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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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Spain moves closer to hosting one of Europe’s first AI gigafactories

Spain has taken another significant step in its effort to become a leading European hub for AI and advanced computing infrastructure.

The Council of Ministers has approved a €300 million voluntary contribution to the European High Performance Computing Joint Undertaking (EuroHPC), the body responsible for supporting Europe’s AI factories and the future development of AI gigafactories.

According to the Ministry for Digital Transformation and Public Administration, the contribution is a critical component of Spain’s bid to host one of the EU’s first AI gigafactories.

The government argues that access to large-scale computing infrastructure is becoming essential for researchers, universities, startups and businesses seeking to develop advanced AI systems and remain competitive in an increasingly AI-driven economy.

The investment builds on Spain’s existing role within Europe’s supercomputing ecosystem. The country already hosts AI factories at the Barcelona Supercomputing Center and the Galician Supercomputing Center, while the MareNostrum 5 supercomputer has supported projects ranging from genomic research to climate and digital twin initiatives.

The funding also aims to strengthen Spain’s position in quantum technologies, an area increasingly viewed as strategically important for Europe’s long-term technological autonomy.

The announcement reflects a wider European push to expand sovereign computing capabilities as demand for AI training infrastructure grows worldwide.

By seeking to host an AI gigafactory, Spain hopes to attract investment, support innovation, strengthen domestic technological capabilities and position itself as a central player in Europe’s next-generation AI ecosystem.

Why does it matter?

Access to large-scale computing infrastructure is becoming a strategic prerequisite for advanced AI development. Training frontier AI models, running large-scale simulations and supporting scientific research require computing resources that are increasingly concentrated among a small number of global technology providers. Spain’s investment seeks to strengthen both national and European capacity in this critical area.

The announcement also reflects the EU’s broader push for technological sovereignty. By expanding domestic AI and supercomputing infrastructure, Europe aims to reduce dependence on foreign computing resources, support innovation ecosystems and ensure that advanced technologies are developed within frameworks aligned with European values, regulations and industrial priorities. The competition to host AI gigafactories is therefore as much about economic competitiveness and strategic autonomy as it is about computing power.

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Taiwan launches national AI strategy committee

Premier Cho Jung-tai chaired the inaugural meeting of the Cabinet-level National Artificial Intelligence Strategy Committee on Tuesday, marking a formal step in Taiwan’s effort to shape its long-term AI strategy.

Cho said Taiwan should move beyond its traditional role as a manufacturing hub and become a model for AI development grounded in freedom, democracy and public trust. Central to this vision is the use of domestic datasets to build what the premier described as a secure, trustworthy, and responsible AI ecosystem.

The committee adopted seven guiding principles for responsible AI, covering sustainability and well-being, human autonomy, privacy and data governance, cybersecurity and safety, transparency and explainability, fairness and non-discrimination, and accountability. Education, healthcare, finance, and justice were designated as the initial sectors for demonstration, with ministries expected to gradually expand AI use into a broader ‘smart living’ ecosystem.

Under the AI Basic Act, government agencies are required to complete the necessary regulatory adjustments within two years. The Ministry of Digital Affairs has been tasked with developing a risk classification framework and coordinating audits across sectors, with particular attention to areas affecting fundamental rights such as education and employment.

Drawing on the model of chief sustainability officers, Cho called for the appointment of chief data officers across government ministries to strengthen data governance, open data initiatives and AI training datasets. Data governance, he stressed, must balance innovation with protections under existing personal data and copyright legislation.

The National Science and Technology Council was instructed to revise the draft national AI framework based on committee feedback before submitting it for Cabinet approval. Sector-specific governance rules will also be developed, with the Ministry of Digital Affairs responsible for guiding industries on AI risk assessments, governance measures and internal controls.

Why does it matter?

Taiwan’s strategy illustrates how AI policy is increasingly intertwined with questions of digital sovereignty, governance and democratic values. By emphasising trusted AI, domestic datasets and protections for privacy and fundamental rights, Taiwan is seeking to distinguish its approach from other models of AI governance while strengthening its technological competitiveness.

The initiative also moves beyond broad policy ambitions by establishing governance structures and implementation deadlines. The two-year timeline under the AI Basic Act, together with plans for sector-specific rules, risk classification and data governance reforms, will provide an early test of how effectively governments can translate high-level AI principles into practical regulation and public-sector adoption.

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China reports a surge in AI adoption and large language model use

Chinese Premier Li Qiang said China’s AI sector has experienced ‘explosive growth’, citing significant performance improvements across multiple Chinese large language models.

Speaking at the opening plenary of the 17th Annual Meeting of the New Champions in Dalian, Li said daily token consumption across Chinese large language models had exceeded 100 trillion by the end of May, placing China among the world’s leading AI markets by usage.

Li also pointed to advances in embodied AI, saying the technology is beginning to move towards large-scale commercial deployment. The remarks came at the forum commonly known as Summer Davos, an annual gathering held in China focused on global economic and technological trends.

Li did not announce new policy measures or provide additional supporting data. His remarks nevertheless reinforce China’s broader narrative of rapid progress in AI model development and commercial deployment.

Why does it matter?

China’s remarks underscore the growing importance of AI as a strategic driver of economic competitiveness and technological leadership. Claims of daily token consumption exceeding 100 trillion suggest that large language models are being deployed at a significant scale, although the figures were presented by the Chinese government and were not independently verified.

The announcement also reflects intensifying global competition in AI. By highlighting advances in foundation models and embodied AI at a high-profile international forum, China is signalling its ambition to compete with other leading AI economies while showcasing progress in both AI research and commercial applications.

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