Governance and Legislation
What to Know About the New U.S. AI Diffusion Policy and Export Controls
(Michael C. Horowitz – Council on Foreign Relations – 13 January 2025) In its waning days, the Biden administration, through the Commerce Department’s Bureau of Industry and Security (BIS), released an eagerly anticipated Regulatory Framework for the Responsible Diffusion of Advanced Artificial Intelligence Technology. The policy lays out a global framework to govern the export of frontier artificial intelligence (AI) technologies from chips to AI model weights from the United States to the world. The policy builds on previous policy releases focused on limiting exports of AI technology to the People’s Republic of China (PRC) and other countries of concern like Russia. The policy is designed to achieve two goals. First, it attempts to enable U.S. companies to export and lead in key global AI markets by reducing and streamlining current bureaucratic barriers to exports. Second, the policy further controls PRC access to the most advanced U.S.-based AI technologies through regulatory changes. – https://www.cfr.org/blog/what-know-about-new-us-ai-diffusion-policy-and-export-controls
New AI-export rule aims to ease sales to allies, limit leaks to others
(Patrick Tucker – Defense One – 13 January 2025) A groundbreaking new export regulation aims to keep some AI models and related chips out of adversaries’ hands while easing their sale to friendly nations, Biden officials said Sunday, a day before its official release. But America’s top chipmaker castigated the new rule as “sweeping overreach” that would stifle innovation. The so-called Interim Final Rule on Artificial Intelligence Diffusion seeks to streamline licensing hurdles for chip orders, bolster U.S. AI leadership, and help allied and partner nations understand how they can benefit from AI, officials said. – https://www.defenseone.com/policy/2025/01/new-ai-export-rule-aims-ease-sales-allies-limit-leaks-others/402125/?oref=d1-homepage-top-story
Meta’s decision to ditch fact-checking gives state-sponsored influence operations more chance
(Meg Tapia – Lowy The Interpreter – 13 January 2025) Meta’s recent decision to dismantle its professional fact-checking program marks a significant shift in the company’s approach to moderating content across its platforms – including Facebook, Instagram, and Threads. The world’s most used social network company argues the move is a return to its “roots” of prioritising free expression. However, the consequences of Meta mirroring the X-created “community notes” model could have far-reaching consequences for national and regional security. – https://www.lowyinstitute.org/the-interpreter/meta-s-decision-ditch-fact-checking-gives-state-sponsored-influence-operations-more
Chinese AI startups make gains in challenge to US-based OpenAI
(ThinkChina – 10 January 2025) For many of China’s emerging AI startups, the chief challenge is surviving the competition with established domestic giants that dominate market share and user access. – https://www.thinkchina.sg/technology/chinese-ai-startups-make-gains-challenge-us-based-openai?ref=top-hero
Sovereign data strategies: Boosting or hindering AI development in India?
(Jyoti Panday – Observer Research Foundation – 10 January 2025) In an interconnected world, digital infrastructure, platforms, and services play a pivotal role in the functioning of everything, from communication to commerce. Given the importance of digital technologies, the pursuit of technological sovereignty has become a strategic imperative for some countries. For advocates of this approach, the state’s ability to control and govern digital assets, systems, and data is crucial to achieving the country’s economic, developmental, and security goals, while also strengthening its geo-political influence. The focus is on establishing or advancing domestic capabilities and attaining self-sufficiency in essential technological sectors by either limiting reliance on foreign entities or fostering “national champions”. – https://www.orfonline.org/expert-speak/sovereign-data-strategies-boosting-or-hindering-ai-development-in-india
Measuring Changes Caused by Generative Artificial Intelligence: Setting the Foundations
(Samantha Lai, Ben Nimmo, Derek Ruths, and Alicia Wanless – Carnegie Endowment for International Peace – 9 January 2025) In 2024’s so-called year of elections, fears abounded over how generative artificial intelligence (GenAI) would impact voting around the world. However, as with other game-changing technologies throughout history, the sociopolitical risks of GenAI extend far beyond direct threats to democracy. As GenAI is leveraged to power “intelligent” products, made available for public use, adopted into routine business and personal activities, and used to refactor whole government and industry workflows, there are major opportunities for these disruptions to have negative consequences as well as positive ones. These consequences will be hard to identify for two reasons. First, GenAI is being integrated into already complex processes. When the outputs of such processes change, it can be hard to trace changes back to their root causes. Second, most processes—whether in industry, government, or our personal lives—are not sufficiently well understood to allow detection of changes, especially those that are just emerging. – https://carnegieendowment.org/research/2025/01/measuring-changes-caused-by-generative-artificial-intelligence-setting-the-foundations?lang=en&mkt_tok=ODEzLVhZVS00MjIAAAGX_ycrhcKE62XFH7NdnKIZP7-WsyyYKMUpMIQt78bTr7F7_yUfzK6FCALVl7d4vGlZj3eyrSHKiVRaPVGCDgwQu_PEVCTeUVcIo1e7hX_zZde-
The AI governance balancing act: Navigating opportunities and risks
(Jeremy Ng, Sharmista Appaya – World Bank blogs – 8 January 2025) Did you know that in Sub-Saharan Africa, students spend an average of six years in school but leave with only three years’ worth of learning? The learning gap is stark, but artificial intelligence (AI) is rising to the challenge. In Kenya, innovators have created Somanasi (“Learn with me”), an AI-powered chatbot designed to help bridge this divide. By providing real-time, tailored responses to student questions, gamifying lessons, and promoting collaborative learning, this resource helps students better understand and retain the school curriculum, empowering them to make the most of their time in school and narrow the learning deficit. – https://blogs.worldbank.org/en/digital-development/the-ai-governance-balancing-act–navigating-opportunities-and-ri
Big Data, Bigger Debate: Malaysia’s PADU System and the Future of Digital Governance
(Nuurrianti Jalli – Fulcrum – 7 January 2025) Public reactions to Malaysia’s Central Database Hub (PADU), particularly on social media platforms like Reddit, reveal widespread concerns about data security, government transparency, and the system’s capabilities. The PADU initiative highlights the need for robust data protection measures, clear communication, and strong legal frameworks to build public trust. – https://fulcrum.sg/big-data-bigger-debate-malaysias-padu-system-and-the-future-of-digital-governance/
How Artificial Intelligence Will Affect Asia’s Economies
(Tristan Hennig, Shujaat Khan – IMF blog – 5 January 2025) Asia-Pacific’s economies are likely to experience labor market shifts because of artificial intelligence, with advanced economies being affected more. About half of all jobs in the region’s advanced economies are exposed to AI, compared to only about a quarter in emerging market and developing economies. – https://www.imf.org/en/Blogs/Articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies
Security
WEF Warns of Growing Cyber Inequity Amid Escalating Complexities in Cyberspace
(James Coker – Infosecurity Magazine – 13 January 2025) Cyber inequity has widened in the past year amid increasing complexities in cyberspace and geopolitical uncertainties, to the World Economic Forum (WEF)’s Global Cybersecurity Outlook 2025 has found. The WEF found that there is substantial disparity in the capabilities of different businesses, sectors and regions to effectively respond to cyber-attacks. – https://www.infosecurity-magazine.com/news/wef-cyber-inequity-complexities/
UK proposes banning hospitals and schools from making ransomware payments
(Alexander Martin – The Record – 13 January 2025) The United Kingdom proposed on Tuesday a major overhaul of how the country responds to ransomware attacks, including by banning public sector bodies from making extortion payments and requiring all victims to report incidents to the government. Ransomware attacks have risen year-on-year for the past five years, according to the best dataset available, but authorities have warned they are “increasingly concerned” victims are keeping incidents secret, meaning even that data provides only a partial view of the true scale of the problem. – https://therecord.media/uk-proposes-banning-ransoms-hospitals
Turks and Caicos recovering from pre-Christmas ransomware attack
(Jonathan Greig – The Record – 13 January 2025) The government of Turks and Caicos said it is making progress in its recovery from a recent ransomware attack that has caused widespread issues on the islands over the last month. Everything from government welfare payments to tax collection and the island’s department of motor vehicles have been impacted by the ransomware attack. But in a statement on Friday, the government said it has been able to restore some systems while it calls in experts from the U.K. and other islands to help with others. The island, located north of Haiti and Cuba, is a British Overseas Territory with about 50,000 residents. – https://therecord.media/turks-and-caicos-recovering-from-ransomware-attack
Texas sues Allstate, alleging it violated data privacy rights of 45 million Americans
(Suzanne Smalley – The Record – 13 January 2025) Texas’ attorney general is suing the insurance giant Allstate and its subsidiary Arity for allegedly illegally collecting, using and selling cell phone location and movement data belonging to more than 45 million Americans without their knowledge. Allstate has harvested trillions of miles of that data from Americans’ cellphones through “secretly embedded” software Arity pays millions of dollars to place in mobile apps that track consumers’ driving data, state Attorney General Ken Paxton announced Monday. – https://therecord.media/texas-sues-allstate-data-privacy-cars
‘Codefinger’ hackers encrypting Amazon cloud storage buckets
(Jonathan Greig – The Record – 13 January 2025) Cybercriminals have begun to encrypt data held in Amazon storage tools used by thousands of organizations around the globe. Researchers with the cybersecurity firm Halcyon documented a recent trend of hackers going after Amazon Web Services’ cloud storage products known as S3 buckets and using the company’s own encryption tools to lock customers out of their data. – https://therecord.media/hackers-encrypting-amazon-cloud-buckets
New Ransomware Group Uses AI to Develop Nefarious Tools
(Infosecurity Magazine – 13 January 2025) A new ransomware group dubbed FunkSec, which emerged in late 2024, has claimed to have targeted 85 victims in December alone, according to Check Point Research (CPR). In a January 10 report, CPR noted that FunkSec operators appear to use AI-assisted malware development. CPR noted that this AI capability can enable even inexperienced actors to quickly produce and refine advanced tools. – https://www.infosecurity-magazine.com/news/new-ransomware-group-uses-ai/
Cyberattack forces Dutch university to cancel lectures
(Alexander Martin – The Record – 13 January 2025) Eindhoven University of Technology has cancelled “lectures and other educational activities” following a cyberattack, although it is expected to have only a limited impact as teaching is reduced while students prepare for exams. In a statement on Sunday, the Dutch university said it had shut down its network after detecting the attack at around 9 p.m. on Saturday but stressed its IT staff still have access to all systems and are investigating. Students have been told the disruption would last on Monday and an update would be provided on Tuesday. – https://therecord.media/tu-eindhoven-cyberattack-lectures-canceled
Telefonica Breach Hits 20,000 Employees and Exposes Jira Details
(Phil Muncaster – Infosecurity Magazine – 13 January 2025) Telco giant Telefonica has confirmed a breach of its internal systems, with hackers claiming to have stolen over 236,000 lines of customer data. Four threat actors posted an exfiltrated Jira database on a hacking forum late last week, according to screenshots shared on X (formerly Twitter). – https://www.infosecurity-magazine.com/news/telefonica-breach-20000-employees/
Expired Domains Allowed Control Over 4,000 Backdoors on Compromised Systems
(Ravie Lakshmanan – The Hacker News – 13 January 2025) No less than 4,000 unique web backdoors previously deployed by various threat actors have been hijacked by taking control of abandoned and expired infrastructure for as little as $20 per domain. Cybersecurity company watchTowr Labs said it pulled off the operation by registering over 40 domain names that the backdoors had been designed to use for command-and-control (C2). In partnership with the Shadowserver Foundation, the domains implicated in the research have been sinkholed. – https://thehackernews.com/2025/01/expired-domains-allowed-control-over.html
The Flawed Approach of Cambodia’s Cryptocurrency Ban
(Brandon Tan Jun Wen – Fulcrum – 9 January 2025) In November 2024, the Telecommunications Regulator of Cambodia (TRC) blocked access to 16 major overseas cryptocurrency exchange websites, including Binance and Coinbase, banning over 102 online domains associated with such activities. The ban targeted foreign cryptocurrency websites operating “without the proper licenses and authorisations required by Cambodian law”. While the ban comes with good intentions, its effectiveness would be undermined by easily accessible circumvention methods and deeper issues such as elite corruption. – https://fulcrum.sg/the-flawed-approach-of-cambodias-cryptocurrency-ban/
Frontiers
ORNL Partnership With EPB Tests New Method For Protecting Quantum Networks
(Matt Swayne – Quantum Insider – 13 January 2025) Researchers at Oak Ridge National Laboratory (ORNL), EPB of Chattanooga, and the University of Tennessee at Chattanooga successfully demonstrated the first uninterrupted transmission of entangled quantum signals over a commercial network using multiple wavelength channels and automatic polarization stabilization. The experiment relied on Automatic Polarization Compensation (APC) to maintain signal stability despite external disruptions like wind and temperature changes, enabling over 30 hours of continuous quantum transmission with no downtime. This milestone advances efforts toward a robust quantum internet, demonstrating how existing fiber-optic infrastructure can be adapted to support scalable, secure quantum communication networks. – https://thequantuminsider.com/2025/01/13/ornl-partnership-with-epb-tests-new-method-for-protecting-quantum-networks/
IonQ Partners with AFRL on $21.1 Million Quantum Network Project
(Cierra Choucair – Quantum Insider – 13 January 2025) IonQ announced a $21.1 million project through Qubitekk, Inc. to develop quantum networking infrastructure in collaboration with the U.S. Air Force Research Laboratory at the Innovare Advancement Center in Rome, New York, focusing on secure communication, precise timing, and distributed quantum computing. The project will establish high-performing quantum network access points, deliver networking hardware compatible with existing telecommunications systems, and explore secure free-space optical links for communication between ground stations and uncrewed aerial systems (UASs). AFRL’s Quantum Information Science & Technology Branch will oversee the project, with leaders emphasizing its importance for advancing national security and maintaining technological leadership. This initiative builds on IonQ’s recent successes, including a $54.5 million agreement with AFRL, a collaboration with ARLIS on blind quantum computing, and reported financial growth driven by demand for IonQ Forte Enterprise and Tempo quantum systems. – https://thequantuminsider.com/2025/01/13/ionq-partners-with-afrl-on-21-1-million-quantum-network-project/
Quantum Algorithms Could Prompt Faster Solutions For Complex Simulations
(Matt Swayne – Quantum Insider – 13 January 2025) Researchers from Qubit Pharmaceuticals and Sorbonne University developed quantum algorithms capable of achieving exponential speedups in analyzing nonreversible Markov chains, with broad applications in fields like drug discovery and financial modeling. These algorithms rely on quantum walks, which allow simultaneous exploration of multiple pathways, offering substantial efficiency improvements over classical methods. While the study demonstrates promising theoretical results through mathematical proofs and simulations, verification on actual quantum hardware remains an essential next step. – https://thequantuminsider.com/2025/01/13/quantum-algorithms-could-prompt-faster-solutions-for-complex-simulations/
Qolab, The First UW–Madison-incubated Quantum Startup, Joins The CQE
(Matt Swayne – Quantum Insider – 13 January 2025) Qolab joins the Chicago Quantum Exchange (CQE) as a corporate partner, reinforcing its commitment to collaboration while pursuing utility-scale quantum computing innovations. With $16 million in Series A funding and partnerships with organizations like Applied Materials, Qolab is working to improve superconducting qubits to enhance quantum computer performance. Founded by former Google Quantum AI leaders, Qolab is expanding its Madison workforce and leveraging CQE collaborations to advance practical quantum computing. – https://thequantuminsider.com/2025/01/13/qolab-the-first-uw-madison-incubated-quantum-startup-joins-the-cqe/
Although Quantum is ‘Decades’ Away For NVIDIA, The Company is Investing in Quantum Talent Today
(Matt Swayne – Quantum Insider – 13 January 2025) NVIDIA CEO Jensen Huang estimates that practical quantum computing is still 20 years away, yet the company is strategically investing in quantum technologies and workforce development to prepare for a hybrid quantum-classical future. NVIDIA’s job postings, including roles in quantum error correction, algorithm engineering, and climate simulation, suggests a focus on foundational quantum research and immediate use cases like weather forecasting. Huang emphasizes the complementary nature of quantum and classical computing, framing NVIDIA’s investments as groundwork for integrating quantum accelerators with classical supercomputers to solve complex problems. – https://thequantuminsider.com/2025/01/13/although-quantum-is-decades-away-for-nvidia-the-company-is-investing-in-quantum-talent-today/
China Building Infrastructure For Attosecond Lasers
(Matt Swayne – Quantum Insider – 13 January 2025) China is building a state-of-the-art attosecond laser facility to observe ultrafast particle behavior and drive innovation in science and technology, Guangdong Today reports. The Advanced Attosecond Laser Infrastructure (AALI), spanning sites in Dongguan and Xi’an, will feature 10 beamlines and 22 research terminals, enabling breakthroughs in fields like quantum computing and biomedicine. Attosecond lasers, capable of capturing electron motion at quintillionths of a second, provide unprecedented precision for studying microscopic phenomena and fostering high-tech industries, including quantum computing. – https://thequantuminsider.com/2025/01/12/china-building-infrastructure-for-attosecond-lasers/