Sustainable development

UK firms struggle to turn AI adoption into measurable returns

AI adoption is accelerating across UK businesses, with 78% now using the technology in some capacity, rising to 85% among mid-sized organisations. A further 14% are exploring or planning implementation by 2026, reflecting the continued momentum behind AI adoption.

Despite widespread use, tangible results remain limited. Just 31% of UK businesses report a positive return on investment, while 18% say their AI initiatives have failed to deliver expected benefits. Another 16% indicate it is still too early to assess outcomes, highlighting the long lead times often associated with AI deployments.

A major issue lies in defining success. Only 41% of organisations using AI say they have a clear understanding of what success looks like, suggesting that AI adoption is often not matched by clear strategic planning, even among mid-sized firms, the most active adopters; fewer than half can articulate measurable goals.

The findings suggest that rapid uptake has outpaced organisational readiness. Many businesses are deploying AI tools without defining how they fit into workflows, what decisions they are meant to support, or whether the goal is efficiency, cost reduction, or growth.

For AI adoption to translate into real business value, companies will need stronger governance, clearer objectives, and measurable success criteria. Without that foundation, AI risks remaining an expensive experiment rather than a driver of long-term transformation.

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OpenAI plans AI superapp to unify ChatGPT and Codex

A shift toward consolidation is underway, with OpenAI planning to merge its ChatGPT app, Codex platform and browser into a single desktop ‘superapp’ designed to simplify the user experience.

OpenAI said the move aims to streamline its product ecosystem after a period of rapid expansion that resulted in multiple standalone tools. The company is now prioritising a more unified approach, particularly as it intensifies competition with rivals such as Anthropic in enterprise and developer markets.

The planned superapp will focus heavily on ‘agentic’ AI capabilities, enabling systems to operate autonomously across tasks such as writing software, analysing data and managing workflows. The goal is to create a central platform where AI can act as a collaborative assistant across the full productivity stack.

Internal leadership changes are also supporting the transition. Chief of Applications Fidji Simo will oversee the initiative, working alongside President Greg Brockman, as the company restructures teams to align around a single core product. Executives have emphasised the need to reduce fragmentation and improve product quality.

The shift comes as OpenAI faces increasing pressure from competitors that have gained traction with enterprise customers. Anthropic, in particular, has seen success with its developer-focused offerings, prompting OpenAI to refocus on business users and revenue growth.

Over the coming months, the company plans to expand Codex with broader productivity features before integrating ChatGPT and its browser into the unified platform. While the mobile ChatGPT app will remain separate, the broader strategy signals a move toward a more cohesive and scalable AI ecosystem.

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Alibaba AI strategy targets $100 billion cloud and AI revenue

An ambitious target to generate $100 billion in annual cloud and AI revenue within five years has been set, as Alibaba seeks to counter slowing growth in its once-dominant e-commerce business.

The push follows a sharp deterioration in financial performance, with quarterly earnings plunging and revenue growth missing expectations. The results underscore growing urgency within the company to extract meaningful returns from its AI investments, which have so far required heavy capital outlays.

Central to the strategy is a shift toward monetisation, with the rollout of agentic AI services such as Wukong and price increases of up to 34% across cloud and storage products. Alibaba is positioning its AI and cloud division as its primary growth engine, aiming to replicate the momentum seen in recent quarters, when AI-related revenues expanded by triple digits.

However, competitive pressures are intensifying. Domestic rivals including Tencent are leveraging vast ecosystems such as WeChat to gain an advantage in agentic AI, while a new wave of players like DeepSeek, MiniMax and Zhipu are offering low-cost, open-source models that compress margins across the industry.

At the same time, Alibaba faces structural challenges beyond AI. Core businesses such as e-commerce and food delivery remain under pressure from aggressive competition, while rising operational costs – subsidies and promotions to attract users – continue to weigh on profitability.

Leadership uncertainty and ongoing restructuring add further complexity. With major investment commitments exceeding $50 billion and increasing competition from both domestic and global players, Alibaba’s ability to execute on its AI strategy will be critical in determining whether it can sustain long-term growth and regain market confidence.

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Learning to integrate AI into daily work like a Googler

A Stanford-backed study examined how Googlers adopt AI, showing why some embrace it while others struggle to find value. Researchers found that many initially relied on ‘simple substitution,’ replacing tasks with AI, but achieved limited benefit because to effort exceeded the payoff.

Successful adopters approached AI differently, applying a product management mindset. They identified high-value opportunities, understood the capabilities of various AI tools, and redesigned workflows rather than seeking quick fixes.

Generative AI, described as a Swiss Army knife of technology, benefits from this methodical approach.

The study highlighted five strategies for deep AI adoption: focus on work blockers rather than technology, select the right tool for the task, start small with rapid experiments, think holistically across systems, and document successful practices for others to replicate.

These techniques help users integrate AI into broader processes, elevate strategic thinking, and increase productivity.

Researchers emphasised that AI adoption thrives when employees rethink workflows and collaborate to share insights. Using a product management mindset, teams can integrate AI to boost creativity, efficiency, and decision-making across the organisation.

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OpenAI acquires Astral to expand Codex developer tools

Astral is being acquired by OpenAI as developer tooling becomes a bigger focus, with the deal aimed at boosting the capabilities of its Codex platform. The move is expected to bring widely used open-source Python tools into the ecosystem, including uv, Ruff, and ty, which are already embedded in millions of developer workflows.

The acquisition is intended to strengthen Codex’s role across the full software development lifecycle, moving beyond code generation toward more integrated and autonomous systems.

The company has positioned Codex as a system that can plan changes, modify codebases, run tools, and verify results, with usage already growing rapidly. OpenAI reported a threefold increase in users and a fivefold increase in activity this year, bringing its total to more than 2 million weekly active users.

Astral’s tools are seen as a natural fit for this vision, given their role in managing dependencies, enforcing code quality, and improving reliability in Python-based development. Integrating these tools could allow AI agents to interact more directly with the environments developers already use.

The acquisition also reinforces the importance of Python as a core language in modern software development, particularly across AI, data science, and backend systems. OpenAI said it plans to continue supporting Astral’s open-source projects while exploring deeper integration with Codex.

The deal remains subject to regulatory approval, and both companies will operate independently until completion. Once finalised, Astral’s team is expected to join OpenAI’s Codex division as the company continues building AI systems designed to collaborate across the development workflow.

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Horizon Worlds remains active as Meta reconsiders VR plans

Meta has reversed its earlier decision to discontinue virtual reality support for Horizon Worlds, allowing the platform to remain available on VR headsets despite previous plans to prioritise mobile and web access.

The decision follows an internal reassessment of user engagement trends, which indicate limited adoption of VR-based social platforms.

While Horizon Worlds was once positioned as central to the company’s metaverse ambitions, demand has remained relatively low, raising questions about the long-term viability of immersive social environments.

Financial pressures also continue to shape strategy.

Meta’s Reality Labs division has recorded substantial losses since 2021, reflecting high investment in virtual and augmented reality technologies without corresponding commercial returns.

Industry data further suggests declining headset sales, reinforcing uncertainty around VR as a mainstream consumer platform.

In contrast, mobile usage of Horizon Worlds is growing faster. Increasing downloads point to broader accessibility and improved product-market alignment, though revenue generation remains limited.

As a result, Meta is prioritising mobile development instead of fully abandoning VR, maintaining a dual approach while seeking more sustainable engagement models.

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New iPhone vulnerability raises concerns over advanced mobile cyber threats

A newly identified cyberattack known as ‘DarkSword’ is raising concerns about the security of iPhone devices, following reports that millions of users could be exposed to rapid data extraction techniques.

Cybersecurity researchers indicate that the attack targets specific iOS versions, exploiting vulnerabilities in the Safari browser and a graphics processing feature known as WebGPU.

Once access is gained, attackers can retrieve sensitive information, including messages, emails and location data, within minutes, while removing traces of the intrusion almost immediately.

Estimates suggest that a significant share of global iPhone users may be affected, with hundreds of millions of devices running vulnerable software versions.

The scale of exposure remains uncertain, particularly as experts continue to assess whether additional versions of iOS may also be impacted.

Researchers have associated the campaign with a threat actor previously identified by Google, with observed activity across multiple regions.

Such a development highlights growing concerns about the evolution of mobile cyber threats, where increasingly sophisticated techniques are being deployed beyond traditional state-level operations.

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Bitcoin moves closer to quantum resistance with BIP-360

BTQ Technologies has deployed Bitcoin Improvement Proposal BIP-360 on its Bitcoin Quantum Testnet v0.3.0, marking the first live test of the proposal. The upgrade introduces a quantum-resistant transaction model, Pay-to-Merkle-Root, designed to strengthen Bitcoin’s long-term security.

BIP-360 focuses on mitigating a vulnerability linked to Taproot’s key-path spending mechanism, which can expose public keys on-chain. Such exposure may become a risk if future quantum computers are capable of exploiting cryptographic weaknesses using advanced algorithms.

The testnet adds new consensus rules, post-quantum signatures, and full transaction lifecycle testing. Faster one-minute block times and adjusted fee structures have been introduced to accommodate larger and more complex signatures.

Growing global attention on quantum threats adds urgency to the development. US, EU, and Canadian authorities are setting timelines for post-quantum cryptography to protect future system security.

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EU scrutiny intensifies over Broadcom VMware licensing dispute

Broadcom is facing increased regulatory pressure in the EU following a formal antitrust complaint concerning changes to VMware licensing practices.

The complaint highlights growing tensions between large technology providers and European cloud infrastructure firms.

The filing, submitted by Cloud Infrastructure Services Providers in Europe, raises concerns that revised licensing models could significantly alter market dynamics.

European providers argue that the changes may limit flexibility, increase costs, and affect their ability to compete effectively in the cloud services sector.

At the centre of the dispute lies the broader issue of market concentration and control over critical digital infrastructure.

Industry stakeholders suggest that restrictive licensing conditions could reshape access to essential virtualisation technologies, which underpin a wide range of cloud and enterprise services across the EU.

Regulatory attention is expected to focus on whether such practices align with the EU competition rules, particularly regarding fair access and market neutrality.

The case emerges at a time when European policymakers are intensifying oversight of dominant technology firms and seeking to strengthen digital sovereignty across strategic sectors.

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Malaysia tightens rules on data centres

Malaysia has quietly restricted new data centre approvals to projects linked to AI, signalling a strategic shift in its digital economy. Authorities confirmed that non-AI development has been halted for nearly 2 years.

The policy reflects mounting pressure on energy and water resources as demand for data centres accelerates. Officials aim to ensure infrastructure supports high-value AI projects rather than lower-impact investments.

Rapid growth has positioned Malaysia as a key regional hub, attracting major global technology firms. Concerns remain over whether the country risks hosting infrastructure without building local innovation capacity.

Leaders say future efforts will focus on balancing investment with domestic benefits and energy sustainability. Plans include expanding power supply and strengthening national AI capabilities to secure long term gains.

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