Davos 2026 reveals competing visions for AI

AI has dominated debates at Davos 2026, matching traditional concerns such as geopolitics and global trade while prompting deeper reflection on how the technology is reshaping work, governance, and society.

Political leaders, executives, and researchers agreed that AI development has moved beyond experimentation towards widespread implementation.

Microsoft chief executive Satya Nadella argued that AI should deliver tangible benefits for communities and economies, while warning that adoption will remain uneven due to disparities in infrastructure and investment.

Access to energy networks, telecommunications, and capital was identified as a decisive factor in determining which regions can fully deploy advanced systems.

Other voices at Davos 2026 struck a more cautious tone. AI researcher Yoshua Bengio warned against designing systems that appear too human-like, stressing that people may overestimate machine understanding.

Philosopher Yuval Noah Harari echoed those concerns, arguing that societies lack experience in managing human and AI coexistence and should prepare mechanisms to correct failures.

The debate also centred on labour and global competition.

Anthropic’s Dario Amodei highlighted geopolitical risks and predicted disruption to entry-level white-collar jobs. At the same time, Google DeepMind chief Demis Hassabis forecast new forms of employment alongside calls for shared international safety standards.

Together, the discussions underscored growing recognition that AI governance will shape economic and social outcomes for years ahead.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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UK names industry leaders to steer safe AI adoption in finance

The UK government has appointed two senior industry figures as AI Champions to support safe and effective adoption of AI across financial services, as part of a broader push to boost growth and productivity.

Harriet Rees of Starling Bank and Dr Rohit Dhawan of Lloyds Banking Group will work with firms and regulators to help turn rapid AI uptake into practical delivery. Both will report directly to Lucy Rigby, the Economic Secretary to the Treasury.

AI is already widely deployed across the sector, with around three-quarters of UK financial firms using the technology. Analysis indicates AI could add tens of billions of pounds to financial services by 2030, while improving customer services and reducing costs.

The Champions will focus on accelerating trusted adoption, speeding up innovation, and removing barriers to scale. Their remit includes protecting consumers, supporting financial stability, and strengthening the UK’s role as a global economic and technology hub.

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EU considers further action against Grok over AI nudification concerns

The European Commission has signalled readiness to escalate action against Elon Musk’s AI chatbot Grok, following concerns over the spread of non-consensual sexualised images on the social media platform X.

The EU tech chief Henna Virkkunen told Members of the European Parliament that existing digital rules allow regulators to respond to risks linked to AI-driven nudification tools.

Grok has been associated with the circulation of digitally altered images depicting real people, including women and children, without consent. Virkkunen described such practices as unacceptable and stressed that protecting minors online remains a central priority for the EU enforcement under the Digital Services Act.

While no formal investigation has yet been launched, the Commission is examining whether X may breach the DSA and has already ordered the platform to retain internal information related to Grok until the end of 2026.

Commission President Ursula von der Leyen has also publicly condemned the creation of sexualised AI images without consent.

The controversy has intensified calls from EU lawmakers to strengthen regulation, with several urging an explicit ban on AI-powered nudification under the forthcoming AI Act.

A debate that reflects wider international pressure on governments to address the misuse of generative AI technologies and reinforce safeguards across digital platforms.

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AI travel influencers begin reshaping digital storytelling

India’s first AI-generated travel influencer, Radhika Subramaniam, has begun attracting sustained audience engagement since her launch in mid-2025, signalling growing acceptance of virtual creators in travel content.

Developed by Collective Artists Network, a talent management company based in India, Radhika initially drew attention through curiosity, but followers increasingly interacted with her posts in ways similar to those of human influencers, according to the company’s leadership.

Industry observers say AI travel influencers offer brands greater efficiency, lower production costs, and more control over storytelling, as virtual creators can be deployed without logistical constraints.

Some creators remain sceptical about whether artificial personas can replicate the emotional authenticity and sensory experiences that shape real-world travel storytelling.

Marketing specialists expect AI and human influencers to coexist, with virtual avatars serving as consistent brand voices while human creators retain value through spontaneity, trust, and personal perspective.

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Strong growth pushes OpenAI past $20 billion in annualised revenue

OpenAI’s annualised revenue has surpassed $20 billion in 2025, up from $6 billion a year earlier. The company’s computing capacity and user numbers have also continued to grow.

The company recently confirmed it will begin showing advertisements in ChatGPT to some users in the United States. The move is part of a broader effort to generate additional revenue to cover the high costs of developing and running advanced AI systems.

OpenAI’s platform now spans text, images, voice, code, and application programming interfaces. CFO Sarah Friar said the next phase of development will focus on agents and workflow automation that can operate continuously, retain context over time, and take action across multiple tools.

Looking ahead to 2026, the company plans to prioritise what it calls ‘practical adoption’, with a particular emphasis on health, science, and enterprise use cases. The aim is to move beyond experimentation and embed AI more deeply into real-world applications.

Friar also said OpenAI intends to maintain a ‘light’ balance sheet by partnering with external providers rather than owning infrastructure outright. Contracts will remain flexible across hardware types and suppliers as the company continues to scale its operations.

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Labour MPs press Starmer to consider UK under-16s social media ban

Pressure is growing on Keir Starmer after more than 60 Labour MPs called for a UK ban on social media use for under-16s, arguing that children’s online safety requires firmer regulation instead of voluntary platform measures.

The signatories span Labour’s internal divides, including senior parliamentarians and former frontbenchers, signalling broad concern over the impact of social media on young people’s well-being, education and mental health.

Supporters of the proposal point to Australia’s recently implemented ban as a model worth following, suggesting that early evidence could guide UK policy development rather than prolonged inaction.

Starmer is understood to favour a cautious approach, preferring to assess the Australian experience before endorsing legislation, as peers prepare to vote on related measures in the coming days.

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California moves to halt X AI deepfakes

California has ordered Elon Musk’s AI company xAI to stop creating and sharing non-consensual sexual deepfakes immediately. The move follows a surge in explicit AI-generated images circulating on X.

Attorney General Rob Bonta said xAI’s Grok tool enabled the manipulation of images of women and children without consent. Authorities argue that such activity breaches state decency laws and a new deepfake pornography ban.

The Californian investigation began after researchers found Grok users shared more non-consensual sexual imagery than users of other platforms. xAI introduced partial restrictions, though regulators said the real-world impact remains unclear.

Lawmakers say the case highlights growing risks linked to AI image tools. California officials warned companies could face significant penalties if deepfake creation and distribution continue unchecked.

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FDA clears AI software for fetal ultrasound

BioticsAI has received FDA approval for its AI software that detects fetal abnormalities in ultrasound images. The technology aims to improve diagnostic accuracy and clinical workflows.

Founded by CEO Robhy Bustami, the company applies computer vision to enhance ultrasound quality and automated reporting. Development focused on consistent performance across diverse patient populations.

The software helps assess image quality and anatomical completeness, and generates automated reports. Bustami emphasised the importance of reliable performance for high-risk demographics.

With regulatory approval, BioticsAI plans nationwide adoption across health systems. Additional features for fetal medicine and reproductive health are also under development.

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Questions mount over AI-generated artist

An artist called Sienna Rose has drawn millions of streams on Spotify, despite strong evidence suggesting she is AI-generated. Several of her jazz-influenced soul tracks have gone viral, with one surpassing five million plays.

Streaming platform Deezer says many of its songs have been flagged as AI-made using detection tools that identify technical artefacts in the audio. Signs include an unusually high volume of releases, generic sound patterns and a complete absence of live performances or online presence.

The mystery intensified after pop star Selena Gomez briefly shared one of Rose’s tracks on social media, only for it to be removed amid growing scrutiny. Record labels linked to Rose have declined to clarify whether a human performer exists.

The case highlights mounting concern across the industry as AI music floods streaming services. Artists, including Raye and Paul McCartney, have warned audiences that they still value emotional authenticity over algorithmic output.

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Irish government eyes leadership role in AI innovation after US visit

Irish Tánaiste Simon Harris said that AI is no longer a distant concept but is already integrated into everyday life and economic systems, following a visit to California where he discussed technology and innovation with business and political leaders.

He described the current period as an ‘AI moment’ and stressed that Ireland has an opportunity to lead in the next wave of technological development.

Harris announced that Ireland will host a dedicated AI summit to explore how the opportunities presented by AI can benefit all sections of society, highlighting the need for trust, responsibility and confidence in how the technology is adopted.

He cautioned that harms can arise without proper governance, pointing to recent controversies over deepfakes and the misuse of AI tools as examples of risks policymakers must address.

His comments come amid broader efforts to strengthen Ireland’s economic and innovation ties with the United States, including meetings with California officials and global tech companies during his official visit.

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