US

Treasury eyes AI-driven future as IRS technology review begins

The US Internal Revenue Service (IRS) is pausing its technology modernisation efforts to evaluate the impact of AI on tax collection and operations, a senior official announced.

The review will include recent initiatives such as the Direct File system, which allows US taxpayers to submit returns for free. AI-driven advancements in customer service and data processing have raised questions about the agency’s long-term strategy.

As the Trump administration prepares for widespread staff reductions in federal agencies, a source familiar with IRS plans indicated that up to a quarter of the agency’s workforce could be cut.

The IRS has not confirmed specific numbers but acknowledged that changes in technology could lead to a realignment of staff. Treasury Secretary Scott Bessent has expressed confidence that AI will improve tax collection efficiency, though no official budget or workforce reduction targets have been set.

The pause reflects shifting priorities in IRS funding, which was originally bolstered by the 2022 Inflation Reduction Act. Republican lawmakers have pushed to reduce the agency’s modernisation budget, arguing that enhanced funding could lead to unnecessary audits.

Despite the pause, the IRS has assured taxpayers that the 2025 filing season will not be affected, with tax returns and refunds continuing as usual.

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Musk’s SpaceX challenges global barriers on Starlink service

SpaceX has called on the US government to address trade barriers that impact its global operations, particularly its Starlink satellite service.

The company claims it faces higher costs than foreign competitors due to import duties, regulatory fees, and the need to pay foreign governments for access to spectrum.

These challenges are seen as non-tariff trade barriers that inflate operating expenses and slow the rollout of its service in many countries.

Starlink, which operates in over 120 markets worldwide, has to navigate additional hurdles in some regions, including coordination with domestic satellite operators for spectrum sharing.

SpaceX has argued that such requirements are deliberately designed to protect local competitors, making it harder for the company to offer its lower-cost, high-quality services abroad.

The call for action comes amid wider discussions about trade barriers affecting American businesses. Companies like Tesla, also owned by Elon Musk, have warned of the risks posed by retaliatory tariffs resulting from trade tensions, particularly with countries like China, Canada, and the EU.

Musk has long been involved in efforts to streamline government regulations and advocate for freer trade policies.

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Infosys resolves cybersecurity lawsuits in the US

Indian IT services giant Infosys has settled lawsuits filed against its US subsidiary, Infosys McCamish Systems, for $17.5 million. The lawsuits stem from a cyber incident that occurred in November 2023, which resulted in the compromise of personal data. The company has agreed to pay the settlement into a fund that will resolve all claims related to the breach.

The breach, which involved unauthorised access and data exfiltration, affected up to 6.5 million individuals. Following the incident, Infosys McCamish in the US, in coordination with a third-party vendor, took steps to address the issue and limit the damage caused by the cyberattack.

This settlement marks a significant step for Infosys in resolving the ongoing legal issues stemming from the 2023 incident. The Indian company has worked to resolve the situation while continuing to bolster its cybersecurity measures to prevent future breaches.

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The role of AI in precision farming for wine production

AI is making its mark in the wine industry, with vineyards across California adopting cutting-edge technology to optimise crop production.

One notable example is Napa Valley farmer Tom Gamble, who has integrated an autonomous tractor equipped with AI sensors to map his vineyard.

These AI-powered machines gather data that allows farmers to make more informed decisions about water use, fertilizer application, and pest control, improving efficiency and sustainability.

AI’s influence extends beyond tractors. Companies like John Deere in the US have developed AI-driven technologies that help vineyard managers apply materials more precisely, reducing waste and environmental impact.

Smart irrigation systems, for example, can monitor water use and even shut off in case of leaks, making vineyards more water-efficient.

Despite concerns about the cost of adopting such technology, particularly for smaller, family-run vineyards, AI offers a way to streamline operations and adapt to changing environmental conditions.

While AI is enhancing wine production, it also aids in managing crop health and predicting yields. By analysing images and soil data, AI systems can detect early signs of disease or nutrient deficiencies, helping farmers take preventive action before issues escalate.

However, this technology allows vineyards to make smarter decisions, ultimately improving the quality and consistency of their wine production.

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Meta faces lawsuit in France over copyrighted AI training data

Leading French publishers and authors have filed a lawsuit against Meta, alleging the tech giant used their copyrighted content to train its artificial intelligence systems without permission.

The National Publishing Union (SNE), the National Union of Authors and Composers (SNAC), and the Society of Men of Letters (SGDL) argue that Meta’s actions constitute significant copyright infringement and economic ‘parasitism.’ The complaint was lodged earlier this week in a Paris court.

This lawsuit is the first of its kind in France but follows a wave of similar actions in the US, where authors and visual artists are challenging the use of their works by companies like Meta to train AI models.

As the issue of AI-generated content continues to grow, these legal actions highlight the mounting concerns over how tech companies utilise vast amounts of copyrighted material without compensation or consent from creators.

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AI demand drives record power sector deals

The US power industry is experiencing a surge in mergers and acquisitions (M&A) as record demand for electricity, particularly from AI-driven data centres, fuels heightened interest in power generation assets.

Industry experts predict 2025 will be a bumper year for such deals, with assets in high demand due to massive projections for future consumption. Notable transactions, such as Constellation Energy’s $16.4 billion acquisition of Calpine, highlight the sector’s boom in early 2025.

Private equity firms, pension funds, and other institutional investors are rapidly deploying capital into the power sector, with over $330 billion in capital waiting to be invested in infrastructure.

Many of these firms are targeting not only operational companies but also firms that manufacture energy equipment, positioning themselves to profit from the ongoing expansion of the power grid to meet AI-related demand.

While the US M&A frenzy contrasts with a broader slowdown in the market, the momentum in the power sector is expected to continue.

Challenges such as material shortages and regulatory uncertainties, particularly surrounding tariffs on essential materials, may impact future projects.

However, the increasing value of power infrastructure makes these challenges more manageable for investors keen to tap into the growing market.

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Indian police arrest Garantex administrator wanted by US

Indian authorities have arrested Aleksej Besciokov, an administrator of the Russian cryptocurrency exchange Garantex, at the request of the US.

Besciokov, a Russian resident and Lithuanian national, was taken into custody in Kerala on charges of money laundering and violating sanctions. The Central Bureau of Investigation (CBI) said he was planning to flee India, and Washington is expected to seek his extradition.

The arrest follows a joint operation by the US, Germany, and Finland to dismantle Garantex’s online infrastructure.

The exchange, under US sanctions since 2022, has processed at least $96 billion in cryptocurrency transactions since 2019. The US Justice Department recently charged two administrators, including Besciokov, with operating an unlicensed money-transmitting business.

Experts warn that sanctioned exchanges often attempt to bypass restrictions by setting up new entities. Blockchain research firm TRM Labs called the Garantex takedown a significant step in combating illicit finance but emphasised the need for continued vigilance against evasion tactics.

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Singapore fraud case involves $390 million in transactions

Singapore prosecutors revealed on Thursday that a fraud case involving local firms accused of illegally supplying US servers to Malaysia involves transactions worth $390 million.

Three men—Singaporeans Aaron Woon and Alan Wei, along with Chinese national Li Ming—have been charged with deceiving tech giants Dell and Super Micro by misrepresenting the servers’ final destination.

The case has been linked to Chinese AI firm DeepSeek, which is under US scrutiny over the potential use of banned Nvidia chips.

While Singapore authorities confirmed the servers may have contained Nvidia components, they did not specify whether these were the restricted high-end semiconductors subject to US export controls.

Singapore’s Law and Home Affairs Minister K Shanmugam declined to comment on the alleged connection.

Prosecutors claim Wei paid himself tens of millions in dividends, while Woon received a multimillion-dollar bonus. Singaporean authorities are investigating a wider network of 22 individuals and companies suspected of similar fraudulent practices, with six additional arrests made.

The accused are set to reappear in court on May 2, while Malaysian authorities are also probing potential legal violations.

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Elea introduces AI-powered solution for pathology labs

Elea, a Hamburg-based startup, is harnessing the power of AI to tackle inefficiencies in healthcare, starting with pathology labs.

The company’s AI operating system replaces outdated systems, offering a voice-powered solution that automates tasks such as report transcription and data handling.

Elea’s tool promises to significantly reduce the time it takes for labs to generate reports, with initial results showing a reduction from weeks to just a few days.

The AI system is designed to integrate seamlessly into existing lab processes, acting as an all-in-one solution that coordinates tasks traditionally managed by separate systems.

Elea’s cloud-based platform uses speech-to-text and text-to-structure technologies to automate everything from report writing to handling laboratory equipment, streamlining operations and reducing human error.

Founded in 2024, Elea has already secured a partnership with a major German hospital group, and it plans to expand internationally, particularly into the US The company recently raised €4 million in seed funding to support its growth.

Elea is betting on a gradual scaling strategy, aiming to improve productivity in pathology labs before potentially expanding its AI tools to other areas of healthcare, such as radiology.

Despite potential challenges, including accuracy concerns and data privacy, Elea is confident in its ability to revolutionise lab work.

By focusing on operational workflows, the German company hopes to improve both the speed and reliability of healthcare services, offering a glimpse into the future of AI in the medical field.

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Duffy criticises Verizon over FAA contract delays

US Transportation Secretary Sean Duffy criticised Verizon on Tuesday for delays in its $2.4 billion, 15-year contract with the Federal Aviation Administration (FAA), saying the company is ‘not moving fast enough.’

As the FAA works to upgrade ageing air traffic control systems, Duffy stressed the need for multiple companies to contribute to the effort, adding that the American public ‘can’t wait 10 or 12 years’ for improvements.

Verizon defended its progress, stating it is actively working with FAA technology teams and is open to collaborating with other firms offering complementary services.

Meanwhile, SpaceX’s Starlink denied reports that it aims to take over the FAA contract, saying it could be a partial solution but has no plans to replace Verizon’s role.

The FAA has been testing Starlink terminals in Alaska to improve weather data access, while the Government Accountability Office warns that one-third of US air traffic control systems are outdated and unsustainable.

Some Democrats have suggested shifting the FAA contract to Starlink due to Elon Musk’s ties to Donald Trump, but no official decisions have been made.

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