, judgment-free companions. ‘It was like a cheerleader,’ she says, noting how bots helped her cope with anxiety and heartbreak.

But despite emotional benefits for some, AI chatbots are not without serious risks. Character.ai is facing a lawsuit from the mother of a 14-year-old who died by suicide after reportedly forming a harmful relationship with an AI character.

Other bots, like one from the National Eating Disorder Association, were shut down after giving dangerous advice.

Even so, demand is high. In April 2024 alone, 426,000 mental health referrals were made in England, and over a million people are still waiting for care. Apps like Wysa, used by 30 NHS services, aim to fill the gap by offering CBT-based self-help tools and crisis support.

Experts warn, however, that chatbots lack context, emotional intuition, and safeguarding. Professor Hamed Haddadi calls them ‘inexperienced therapists’ that may agree too easily or misunderstand users.

Ethicists like Dr Paula Boddington point to bias and cultural gaps in the AI training data. And privacy is a looming concern: ‘You’re not entirely sure how your data is being used,’ says psychologist Ian MacRae.

Still, users like Nicholas, who lives with autism and depression, say AI has helped when no one else was available. ‘It was so empathetic,’ he recalls, describing how Wysa comforted him during a night of crisis.

A Dartmouth study found AI users saw a 51% drop in depressive symptoms, but even its authors stress bots can’t replace human therapists. Most experts agree AI tools may serve as temporary relief or early intervention—but not as long-term substitutes.

As John, another user, puts it: ‘It’s a stopgap. When nothing else is there, you clutch at straws.’

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Lords reject UK AI copyright bill again

The UK government has suffered a second defeat in the House of Lords over its Data (Use and Access) Bill, as peers once again backed a copyright-focused amendment aimed at protecting artists from AI content scraping.

Baroness Kidron, a filmmaker and digital rights advocate, led the charge, accusing ministers of listening to the ‘sweet whisperings of Silicon Valley’ and allowing tech firms to ‘redefine theft’ by exploiting copyrighted material without permission.

Her amendment would force AI companies to disclose their training data sources and obtain consent from rights holders.

The government had previously rejected this amendment, arguing it would lead to ‘piecemeal’ legislation and pre-empt ongoing consultations.

But Kidron’s position was strongly supported across party lines, with peers calling the current AI practices ‘burglary’ and warning of catastrophic damage to the UK’s creative sector.

High-profile artists like Sir Elton John, Paul McCartney, Annie Lennox, and Kate Bush have condemned the government’s stance, with Sir Elton branding ministers ‘losers’ and accusing them of enabling theft.

Peers from Labour, the Lib Dems, the Conservatives, and the crossbenches united to defend UK copyright law, calling the government’s actions a betrayal of the country’s leadership in intellectual property rights.

Labour’s Lord Brennan warned against a ‘double standard’ for AI firms, while Lord Berkeley insisted immediate action was needed to prevent long-term harm.

Technology Minister Baroness Jones countered that no country has resolved the AI-copyright dilemma and warned that the amendment would only create more regulatory confusion.

Nonetheless, peers voted overwhelmingly in favour of Kidron’s proposal—287 to 118—sending the bill back to the Commons with a strengthened demand for transparency and copyright safeguards.

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Coinbase hit by multiple data breach lawsuits

Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.

One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.

The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.

Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.

Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.

Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.

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Elton John threatens legal fight over AI use

Sir Elton John has lashed out at the UK government over plans that could allow AI companies to use copyrighted content without paying artists, calling ministers ‘absolute losers’ and accusing them of ‘thievery on a high scale.’

He warned that younger musicians, without the means to challenge tech giants, would be most at risk if the proposed changes go ahead.

The row centres on a rejected House of Lords amendment to the Data Bill, which would have required AI firms to disclose what material they use.

Despite a strong majority in favour in the Lords, the Commons blocked the move, meaning the bill will keep bouncing between the two chambers until a compromise is reached.

Sir Elton, joined by playwright James Graham, said the government was failing to defend creators and seemed more interested in appeasing powerful tech firms.

More than 400 artists, including Sir Paul McCartney, have signed a letter urging Prime Minister Sir Keir Starmer to strengthen copyright protections instead of allowing AI to mine their work unchecked.

While the government insists no changes will be made unless they benefit creators, critics say the current approach risks sacrificing the UK’s music industry for Silicon Valley’s gain.

Sir Elton has threatened legal action if the plans go ahead, saying, ‘We’ll fight it all the way.’

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US bans nonconsensual explicit deepfakes nationwide

The US is introducing a landmark federal law aimed at curbing the spread of non-consensual explicit deepfake images, following mounting public outrage.

President Donald Trump is expected to sign the Take It Down Act, which will criminalise the sharing of explicit images, whether real or AI-generated, without consent. The law will also require tech platforms to remove such content within 48 hours of notification, instead of leaving the matter to patchy state laws.

The legislation is one of the first at the federal level to directly tackle the misuse of AI-generated content. It builds on earlier laws that protected children but had left adults vulnerable due to inconsistent state regulations.

The bill received rare bipartisan support in Congress and was backed by over 100 organisations, including tech giants like Meta, TikTok and Google. First Lady Melania Trump also supported the act, hosting a teenage victim of deepfake harassment during the president’s address to Congress.

The act was prompted in part by incidents like that of Elliston Berry, a Texas high school student targeted by a classmate who used AI to alter her social media image into a nude photo. Similar cases involving teen girls across the country highlighted the urgency for action.

Tech companies had already started offering tools to remove explicit images, but the lack of consistent enforcement allowed harmful content to persist on less cooperative platforms.

Supporters of the law argue it sends a strong societal message instead of allowing the exploitation to continue unchallenged.

Advocates like Imran Ahmed and Ilana Beller emphasised that while no law is a perfect solution, this one forces platforms to take real responsibility and offers victims some much-needed protection and peace of mind.

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Coinbase hit by breach and SEC probe ahead of S&P 500 entry

Cryptocurrency exchange Coinbase has disclosed a potential financial impact of $180 million to $400 million following a cyberattack that compromised customer data, according to a regulatory filing on Thursday.

The company said it received an email from an unidentified threat actor on Sunday, claiming to possess internal documents and account data for a limited number of customers.

Although hackers gained access to personal information such as names, addresses, and email addresses, Coinbase confirmed that no login credentials or passwords were compromised.

Coinbase stated it would reimburse users who were deceived into transferring funds to the attackers. It also revealed that multiple contractors and support staff outside the US had provided information to the hackers. Those involved have been terminated, the company said.

In parallel, the US Securities and Exchange Commission (SEC) is reportedly investigating whether Coinbase previously misrepresented its verified user figures.

Two sources familiar with the matter told Reuters that the SEC inquiry is ongoing, though it does not focus on know-your-customer (KYC) compliance or Bank Secrecy Act obligations. Coinbase has denied any such investigation into its compliance practices.

The SEC declined to comment. Coinbase’s chief legal officer, Paul Grewal, characterised the probe as a continuation of a past investigation into a user metric the company stopped reporting over two years ago. He said Coinbase is cooperating with the SEC but believes the inquiry should be closed.

The news comes ahead of Coinbase’s upcoming addition to the S&P 500 index, potentially overshadowing what had been viewed as a major milestone for the industry. Shares fell 7.2% following the disclosure.

Coinbase has rejected a $20 million ransom demand from the attackers and is cooperating with law enforcement. It has also offered a $20 million reward for information leading to the identification of the hackers.

The firm is opening a new US-based support hub and taking further measures to strengthen its cybersecurity framework.

The cyberattack adds to broader concerns about digital asset platform vulnerabilities. In 2024, hacks have resulted in over $2.2 billion in stolen funds, according to Chainalysis. Bybit alone reported a $1.5 billion theft in February, the largest on record.

Coinbase is also facing a lawsuit filed in the Southern District of New York, alleging the company failed to protect personal data belonging to millions of current and former customers.

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Grok AI glitch reignites debate on trust and safety in AI tools

Elon Musk’s AI chatbot, Grok, has caused a stir by injecting unsolicited claims about ‘white genocide’ in South Africa into unrelated user queries. These remarks, widely regarded as part of a debunked conspiracy theory, appeared across various innocuous prompts before being quickly removed.

The strange behaviour led to speculation that Grok’s system prompt had been tampered with, possibly by someone inside xAI. Although Grok briefly claimed it had been instructed to mention the topic, xAI has yet to issue a full technical explanation.

Rival AI leaders, including OpenAI’s Sam Altman, joined public criticism on X, calling the episode a concerning sign of possible editorial manipulation. While Grok’s responses returned to normal within hours, the incident reignited concerns about control and transparency in large AI models.

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Canva merges data and storytelling

Canva has introduced Sheets, a new spreadsheet platform combining data, design, and AI to simplify and visualise analytics. Announced at the Canva Create: Uncharted event, it redefines spreadsheets by enabling users to turn raw data into charts, reports and content without leaving the Canva interface.

Built-in tools like Magic Formulas, Magic Insights, and Magic Charts, Canva Sheets supports automated analysis and visual storytelling. Users can generate dynamic charts and branded content across platforms in seconds, thanks to Canva AI and features like bulk editing and multilingual translation.

Data Connectors allow seamless integration with platforms such as Google Analytics and HubSpot, ensuring live updates across all connected visuals. The platform is designed to reduce manual tasks in recurring reports and keep teams synchronised in real time.

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Deepfake voice scams target US officials in phishing surge

Hackers are using deepfake voice and video technology to impersonate senior US government officials and high-profile tech figures in sophisticated phishing campaigns designed to steal sensitive data, the FBI has warned.

Since April, cybercriminals have been contacting current and former federal and state officials through fake voice messages and text messages claiming to be from trusted sources.

The scammers attempt to establish rapport and then direct victims to malicious websites to extract passwords and other private information.

The FBI cautions that if hackers compromise one official’s account, they may use that access to impersonate them further and target others in their network.

The agency urges individuals to verify identities, avoid unsolicited links, and enable multifactor authentication to protect sensitive accounts.

Separately, Polygon co-founder Sandeep Nailwal reported a deepfake scam in which bad actors impersonated him and colleagues via Zoom, urging crypto users to install malicious scripts. He described the attack as ‘horrifying’ and noted the difficulty of reporting such incidents to platforms like Telegram.

The FBI and cybersecurity experts recommend examining media for visual inconsistencies, avoiding software downloads during unverified calls, and never sharing credentials or wallet access unless certain of the source’s legitimacy.

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EU to propose new rules and app to protect children online

The European Commission is taking significant steps to create a safer online environment for children by introducing draft guidelines under the Digital Services Act. These guidelines aim to ensure that online platforms accessible to minors maintain a high level of privacy, safety, and security.

The draft guidelines propose several key measures to safeguard minors online. These include verifying users’ ages to restrict access where appropriate, improving content recommendation systems to reduce children’s exposure to harmful or inappropriate material, and setting children’s accounts to private by default.

Additionally, the guidelines recommend best practices for child-safe content moderation, as well as providing child-friendly reporting channels and user support. They also offer guidance on how platforms should govern themselves internally to maintain a child-safe environment.

These guidelines will apply to all online platforms that minors can access, except for very small enterprises, and will also cover very large platforms with over 45 million monthly users in the EU. The European Commission has involved a wide range of stakeholders in developing the guidelines, including Better Internet for Kids (BIK+) Youth ambassadors, children, parents, guardians, national authorities, online platform providers, and experts.

The inclusive consultation process helps ensure the guidelines are practical and comprehensive. The guidelines are open for feedback until June 10, 2025, with adoption expected by summer.

Meanwhile, the Commission is creating an open-source age-verification app to confirm users’ age without risking privacy, as a temporary measure before the EU Digital Identity Wallet launches in 2026.

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