EU explores AI image generation safeguards

The Council of the European Union is examining a compromise proposal that could introduce restrictions on certain AI systems capable of generating sensitive synthetic images.

The discussions form part of ongoing adjustments to the EU AI Act.

A proposed measure that would primarily address AI tools that generate illegal material, particularly content involving the exploitation of minors.

Policymakers are considering ways to prevent the development or deployment of systems that could produce such material while maintaining proportionate rules for legitimate AI applications.

Early indications suggest the proposal may not apply to images depicting people in standard clothing contexts, such as swimwear. The distinction reflects policymakers’ effort to define the scope of restrictions without imposing unnecessary limits on common image-generation uses.

The debate highlights broader regulatory challenges linked to generative AI technologies. European institutions are seeking to strengthen protections against harmful uses of AI while preserving space for innovation and lawful digital services.

Further negotiations among the EU institutions are expected as lawmakers continue refining how these provisions could fit within the broader European framework governing AI.

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Moltbook founders join Meta’s AI research lab

Meta Platforms has acquired Moltbook, a social networking platform designed for AI agents. The deal brings co-founders Matt Schlicht and Ben Parr into Meta’s AI research division, the Superintelligence Labs, led by Alexandr Wang.

Financial terms of the acquisition were not disclosed, and the founders are expected to start on 16 March.

Moltbook, launched in January, allows AI-powered bots to exchange code and interact socially in a Reddit-like environment. The platform has sparked debate on AI autonomy and real-world capabilities, highlighting growing competition among tech giants for AI talent and technology.

Industry figures have offered differing views on the platform’s significance. OpenAI CEO Sam Altman called Moltbook a potential fad but acknowledged its underlying technology hints at the future of AI agents.

Meanwhile, Anthropic’s chief product officer, Mike Krieger, noted that most users are not ready to grant AI full autonomy over their systems.

The platform’s growth also highlighted security risks. Cybersecurity firm Wiz reported a vulnerability that exposed private messages, email addresses, and credentials, which was resolved after the owners were notified.

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AI and genetics reveal how language develops in the brain

Recent research shows that language emerges from a dynamic, adaptable system in the brain rather than a single region. AI, high-field MRI, and genetic studies are helping scientists understand how humans acquire and process language.

Large language models can predict speech processing in children as young as two, while MRI shows language dominance exists on a fluid brain continuum. Genetic analyses show hundreds of genes contribute to language, with overlaps between musical rhythm and dyslexia.

High-level language skills, such as grammar, continue to mature between ages two and ten, while phonetic processing stabilises earlier. Combining AI, imaging, and genetics allows researchers to understand individual differences and neurovariability in communication.

The integrated approach could improve early diagnosis and treatment for language disorders, offering insights into how the brain learns, adapts, and uses language across the lifespan.

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Google adds option to disable AI search in Google Photos

Users of Google Photos will now have greater control over how they search their images, after Google introduced a visible toggle that returns to the traditional search experience.

The update follows complaints about the AI-powered Ask Photos feature.

Ask Photos was designed to allow users to search for images using natural language queries rather than simple keywords. The tool aimed to make photo searches more flexible, enabling complex queries such as descriptions of people, events or locations captured in images.

However, some users reported that the AI system produced slower results and occasionally failed to locate images that the classic search had previously found more reliably.

Although an option to turn off the AI feature already existed, it was hidden within settings and often overlooked.

The new update introduces a visible switch directly on the search interface. Users can now easily alternate between the AI-powered search and the traditional search system depending on their preferences.

Google said improvements have also been made to the quality of common searches following user feedback. The company emphasised that search remains one of the most frequently used functions within Google Photos and that ongoing updates will continue to refine the experience.

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Japan expands strategic investment in AI, quantum computing, and drones

Japan has identified dozens of advanced technologies as priority investment targets as part of an economic strategy led by Sanae Takaichi.

The plan aims to channel public and private capital into industries expected to drive long-term economic growth.

Government officials selected 61 technologies and products for support across 17 strategic sectors. The list includes emerging fields such as AI, quantum computing, regenerative medicine and marine drones.

Many of these technologies are still in early development, but are considered important for economic security and global competitiveness.

The strategy forms a central pillar of Takaichi’s broader economic agenda to strengthen Japan’s industrial base and encourage investment in high-growth sectors. Authorities plan to release spending estimates and implementation timelines by summer as part of a detailed investment roadmap.

Japan has also set ambitious market goals in several sectors. Officials aim to secure more than 30% of the global AI robotics market by 2040 while increasing annual sales of domestically produced semiconductors to ¥40 trillion.

Several Japanese technology companies could benefit from the policy direction. Firms such as Fanuc, Yaskawa Electric and Mitsubishi Electric are integrating AI into industrial robots, while Sony Group produces sensors used in robotic systems.

Chipmakers, including Rohm, Kioxia and Renesas Electronics, may also benefit from increased investment in semiconductor manufacturing and related supply chains.

Despite strong investor interest, analysts note uncertainty about how the programme will be financed, particularly as Japan faces rising spending pressures from social security, defence and public debt.

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Dutch court increases pressure on Meta over non-profiling social media feeds

A court in the Netherlands has increased potential penalties against Meta after ruling that changes to social media timelines must be implemented urgently.

The decision raises the potential fine for non-compliance from €5 million to €10 million if required adjustments are not applied to Facebook and Instagram feeds.

Judges at the Amsterdam Court of Appeals said users must be able to select a timeline that does not rely on profiling-based recommendations.

The ruling follows a legal challenge from the digital rights organisation Bits of Freedom, which argued that users who switched away from algorithmic feeds were automatically returned to them after navigating the platform or reopening the application.

The court concluded that the automatic resetting mechanism represents a deceptive design practice known as a ‘dark pattern’.

Such practices are prohibited under the EU’s Digital Services Act, which requires large online platforms to provide greater transparency and user control over recommendation systems.

Judges acknowledged that Meta had already introduced several technical changes, although not all required measures were fully implemented. The company must ensure that the non-profiling timeline option remains active once selected, rather than reverting to algorithmic recommendations.

The dispute also highlights regulatory tensions within the European framework. Before turning to the courts, Bits of Freedom submitted a complaint to Coimisiún na Meán, the national authority responsible for overseeing Meta’s compliance with the EU rules.

According to the organisation, the lack of progress from regulators encouraged legal action in Dutch courts.

Meta indicated that the company intends to challenge the decision and pursue further legal proceedings. The case could become an important test of how the Digital Services Act is enforced against major online platforms across Europe.

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Digital sovereignty in Asia moves beyond US versus non-US cloud debate

AI, cloud computing, and cross-border data flows have made questions about control and jurisdiction increasingly important for governments and businesses. In Asia, the debate around digital sovereignty often focuses on ‘US versus non-US cloud’ providers or data localisation.

Such simplifications miss the practical challenges organisations face when choosing hosting locations or training AI models while navigating diverse regulatory regimes.

At the same time, Asia’s digital economy is building its own regulatory foundations. In Vietnam and Indonesia, new rules such as Vietnam’s Decree 53 and Indonesia’s data protection framework show how governments are shaping data governance while still relying on global cloud and AI platforms. Most organisations across the region continue to operate using a mix of local, regional, and international providers.

Organisations must address key questions about data jurisdiction and workload mobility when risks change. They must also control who can access sensitive systems during incidents. Digital sovereignty is clearer when seen through three pillars: data sovereignty, technical sovereignty, and operational sovereignty.

Data sovereignty is about jurisdiction, not just data storage. As AI regulation expands, businesses need to know which authorities can access their data and how it may be used. Technical sovereignty is the ability to move or redesign systems as regulations or geopolitics shift. Multi-cloud and hybrid strategies help organisations remain adaptable.

Operational sovereignty focuses on governance and control. It addresses who can access systems, from where, and under what safeguards, thus linking sovereignty directly to cybersecurity and incident response.

For Asia-Pacific organisations, digital sovereignty should not be a simple procurement checklist. Instead, it should guide cloud and AI strategies from the start, ensuring legal clarity, technical flexibility, and operational trust as the digital landscape evolves.

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Tycoon 2FA phishing service disrupted in global cybercrime crackdown

Authorities have disrupted the Tycoon 2FA phishing-as-a-service (PhaaS) platform, which sent millions of phishing emails to organisations worldwide.

The operation, led by Microsoft, Europol, and several industry partners, targeted the infrastructure behind Tycoon 2FA, which enabled large-scale phishing campaigns against more than 500,000 organisations each month.

By mid-2025, Tycoon 2FA accounted for 62% of the phishing attempts blocked by Microsoft, with over 30 million malicious emails blocked in a single month. Experts link the platform to around 96,000 global victims since 2023, including 55,000 Microsoft customers.

Researchers from Resecurity found cybercriminals widely used the platform to impersonate legitimate users and gain unauthorised access to accounts such as Microsoft 365, Outlook and Gmail. The service relied on techniques such as URL rotation using open redirect vulnerabilities and the misuse of Cloudflare Workers to hide malicious infrastructure.

‘The author of Tycoon 2FA is actively updating the tool with regular kit updates,’ reads the report published by Resecurity. ‘What makes Tycoon 2FA so special is that the kit effectively combines multiple methods to deliver phishing at scale—from PDF attachments to QR codes.’

Authorities say taking the infrastructure offline disrupts a key pathway for account takeover attacks and prevents additional threats, such as data theft, ransomware, business email compromise, and financial fraud.

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ChatGPT Edu launches at Clemson University for students and faculty

Clemson University has introduced ChatGPT Edu to its students, faculty, and staff, providing them free access to the secure, institutionally managed version of the AI platform.

The rollout is part of Clemson’s partnership with OpenAI. It forms part of the university’s broader AI Initiative, which aims to develop a human-centred approach to AI across education, research, and operations.

University officials said the ChatGPT Edu environment will expand access to generative AI tools while ensuring institutional data remains protected and is not used to train external AI systems.

Members of the Clemson community who want to use the platform must request access through a ChatGPT Edu account request form. Once approved, accounts are automatically created, and users can sign in through Clemson’s single sign-on system.

Even if students or staff members already have a ChatGPT account linked to their Clemson email, they will still need to request access to ChatGPT Edu. After approval, they can merge your current account or download your chat history before creating a new one.

The university said the launch reflects its view that access to emerging technologies should be paired with clear guidance and responsible use. Users are advised to review Clemson’s updated AI guidelines before using the system.

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EU draft regulation aims to create new legal framework for startups

A draft initiative from the European Commission seeks to introduce a new legal structure designed to simplify how companies operate across the EU.

The proposal, often referred to as the ‘EU Inc’ initiative, explores the creation of a so-called ’28th regime’ that would exist alongside national corporate frameworks used by member states.

A concept that aims to provide startups and technology firms with a single legal structure that applies across the EU.

Instead of navigating different national rules in each country, companies could operate under a unified regulatory model intended to reduce administrative barriers and encourage cross-border innovation.

According to the draft, the initiative may rely on an EU regulation rather than separate national legislation. Such an approach could enable faster implementation, as the EU regulations apply directly across all member states without requiring domestic transposition.

However, the legal basis of the proposal could raise institutional concerns. Using a regulation as the primary mechanism may constitute an unconventional shortcut in the EU lawmaking, potentially sparking debate among policymakers over the approach’s scope and legitimacy.

The initiative reflects broader efforts within the Union to simplify regulatory frameworks and strengthen the competitiveness of European startups. If adopted, the ‘EU Inc’ model could reshape how young companies expand across the single market.

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