EU considers further action against Grok over AI nudification concerns

The European Commission has signalled readiness to escalate action against Elon Musk’s AI chatbot Grok, following concerns over the spread of non-consensual sexualised images on the social media platform X.

The EU tech chief Henna Virkkunen told Members of the European Parliament that existing digital rules allow regulators to respond to risks linked to AI-driven nudification tools.

Grok has been associated with the circulation of digitally altered images depicting real people, including women and children, without consent. Virkkunen described such practices as unacceptable and stressed that protecting minors online remains a central priority for the EU enforcement under the Digital Services Act.

While no formal investigation has yet been launched, the Commission is examining whether X may breach the DSA and has already ordered the platform to retain internal information related to Grok until the end of 2026.

Commission President Ursula von der Leyen has also publicly condemned the creation of sexualised AI images without consent.

The controversy has intensified calls from EU lawmakers to strengthen regulation, with several urging an explicit ban on AI-powered nudification under the forthcoming AI Act.

A debate that reflects wider international pressure on governments to address the misuse of generative AI technologies and reinforce safeguards across digital platforms.

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New SAP–Fresenius initiative uses AI to transform clinical operations

Global enterprise software provider SAP has entered a strategic collaboration with German healthcare group Fresenius to apply AI and digital technologies to healthcare delivery and clinical operations.

The partnership aims to modernise processes, including patient flow, resource planning, and data-driven decision support, across Fresenius’s hospital networks and care facilities.

At the core of the initiative will be SAP’s AI-enabled enterprise platforms, including analytics, predictive modelling and workflow automation, combined with Fresenius’s clinical expertise to improve operational efficiency, care coordination and patient outcomes.

By leveraging real-time data and AI insights, the collaboration seeks to reduce administrative burden on clinicians while enabling proactive management of capacity and critical resources.

Both organisations emphasise the potential of AI to support clinicians rather than replace them, reinforcing the importance of human oversight, explainability and adherence to healthcare regulations and privacy standards.

The partnership also reflects a broader trend of digital transformation in health systems, where analytics and AI are becoming integral to service delivery and system resilience.

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Strategic pact deepens South Korea–Italy collaboration across AI and advanced tech

Seoul and Rome have announced plans to deepen cooperation in high-technology sectors, notably AI, semiconductor development and space technology, as part of a broader strategic partnership.

The agreement reflects shared interests in advancing cutting-edge technology and innovation, reinforcing economic and scientific collaboration between South Korea and Italy.

Both countries see these areas as central to future economic competitiveness and technological leadership on the global stage.

While details of specific programmes were not yet disclosed publicly, officials emphasised the mutual benefits of enhanced research partnerships, talent exchange and joint development initiatives that span emerging technologies and advanced industrial sectors.

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ASUS pauses smartphone expansion to focus on AI and robotics

Taiwan-based electronics manufacturer ASUS has announced that it will not launch new smartphones in 2026, signalling a central strategic pivot away from mobile devices and toward artificial intelligence-driven products and robotics.

Chairman Jonney Shih confirmed at a company event that ASUS will redirect research and development resources previously earmarked for phones into AI hardware such as robotics, AI glasses and commercial PCs.

The move comes amid a hyper-competitive global smartphone market and supply-chain pressures, such as rising memory costs, that make handset manufacturing less attractive than high-growth AI sectors.

ASUS will continue to support existing smartphone users with warranty and software updates, but does not plan to introduce new phone models in the foreseeable future.

Industry observers say this shift reflects broader trends in consumer electronics, where traditional phone makers are seeking growth by leveraging AI innovation and emerging device categories.

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UK watchdogs warned over AI risks in financial services

UK regulators and the Treasury face MP criticism over their approach to AI, amid warnings of risks to consumers and financial stability. A new Treasury Select Committee report says authorities have been overly cautious as AI use rapidly expands across financial services.

More than 75% of UK financial firms are already using AI, according to evidence reviewed by the committee, with insurers and international banks leading uptake.

Applications range from automating back-office tasks to core functions such as credit assessments and insurance claims, increasing AI’s systemic importance within the sector.

MPs acknowledge AI’s benefits but warn that readiness for large-scale failures remains insufficient. The committee urges the Bank of England and the FCA to introduce AI-specific stress tests to gauge resilience to AI-driven market shocks.

Further recommendations include more explicit regulatory guidance on AI accountability and faster use of the Critical Third Parties Regime. No AI or cloud providers have been designated as critical, prompting calls for stronger oversight to limit operational and systemic risk.

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Indian creators embrace Adobe AI tools

Adobe says generative AI is rapidly reshaping India’s creator economy, with 97% of surveyed creators reporting a positive impact. Findings come from the company’s inaugural Creators’ Toolkit Report covering more than 16,000 creators worldwide.

Adoption levels in India are among the highest globally, with almost all creators reporting that AI tools are embedded in their daily workflows. Adobe is commonly used for editing, content enhancement, asset generation and idea development across video, image and social media formats.

Despite enthusiasm, concerns remain around trust and transparency. Many creators fear their work may be used to train AI models without consent, while cost, unclear training methods and inconsistent outputs also limit wider confidence.

Interest in agentic AI is also growing, with most Indian creators expressing optimism about systems that automate tasks and adapt to personal creative styles. Mobile devices continue to gain importance, with creators expecting phone output to increase further.

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Forced labour data opened to the public

Exiger has launched a free online tool designed to help organisations identify links to forced labour in global supply chains. The platform, called forcedlabor.ai, was unveiled during the annual meeting of the World Economic Forum in Davos.

The tool allows users to search suppliers and companies to assess potential exposure to state-sponsored forced labour, with an initial focus on risks linked to China. Exiger says the database draws on billions of records and is powered by proprietary AI to support compliance and ethical sourcing.

US lawmakers and human rights groups have welcomed the initiative, arguing that companies face growing legal and reputational risks if their supply chains rely on forced labour. The platform highlights risks linked to US import restrictions and enforcement actions.

Exiger says making the data freely available aims to level the playing field for smaller firms with limited compliance budgets. The company argues that greater transparency can help reduce modern slavery across industries, from retail to agriculture.

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European Parliament moves to force AI companies to pay news publishers

Lawmakers in the EU are moving closer to forcing technology companies to pay news publishers for the use of journalistic material in model training, according to a draft copyright report circulating in the European Parliament.

The text forms part of a broader effort to update copyright enforcement as automated content systems expand across media and information markets.

Compromise amendments also widen the scope beyond payment obligations, bringing AI-generated deepfakes and synthetic manipulation into sharper focus.

MEPs argue that existing legal tools fail to offer sufficient protection for publishers, journalists and citizens when automated systems reproduce or distort original reporting.

The report reflects growing concern that platform-driven content extraction undermines the sustainability of professional journalism. Lawmakers are increasingly framing compensation mechanisms as a corrective measure rather than as voluntary licensing or opaque commercial arrangements.

If adopted, the position of the Parliament would add further regulatory pressure on large technology firms already facing tighter scrutiny under the Digital Markets Act and related digital legislation, reinforcing Europe’s push to assert control over data use, content value and democratic safeguards.

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Anthropic report shows AI is reshaping work instead of replacing jobs

A new report by Anthropic suggests fears that AI will replace jobs remain overstated, with current use showing AI supporting workers rather than eliminating roles.

Analysis of millions of anonymised conversations with the Claude assistant indicates technology is mainly used to assist with specific tasks rather than full job automation.

The research shows AI affects occupations unevenly, reshaping work depending on role and skill level. Higher-skilled tasks, particularly in software development, dominate use, while some roles automate simpler activities rather than core responsibilities.

Productivity gains remain limited when tasks grow more complex, as reliability declines and human correction becomes necessary.

Geographic differences also shape adoption. Wealthier countries tend to use AI more frequently for work and personal activities, while lower-income economies rely more heavily on AI for education. Such patterns reflect different stages of adoption instead of a uniform global transformation.

Anthropic argues that understanding how AI is used matters as much as measuring adoption rates. The report suggests future economic impact will depend on experimentation, regulation and the balance between automation and collaboration, rather than widespread job displacement.

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New IBM offering blends expert teams and AI digital workers for enterprise scale

IBM has unveiled a new consulting service designed to help organisations deploy and scale enterprise AI by pairing human experts with digital workers powered by AI.

The approach aims to address common challenges in AI adoption, such as skills gaps, governance, and integration with legacy systems, by combining domain expertise with automated AI capabilities that can execute repetitive and data-intensive tasks.

The service positions digital workers as extensions of human teams, enabling enterprises to accelerate workflows across areas such as finance, supply chain, customer service and IT operations. IBM emphasises that human specialists remain central to strategy, oversight and ethical use of AI, while digital workers support execution and scalability.

The offering includes guidance on governance frameworks, model choice, data architecture and change management to ensure responsible, secure and efficient deployment of AI technologies at scale.

IBM’s hybrid model reflects a broader industry trend toward human-AI collaboration, where AI amplifies professional capabilities while preserving human decision-making and oversight.

The company believes this will help organisations achieve measurable business outcomes faster than traditional AI implementations that rely solely on technology teams.

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