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US and China reportedly weigh AI risk talks ahead of leaders’ summit

The United States and China are considering launching official discussions on AI risk management, The Wall Street Journal reported, citing people familiar with the matter.

According to the report, the White House and the Chinese government are also considering whether to place AI on the agenda for a planned summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. If agreed, the talks would mark the first AI-specific engagement between the two governments under the current US administration.

The possible dialogue could focus on risks linked to advanced AI systems, including unexpected model behaviour, autonomous military applications and misuse by non-state actors using powerful open-source tools, people familiar with the discussions told the newspaper. The report said Washington is waiting for Beijing to designate a counterpart for the talks.

The WSJ reported that US Treasury Secretary Scott Bessent is leading the US side, while Chinese Vice Finance Minister Liao Min has been involved in discussions on setting up such a channel. The newspaper added that the two presidents would ultimately decide whether AI appears on the formal summit agenda.

Liu Pengyu, spokesperson for the Chinese Embassy in Washington, was cited as saying that China is ready to engage in communication on AI risk mitigation. Analysts have raised the possibility that any future dialogue could support crisis-management tools, including an AI hotline between senior leaders.

The report places the latest deliberations in the context of earlier US-China engagement on AI. In 2023, then US President Joe Biden and Xi launched a formal AI dialogue, and both sides later said humans, not AI, would retain authority over nuclear-launch decisions. The WSJ said the earlier process produced limited results, but AI has remained a high-level focus in bilateral relations.

Non-governmental discussions have also reportedly continued in parallel, including exchanges involving former Microsoft research executive Craig Mundie and Chinese counterparts from Tsinghua University and major AI companies. Participants cited by the newspaper said those exchanges have focused on frontier-model safety, technical guardrails and broader questions of strategic stability.

Why does it matter?

A formal AI risk channel between Washington and Beijing would signal that both governments see advanced AI as a strategic stability issue, not only an economic or technological race. Even brief talks could matter if they create channels for crisis communication about military AI, frontier-model failures, or misuse by non-state actors. However, because the discussions are still only reported as under consideration, the significance lies in the possibility of a risk-management mechanism, not in any confirmed diplomatic breakthrough.

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US Federal Reserve highlights AI risks and benefits in the banking system

A US Federal Reserve speech highlights the growing role of AI and emerging technologies in the banking sector and notes that they introduce new risks alongside potential benefits. The remarks stress the need for regulators to closely monitor these developments.

The speech notes that AI could affect areas such as risk management, decision-making and operational processes within financial institutions. It emphasises that rapid adoption may outpace existing oversight frameworks.

Officials said supervision and governance are important to ensure AI is used responsibly. Banks are expected to manage risks effectively while maintaining transparency and accountability in their use of technology.

The Federal Reserve said adapting regulatory approaches will be essential to address technological change while preserving financial stability. The speech was delivered as part of policy discussions in the US.

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Code for America highlights challenges in measuring AI use in public services in the US states

According to Code for America, AI is reshaping how public services are delivered across the United States, yet adoption remains uneven and difficult to measure. They added that state governments are rapidly embracing AI through low-risk pilot programmes while still lacking clear frameworks to evaluate impact.

The report describes AI adoption as following a staged progression beginning with readiness, where leadership structures, workforce skills and infrastructure are developed.

Piloting then introduces experimentation through sandboxes and limited deployments, while implementation embeds AI into operational systems such as fraud detection, document automation, research support and citizen-facing chat assistants.

The report also notes that despite growing experimentation, most US states have not yet transitioned into fully operational and measurable systems.

Leading states, including Utah, New Jersey, Pennsylvania, North Carolina, Maryland, Texas and Vermont, are advancing institutional capabilities required to govern AI as a long-term public asset. Others, such as West Virginia, Wyoming, Nebraska, Alaska, Florida and Kansas, remain at earlier stages of readiness and adoption.

The report identifies measuring outcomes as a key challenge. It states that while AI promises efficiency gains and cost reductions, short-term deployment often increases workload for public employees before benefits materialise.

It adds that evaluation frameworks remain underdeveloped, leaving governments with strong governance structures but limited visibility into real performance improvements.

According to Amanda Renteria, CEO of Code for America, the opportunity extends beyond adoption alone, as governments must shape AI in ways that are human-centred and grounded in measurable public outcomes.

The report suggests that states that succeed in aligning technology with real community impact will move beyond experimentation and define the future of public service in the AI era.

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US military expands AI deployment across classified networks

The US Department of Defence has announced agreements with leading technology firms to deploy advanced AI capabilities across classified military networks. The initiative forms part of a broader effort to position the United States as a more AI-enabled military power.

Companies including OpenAI, Google, Microsoft, Amazon Web Services, NVIDIA, and SpaceX are reported to be involved in supporting deployment within high-security Impact Level 6 and 7 environments. The integration is intended to improve data synthesis, situational awareness, and operational decision-making across defence systems.

The department’s internal platform, GenAI.mil, is also being presented as a central part of this push, with senior officials describing it as a way to put advanced AI tools into the hands of personnel across the department and across different classification levels.

Officials have emphasised that maintaining access to a range of AI providers is important to avoid vendor lock-in and preserve long-term flexibility. In that sense, the move reflects a wider attempt to strengthen national security through advanced technology while keeping the military AI stack diversified rather than dependent on a single company or model family. However, this is an inference based on the reported Pentagon framing of the agreements.

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CISA releases guidance on Zero Trust adoption in critical infrastructure systems

The Cybersecurity and Infrastructure Security Agency, alongside several US government partners, has released guidance to support the adoption of Zero Trust principles in operational technology systems. The document aims to strengthen cybersecurity across critical infrastructure.

The guide outlines practical steps to address risks linked to increasingly interconnected and remotely operated systems. It highlights vulnerabilities created by expanded attack surfaces and evolving cybersecurity threats.

Key recommendations include improving asset visibility, securing supply chains and implementing stronger identity and access controls. The guidance also addresses challenges such as legacy systems and operational constraints.

Officials say the approach will help organisations reduce risks and improve resilience without disrupting essential operations. US agencies in Washington issued the guidance.

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Ukraine highlights AI strategic shifts

The National Security and Defense Council of Ukraine has published an overview of global AI developments for March 2026, highlighting a shift towards infrastructure and strategic realignment. The report is part of its ‘AI Frontiers’ analytical series.

According to the Council, growing investment and expansion of data centres to fuel AI demands are increasing pressure on energy resources. This is creating new competition not only for computing power but also for energy stability.

The analysis also points to intensifying competition between the US, China and the European Union, extending beyond AI models to supply chains, semiconductors and infrastructure. At the same time, AI is becoming more integrated into defence, cyberspace and information operations.

The Council highlights rising risks linked to disinformation, synthetic content and legal challenges, alongside growing demand for clearer regulation and content labelling as AI adoption expands in Ukraine.

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US and Philippines plan economic security zone focused on AI and supply chains

The United States Department of State has announced plans with the Government of the Republic of the Philippines to establish a 4,000 acre Economic Security Zone. The project is designed as part of efforts to strengthen supply chains and industrial cooperation.

According to the Department of State, the zone will serve as the first AI native industrial acceleration hub under the Pax Silica framework. It aims to support advanced manufacturing, data infrastructure and technology development.

The initiative is intended to enhance coordination across the full technology supply chain, including critical minerals, semiconductors and computing systems. It reflects broader efforts to align investment and industrial capacity among partner countries.

The US Department of State states that the project will contribute to economic security and technological cooperation, with the Economic Security Zone planned in the Philippines.

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US launches Permitting Innovators programme to modernise federal review systems

The White House has announced a new programme to modernise federal environmental review and permitting processes through collaboration with the private sector.

An initiative, led by the Council on Environmental Quality‘s Permitting Innovation Center in collaboration with NASA’s Center of Excellence for Collaborative Innovation, that introduces ‘Permitting Innovators’ as a platform to identify and deploy technology solutions across government systems.

The programme builds on earlier efforts to address permitting inefficiencies, which have been linked to delays in infrastructure development and increased project costs.

By integrating digital tools and improving data sharing across agencies, the initiative aims to streamline coordination and decision-making.

A key component involves inviting industry participants to submit technological solutions, which will be evaluated and potentially showcased at a dedicated Expo in 2026.

Selected innovations will also be included in a solutions catalogue intended to guide future implementation across federal agencies.

Why does it matter?

The initiative reflects a broader policy direction in the US focused on digital transformation in public administration, with an emphasis on improving efficiency while maintaining environmental review standards.

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US expands AI focus in schools

The US Department of Education has introduced a new supplemental priority focused on advancing AI in education, published in the Federal Register. The measure is intended for use in discretionary grant programmes.

According to the US Department of Education, the priority and related definitions may be applied across current and future funding competitions. The Secretary can adopt all or part of the priority depending on programme needs.

The initiative builds on earlier supplemental priorities covering areas such as literacy, educational choice, meaningful learning and workforce readiness. It forms part of a broader framework guiding federal education funding in the US.

Why does it matter?

The new priority will take effect in May 2026, expanding the role of AI in US education policy and grant allocation. This is a global shift in which AI is playing a more prominent role in education.

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US agencies warn of cyber intrusions into critical infrastructure systems

A joint cybersecurity advisory issued by the Federal Bureau of Investigation, Cybersecurity and Infrastructure Security Agency, National Security Agency, and several sector-specific partners warns US organisations of an ongoing campaign by actors targeting industrial control systems across US critical infrastructure.

The activity focuses on internet-exposed operational technology (OT), particularly programmable logic controllers (PLCs), which are widely used to automate industrial processes in sectors such as energy, water and wastewater systems, and government services.

According to the advisory, the attackers are exploiting PLCs by leveraging their direct exposure to the internet. The attackers gain initial access by scanning for internet-facing PLCs and connecting through commonly used industrial communication ports. Once access is established, the actors interact with device project files and manipulate data displayed on human-machine interfaces (HMI) and supervisory control and data acquisition (SCADA) systems. This enables them to disrupt industrial processes in real time. In several confirmed cases, such intrusions have resulted in operational disruption and financial loss, underscoring the tangible, physical-world impact of these cyber operations.

The advisory provides a detailed set of indicators of compromise (IOCs), including specific IP addresses associated with malicious activity, along with mappings to the MITRE ATT&CK framework to help defenders contextualise tactics and techniques.

Organisations are strongly encouraged to review both current and historical network logs for signs of compromise, particularly for unusual traffic on ports commonly used by OT protocols.

The campaign appears to be part of a broader escalation in Iranian-linked cyber activity, likely tied to geopolitical tensions involving the USA and its allies. The advisory links the activity to previously identified advanced persistent threat (APT) groups associated with Iran’s Islamic Revolutionary Guard Corps (IRGC).

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