Microsoft to supply AI tools to federal agencies in a cost-saving pact

The US General Services Administration (GSA) has agreed on a significant deal with Microsoft to provide federal agencies with discounted access to its AI and cloud tools suite.

Instead of managing separate contracts, the government-wide pact offers unified pricing on products including Microsoft 365, the Copilot AI assistant, and Azure cloud services, potentially saving agencies up to $3.1 billion in its first year.

The arrangement is designed to accelerate AI adoption and digital transformation across the federal government. It includes free access to the generative AI chatbot Microsoft 365 Copilot for up to 12 months, alongside discounts on cybersecurity tools and Dynamics 365.

Agencies can opt into any of the offers through September next year.

The deal leverages the federal government’s collective purchasing power to reduce costs and foster innovation.

It delivers on a White House AI action plan and follows similar arrangements the GSA announced last month with other tech giants, including Google, Amazon Web Services, and OpenAI.

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Anthropic reveals hackers are ‘weaponising’ AI to launch cyberattacks

In its latest threat intelligence report, Anthropic has revealed that its AI tool Claude has been purposefully weaponised by hackers, offering a disturbing glimpse into how quickly AI is shifting the cyber threat landscape.

In one operation, termed ‘vibe hacking’, attackers used Claude Code to automate reconnaissance, ransomware creation, credential theft, and ransom-demand generation across 17 organisations, including those in healthcare, emergency services and government.

The firm also documents other troubling abuses: North Korean operatives used Claude to fabricate identities, successfully get hired at Fortune 500 companies and maintain access, all with minimal real-world technical skills. In another case, AI-generated ransomware variants were developed, marketed and sold to other criminals on the dark web.

Experts warn that such agentic AI systems enable single individuals to carry out complex cybercrime acts once reserved for well-trained groups.

While Anthropic has deactivated the compromised accounts and strengthened its safeguards, the incident highlights an urgent need for proactive risk management and regulation of AI systems.

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Oxford secures £118 million for AI-enhanced vaccine research programme

In partnership with the Ellison Institute of Technology, Oxford University has received a £118 million grant to launch CoI-AI, Correlates of Immunity-AI, a five-year vaccine research programme.

Led by Professors Sir Andrew Pollard and Daniela Ferreira, the initiative will combine human challenge trials with AI analysis to explore how the immune system responds to antibiotic-resistant bacteria such as Streptococcus pneumoniae, Staphylococcus aureus and E. coli.

AI models developed at EIT will process vast human-derived datasets, including blood and tissue samples, to identify protective immune responses, profoundly accelerating vaccine discovery and design. CoI-AI pioneers a collaboration of biomedical science and advanced AI within a high-risk, precision-driven framework.

Orange funding will also support the creation of Oxford–EIT research infrastructure, including a new £1 billion campus opening in 2027, embedding AI-driven innovation into cutting-edge medical research.

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Gemini upgrade for Google Home coming soon

An upcoming upgrade for Google Home devices is set to bring a new AI assistant, Gemini, to the smart home ecosystem. A recent post by the Made by Google account on X revealed that more details will be announced on 1 October.

The move follows months of user complaints about Google Home’s performance, including issues with connectivity and the assistant’s failure to recognise basic commands.

With Gemini’s superior ability to understand natural language, the upgrade is expected to improve how users interact with their smart devices significantly. Home devices should better execute complex commands with multiple actions, such as dimming some lights while leaving others on.

However, the update will also introduce ‘Gemini Live’ to compatible devices, a feature allowing for natural, back-and-forth conversations with the AI chatbot.

The Gemini for Google Home upgrade will initially be rolled out on an early access basis. It will be available in free and paid tiers, suggesting that some more advanced features may be locked behind a subscription.

The update is anticipated to make Google Home and Nest devices more reliable and to handle complex requests easily.

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Salesforce cuts 4,000 support jobs as AI handles half of customer queries

Salesforce CEO Marc Benioff has confirmed that the company cut 4,000 customer support positions in 2025 after deploying its Agentforce AI agents. Support staff numbers fell from 9,000 to roughly 5,000.

Agentforce AI now conducts approximately 50 percent of customer interactions and has helped Salesforce reconnect with over 100 million previously neglected sales leads. The move enabled rebalancing of headcount and increased capacity for sales operations.

This development follows earlier claims that AI would augment rather than replace human roles. The company emphasises that AI handles standard cases while humans oversee complex or ambiguous ones, likening the interaction to a ‘self-driving’ model where the human steps in when needed.

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OpenAI eyes India for large-scale AI infrastructure

According to Bloomberg, OpenAI is weighing partnerships in India to build a data centre of at least 1 gigawatt capacity as part of its Stargate project. Such a facility would represent one of Asia’s most significant AI infrastructure investments.

The company recently registered as a legal entity in India and is recruiting a local team. It also announced plans in August to open its first office in New Delhi later this year, highlighting the importance of India’s second-largest market by user base.

The prospective data centre is linked to Stargate, a private-sector AI investment programme valued at up to $500 billion and backed by SoftBank, OpenAI and Oracle. The project was first introduced in January by US President Donald Trump.

Details on the timing and location of the Indian facility remain unclear. Reports suggest that OpenAI chief executive Sam Altman could provide further information during a visit to India in September.

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Human behaviour remains weak link in cyber defence

Cyber security specialists warn that human behaviour remains the most significant vulnerability in digital defence, despite billions invested in AI and advanced systems.

Experts note that in the Gulf, many cybersecurity breaches in 2025 still originate from human error, often triggered by social engineering attacks. Phishing emails, false directives from executives, or urgent invoice requests exploit psychological triggers such as authority, fear and habit.

Analysts argue that building resilience requires shifting workplace culture. Security must be seen not just as the responsibility of IT teams but embedded in everyday decision-making. Staff should feel empowered to question, report and learn without fear of reprimand.

AI-driven threats, from identity-based breaches to ransomware campaigns, are growing more complex across the region. Organisations are urged to focus on digital trust, investing in awareness programmes and user-centred protocols so employees become defenders rather than liabilities.

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Kazakhstan supports China’s global AI cooperation plan

Kazakhstan has announced its support for China’s proposal to establish a Global Organisation for Cooperation in AI, highlighting its ambition to strengthen digital ties with Beijing.

President Kassym-Jomart Tokayev voiced his backing during the Kazakh-Chinese Business Council meeting in Beijing, following his participation in the Shanghai Cooperation Organisation summit in Tianjin.

Tokayev stressed that joint efforts in AI were vital as experts predict the global market could reach $5 trillion by 2033, accounting for nearly one-third of the technology sector. He praised China’s digital achievements and urged bilateral collaboration in emerging technologies.

Kazakhstan has taken notable steps to position itself as a regional digital hub, launching Central Asia’s first supercomputer and the AlemAI International Centre for AI earlier this year.

Tokayev added that partnerships with Chinese firms, including a major construction agreement, would accelerate the development of Alatau City as a separate innovation ecosystem.

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Rapid Fusion unveils AI assistant for 3D printing

Exeter technology firm Rapid Fusion has introduced an AI-powered print assistant to enhance its robotic additive manufacturing systems. Known as Bob, the system has been in development for eight months and is now being rolled out to clients.

The AI aims to simplify machine operation, provide greater control and reduce downtime through predictive maintenance.

It is compatible with the company’s Apollo, Zeus and Medusa models, including the first UK large-format hybrid 3D gantry printer.

Rapid Fusion’s chief technology officer, Martin Jewell, said the system represents a breakthrough in making complex 3D printing more accessible. A standard version will be released in early 2026, while select partners and universities will act as super users to refine future updates.

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UK institutions embrace enterprise AI through global tech alliance

Microsoft, Accenture, and Avanade are deepening their 25-year partnership to bring AI into some of the UK’s most vital sectors, including healthcare and finance. NHS England is piloting AI-powered tools to streamline patient services and cut down on time-consuming administrative tasks, while Nationwide Building Society is deploying machine learning to improve customer services, speed up mortgage approvals, and enhance fraud detection.

The three companies have different responsibilities in tackling the challenges of enterprise AI. Microsoft provides the Azure cloud platform and pre-built AI models, Accenture contributes sector-specific expertise and governance frameworks, and Avanade integrates the technology into existing systems and workflows. That structure helps organisations move beyond experimental AI pilots and scale solutions reliably in highly regulated industries.

Unlike consumer applications, enterprise AI must meet strict compliance requirements, especially concerning sensitive patient data or financial transactions. The partnership emphasises embedding AI directly into day-to-day operations rather than treating it as an add-on, reducing disruption for staff and ensuring systems work seamlessly once live.

With regulators tightening oversight, the alliance highlights responsible AI as a key focus. By prioritising transparency, security, and ethical use, Microsoft, Accenture, and Avanade are positioning their collaboration as a blueprint for how AI can be adopted across critical institutions without compromising trust or reliability.

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