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South Korea to sharply increase spending to power AI-based growth

South Korea’s government has outlined a 2026 budget totalling 728 trillion won, a substantial 8.1 percent increase and the most significant rise in four years.

The new administration in South Korea, under President Lee Jae-myung, is using expansionary fiscal measures to drive innovation amid economic headwinds.

Research and development spending will see a record 19.3 percent jump to 35.3 trillion won, with AI receiving the steepest increase. Planned AI expenditure of 10.1 trillion won marks a threefold rise over 2025 and includes procuring 15,000 high-performance GPUs.

Industrial policy funding will grow by 14.7 percent, while social welfare and defence allocations also rise by over 8 percent. The fiscal deficit is expected to widen to 4.0 percent of GDP, with the public debt ratio forecast to reach 51.6 percent.

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Estonia’s Vocal Image uses AI to boost communication skills

Estonia-based startup Vocal Image is deploying AI to help people improve their vocal and communication skills. Its app features an interactive library of tongue twisters, breathing exercises and suggestions for gestures, all enhanced with automated feedback and personalised coaching tips.

Led by CEO Nick Lahoika, the company has scaled rapidly, achieving upwards of 4 million downloads and serving approximately 160,000 active users.

Vocal Image positions itself as an affordable, mobile-first alternative to traditional one-on-one voice training, rooted in Lahoika’s own journey overcoming speaking anxiety.

The app’s design enables users to practice at home with privacy and convenience, offering daily, bite-sized lessons informed by AI that assess strengths, suggest improvements and nurture confidence with no need for human instructors.

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Microsoft launches new AI models MAI-Voice-1 and MAI-1 Preview

Microsoft has unveiled two new AI models, marking a major step in its efforts to build its own technology rather than rely solely on OpenAI.

The first model, MAI-Voice-1, generates high-fidelity audio and supports both single and multi-speaker scenarios. Microsoft said the system can create a full minute of expressive audio in under a second on a single GPU, making it one of the fastest of its kind.

MAI-Voice-1 is already available in Copilot Daily and Podcasts, while Copilot Labs allows users to experiment with storytelling and speech demos. Microsoft sees voice as a vital interface for future AI companions.

MAI-1 Preview is currently undergoing community testing on LMArena and will soon be integrated into selected Copilot use cases. Microsoft said it plans to expand its family of specialised models, aiming to orchestrate different systems for diverse user needs.

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China sets 10-year targets for mass AI adoption

China has set its most ambitious AI adoption targets yet, aiming to embed the technology across industries, governance, and daily life within the next decade.

According to a new State Council directive, AI use should reach 70% of the population by 2027 and 90% by 2030, with a complete shift to what it calls an ‘intelligent society’ by 2035.

The plan would mean nearly one billion Chinese citizens regularly using AI-powered services or devices within two years, a timeline compared to the rapid rise of smartphones.

Although officials acknowledge risks such as opaque models, hallucinations and algorithmic discrimination, the policy calls for frameworks to govern ‘natural persons, digital persons, and intelligent robots’.

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Weekly #227 – UNGA adopts new AI resolution, Trump threatens tariffs over EU digital taxes, OpenAI updates ChatGPT safety after teen suicide

22 – 29 August 2025

Book, Comics, Publication, People, Person, Face, Head

Dear readers,

On 26 August 2025, the UN General Assembly (UNGA) adopted a resolution establishing two new mechanisms for global AI governance: an Independent International Scientific Panel on AI and a Global Dialogue on AI Governance. The 40-member Panel will provide annual, evidence-based assessments of AI’s opportunities, risks, and impacts, while the Global Dialogue will serve as a platform for governments and relevant stakeholders to discuss international cooperation, exchange best practices, and foster inclusive discussions on AI governance.

The Dialogue will be launched during UNGA’s 80th session in September 2025 and will convene annually, alternating between Geneva and New York, alongside existing UN events. These mechanisms also aim to contribute to capacity development efforts on AI. The resolution also invites states and stakeholders to contribute resources, particularly to ensure participation from developing countries, and foresees that a review of both initiatives may happen at UNGA’s 82nd session.

Other highlights of the week:

US President Donald Trump has warned that he may impose retaliatory tariffs on countries introducing digital taxes or regulations targeting American tech giants, a move seen as a direct warning to the EU. Several European states and the EU itself have rolled out measures such as the Digital Services Act, the Digital Markets Act, and digital services taxes to regulate big platforms and ensure companies like Google, Apple, Amazon, and Meta pay fair taxes locally. Trump’s threat also puts renewed pressure on the UK, which continues to uphold its digital services tax despite a trade deal with Washington. Besides that, the US Federal Trade Commission (FTC) warned tech companies that complying with the EU and UK online content and encryption rules could breach US law under Section 5 of the FTC Act.

Alphabet’s Google has announced a $9 billion investment in Virginia by 2026, reinforcing the state’s status as a key US data infrastructure hub, with plans for a new Chesterfield County facility and expansions in Loudoun and Prince William counties to boost AI and cloud computing capabilities. The investment, supported by Dominion Energy and expected to take up to seven years to operationalise fully, aligns with a broader tech trend where giants like Microsoft, Amazon, Meta, and Alphabet are pouring hundreds of billions into AI projects, though it raises energy demand concerns that Google aims to address through efficiency measures and community funding.

INTERPOL’s ‘Serengeti 2.0’ operation across Africa led to over 1,200 arrests between June and August 2025, targeting ransomware, online fraud, and business email compromise schemes, and recovering nearly USD 100 million stolen from tens of thousands of victims. Authorities shut down illicit cryptocurrency mining sites in Angola, dismantled a massive crypto fraud scheme in Zambia, and uncovered a human trafficking network with forged passports in Lusaka.

OpenAI announced new safety measures for ChatGPT after a lawsuit accused the chatbot of contributing to a teenager’s suicide. The company plans to enhance detection of mental distress, improve safeguards in suicide-related conversations, add parental controls, and provide links to emergency services while addressing content filtering flaws. Regulators and mental health experts are intensifying scrutiny, warning that growing reliance on chatbots instead of professional care could endanger vulnerable users, especially children.

The battle of the giants: Elon Musk’s xAI has sued Apple and OpenAI in Texas, accusing them of colluding to monopolise the AI market through Apple’s exclusive 2024 deal to integrate ChatGPT into its devices, which allegedly disadvantaged Musk’s X and Grok apps. Musk, seeking billions in damages and a jury trial, argues the partnership stifles competition and reflects Apple’s antitrust violations.

For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.

Join us as we connect the dots, from daily updates to main weekly developments, to bring you a clear, engaging monthly snapshot of worldwide digital trends.

DW Team

RADAR

Highlights from the week of 22 – 29 August 2025

China Salt Typhoon hackers data breach telecom companies ATT Verizon FBI

FBI says China’s Salt Typhoon breached millions of Americans’ data

US officials link Beijing-backed Salt Typhoon spies to breaches at major telcos and government networks.

EU and South Korea unite on AI and energy

AI’s rapid rise is reshaping how nations think about energy, opening the door to new partnerships that could redefine the path toward a cleaner and smarter future.

Google Gemini for Home Google Assistant Nest Hub Gemini Live

Google launches Gemini AI for government

The launch coincides with federal plans to boost AI while limiting regulation-heavy states.

Android malware MediaPlayer JavaScript Telegram

Malicious apps on Google Play infected 19 million users with banking trojan

A new wave of Android malware deployed through fake utilities on the Play Store infected millions, using overlay attacks to harvest financial credentials and deploy adware.

ENISA EU NIS2 Security measures business compliance

ENISA takes charge of new EU Cybersecurity Reserve operations with €36 million in funding

The project highlights the EU’s focus on preparedness, with ENISA tasked to oversee the technical and operational standards of the reserve.

YouTube content creators AI age verification minors SpyCloud identity theft

YouTube under fire for AI video edits without creator consent

By experimenting with AI edits without approval, YouTube has angered creators and renewed debates about trust, regulation and control in the age of AI.

Emily Portman Spotify iTunes AI music fraudsters artists

Musicians report surge in AI fakes appearing on Spotify and iTunes

Fake AI-generated albums mimicking folk singer Emily Portman appeared on Spotify, sparking copyright complaints.

google lawsuit discrimination settlement Ana Cantu

Google pushes staff to embrace AI to stay ahead

Instead of cutting jobs, Google is investing in AI training through its new AI Savvy Google programme to upskill its workforce.

beautiful cryptocurrency hologram design 5

Bitcoin price drops after whale sell-off while Ethereum holds

A $2.7 billion whale sell-off triggered liquidations, weakening Bitcoin near key supports while Ethereum maintains stronger technical metrics and positive momentum.

Bluesky shuts down in Mississippi over new age law

Age verification law could reshape online access and entrench big tech dominance.

Gmail Google Cloud data leak ShinyHunters phishing attack

Gmail accounts targeted in phishing wave after Google data leak

ShinyHunters breached Google systems, sparking new phishing threats against Gmail accounts.

Seemingly conscious AI may cause psychological problems and AI psychosis

Humanlike AI may distort reality as people form emotional attachments, experts caution.

united states cybersecurity cyberattacks safety

Global agencies and the FBI issue a warning on Salt Typhoon operations

Salt Typhoon, observed since 2019, has been linked to targeting routers, VPNs and edge devices, with more than 200 US companies reportedly impacted.

ChatGPT OpenAI Sam Altman parental controls mental health monitoring

Parental controls and crisis tools added to ChatGPT amid scrutiny

A teenager’s death has sparked calls for stronger safeguards on ChatGPT and similar AI systems.

View all updates

READING CORNER

From herding to horsemanship: The rise of nomadism

Wheels, wagons, and metal turned herders into mobile nomads. With speed on their side, raiding – and empire-building – became possible. Aldo Matteucci writes.

Green AI and the battle between progress and sustainability

AI is emerging as both a driver of environmental strain and a potential force for sustainable solutions, raising urgent questions about whether innovation and ecological responsibility can truly advance together.

Mission accomplished? Not quite, Iran’s nuclear saga continues!

Despite US and Israeli strikes, Iran’s nuclear program remains alive, exposing the double standards of global nuclear politics.

AI governance: Universal values in a pluralistic world

This blog discusses how different cultural and philosophical traditions can be used as a strong foundation for global AI governance discussions.

UPCOMING EVENTS

ISOC Brazil webinar on the responsibility of intermediaries and changes in the US policy landscape

ISOC Brazil webinar on the responsibility of intermediaries and changes in the US policy landscape. The webinar will promote an in-depth discussion about the

Declaring Independence in Cyberspace: Book Discussion

Declaring Independence in Cyberspace: Book Discussion Diplo’s Director of Digital Trade and Economic Security, Marilia Maciel, will provide comments and

New AI surveillance system to monitor Indonesia’s seas

Indonesia will deploy an AI-driven maritime surveillance network to combat piracy and other illegal activities across its vast waters.

The Indonesian Sea and Coast Guard Unit has signed a 10-year agreement with UK-based SRT Marine Systems for its SRT-MDA platform. The system, to be known locally as the National Maritime Security System, will integrate terrestrial, mobile and satellite surveillance with AI-powered analytics.

Fifty command posts will be digitised under the plan, enabling authorities to detect, track and predict activities from piracy to environmental violations. The deal, valued at €157.9m and backed by UK Export Finance, has been strongly supported by both governments.

Piracy remains a pressing issue in Indonesian waters, particularly in the Singapore Strait, where opportunistic thefts against slow-moving ships quadrupled in the first half of 2025 compared with last year. Analysts warn that weak deterrence and economic hardship are fuelling the rise in incidents.

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Nigeria drafts framework for AI use in governance and services

According to the IT regulator, Nigeria is preparing a national framework to guide responsible use of AI in governance, healthcare, education and agriculture.

NITDA Director General Kashifu Abdullahi told a policy lecture in Abuja that AI could accelerate economic transformation if properly harnessed. He emphasised that Nigeria’s youthful population should move from being consumers to becoming innovators and creators.

He urged stakeholders to view automation as an opportunity to generate jobs, highlighting that over 60% of Nigerians are under 25. Abdullahi described this demographic as a key asset in positioning the nation for global competitiveness.

Meanwhile, a joint report from the Digital Education Council and the Global Finance & Technology Network found that AI boosts productivity, though adoption remains uneven. It warned of a growing divide between organisations that use AI effectively and those falling behind.

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Anthropic reports misuse of its AI tools in cyber incidents

AI company Anthropic has reported that its chatbot Claude was misused in cyber incidents, including attempts to carry out hacking operations and employment-related fraud.

The firm said its technology had been used to help write malicious code and assist threat actors in planning attacks. However, it also stated that it could disrupt the activity and notify authorities. Anthropic said it is continuing to improve its monitoring and detection systems.

In one case, the company reported that AI-supported attacks targeted at least 17 organisations, including government entities. The attackers allegedly relied on the tool to support decision-making, from choosing which data to target to drafting ransom demands.

Experts note that the rise of so-called agentic AI, which can operate with greater autonomy, has increased concerns about potential misuse.

Anthropic also identified attempts to use AI models to support fraudulent applications for remote jobs at major companies. The AI was reportedly used to create convincing profiles, generate applications, and assist in work-related tasks once jobs had been secured.

Analysts suggest that AI can strengthen such schemes, but most cyber incidents still involve long-established techniques like phishing and exploiting software vulnerabilities.

Cybersecurity specialists emphasise the importance of proactive defence as AI tools evolve. They caution that organisations should treat AI platforms as sensitive systems requiring strong safeguards to prevent their exploitation.

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Law enforcement embraces AI for efficiency amid rising privacy concerns

Law enforcement agencies increasingly leverage AI across critical functions, from predictive policing, surveillance and facial recognition to automated report writing and forensic analysis, to expand their capacity and improve case outcomes.

In predictive policing, AI models analyse historical crime patterns, demographics and environmental factors to forecast crime hotspots. However, this enables pre-emptive deployment of officers and more efficient resource allocation.

Facial recognition technology matches images from CCTV, body cameras or telescopic data against criminal databases. Meanwhile, NLP supports faster incident reporting, body-cam transcriptions and keyword scanning of digital evidence.

Despite clear benefits, risks persist. Algorithmic bias may unfairly target specific groups. Privacy concerns grow where systems flag individuals without oversight.

Automated decisions also raise questions on accountability, the integrity of evidence, and the preservation of human judgement in justice.

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Google Sheets gains smarter table conversion with Gemini

Last year, Google introduced ‘Convert to table’ suggestions in Sheets, allowing users to turn a selected data range into a formatted table with one click.

Now, Google has enhanced that feature with Gemini integration. When users accept a table suggestion, Gemini applies proper formatting and creates sensible names, such as ‘Project_Status’ or ‘Office_Expenses’, making formula references more precise and meaningful.

For example, users can write =SUM(Office_Expenses[Amount]) instead of cryptic cell ranges like =SUM(E2:E15).

These newly named tables offer dynamic formula ranges that automatically expand or shrink as rows are added or removed, helping spreadsheets stay accurate without manual edits. The feature can be turned off under Tools > Suggestion controls if users prefer their original workflow.

Rollout is underway for Google Workspace Business Standard/Plus and Enterprise plans and Google AI Pro, Ultra, and specific education add-ons.

Rapid Release domains are receiving it now. Scheduled Release domains will see it from 12 September. Admins must enable innovative features and personalisation for users to access them.

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