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AI-powered search expands with Microsoft’s Copilot Search

Microsoft has unveiled Copilot Search, a new AI-powered feature designed to enhance the Bing search experience.

Available at bing.com/copilotsearch, it generates responses using AI, providing users with summarised answers, related links, and reasoning behind the results. The feature follows Google‘s introduction of AI Mode in Search, which similarly offers AI-generated overviews for complex queries.

Copilot Search enables users to explore their queries more interactively. Responses include two key options: ‘See all links,’ which displays sources used in the summary, and ‘See reasoning,’ which explains how the response was generated.

Users can also submit follow-up questions within the same interface, keeping the entire conversation on a single page for easier navigation. Additional options for images and videos are available, though they redirect to Bing’s standard media search.

The latest search enhancement introduced by Microsoft reflects the increasing role of AI in online search, blending AI-generated insights with traditional web links.

Bing users who prefer the classic search experience will still have access to traditional results, while AI-generated answers will appear at the top of natural language queries.

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Amazon introduces AI-generated recaps for Kindle book series

Amazon has introduced a new Recaps feature for Kindle users, designed to help readers recall key plot points and character developments before starting the next book in a series.

The feature, now available to Kindle users in the United States, provides AI-generated summaries for thousands of best-selling English-language e-books.

While Amazon did not initially mention AI in its announcement, the company later confirmed that Recaps are created using generative AI, with human moderators ensuring accuracy.

Concerns about the reliability of AI-generated summaries have surfaced among Kindle users, with some questioning whether they will accurately reflect book content. Amazon maintains that its process ensures accuracy, though further details have not been provided.

Recaps can be accessed through the Kindle Library or within a book series page, and users must acknowledge a spoiler warning before viewing the summary.

The feature aims to improve the reading experience by helping readers stay immersed in complex stories without having to re-read previous books.

Amazon plans to expand Recaps to the Kindle app for iOS soon, covering a variety of genres, including fantasy, mystery, and thriller series.

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Midjourney’s V7 debuts with personalization and improved image quality

Midjourney has launched V7, its first new AI image model in nearly a year, introducing major improvements in image quality and text prompt accuracy.

The model, which rolled out in alpha on Thursday, features enhanced textures, better coherence in generating bodies and objects, and a new personalization system that tailors results to individual users.

To access V7, users must first rate around 200 images to create a personalised profile, a feature enabled by default for the first time.

The new model is available in two versions: Turbo, which generates images at a higher cost, and Relax, a more budget-friendly option. A new Draft Mode also allows users to create lower-quality images at ten times the speed and half the cost of standard mode, with the option to enhance them later.

Some existing Midjourney features, such as image upscaling and retexturing, are not yet available in V7 but are expected within two months.

Midjourney remains an independent company, having raised no external funding since its launch in 2022. The San Francisco-based firm is reportedly generating around $200 million in revenue and is expanding into hardware, video, and 3D object generation.

However, the company faces ongoing legal challenges, with multiple lawsuits accusing it of using copyrighted images without permission to train its AI models.

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Deutsche Telekom expands partnership with Google Cloud

Deutsche Telekom has strengthened its collaboration with Google, moving more of its services to the Google Cloud platform as part of its transformation into an ‘AI-first company.’ The expanded partnership aims to improve the agility and efficiency of Deutsche Telekom’s operations through AI-driven solutions.

Stefan Schloter, Chief Infrastructure Officer for Europe at Deutsche Telekom, highlighted how leveraging data and AI will enhance digital solutions across business entities, software engineering, and customer interfaces.

The MyMagenta app, for example, will integrate Google’s AI-powered Gemini assistant, further improving customer experience.

Google Cloud will also serve as the technical foundation of Deutsche Telekom’s new AI platform, the ‘One Data Ecosystem.’ However, this platform consolidates data systems and enhances data processing speed while ensuring compliance with privacy and data-sharing regulations.

Marianne Janik, Vice President of Google Cloud for Northern Europe, expressed excitement about the partnership, noting how cloud technology is pivotal for communications providers in driving innovation, flexibility, and growth for enhanced user experiences.

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New Jersey criminalises the harmful use of AI deepfakes

New Jersey has become one of several US states to criminalise the creation and distribution of deceptive AI-generated media, commonly known as deepfakes. Governor Phil Murphy signed the legislation on Wednesday, introducing civil and criminal penalties for those who produce or share such media.

If deepfakes are used to commit further crimes like harassment, they may now be treated as a third-degree offence, punishable by fines up to $30,000 or up to five years in prison.

The bill was inspired by a disturbing incident at a New Jersey school where students shared explicit AI-generated images of a classmate.

Governor Murphy had initially vetoed the legislation in March, calling for changes to reduce the risk of constitutional challenges. Lawmakers later amended the bill, which passed with overwhelming support in both chambers.

Instead of ignoring the threat posed by deepfakes, the law aims to deter their misuse while preserving legitimate applications of AI.

‘This legislation takes a proactive approach,’ said Representative Lou Greenwald, one of the bill’s sponsors. ‘We are safeguarding New Jersey residents and offering justice to victims of digital abuse.’

A growing number of US states are taking similar action, particularly around election integrity and online harassment. While 27 states now target AI-generated sexual content, others have introduced measures to limit political deepfakes.

States like Texas and Minnesota have banned deceptive political media outright, while Florida and Wisconsin require clear disclosures. New Jersey’s move reflects a broader push to keep pace with rapidly evolving technology and its impact on public trust and safety.

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Microsoft rethinks AI data centre strategy amid market shifts

Microsoft has reportedly scaled back or delayed several major data centre projects, just three months after announcing plans to invest $80 billion in AI infrastructure through the current fiscal year.

According to Bloomberg, the company has paused developments in multiple locations, including Australia, Indonesia, the United Kingdom, and US states such as Illinois, North Dakota, and Wisconsin.

Instead of denying the report, Microsoft confirmed adjustments to its plans, citing the need for long-term flexibility. A spokesperson said the company continuously reviews future infrastructure needs to ensure alignment with growing AI demand, adding that the changes reflect Microsoft’s adaptable strategy.

The halted projects include negotiations for high-performance AI chip facilities in the UK and a site near Chicago, along with construction delays in Jakarta and Wisconsin.

These moves come amid growing scrutiny over whether the AI sector is entering a bubble, especially as emerging models challenge the assumption that vast computing power is always necessary for innovation.

Instead of sticking to high-cost development, Microsoft may be responding to a new trend: efficient, lower-cost AI models from Chinese firms that rival those of Western tech giants.

With AI development costs dropping and access expanding, Microsoft’s strategic pause could reflect a shift towards a more sustainable and agile future in AI infrastructure.

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India among few developing nations with strong AI investment

India and China were the only developing nations to attract notable private investment in AI in 2023, according to the UN’s Technology and Innovation Report 2025. Instead of the US simply leading the field, it dominated with $67 billion in AI investment, accounting for 70 per cent of the global total.

China followed with $7.8 billion, while India ranked tenth worldwide with $1.4 billion. Instead of being evenly distributed, access to AI infrastructure and research remains heavily concentrated in a handful of countries, mainly the US and China.

India’s rise in the AI space stems from policy-driven innovation and education rather than organic growth alone. It climbed to 36th place out of 170 on the UNCTAD Frontier Technologies Readiness Index in 2024, improving from 48th in 2022.

Instead of only focusing on economic size, the index measures readiness through ICT availability, skills, R&D, industrial capacity, and financing. India performed well in R&D and industrial capacity but fell behind in ICT access and skill development.

India has supported its AI ecosystem through collaboration between the government, academia, and the private sector. The country hosts a large developer base, around 13 million, and contributes actively to generative AI projects on platforms like GitHub.

Programmes such as the India AI Mission aim to boost AI education and innovation in smaller cities, instead of keeping progress limited to major urban centres. Institutes like IIT Hyderabad and IIT Kharagpur were named among the country’s key centres of AI excellence.

Still, India faces challenges in expanding its AI capabilities across all sectors. Instead of allowing AI to widen inequalities, the report urges investment in workforce reskilling and inclusion. While AI can boost productivity, it may also displace jobs unless paired with supportive policies.

The technology, if harnessed wisely, could create new industries and strengthen employment rather than replace it.

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Lumai raises $10 million to revolutionise AI with optical technology

AI accelerator startup Lumai has secured over $10 million in funding to advance its optical computing technology.

The investment round was led by Constructor Capital, with support from IP Group and new investors including PhotonVentures, Journey Ventures, and State Farm Ventures. The funding will be used to expand Lumai’s workforce, develop new products, and establish a stronger presence in the United States market.

Spun out of the University of Oxford, Lumai aims to tackle the growing energy demands of AI by replacing traditional silicon-based computing with optical processing.

Its technology processes AI’s core arithmetic operations using beams of light in 3D space, bypassing the limitations of conventional GPUs.

By using low-cost optical components, Lumai claims its accelerators can cut AI inference costs to a tenth of current solutions while delivering 50 times the performance and consuming just 10% of the power.

The demand for AI computing power is increasing rapidly, with US data centres expected to triple their energy consumption by 2028.

Lumai’s CEO, Tim Weil, believes optical computing is the key to unlocking the future of AI, enabling more sustainable and cost-effective advancements in large language models and next-generation AI.

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Siemens buys Dotmatics to boost AI drug research

Siemens announced on Wednesday its acquisition of US software firm Dotmatics for $5.1 billion, aiming to enhance its AI capabilities for drug discovery.

The German company described the deal as complementary to its expansion into Life Sciences, positioning itself in a market increasingly reliant on digital transformation to meet growing medical needs.

Siemens expects Dotmatics to generate $100 million annually in the mid-term, rising to $500 million in the long run, and said the acquisition would be immediately profitable. The transaction is set to be completed in the first half of next year.

Founded in 2005, Dotmatics employs 800 people and specialises in AI-driven R&D software designed to accelerate drug research. This move follows Siemens’ recent $10 billion purchase of another AI-powered US software firm, Altair Engineering.

As Siemens’ industrial software faces slowing demand, its digital division has been driving revenue growth instead of its traditional factory automation products. The company, Germany’s second-largest by market value, continues expanding its software portfolio to capitalise on AI-driven innovations.

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Are digital taxes the new frontline in global trade warfare?

While President Trump’s tariffs on goods dominate headlines, a more consequential battle is brewing over digital services. US tech giants like Meta, Google, and Amazon wield unparalleled global dominance in this sector.

In just-in-time analysis, Jovan Kurbalija argues that Trump’s fixation on traditional trade levers (steel, cars) overlooks a critical vulnerability for the United States: the use of digital services taxes (DSTs) and regulatory pressure by the EU and other trading partners to counterbalance new US tariff.

The collapse of OECD-led multilateral tax negotiations in 2024 has triggered a resurgence of unilateral DSTs, from Canada’s retroactive levy to India’s expanded ‘equalization levy’ and revived EU proposals for bloc-wide digital taxes.

Kurbalija analyses how digital taxation redefines trade diplomacy, with implications ranging from recalibrated leverage (host nations exploiting US tech dependence) to governance gaps (WTO rules ill-equipped for digital disputes). It poses new challenges for digital diplomacy, AI negotiations, and internet governance.

He warns that failure to address this ‘invisible trade war’ could escalate tit-for-tat measures, jeopardizing both physical goods trade and the digital economy. The rise of data and sovereignty will be inevitable.

Ultimately, the piece underscores a paradigm shift: in the 21st-century economy, algorithms, and data flows are as strategically vital as steel beams—and more impactful for economic well-being and global prosperity.

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