Europol announced on Friday that two dozen people have been arrested for their involvement in a criminal network distributing AI-generated images of child sexual abuse. This operation marks one of the first of its kind, highlighting concerns over the use of AI in creating illegal content. Europol noted that there is currently a lack of national legislation addressing AI-generated child abuse material.
The primary suspect, a Danish national, operated an online platform where he distributed the AI-generated content he created. Users from around the world paid a ‘symbolic online payment’ to access the material. The platform has raised significant concerns about the potential misuse of AI tools for such criminal purposes.
The ongoing operation, which involves authorities from 19 countries, resulted in 25 arrests, with most occurring simultaneously on Wednesday under the leadership of Danish authorities. Europol indicated that more arrests are expected in the coming weeks as the investigation continues.
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At a conference in Hyderabad this week, pharmaceutical companies highlighted the growing role of artificial intelligence in evolving the drug development process. Companies like Amgen and Parexel showcased how AI can reduce trial times, with Parexel demonstrating a model that speeds up drug safety reports by 30-45 minutes. Industry experts believe that AI can potentially halve the costs and time needed to develop drugs, cutting down the process from over a decade to just a few years.
Beyond speeding up trials, AI is also aiding in drug discovery and medical diagnostics. For instance, AI is being used to repurpose existing drugs for new uses and to analyse medical images, potentially identifying conditions such as cancer that might be missed by human doctors. Medtronic’s CTO stressed that integrating AI across the industry is essential to its future success.
Despite these technological strides, the conference was overshadowed by ongoing uncertainty regarding US President Trump’s proposed tariffs on pharmaceutical imports. Companies, particularly those based in India, expressed concern over the potential impact of these tariffs, with some, like Dr Reddy’s, opting to take a ‘wait and watch’ approach until further clarity emerges. This tariff uncertainty remains a pressing issue for India’s pharmaceutical industry, which is a major exporter of affordable drugs to the US.
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Deutsche Telekom CEO Tim Hoettges has urged Germany and Europe to invest more in artificial intelligence and data centres to stay competitive with the US and Asia. Speaking after the release of the company’s annual results, Hoettges stressed the need for Europe to increase its computing power, citing a growing demand for data centres that he expects to rise by at least 30%. Deutsche Telekom is already expanding its infrastructure with plans to build four new data centres in Europe, aiming to create one gigawatt of capacity.
Hoettges also emphasised the importance of AI for Europe’s economic growth and sovereignty in the digital age. His comments come as Europe strives to catch up with major AI investments made by the US, with the European Commission pledging to mobilise 200 billion euros for AI development. This contrasts with the US, where private companies have committed up to $500 billion to AI infrastructure.
The call for greater AI investment follows a wave of AI advancements, such as China’s DeepSeek model, which has begun to challenge Western competitors. Hoettges warned that Germany must act quickly or risk falling behind in the global AI race.
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Inception, a Palo Alto-based startup founded by Stanford professor Stefano Ermon, has unveiled an innovative AI model based on diffusion technology. Unlike traditional large language models that generate text sequentially, Inception’s diffusion-based model can produce large blocks of text in parallel, making it up to 10 times faster and more cost-efficient. The company claims its model offers similar capabilities to existing LLMs but with significantly improved performance.
The diffusion model operates differently from the typical approach of LLMs, which generate text word by word. Instead, it starts with a rough estimate and refines the output all at once, allowing for faster processing. Ermon, who has been researching this technology for years at Stanford, believes it will revolutionise AI by enabling more efficient use of computational resources, particularly GPUs. Inception already boasts several Fortune 100 companies as clients, attracted by its promise to reduce AI latency and costs.
Inception’s model can handle various tasks, including code generation and question answering, and is designed for flexible deployment options such as API, on-premises, and edge devices. This breakthrough technology is expected to lead to more accessible and scalable AI solutions, positioning Inception at the forefront of AI development.
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Amazon has unveiled Alexa+, a major upgrade to its voice assistant, integrating advanced AI to enhance interactions.
The new version can process multiple prompts in sequence, store user preferences, and manage tasks such as making reservations and sending reminders. AI-powered improvements aim to make Alexa more conversational and responsive.
The company has invested heavily in the technology, incorporating AI models through its Bedrock platform. Startup Anthropic contributed to development, with its Claude AI underpinning Alexa+.
The service will be free for Amazon Prime members, while non-Prime users will pay $19.99 per month. A phased rollout begins in March.
Alexa+ will integrate seamlessly with Amazon devices, including Ring doorbells, allowing users to access video recordings and control smart home features. It can also analyse documents, helping users understand contracts and regulations.
Industry competition remains strong, with Apple and Google also enhancing their voice assistants through AI.
Amazon hopes the overhaul will boost engagement, as Alexa usage had declined due to limited advancements. The company’s stock rose 1.7% following the announcement, reflecting investor confidence in the AI-driven update.
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China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.
DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.
The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.
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Baidu is set to launch the next generation of its Ernie AI model, the Ernie 4.5, in mid-March. This upgraded version will feature improved reasoning capabilities and enhanced multimodal functions, allowing it to process and integrate a variety of data formats, including text, images, audio, and video. Baidu also plans to make the Ernie 4.5 series open source from June 30, marking a significant shift in its approach to AI development.
The Chinese tech giant has faced fierce competition in the AI race, particularly from the rising startup DeepSeek, whose models are seen as rivals to leading US systems at a much lower cost. Despite claiming that Ernie’s performance is comparable to OpenAI’s GPT-4, Baidu has struggled to gain widespread adoption of its AI model. The emergence of DeepSeek has further complicated Baidu’s aspirations in the sector, leading the company to reassess its strategy.
Baidu’s CEO, Robin Li, who once advocated for keeping AI models closed-source, has acknowledged the success of DeepSeek and other competitors. He now views the open-source approach as essential for the future of AI development. This shift comes as Baidu continues to compete with other tech giants, including Alibaba, which recently announced its plans to make its video and image-generating AI model, Wan 2.1, open source.
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Nomagic, a fast-growing Polish startup, has secured $44 million in funding to develop its robotic arms used in logistics operations like picking, packing, and moving. The company plans to use this investment to expand its technology and business, aiming to sell its robots in North America. Nomagic’s technology, which uses AI and automation software, has already gained significant traction in industries like e-commerce and pharmaceuticals, with a 220% growth in annual recurring revenue last year.
The funding round, led by the European Bank for Reconstruction and Development (EBRD), highlights the growing importance of robotics in rebuilding industrial competitiveness in Europe. Nomagic’s approach focuses on software rather than hardware, enabling its robotic arms to perform across various use cases with ease. This strategy sets it apart from other robotics companies and positions it to capitalise on the increasing demand for automation.
Nomagic’s competitors, such as Covariant, are also seeing success in the field, with Amazon hiring Covariant’s founders and licensing its technology. Industry leaders like Nvidia and SoftBank are also investing in robotic technology, underscoring the potential of this growing market. With government backing and increasing private investment, robotics is playing a key role in modernising logistics and manufacturing industries.
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Estonia has launched a new initiative aimed at preparing students and teachers for the age of AI. The ‘AI Leap’ programme will provide access to popular AI chatbots, including an educational version of ChatGPT, to help build digital skills. Starting in September 2025, the programme will involve 20,000 high school students and 3,000 teachers, with plans to expand to vocational schools and an additional 38,000 students and 3,000 teachers in 2026.
Education Minister Kristina Kallas emphasised that Estonia’s economic competitiveness depends on how well the country adapts to AI, ensuring young people are equipped for the future. As part of the initiative, Estonia will also invest in teacher training to support the integration of AI in classrooms.
The programme is a public-private partnership, with negotiations underway with major AI companies, including OpenAI and Anthropic. OpenAI has expressed its pride in collaborating with Estonia to bring ChatGPT Edu to the education system, aiming to better prepare students for the workforce. Estonia’s use of AI in education is seen as a model that other countries may follow as the EU pushes to increase digital skills across Europe by 2030.
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British universities have been urged to reassess their assessment methods after new research revealed a significant rise in students using genAI for their projects. A survey of 1,000 undergraduates found that 88% of students used AI tools like ChatGPT for assessments in 2025, up from 53% last year. Overall, 92% of students now use some form of AI, marking a substantial shift in academic behaviours in just a year.
The report, by the Higher Education Policy Institute and Kortext, highlights how AI is being used for tasks such as summarising articles, explaining concepts, and suggesting research ideas. While AI can enhance the quality of work and save time, some students admitted to directly including AI-generated content in their assignments, raising concerns about academic misconduct.
The research also found that concerns over AI’s potential impact on academic integrity vary across demographics. Women, wealthier students, and those studying STEM subjects were more likely to embrace AI, while others expressed fears about getting caught or receiving biased results. Despite these concerns, students generally feel that universities are addressing the issue of academic integrity, with many believing their institutions have clear policies on AI use.
Experts argue that universities need to adapt quickly to the changing landscape, with some suggesting that AI should be integrated into teaching rather than being seen solely as a threat to academic integrity. As AI tools become an essential part of education, institutions must find a balance between leveraging the technology and maintaining academic standards.
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