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OECD proposes policy priorities for AI use in SME sustainable finance

The Organisation for Economic Co-operation and Development (OECD) has published a policy paper examining how AI and digital tools can help small and medium-sized enterprises (SMEs) gain better access to sustainable finance, where they remain significantly underrepresented.

The paper maps practical applications of AI and digital tools across the entire financing lifecycle, from sustainability data generation and reporting by SMEs to loan origination, credit assessment and portfolio monitoring by financial institutions. The OECD notes that AI has the potential to support the front, middle and back office of lending operations rather than a single stage of the financing process.

Drawing on country examples and recent initiatives, the OECD argues that technological adoption must be accompanied by appropriate governance. It identifies four policy priorities: developing interoperable data infrastructure, strengthening verification mechanisms, creating incentives for SME sustainability reporting and ensuring accountable use of AI in financing decisions.

Why does it matter?

Small and medium-sized enterprises account for much of economic activity and employment but often struggle to access sustainable finance because they lack the resources to produce the data and reporting required by lenders and investors. AI could reduce these costs by automating data collection, reporting and credit assessment, making green finance more accessible to smaller businesses.

The OECD also emphasises that technology alone will not close the financing gap. Real progress depends on reliable data infrastructure, effective verification and clear governance to ensure AI-supported financing decisions are transparent, accountable and fair, preventing existing inequalities from being reinforced.

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Microsoft and Europol disrupt Amadey and StealC malware infrastructure

Microsoft has disrupted more than 200 command-and-control servers linked to Amadey and StealC, two widely used cybercrime tools that support credential theft, fraud and ransomware attacks.

The company’s Digital Crimes Unit said the action targeted the shared infrastructure behind the two tools rather than treating them as separate threats. In the first two weeks of May, Amadey and StealC were linked to more than 140,000 infected computers worldwide.

Amadey is often used to gain access to devices, while StealC is used to steal passwords and sensitive information. Microsoft said the tools form part of a wider cybercrime supply chain in which specialised malware services help attackers turn initial access into fraud, ransomware, espionage or other operations.

Microsoft said investigators used AI, including Copilot, to analyse malware and identify connections between the two tools more quickly. The company said the analysis helped its legal team treat both malware families as part of a single conspiracy under the US Racketeer Influenced and Corrupt Organizations Act.

The action was carried out with Europol and industry partners, including ESET, BitSight, Lumen and Mitsui Bussan Secure Directions. Europol’s European Cybercrime Centre also investigated StealC as part of Operation Endgame, alongside European law enforcement partners and cybersecurity companies, including IBM X-Force and Proofpoint.

Microsoft said it has identified more than 18,000 victim computers since the start of the operation and is working with telecommunications providers to help protect affected users.

The company said findings from the case will feed into its Statutory Automated Disruption programme, which accelerates the removal of malicious domains and infrastructure.

Why does it matter?

The operation reflects a shift in cybercrime disruption strategy. Instead of targeting one malware family or service at a time, Microsoft and its partners focused on the shared infrastructure that allows criminal tools to work together. That matters because modern cybercrime increasingly operates as a modular supply chain: one tool gains access, another steals credentials, and other actors monetise that access through fraud, ransomware or espionage. The use of AI to accelerate malware analysis also points to how defenders are trying to match the speed and scale of cybercriminal operations.

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Cate Blanchett unveils AI consent tool at European Parliament

Actor and producer Cate Blanchett has launched the Human Consent Registry, a free online tool that allows individuals to specify how AI systems may use their identity. Presented at the European Parliament, the registry enables users to permit or prohibit the use of their name, image, voice, likeness and movements by AI systems, either unconditionally or subject to specific terms.

The platform is available to individuals as well as representatives, such as agents and managers. Its developers say it will eventually expand to cover works of art, fictional characters and brands. It was developed by RSL Media, a nonprofit co-founded by Blanchett that focuses on building consent tools related to AI use, which launched in May to wide support from figures across the entertainment industry.

Blanchett has been a prominent advocate for stronger safeguards against unauthorised AI use. In March 2025, she joined more than 400 artists in signing an open letter urging the US administration to maintain copyright protections and reject proposals that would allow AI developers to train models on copyrighted works without permission or compensation.

The launch comes amid growing concern among artists over the unauthorised use of creative works and personal likenesses for AI training. Singer SZA recently said more than 200 of her songs had been used to train AI systems, while actor Matthew McConaughey has trademarked his image, voice and a well-known catchphrase.

The Human Consent Registry positions itself as a scalable and accessible alternative to such individual legal measures, offering a standardised mechanism that does not require significant resources to deploy. The tool is free to use and designed to be available to anyone, not only those with the means to pursue trademark or copyright protections independently.

The registry was launched during an event at the European Parliament hosted by Bulgarian MEP Eva Maydell of the European People’s Party. Director Steven Soderbergh also attended the event in Brussels.

Why does it matter?

The Human Consent Registry highlights a growing gap between existing intellectual property laws and the capabilities of generative AI. While copyright and trademark protections offer some legal remedies, they often do not provide individuals with a simple way to express or enforce consent over the use of their identity, voice or likeness by AI systems.

The initiative also reflects a broader shift towards consent-based AI governance. By launching the registry at the European Parliament, its creators are seeking to influence ongoing debates on AI regulation, copyright and personality rights, while promoting practical mechanisms that could complement future legal frameworks for the responsible use of AI-generated content.

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Google proposes a balanced approach to AI governance in the US

Google has published a policy paper proposing a two-track approach to AI governance in the United States, separating oversight of frontier AI models from rules for widely deployed AI applications.

The paper argues that AI policy should avoid what Google describes as a false choice between over-regulation and no regulation. Instead, the company calls for a pragmatic, evidence-based framework that treats the most advanced AI systems differently from everyday AI tools such as chatbots.

For frontier AI, Google proposes the creation of a Frontier AI Regulatory Organisation, or FARO. The industry-funded body would operate under federal oversight and develop standards for safety, security, incident reporting and transparency.

Google says FARO could set scientific benchmarks for frontier capabilities, particularly in areas such as cybersecurity and chemical, biological, radiological and nuclear risks. It could also oversee independent audits and require frontier AI companies to publish and follow safety frameworks before releasing highly capable models.

For widely deployed AI applications, Google argues that the federal government should rely mainly on existing legal frameworks, with targeted updates where needed. The paper says policy should focus on real-world harms and outputs rather than micromanaging AI development.

The company identifies several priority areas, including workforce preparedness, child safety, information integrity, copyright, privacy and energy infrastructure for data centres.

Google supports measures such as AI interaction guidelines for children, disclosures that chatbots are not sentient, rules for self-harm-related queries, watermarking and provenance standards for generative AI, privacy-enhancing technologies and workforce reskilling.

The paper presents the model as a way to address national security and consumer protection risks while preserving US leadership in AI development.

Why does it matter?

Google’s paper is a significant industry intervention in the US AI policy debate. Its two-track model reflects a broader governance trend: frontier AI is increasingly being treated as a national security and safety issue, while everyday AI applications are being handled through consumer protection, child safety, privacy, copyright and labour policy. The proposal could influence federal discussions, but it also reflects Google’s own regulatory preferences, including industry-funded oversight, confidential audit reports and reliance on existing law for many AI applications.

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UN secretary-general calls for greater transparency on AI’s climate impact

UN Secretary-General António Guterres has called on AI companies to publicly disclose the environmental impact of their operations, including carbon emissions, water consumption, and land use. Speaking at London Climate Action Week, Guterres proposed an AI Environmental Transparency Initiative, arguing that communities are often left without clear information about the environmental impact of nearby data centre developments.

Citing a UN study, Guterres said data centres consumed more electricity in 2025 than all but ten countries, accounting for around 1.5% of global electricity demand. That share could approach 3% by 2030, while AI-related water consumption and pollution are also projected to rise significantly. By 2030, that figure is projected to nearly double to close to 3 per cent, while the water use and pollution associated with AI are also expected to double within four years.

Guterres noted that coal still provides around 30% of the electricity used by data centres globally, while renewables account for approximately 27%. He called on AI companies to power their facilities entirely with renewable energy by 2030. Guterres called on AI firms to commit to powering their facilities entirely from renewable sources such as wind and solar by 2030, though existing clean energy commitments from major tech companies have already been complicated by the rapid pace of AI deployment.

Guterres linked the proposal to broader concerns about climate change and energy security, arguing that both are rooted in continued dependence on fossil fuels. He noted that the planet has just endured its eleven hottest years on record, and that last year marked the first time the three-year global temperature average broke through the 1.5 degrees Celsius threshold set by the 2015 Paris Agreement.

He also noted that renewable energy surpassed one-third of global electricity generation in 2025 for the first time, while coal’s share fell below one-third, although he cautioned that rising AI-related electricity demand could complicate progress.

Coal’s share of global generation also fell below one-third for the first time, though significant challenges remain, particularly given policy reversals in the US under President Donald Trump, who has embraced fossil fuels and cut support for renewables.

Guterres, whose term ends in December 2026, will convene world leaders again at the annual COP climate summit later this year. He reiterated calls for every major emitter to accelerate action, reduce methane emissions, and move away from coal, oil, and gas, with the speech delivered during a heatwave affecting much of London and Europe.

Why does it matter?

The rapid expansion of AI infrastructure is bringing its environmental footprint under increasing scrutiny. As data centres consume growing amounts of electricity and water, policymakers are beginning to ask whether AI companies should be subject to the same transparency expectations applied to other carbon-intensive industries. Standardised reporting could provide governments, investors and local communities with a clearer understanding of AI’s environmental impact.

The proposal also highlights the growing intersection between AI governance and climate policy. As countries seek to expand AI capabilities while meeting emissions targets, the availability of clean energy, sustainable infrastructure and transparent environmental reporting is likely to become an increasingly important part of discussions on responsible AI development.

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Microsoft report finds AI use growing across schools

Microsoft has released the third edition of its AI in Education Report, finding that AI adoption continues to grow across schools while educators and students seek more training and practical guidance for responsible use.

The report found that AI is already widely used for school-related activities, with 92% of students and education leaders and 88% of educators reporting that they use AI. More than half of education leaders said their institutions are already implementing or scaling AI initiatives, while most respondents reported increased AI use over the past year. More than half of education leaders said their institutions are already implementing or scaling AI, while most respondents reported increased AI use over the past year.

The report identifies three priorities for schools: integrating AI into teaching and administrative operations, expanding ongoing AI skills training and providing clearer guidance for responsible classroom use. Although most respondents considered AI literacy important, many educators and students said they had not received formal training.

Alongside the report, Microsoft announced new AI-powered features for Microsoft 365 Education, including lesson-planning tools, classroom AI guidance, learning management capabilities and study assistants designed to support critical thinking rather than replace student work. Microsoft also expanded its professional development programmes through Elevate for Educators and introduced a new AI literacy credential developed in partnership with ISTE + ASCD.

Why does it matter?

The report suggests that AI is becoming a routine part of teaching and learning, shifting the conversation from whether schools should adopt AI to how they can use it responsibly and effectively. The findings indicate that demand for AI literacy, teacher training and practical classroom guidance is growing alongside adoption.

Microsoft’s new education tools also reflect a broader trend across the education technology sector, where AI is increasingly being integrated into lesson planning, administrative workflows and personalised learning. As AI becomes more embedded in schools, ensuring that educators and students have the skills to use these tools critically and responsibly is likely to become a key priority for education systems.

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European Commission explores scaling AI in agriculture

The European Commission’s Directorate-General for Agriculture and Rural Development (DG AGRI) and Directorate-General for Communications Networks, Content and Technology (DG CONNECT) jointly organised an online expert workshop on 24 June to explore how to accelerate AI adaption and scale trusted AI solutions across the agriculture sector.

The workshop was organised within the framework of the Commission’s Apply AI Strategy, which aims to accelerate AI adoption in strategic sectors, including agri-food, while strengthening European competitiveness, technological sovereignty and uptake among small and medium-sized enterprises. Participants discussed AI applications already being deployed in farm management, precision agriculture, crop and livestock monitoring, advisory services, agricultural robotics and the simplification of administrative processes.

The workshop focused on three priorities: assessing the current level of AI adoption in EU agriculture, identifying barriers to wider deployment and exploring policy measures that could support greater uptake. An interactive session also examined what is needed to ensure AI solutions in agriculture are developed, tested, and validated in a trustworthy and responsible manner.

The workshop’s findings will inform a stakeholder input note identifying priority AI use cases, barriers to adoption, infrastructure and data requirements, and potential follow-up actions under the Apply AI Strategy and related EU programmes supporting the digital transition of agriculture.

Why does it matter?

The workshop illustrates how the European Commission is moving from promoting AI in principle to addressing the practical conditions needed for large-scale deployment. In agriculture, AI has the potential to improve productivity, reduce resource use and simplify administrative tasks, but broader adoption will depend on access to high-quality data, digital infrastructure, trusted solutions and support for farmers and SMEs.

The initiative also reinforces the EU’s wider strategy of linking AI deployment with competitiveness and technological sovereignty. By connecting the Apply AI Strategy with the Common Agricultural Policy, the Common European Agricultural Data Space and Horizon Europe, the Commission is seeking to build an ecosystem in which AI can be adopted responsibly while supporting the long-term digital transformation of Europe’s agri-food sector.

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IWF backs strengthened EU child protection rules on AI-generated abuse

The Internet Watch Foundation (IWF) has welcomed the political agreement on the revised EU Child Sexual Abuse Directive, saying the legislation marks an important step in strengthening Europe’s response to online child sexual abuse and exploitation.

The organisation says the updated rules address legal gaps created by emerging technologies, particularly the misuse of AI to generate child sexual abuse material.

The revised Directive introduces new criminal offences covering the design, adaptation, distribution and supply of AI systems intended to generate child sexual abuse material. It also criminalises the possession of AI-generated abuse content and materials that provide instructions for committing child sexual abuse.

The revised rules also strengthen protections against online grooming, including cases in which offenders falsely present themselves as children or peers, and extend limitation periods to give survivors more time to pursue justice.

The IWF argues that the legislation reflects the rapidly evolving threat posed by generative AI.

According to the IWF, realistic AI-generated child sexual abuse material increased sharply during 2025, with analysts reporting that many synthetic images and videos are becoming increasingly difficult to distinguish from authentic abuse material.

IWF warns that technological advances are accelerating the scale and sophistication of online child exploitation.

Following the political agreement, the IWF has urged EU member states to transpose the Directive into national law promptly, arguing that timely implementation will strengthen legal protections and law enforcement capabilities across the EU. The organisation argues that timely transposition will be essential to ensure stronger legal protections, improve law enforcement capabilities and reduce opportunities for offenders to exploit AI technologies across the EU.

Why does it matter?

The revised Directive reflects how advances in generative AI are reshaping criminal law and child protection policy. By introducing offences specifically targeting AI systems designed to generate child sexual abuse material, the EU is adapting its legal framework to address emerging forms of technology-enabled exploitation.

The agreement also highlights the growing need for legal systems to evolve alongside AI capabilities. Alongside new offences, the Directive strengthens protections for victims and expands tools available to law enforcement, illustrating how governments are updating criminal legislation to respond to increasingly sophisticated forms of online abuse while seeking greater consistency across EU member states.

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China pledges continued role in global AI governance

Chinese Premier Li Qiang has said China will continue to participate in global governance on AI responsibly and constructively.

Li made the remarks during the opening plenary of the 17th Annual Meeting of the New Champions, also known as Summer Davos, in Dalian.

According to the Chinese government’s account of the speech, Li said China would work with other parties to strengthen institutional frameworks and rules, improve regulatory effectiveness and address potential AI risks.

He said AI has significantly improved innovation efficiency, but warned that risks linked to technological loss of control and ethical failures are becoming more pronounced.

Li said governance needs to keep pace with AI development, warning that the consequences could be severe if regulatory systems fail to keep to with the pace of technological change.

The remarks underline China’s continued effort to position itself as a participant in international AI governance debates, while also linking AI regulation to broader questions of innovation, economic development and global cooperation.

Why does it matter?

Li’s remarks show that AI governance remains part of China’s wider diplomatic and economic positioning. As frontier AI advances, governments are treating safety, ethics and regulatory coordination as strategic issues alongside competition over models, compute and industrial capacity. The speech does not introduce a new Chinese AI policy, but it reinforces Beijing’s message that global AI governance should involve international coordination rather than being shaped only by a few countries or companies.

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UN to honour digital and AI-powered public service innovations

The United Nations Department of Economic and Social Affairs (UN DESA) will honour 12 public sector initiatives at the 2026 UN Public Service Awards for advancing the Sustainable Development Goals through more inclusive, transparent and participatory public services.

The awards attracted more than 700 applications from 62 countries and recognise projects ranging from digital document verification and public procurement monitoring to improving education access and supporting coastal women.

According to UN DESA, several winning initiatives leverage digital government tools, information and communication technologies (ICTs) and AI to improve service delivery and strengthen public administration capacity.

The awards ceremony will be held during the UN Public Service Forum in Tbilisi, Georgia, following the commemoration of UN Public Service Day.

Why does it matter?

The awards highlight how governments are increasingly using digital technologies and AI to improve public service delivery, strengthen administrative capacity and advance sustainable development objectives. From digital verification systems to more transparent procurement processes, technology is becoming an important tool for making public institutions more efficient, accountable and accessible.

The initiative also demonstrates the growing role of digital transformation in achieving the Sustainable Development Goals. By recognising successful public-sector innovations from around the world, the awards provide examples of how governments can use technology to address social, economic and governance challenges while promoting inclusion, transparency and citizen participation.

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