FTC signals flexibility on COPPA age checks

The US FTC has issued a policy statement signalling greater flexibility in enforcing parts of the Children’s Online Privacy Protection Act when companies deploy age verification tools. The agency said it will not take enforcement action where personal data is collected solely for age verification purposes.

The FTC framed age assurance as a key safeguard to prevent children from accessing inappropriate content online in the US. Officials said the approach is intended to encourage broader adoption of age verification technologies by online services.

While offering flexibility, the US regulator stressed that organisations must maintain strong safeguards, including data deletion practices and clear notice to parents and children. The FTC also warned that personal data used beyond age verification could still trigger enforcement action under COPPA.

Similar to previous 2023 amendments, legal experts cautioned that companies using age assurance may face additional compliance duties under state youth privacy laws, even as federal requirements evolve.

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McKinsey claims agentic AI will reshape global banking

Agentic AI is set to transform banking operations in the US and Asia, according to a McKinsey podcast featuring senior partners from New York, Mumbai and London. The technology goes beyond traditional automation by handling less structured tasks and supporting end to end decision making.

Research cited in the discussion suggests many banks are experimenting with AI, yet few report material financial gains. Leaders in the US and Asia are urged to avoid narrow pilot projects and instead redesign workflows, teams and governance around AI at scale.

McKinsey partners said successful banks in the US and Asia are aligning chief executives, technology leaders and risk officers behind a shared strategy. Operations, risk management and frontline services are seen as areas where AI could deliver significant productivity and quality gains.

Banks in India and other Asian markets are also benefiting from regulatory engagement, including guidance from the Reserve Bank of India. Speakers argued that workforce training, cross functional collaboration and clear accountability will determine whether AI delivers lasting impact in the US.

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Conduent breach exposes data of 25 million people across US

More than 25 million people across the United States have had personal information exposed following a ransomware attack on government contractor Conduent. Updated state breach notifications indicate the incident is larger than initially understood.

Conduent provides printing, payment processing, and benefit administration services for state agencies and large corporations. Its systems support food assistance, unemployment benefits, and workplace programmes, reaching more than 100 million individuals, according to the company.

US State disclosures show Oregon and Texas account for most of the affected records, with additional cases reported in Massachusetts, New Hampshire, and Washington. Compromised data includes names, dates of birth, addresses, Social Security numbers, health insurance information, and medical details.

Public information from Conduent has been limited since the January 2025 attack. An incident notice published in October carried a ‘noindex’ tag in its source code, preventing search engines from listing the page, which critics say reduced visibility for affected individuals.

The breach ranks among the largest recent ransomware incidents, though it is smaller than the 2024 Change Healthcare attack that affected 190 million people. Regulators and affected users continue seeking clarity on the Conduent case and its security failures.

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National security concerns reshape US data policy

US policymakers are increasingly treating personal data as a dual use asset that carries both economic value and national security risks. Regulators have raised concerns about sensitive information, including geolocation data linked to military personnel.

Measures such as the Protecting Americans Data from Foreign Adversaries Act of 2024 and the Department of Justice Data Security Program aim to curb misuse by designated foreign adversaries. Both frameworks impose broad restrictions on cross border data transfers.

Experts warn that compliance remains complex and uncertain, with companies adapting in what one adviser described as a fog. Enforcement signals have already emerged, including a draft noncompliance letter from the Federal Trade Commission and litigation.

Organizations are being urged to integrate national security expertise into privacy and cybersecurity teams. Observers say early preparation is essential as selective enforcement risks increase under strict but evolving US data protection regimes.

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US tech giants eye Wales for major AI investment

American technology firms are increasingly looking to Wales as a destination for AI investment and data infrastructure. Strong inward investment figures and expanding growth zones are putting the nation firmly on the technology map.

Last year Wales secured £4.6bn in global investment across 65 foreign direct investment projects, marking a 23 per cent rise year on year. Thousands of jobs were created or safeguarded, outperforming many other UK regions.

Major projects underline the shift. US firm Vantage plans to transform the former Ford Bridgend plant into a large-scale data centre campus, while Microsoft is supporting another proposed scheme in Newport, both located within designated AI growth zones.

Beyond data centres, Wales offers land, connectivity and a supportive regulatory environment. Innovation clusters across Cardiff, Newport and North Wales, alongside strengths in life sciences, advanced manufacturing and renewable energy, are strengthening its appeal to global investors.

With expanding energy projects and a growing start-up pipeline, Wales is positioning itself as a competitive base for global business. Investors are increasingly encouraged to see it not as a regional outpost, but as an international platform rooted in strong economic foundations.

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Stanford speech warns of AI tsunami

Senator Bernie Sanders has warned at Stanford University in California that the US is unprepared for the speed and scale of the AI revolution. Speaking in California alongside Congressman Ro Khanna, he called the moment one of the most dangerous in modern US history.

At Stanford University, Sanders urged a moratorium on the expansion of AI data centres to slow development while lawmakers catch up. He argued that the American public lacks a clear understanding of the economic and social impact ahead and that New York is already considering a pause.

Khanna, who represents Silicon Valley in California, rejected a complete moratorium but called for steering AI growth through renewable energy and water efficiency standards. He outlined principles to prevent wealth from being concentrated among a small group of tech billionaires.

Sanders also raised concerns in California about job losses and emotional reliance on AI, citing projections of widespread automation. He called for a national debate in the US over whether AI will benefit the public or deepen inequality.

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Majority of college students use or must use AI in classwork, but institutions lag in AI education

Research from Honorlock indicates a substantial shift in how students engage with generative AI in higher education: more than 56% of surveyed US college–enrolled students report being required to use AI tools in coursework, and 63% use AI for at least some assignments.

The most common uses include grammar and editing support (59%) and text generation (57%), with students also using AI to brainstorm ideas and clarify concepts.

Despite widespread AI use, there remains a significant gap in formal AI education: only 31% of students are aware of AI-focused courses at their institutions, and fewer than 20% have taken them.

Students themselves often learn AI skills independently rather than through a structured curriculum, potentially leaving them unprepared for workplaces where AI fluency is expected.

The survey also highlights academic integrity risks: more than one-third of students admitted to using AI assistance on quizzes or exams, underlining the need for clear AI use policies, responsible-use training and ethical frameworks within higher education.

Researchers and advocates argue that colleges should integrate AI literacy, including ethics, governance, real-world applications and responsible use, into coursework to better equip graduates for AI-enabled careers.

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EU–US draft data pact allows automated decisions on travellers

A draft data-sharing agreement between the EU and the US Department of Homeland Security would allow automated decisions about European travellers to continue under certain conditions, despite attempts to tighten protections.

The text permits such decisions when authorised under domestic law and relies on safeguards that let individuals request human intervention instead of leaving outcomes entirely to algorithms.

A deal designed to preserve visa-free travel would require national authorities to grant access to biometric databases containing fingerprints and facial scans.

Negotiators are attempting to reconcile the framework with the General Data Protection Regulation, even though the draft states that the new rules would supplement and supersede earlier bilateral arrangements.

Sensitive information, including political views, trade union membership and biometric identifiers, could be transferred as long as protective conditions are applied.

EU countries face a deadline at the end of 2026 to conclude individual agreements, and failure to do so could result in suspension from the US Visa Waiver Program.

A separate clause keeps disputes firmly outside judicial scrutiny by requiring disagreements to be resolved through a Joint Committee instead of national or international courts.

The draft also restricts onward sharing, obliging US authorities to seek explicit consent before passing European-supplied data to third parties.

Further negotiations are expected, with the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs preparing to hold a closed-door review of the talks.

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Reddit tests AI shopping search

Reddit has begun testing an AI-powered shopping search tool with a limited group of users in the US. Search queries for product ideas now generate interactive carousels featuring prices, images and direct links to retailers.

Items appearing in the results are drawn from recommendations shared in posts and comments across the platform. Listings are connected to Reddit’s advertising and shopping partners, bringing community discussions closer to online purchasing.

Expansion into AI-led commerce builds on the company’s earlier launch of Dynamic Product Ads, designed to deliver personalised suggestions. Closer integration of search and shopping signals a broader effort to strengthen digital revenue streams.

Chief executive Steve Huffman recently described AI search as a significant business opportunity beyond product development alone. Weekly search users increased from 60 million to 80 million over the past year, while engagement with the AI-powered Reddit Answers tool rose sharply throughout 2025.

Developments place Reddit alongside other technology platforms investing in AI-driven retail features. Growing user engagement suggests the company sees search as central to its future commercial strategy.

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Chinese AI video tool unsettles Hollywood

A new AI video model developed by ByteDance has unsettled Hollywood after generating cinema-quality clips from brief text prompts. Seedance 2.0, launched in 2025, went viral for producing realistic action scenes featuring western cinematic characters such as Spider Man and Deadpool.

In response, major studios, including Disney and Paramount, issued cease and desist letters over alleged copyright infringement. Japan has also begun investigating ByteDance after AI-generated anime videos spread widely online.

Industry experts say Seedance 2.0 stands out for combining text, visuals and audio within a single system. Analysts in Singapore and Melbourne argue that Chinese AI models are now matching US competitors at the technological frontier.

As Seedance 2.0 gains traction, Beijing continues to prioritise AI and robotics in its economic strategy. The rise of tools from China has intensified debate in the US and beyond over copyright, regulation and the future of creative work.

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