Home | Newsletters & Shorts | Digital Watch newsletter – Issue 97 – March 2025

Digital Watch newsletter – Issue 97 – March 2025

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Snapshot: The developments that made waves

AI governance

Chinese companies are increasingly backing DeepSeek‘s AI, marking a pivotal moment for the industry.

The European Commission has launched the OpenEuroLLM Project, a new initiative to develop open-source, multilingual AI models.

Australia has banned Chinese AI startup DeepSeek from all government devices, citing security risks.

World leaders gathered in Paris for the second day of the Artificial Intelligence (AI) Action Summit, where the focus turned to balancing national interests with global cooperation.

In his op-ed, From Hammurabi to ChatGPT, Jovan Kurbalija draws on the ancient Code of Hammurabi to argue for a principle of legal accountability in modern AI regulation and governance.

Technologies

DeepSeek, an up-and-coming AI startup from China, is rapidly pushing forward the release of its latest AI model, R2, following the remarkable success of its predecessor, R1.

Elon Musk’s AI startup, xAI, has unveiled its latest AI model, Grok-3, which the billionaire claims is the most advanced chatbot technology.

The New York Times has officially approved the use of AI tools for its editorial and product teams, allowing AI to assist with tasks such as generating social media copy, writing SEO headlines, and coding.

Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years.

China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.

Infrastructure

A state-of-the-art space lab on the outskirts of Cairo, touted as Africa’s first satellite production facility, has been built with substantial Chinese involvement. 

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper.

Cybersecurity

The EU Commission introduced a proposal aimed at strengthening the EU’s response to large-scale cyber attacks.

Hackers have stolen $1.5 billion from Dubai-based cryptocurrency exchange Bybit in what is believed to be the largest digital heist in history.

Following the recent security breach at Bybit, major cryptocurrency firms have joined forces to combat the attack and mitigate its impact.

Digital rights

Elon Musk has reignited his rivalry with OpenAI by leading a consortium in a staggering $97.4 billion bid to acquire the nonprofit that governs the ChatGPT creator.

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes.

TikTok has introduced a new method for US Android users to download the app directly from its website, bypassing restrictions imposed by app stores.

South Korea’s data protection authority has suspended new downloads of the Chinese AI app DeepSeek, citing concerns over non-compliance with the country’s privacy laws.

A US federal judge has denied a request to temporarily block Elon Musk’s Department of Government Efficiency (DOGE) from accessing data from seven federal agencies or making further workforce cuts.

Legal

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production.

Elon Musk-owned social media platform X has successfully removed a judge from a German court case concerning demands for real-time election data.

Trump Media & Technology Group and Rumble have filed an emergency motion in a US court against Brazilian Supreme Court Justice Alexandre de Moraes.

Internet economy

Chinese investors are flocking to AI-related stocks, betting that the success of home-grown startup DeepSeek will propel China to the forefront of the AI race amid the escalating Sino-US technology conflict. 

In a meeting at the White House on Friday, US President Donald Trump and Nvidia CEO Jensen Huang discussed the emerging challenges posed by China’s AI advancements, particularly the rapid rise of DeepSeek that has disrupted the global tech industry.

Macron announced private sector investments totalling around 109 billion euros ($112.5 billion) in its AI sector at the Paris AI summit, according to President Emmanuel Macron.

Elon Musk, who is leading Donald Trump’s federal cost-cutting initiative, has announced that efforts are underway to shut down the United States Agency for International Development (USAID).

President Donald Trump confirmed on Wednesday that he was in active discussions with China over the future of TikTok, as the US seeks to broker a sale of the popular app.

Elon Musk’s social media company X is currently discussing raising funds from investors at a $44 billion valuation.

Development

Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and AI infrastructure over the next three years.

US drugmaker Amgen has announced a $200 million investment in a new technology centre in southern India, which will focus on using AI and data science to support the development of new medicines.

Sociocultural

A German court has ruled that Elon Musk’s social media platform X must provide researchers with data to track the spread of misinformation ahead of the country’s national election on 23 February.

French prosecutors have launched an investigation into X, formerly known as Twitter, over alleged algorithmic bias.

Meta has launched a new initiative with UNESCO to enhance AI language recognition and translation, focusing on underserved languages.

A recent report by Australia’s eSafety regulator reveals that children in the country are finding it easy to bypass age restrictions on social media platforms.

A Russian court has fined Google 3.8 million roubles (£32,600) for hosting YouTube videos that allegedly instructed Russian soldiers on how to surrender.

Mexico has strongly opposed Google’s decision to rename the Gulf of Mexico as the ‘Gulf of America’ for US Google Maps users.

For more information on cybersecurity, digital policies, AI governance and other related topics, visit diplomacy.edu.



OEWG negotiations enter the eleventh hour

The UN Open-Ended Working Group (OEWG) on security of and in the use of information and communications technologies 2021–2025 held its tenth substantive session, the penultimate session of the group before its mandate concludes in July of this year. 

Tensions ran high from the first day, with attributions of cyberattacks and rights of reply denouncing those attributions taking centre stage. The states held tightly to their positions, largely unchanged since the last session in December 2024. The Chair noted the lack of direct dialogue with participants opting for a virtual town hall approach—circulating their positions and posting them on the portal and reminded delegates that whatever decisions to be made would be made by consensus, urging them to demonstrate flexibility.

Ransomware, AI, and threats to critical infrastructure remain the biggest concerns of countries regarding the threat landscape. Even as countries do not agree on an exhaustive list of threats or their sources, there is a strong emphasis on collective and cooperative responses such as capacity development and knowledge sharing to reduce the risk of these threats, as well as mitigate and manage them.

The long-standing debate between implementing existing norms and developing new ones continued. However, this session saw ASEAN countries take a more pragmatic approach, emphasising concrete steps toward implementing agreed norms while maintaining openness to discussing new ones in parallel. At the same time, the call from developing countries for greater capacity-building gained momentum, underscoring the challenge of implementing norms without sufficient resources and support.

Discussions on international law have shown little progress in drawing closer to the positions held by states — there is still no consensus on the necessity of new legally binding regulations for cyberspace. There is also discord on how to proceed with discussing international law in the future permanent UN mechanism on cybersecurity.

Discussions on confidence-building measures (CBMs) have been largely subdued, with few new CBMs introduced and states providing limited details about their POC Directory experience. Many states have shared their CBM implementation, often linked to regional initiatives and best practices, showing eagerness to operationalise CBMs. States now seem to anticipate the future permanent mechanism to serve as the forum for detailed CBM discussions.

The Voluntary Fund and the Capacity-Building Portal have increasingly been regarded as key deliverables of the OEWG process. However, states remain cautious about the risk of duplicating existing global and regional initiatives, and a clear consensus has yet to emerge regarding the objectives of these deliverables.

States are still grappling with thematic groups and non-state stakeholder engagement questions in the future permanent mechanism. The Chair’s upcoming reflections and town halls will likely get the ball rolling on finding elements for the future permanent mechanism acceptable to all delegations.

Delegations have much to agree upon and exceedingly little time to do so. While this has been the mantra for the last two years, negotiations are now truly entering the eleventh hour, and consensus remains elusive. This spells trouble not just for the group’s final report, but also uncertainty for the future of the UN cybersecurity discussions the report will chart.

For more information on cybersecurity, digital policies, AI governance, and other related topics, visit diplomacy.edu.



USAID’s closure: Soft power at a crossroads

The United States Agency for International Development (USAID) has been a cornerstone of American soft power since 1961, providing humanitarian aid and fostering global development. However, the Trump administration’s decision to shut it down has sparked intense debate about the future of US diplomacy and soft power, a key tool in international relations.

USAID as an instrument of soft power

‘Soft power,’ coined by Joseph Nye, refers to a country’s ability to influence others through attraction and persuasion rather than force. USAID played a crucial role, administering 60% of US foreign aid and disbursing $43.79 billion in 2023. It trained foreign elites, fostered business ties, and enhanced the USA’s global image.

Despite its successes, USAID faced criticism for inefficiency and mismanagement. Figures like Elon Musk called it corrupt and ineffective, echoing critiques from conservative think tanks and investigative reports highlighting bureaucratic failures. These concerns contributed to Trump’s decision to dissolve the agency.

The decision to shut down USAID

President Trump, backed by Musk, justified the closure by citing wastefulness and inefficiency. Musk went as far as calling it a ‘criminal organisation’. The administration proposed merging USAID’s functions into the State Department to align aid with the ‘America First’ agenda. However, this decision faced backlash from humanitarian organisations, warning it could undo decades of progress in global development.

Implications for US diplomacy

Dismantling USAID eliminates a major soft power tool. Its programmes have built goodwill and alliances; without them, the USA may struggle to maintain influence through non-coercive means. Additionally, China, through its China Aid Initiative, is already stepping in to fill the void left by the USA, potentially shifting global alliances.

The abrupt termination of USAID programmes—ranging from landmine removal to refugee aid—poses immediate threats to vulnerable populations. It also disrupts a complex aid network involving governments, NGOs, and private donors, raising questions about what, if anything, will replace it.

The future of soft power

USAID’s closure raises pressing questions about the relevance of soft power in a world increasingly dominated by hard power and realpolitik. As military strategies and economic coercion take centre stage, the effectiveness of diplomatic influence through values like justice, fairness, and solidarity is uncertain.

Other global actors may step in with the USA retreating from soft power leadership. China’s Belt and Road Initiative, the EU’s Global Gateway, and India’s digital public goods projects position them as potential leaders in Africa and Asia. Meanwhile, Russia and Türkiye leverage state-controlled media to shape global narratives.

Digital public diplomacy at risk

USAID has been instrumental in digital public diplomacy, supporting initiatives related to information integrity and digital networks. The Trump administration’s criticism of these programmes suggests a shift toward more traditional, behind-the-scenes diplomacy rather than social media-driven engagement.

All this raises further questions: Will digital diplomacy fade in favour of direct, state-led negotiations? Who will shape global narratives on human rights and economic development? Will traditional cultural diplomacy, through exchanges and in-person engagement, regain prominence?

To read the full article, click here. For more information on cyber diplomacy, digital policies, AI governance, and other related topics, visit diplomacy.edu.



Basketball spirit through cutting-edge technology: What did the NBA Tech Summit deliver?

On Valentine’s Day in San Francisco, the NBA Tech Summit took place ahead of the NBA All-Star weekend, highlighting cutting-edge innovations in sports, media, and technology. With industry leaders like NVIDIA CEO Jensen Huang and Warriors coach Steve Kerr in attendance, the summit explored the evolution of sports broadcasting, major upcoming investments, and the future of basketball.

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A key topic was how AI and robotics are transforming the game, helping players achieve peak performance. While similar advancements were seen ahead of the Paris Olympics, the NBA is taking a major step forward with augmented reality (AR) and the ‘Tabletop’ feature. This allows fans to watch games on a virtual court with digital avatars mirroring real-time player movements, enabling analysis from multiple angles, real-time stats, and even simulations of alternative outcomes.

Beyond just viewing, fan engagement is being revolutionised. AI-driven platforms allow viewers to vote for competition participants, ask real-time questions, and participate in interactive events during and after games. AI also plays a crucial role in analysing strategies, helping coaches and players make better-informed decisions during crucial moments.

Player health is another major focus. With the gruelling NBA schedule, new technologies aim to minimise injuries through wearable sensors embedded in gear, tracking vital physical parameters in real-time. Innovations such as biometric sensors, accelerometers, fatigue monitoring, and AI-driven injury prevention algorithms provide medical teams instant insights, helping players avoid overexertion and unnecessary risks.

For fans, the viewing experience is being redefined. High-resolution Ultra HD 8K and 360-degree cameras provide an immersive experience, while the ‘player cam’ perspective brings fans closer to the action. Future advancements will include holographic match broadcasts and customisable camera controls, allowing viewers to explore the court from any angle. With 5G integration, streaming will be faster and more stable.

Refereeing accuracy is also improving. Hawk-Eye technology now tracks the ball’s movement, detects boundary crossings, and ensures accurate shot timing. AI assists in analysing player contact and recommending potential fouls for referees to review. The NBA Replay Centre, supported by AI, streamlines decision-making, reducing human error and ensuring fairer outcomes. Hoop sensors, audio analysis for simulating fouls, and multi-camera officiating further refine the game’s integrity.

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Sustainability is another key initiative. NBA arenas incorporate solar energy, energy-efficient lighting, and water recycling systems to minimise the environmental footprint. Digital tickets and contactless payments reduce paper waste, while partnerships with organisations like the Green Sports Alliance and NRDC reinforce the league’s commitment to sustainability.

Despite these technological leaps, the essence of basketball remains unchanged. The game, first played in Springfield in 1891, continues to evolve, but its core spirit endures. While AI, AR, and other innovations enhance the experience for players and fans, basketball remains a sport built on skill, competition, and passion.



Data Protection Day 2025: A new mandate for data protection

Data Protection Day 2025 brought experts to Brussels and online to discuss the latest privacy challenges. The event featured key speeches, panels, and discussions on data protection enforcement, international cooperation, and the impact of emerging technologies.

In his keynote, Leonardo Cervera Navas warned about algorithms being used to destabilise the EU democracies and the power imbalance caused by tech monopolies. Despite these challenges, he emphasised that European values and regulatory tools like the Digital Clearing House 2.0 could help uphold privacy.

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A panel moderated by Kait Bolongaro examined data protection priorities and enforcement challenges. European Data Protection Supervisor Wojciech Wiewiorowski stressed the role of strong data protection authorities (DPAs) in ensuring GDPR compliance. Matthias Kloth highlighted the modernisation of Convention 108+ as a key legal advancement. The discussion also covered international cooperation, with panellists agreeing that while global collaboration is necessary, privacy standards must not be diluted.

Audience questions raised concerns about the complexity and cost of enforcing privacy rights. Wiewiorowski saw no major GDPR overhaul in the near future but suggested procedural adjustments. Jo Pierson proposed that civil society organisations assist individuals facing legal barriers. The discussion also touched on China’s DeepSeek AI, with panellists refraining from labelling it a threat but stressing the need for Europe to control AI training datasets. Wiewiorowski likened the AI race to the Cold War’s ‘Sputnik moment,’ questioning if Europe was falling behind.

A session on future data protection challenges, led by Anna Buchta, highlighted regulatory complexity. Marina Kaljurand noted a significant digital knowledge gap among European lawmakers, complicating policy decisions. She also raised concerns about the UK’s adequacy decision, which expires in June 2025, and worsening US-EU relations under Trump. UK Information Commissioner John Edwards emphasised AI’s disruptive impact on biometrics and tracking, while Alberto Di Felice from DIGITALEUROPE criticised excessive bureaucracy, advocating for streamlined regulatory oversight.

Beatriz de Anchorena, head of Argentina’s data protection authority, championed Convention 108+ as a global privacy standard. Argentina, the first non-European country to receive EU adequacy, has remained a leader in data protection reform.

A discussion on neuroscience and privacy, moderated by Ella Mein, explored ethical concerns surrounding brain data. Professor Marcello Ienca warned of potential ‘neuro-discrimination’ and the dangers of exploiting brain data. ECtHR Jurisconsult Anna Austin highlighted legal challenges, noting the high standards required for data waivers.

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The final panel, led by Gabriela Zanfir-Fortuna, addressed the need for stronger enforcement. Johnny Ryan of the Irish Council for Civil Liberties criticised the EU’s slow response to data misuse, while Nora Ni Loideain emphasised the GDPR’s role in giving DPAs greater enforcement power.

The event underscored the need for robust regulation, global cooperation, and better enforcement mechanisms to protect privacy in a rapidly evolving digital landscape.



Legacy media vs social media and alternative media channels

The rapid spread of digital information has transformed communication, offering opportunities and challenges. While social media and alternative platforms have democratised access to information, they have also enabled misinformation, deepfakes, and sensationalism to flourish. The tension between traditional media and these new forms of communication is at the heart of current debates on content policy and media integrity.

The case of Novak Djokovic at the 2025 Australian Open highlights this shift. After a Channel 9 journalist made derogatory remarks about him and his Serbian supporters, Djokovic refused an on-court interview and took to social media to share his perspective. His video went viral, attracting support from figures like Elon Musk, who criticised traditional media as a ‘negativity filter,’ This incident underscored the ability of social media to bypass mainstream media narratives, raising questions about journalistic objectivity, editorial oversight, and the role of direct communication in shaping public discourse.

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Similarly, alternative media’s influence on political discourse was evident in Joe Rogan’s podcast, The Joe Rogan Experience. In 2024, Donald Trump’s appearance on the podcast allowed him to engage with audiences outside traditional news constraints, potentially boosting his presidential campaign. In contrast, Kamala Harris declined an invitation after requesting pre-approved questions. This difference illustrated how politicians navigate new media environments—some embracing unscripted discussions, others preferring controlled narratives. The case of Vladimir Klitschko further demonstrated how alternative media offers international figures a platform for nuanced discussions on global issues.

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Elon Musk’s experience with the media further highlights these dynamics. After traditional media misrepresented a gesture he made at a public event, Musk turned to X (formerly Twitter) to counter the narrative. His criticism of ‘legacy media’ as biassed and slow to adapt resonated with many, reinforcing the growing preference for direct, unfiltered communication. However, this shift presents risks, as social media and alternative platforms lack the editorial oversight that traditional outlets provide, allowing misinformation to spread more easily.

The rise of podcasts, independent media, and social networks has disrupted traditional journalism, offering new ways to engage audiences. While these platforms provide greater freedom of expression, they raise concerns about accuracy, misinformation, and accountability. The challenge remains in balancing openness with factual integrity, ensuring that media—whether traditional or alternative—serves the public responsibly in an era where the boundaries between truth and fabrication continue to blur.