Sustainable development

EU targets addictive gaming features

Video gaming has become one of Europe’s most prominent entertainment industries, surpassing a niche hobby, with over half the population regularly engaging in it.

As the sector grows, the EU lawmakers are increasingly worried about addictive game design and manipulative features that push players to spend more time and money online.

Much of the concern focuses on loot boxes, where players pay for random digital rewards that resemble gambling mechanics. Studies and parliamentary reports warn that children may be particularly vulnerable, with some lawmakers calling for outright bans on paid loot boxes and premium in-game currencies.

The European Commission is examining how far design choices contribute to digital addiction and whether games are exploiting behavioural weaknesses rather than offering fair entertainment.

Officials say the risk is higher for minors, who may not fully understand how engagement-driven systems are engineered.

The upcoming Digital Fairness Act aims to strengthen consumer protection across online services, rather than leaving families to navigate the risks alone. However, as negotiations continue, the debate over how tightly gaming should be regulated is only just beginning.

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Kazakhstan climbs global AI readiness ranking

Kazakhstan has risen to 60th place out of 195 countries in the 2025 Government AI Readiness Index, marking a 16-place improvement and highlighting a year of accelerated institutional and policy development.

The ranking, compiled by Oxford Insights, measures governments’ ability to adopt and manage AI across public administration, the economy, and social systems.

At a regional level, Kazakhstan now leads Central Asia in AI readiness. A strong performance in the Public Sector Adoption pillar, with a score of 73.59, reflects the widespread use of digital services, e-government platforms, and a shift toward data-led public service delivery.

The country’s advanced digital infrastructure, high internet penetration, and mature electronic government ecosystem provide a solid foundation for scaling AI nationwide.

Political and governance initiatives have further strengthened Kazakhstan’s position. In 2025, the government enacted its first comprehensive AI law, which covers ethics, safety, and digital innovation.

At the same time, the Ministry of Digital Development, Innovation and Aerospace Industry was restructured into a dedicated Ministry of Artificial Intelligence and Digital Development, signalling the government’s commitment to making AI a central policy priority.

Kazakhstan’s progress demonstrates how a focused policy, infrastructure, and institutional approach can enhance AI readiness, enabling the responsible and effective integration of AI across public and economic sectors.

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Japan to boost spending on semiconductors and AI

Japan’s Ministry of Economy, Trade and Industry is set to significantly increase funding for advanced semiconductors and AI in the coming fiscal year.

Spending on chips and AI is expected to nearly quadruple to ¥1.23 trillion ($7.9 billion), accounting for the majority of the ministry’s ¥3.07 trillion budget, a 50% increase from last year. The budget, approved by Prime Minister Sanae Takaichi’s Cabinet, will be debated in parliament early next year.

The funding boost reflects Japan’s push to strengthen its position in frontier technologies amid global competition with the US and China. The government will fund most of the additional support through regular budgets, ensuring more stable backing for semiconductor and AI development.

Key initiatives include ¥150 billion for chip venture Rapidus and ¥387.3 billion for domestic foundation AI models, data infrastructure, and ‘physical AI’ for robotics and machinery control.

The budget also allocates ¥5 billion for critical minerals and ¥122 billion for decarbonisation, including next-generation nuclear power. Special bonds worth ¥1.78 trillion will also support Japanese investment in the US, reinforcing the trade agreement between the two countries.

The increase in funding demonstrates Japan’s strategic focus on achieving technological self-sufficiency and enhancing global competitiveness in emerging industries, thereby ensuring long-term support for innovation and critical infrastructure.

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MIT-IBM researchers improve large language models with PaTH Attention

Researchers at MIT and the MIT-IBM Watson AI Lab have introduced a new attention mechanism designed to enhance the capabilities of large language models (LLMs) in tracking state and reasoning across long texts.

Unlike traditional positional encoding methods, the PaTH Attention system adapts to the content of words, enabling models to follow complex sequences more effectively.

PaTH Attention models sequences through data-dependent transformations, allowing LLMs to track how meaning changes between words instead of relying solely on relative distance.

The approach improves performance on long-context reasoning, multi-step recall, and language modelling benchmarks, all while remaining computationally efficient and compatible with GPUs.

Tests demonstrated consistent gains in perplexity and content-awareness compared with conventional methods. The team combined PaTH Attention with FoX to down-weight less relevant information, improving reasoning and long-sequence understanding.

According to senior author Yoon Kim, these advances represent the next step in developing general-purpose building blocks for AI, combining expressivity, scalability, and efficiency for broader applications in structured domains such as biology.

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IMF calls for stronger AI regulation in global securities markets

Regulators worldwide are being urged to adopt stronger oversight frameworks for AI in capital markets after an IMF technical note warned that rapid AI adoption could reshape securities trading while increasing systemic risk.

AI brings major efficiency gains in asset management and high-frequency trading instead of slower, human-led processes, yet opacity, market volatility, cyber threats and model concentration remain significant concerns.

The IMF warns that AI could create powerful data oligopolies where only a few firms can train the strongest models, while autonomous trading agents may unintentionally collude by widening spreads without explicit coordination.

Retail investors also face rising exposure to AI washing, where financial firms exaggerate or misrepresent AI capability, making transparency, accountability and human-in-the-loop review essential safeguards.

Supervisory authorities are encouraged to scale their own AI capacity through SupTech tools for automated surveillance and social-media sentiment monitoring.

The note highlights India as a key case study, given the dominance of algorithmic trading and SEBI’s early reporting requirements for AI and machine learning. The IMF also points to the National Stock Exchange’s use of AI in fraud detection as an emerging-market model for resilient monitoring infrastructure.

The report underlines the need for regulators to prepare for AI-driven market shocks, strengthen governance obligations on regulated entities and build specialist teams capable of understanding model risk instead of reacting only after misconduct or misinformation harms investors.

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Drones and AI take over Christmas tree farms

Across Christmas tree farms, drones and AI are beginning to replace manual counting and field inspections.

Growers in Denmark and North Carolina are now mapping plantations using AI-driven image analysis instead of relying on workers walking the fields for days.

Systems can recognise and measure each tree, give it a digital ID and track health and growth over time, helping farmers plan harvests and sales more accurately.

The technology is proving particularly valuable in large or difficult terrain. Some plantations in North Carolina sit on steep slopes where machinery and people face higher risks, so farmers are turning to laser-scanning drones and heavy-duty robotic mowers instead of traditional equipment.

Experts say the move saves time, improves safety and reduces labour needs, while accuracy rates can reach as high as 98 percent.

Adoption still depends on cost, aviation rules and staff training, so smaller farms may struggle to keep pace. Yet interest continues to rise as equipment becomes cheaper and growers grow more comfortable with digital tools.

Many industry specialists now see AI-enabled drones as everyday agricultural equipment rather than experimental gadgets.

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Groq partners with Nvidia to expand inference technology

Groq has signed a non-exclusive licensing agreement with Nvidia to share its inference technology, aiming to make high-performance, cost-efficient AI processing more widely accessible.

Groq’s founder, Jonathan Ross, president Sunny Madra, and other team members will join Nvidia to help develop and scale the licensed technology. Despite the collaboration, Groq will remain an independent company, with Simon Edwards taking over as Chief Executive Officer.

Operations of GroqCloud will continue without interruption, ensuring ongoing services for existing customers. The agreement highlights a growing trend of partnerships in the AI sector, combining innovation with broader access to advanced processing capabilities.

The partnership could speed up AI inference adoption, offering companies more scalable and cost-effective options for deploying AI workloads. Analysts suggest such collaborations are likely to drive competition and innovation in the rapidly evolving AI hardware and software market.

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EU crypto tax reporting rules take effect in January

The European Union’s new tax-reporting directive for crypto assets, known as DAC8, takes effect on 1 January. The rules require crypto-asset service providers, including exchanges and brokers, to report detailed user and transaction data to national tax authorities.

DAC8 aims to close gaps in crypto tax reporting, giving authorities visibility over holdings and transfers similar to that of bank accounts and securities. Data collected under the directive will be shared across EU member states, enabling a more coordinated approach to enforcement.

Crypto firms have until 1 July to ensure full compliance, including implementing reporting systems, customer due diligence procedures, and internal controls. After that deadline, non-compliance may result in penalties under national law.

For users, DAC8 strengthens enforcement powers. Authorities can act on tax avoidance or evasion with support from counterparts in other EU countries, including seizing or embargoing crypto assets held abroad.

The directive operates alongside the EU’s Markets in Crypto-Assets (MiCA) regulation, which focuses on licensing, customer protection, and market conduct, while DAC8 ensures the tax trail is monitored.

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ChatGPT becomes more customisable for tone and style

OpenAI has introduced new Personalisation settings in ChatGPT that allow users to fine-tune warmth, enthusiasm and emoji use. The changes are designed to make conversations feel more natural, instead of relying on a single default tone.

ChatGPT users can set each element to More, Less or Default, alongside existing tone styles such as Professional, Candid and Quirky. The update follows previous adjustments, where OpenAI first dialled back perceived agreeableness, then later increased warmth after users said the system felt overly cold.

Experts have raised concerns that highly agreeable AI could encourage emotional dependence, even as users welcome a more flexible conversational style.

Some commentators describe the feature as empowering, while others question whether customising a chatbot’s personality risks blurring emotional boundaries.

The new tone controls continue broader industry debates about how human-like AI should become. OpenAI hopes that added transparency and user choice will balance personal preference with responsible design, instead of encouraging reliance on a single conversational style.

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Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

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