Highlights
Can the West recover from China’s hi-tech knockout blow?
(Chatham House) From AI and electric vehicles to robotics and pharmaceuticals, Beijing is driving a low-cost technology revolution with price tags that crush global competitors. But as Europe and the US scramble to catch up, will ‘involution’ undo China’s lead, asks James Kynge. – https://www.chathamhouse.org/publications/the-world-today/2025-12/can-west-recover-chinas-hi-tech-knockout-blow
UK-EU cyber dialogue strengthens policy alignment
(DigWatch) The third UK-EU Cyber Dialogue was held in Brussels on 9 and 10 December 2025, bringing together senior officials under the UK-EU Trade and Cooperation Agreement to strengthen cooperation on cybersecurity and digital resilience. The meeting was co-chaired by Andrew Whittaker from the UK Foreign, Commonwealth and Development Office and Irfan Hemani from the Department for Science, Innovation and Technology, alongside EU representatives from the European External Action Service and the European Commission. – https://dig.watch/updates/uk-eu-cyber-dialogue-strengthens-policy-alignment
Nations unite to strengthen AI and chip networks
(DigWatch) South Korea has joined the US-led Pax Silica initiative, a new partnership aimed at fortifying the global AI and semiconductor supply chain. Representatives from nine nations met in Washington to outline joint goals on minerals, chips, energy and data infrastructure. Seven participating countries signed a declaration stressing the need to reduce harmful dependencies and strengthen cooperation. References to non-market behaviour, overcapacity and unfair dumping were widely interpreted as veiled criticism of the Chinese dominant position in critical technologies. – https://dig.watch/updates/nations-unite-to-strengthen-ai-and-chip-networks
Five Things 2025 Taught Us About AI Deception and Detection
(Zuzanna Wojciak, Shirin Anlen – Tech Policy Press) 2025 was the year synthetic media crossed another threshold. The new generation of video models unleashed an unprecedented flood of AI-generated content, with deepfakes of public figures (dead or alive) blending seamlessly into social media feeds: Queen Elizabeth being pulled over, OpenAI CEO Sam Altman shoplifting, ’leaked conversations’ from Bolivian and Iraqi elections, and a wave of deceptive media circulating during the 2025 Iran-Israel war. AI-driven media never left the headlines, and with rapid improvements in realism, synchronization, and long-form generation, its ability to deceive is accelerating. Yet our capacity to detect and respond to these deceptions continues to lag. Through the Deepfakes Rapid Response Force, a WITNESS-led initiative linking frontline journalists, fact-checkers, human rights defenders, and media forensics experts, 2025 revealed not only the persistence of old detection challenges but also a new layer of complexity introduced by emerging multimodal models. Here are five lessons from this year’s cases that show where AI deception is headed and what detection must confront next. –https://www.techpolicy.press/five-things-2025-taught-us-about-ai-deception-and-detection/
Top 10 Cyber-Attacks of 2025
(Kevin Poireault – Infosecurity Magazine) The past year has seen an unprecedented number of cyber-attacks targeting large enterprises and globally recognized brands. Among the major trends Infosecurity reported on in 2025, we saw organized ransomware groups and more nebulous collectives of teenager hackers alike manage to break into systems using clever but often unsophisticated tactics. Additionally, we saw a series of software supply chain attacks, where adversaries – spanning from low-skilled cybercriminals to nation-state groups – leveraged critical vulnerabilities in globally deployed corporate tools or popular open source software and packages to reach a wide range of victims. In this article, Infosecurity has set out the top ten cyber-attacks of 2024, which have been decided based on factors such as data loss, recovery costs, real-world impacts and wider geopolitical implications. The cyber-attacks have been listed from the most recently reported incident to the oldest. – https://www.infosecurity-magazine.com/news-features/top-10-cyberattacks-of-2025/
The Pentagon’s Operational Technology Problem
(Jim Dempsey, Andrew J. Grotto – Lawfare) Secretary Pete Hegseth has consistently said that his defining priority is to ensure the lethality of America’s warfighters. This obviously depends on their having the most advanced and effective tanks, drones, missiles, and warships. The military doesn’t produce these things itself. Instead, it relies on private contractors to supply the tools of war. Faced with massive dysfunctionality in the procurement process, Hegseth recently directed a major reform of military acquisitions, “to accelerate fielding of urgently needed capabilities to our warriors” and “maximize their combat readiness.”. Lethality, however, also depends on some pretty mundane things, like electricity, oil and gas, water, telecommunications, and rail transit. An interruption in any one of them could disrupt and delay force projection. For almost all of these critical services, military installations in the U.S. are dependent on private contractors. That’s because most critical infrastructure in the United States is owned and operated by the private sector. (Much of what isn’t owned privately is owned by municipalities, counties, and rural cooperatives, which also contract with the Pentagon.) Those contractors are, in turn, dependent on operational technology (OT): sensors, regulators, switches, valves, and other devices that monitor and control physical processes. That OT—like the information technology (IT) that has long been the focus of national cybersecurity policy—is vulnerable to cyberattack. The evidence is clear: Foreign adversaries have targeted, and have succeeded in gaining access to, the OT of critical infrastructure. – https://www.lawfaremedia.org/article/the-pentagon-s-operational-technology-problem
The European Union Changes Course on Digital Legislation
(Mark MacCarthy, Kenneth Propp – Lawfare) Over the past decade, the European Union has assembled an edifice of legislation on privacy, platform competition, online content, and artificial intelligence (AI), firm in the belief that establishing a comprehensive and stable digital regulatory environment would encourage technology-driven growth and innovation in Europe. Over the past year, however, doubt has emerged in Brussels about the presumed virtuous circle of regulation, growth, and innovation. Mario Draghi, former president of the European Central Bank, pointed out in an EU-commissioned report that the EU has fallen short in its efforts to develop an innovative tech economy, most notably in the area of cloud services, where American companies dominate. Now, following Draghi’s prompt, the European Commission has dramatically changed course, in an effort to ensure that it is not left behind in the AI race. On Nov. 19, it proposed a two-part digital omnibus package making significant changes to its corpus of digital legislation. One measure would make changes to the General Data Protection Regulation (GDPR) along with other existing data-related measures, while a second would amend the AI Act. An omnibus, in EU parlance, is a single legislative vehicle for amending multiple existing laws simultaneously without individually reopening each one. The EU member states and the European Parliament will have an opportunity to adjust the commission proposals, so final adoption will take months at best. Still, there is political urgency to the exercise, making decisive action during 2026 likely. – https://www.lawfaremedia.org/article/the-european-union-changes-course-on-digital-legislation
Governance
United Kingdom: Office of Communications adopted updated Online Safety Information Powers Guidance
(Digital Policy Alert) On 15 December 2025, the Office of Communications (Ofcom) adopted the updated Online Safety Information Powers Guidance, focusing on its information gathering powers under the Online Safety Act 2023. The updated guidance includes information on Ofcom’s new power to issue data preservation notices to regulated services to ensure that a deceased child’s information is not altered or deleted, as introduced by the Data Preservation Notices under Data (Use and Access) Act. In general, the guidance applies to providers of regulated and ancillary services, access facilities, and others able to provide relevant information. It explains how Ofcom may issue information notices, require skilled person reports, hold interviews, and conduct entry, inspection, and audits. The guidance sets out rules on confidential information, personal data, disclosure, record retention, and information security. Ofcom will use its powers proportionately and seek robust evidence while minimising burdens on stakeholders. Non-compliance may lead to enforcement action or criminal liability. – https://digitalpolicyalert.org/event/36126-office-of-communications-adopted-updated-online-safety-information-powers-guidance
United Kingdom: Office of Communications adopted statement on consultation on data preservation notices consultation under Data (Use and Access) Act
(Digital Policy Alert) On 15 December 2025, the Office of Communications (Ofcom) adopted a statement on data preservation notices under the Data (Use and Access) Act 2025 addressing the responses to its consultation. In the statement, Ofcom sets out its decisions regarding data preservation notices, including their form and content, and summarises the consequent changes to the Online Safety Information Powers Guidance. The notices require providers of regulated services to retain data on a child’s online activity after their death. This includes content, metadata, search requests, friend lists, and channels followed. The sought inputs on Ofcom’s proposed approach to issuing Data Preservation Notices, including what information must be preserved, including content, metadata, search requests, and friend lists, and how notices should be managed, extended, or cancelled. It also sought views on optional information coroners may share, including usernames or mobile numbers, and on ensuring the process is effective while minimising burden on bereaved families. – https://digitalpolicyalert.org/event/36127-office-of-communications-adopted-statement-on-consultation-on-data-preservation-notices-consultation-under-data-use-and-access-act
Platforms Report to EU Regulators Under DSA With an Eye on US Politics
(Tim Bernard – Tech Policy Press) As the European Commission prepared to issue its first fine against a Very Large Online Platform (VLOP) under the Digital Services Act (DSA), most VLOPs publicly released their 2025 reports on assessing and mitigating systemic risk, as required by Articles 34 and 35 of the DSA. These reports land at a moment of growing tension between EU regulators and US-based platforms, as political shifts on both sides of the Atlantic put new pressure on the DSA’s enforcement and legitimacy. Although embedded in a dense regulatory framework, the reports remain rare documents where tech companies publicly confront the societal risks their platforms may pose, and outline how they claim to be addressing them. – https://www.techpolicy.press/platforms-report-to-eu-regulators-under-dsa-with-an-eye-on-us-politics/
Security and Surveillance
French Interior Minister says hackers breached its email servers
(Pierluigi Paganini – Security Affairs) The French Interior Minister Laurent Nunez announced on Friday that threat actors compromised email servers at the Ministry of the Interior. The attack was detected overnight between December 11 and 12, and according to the French interior minister, attackers gained access to some document files, though data theft remains unconfirmed. “There has been a cyber attack. An attacker was able to access a number of files … there is no evidence that they were seriously compromised,” Nunez told RTL radio. – https://securityaffairs.com/185725/hacking/french-interior-minister-says-hackers-breached-its-email-servers.html
Amazon Warns Russian GRU Hackers Target Western Firms via Edge Devices
(Kevin Poireault – Infosecurity Magazine) A Russian state-sponsored malicious campaign that has been targeting critical infrastructure organizations in Western countries for years has shifted its tactics from vulnerability exploitation to compromising misconfigured customer network edge devices. While the threat actor remains unidentified, Amazon has attributed it “with high confidence” to Russia’s Main Intelligence Directorate (GRU), the country’s military intelligence service which several cyber threat groups are believed to be associated with. The tech giant documented its latest findings about this threat in a December 15 report. – https://www.infosecurity-magazine.com/news/amazon-russian-gru-hackers-target/
Phishing Messages and Social Scams Flood Users Ahead of Christmas
(Phil Muncaster – Infosecurity Magazine) Internet users have been warned to stay alert to increasingly sophisticated online scams this festive season, after experts observed a torrent of AI-powered content. Check Point claimed to have detected 33,500 unique Christmas-themed phishing emails and over 10,000 seasonal social media ads in the past 14 days alone. As always, fake promotions and special deals, fraudulent charity appeals and fake urgent delivery notices are among the most common scams. – https://www.infosecurity-magazine.com/news/phishing-messages-social-scams/
LLMs aren’t launching ransomware, but they are optimizing it
(Ann-Marie Corvin – Cybernews) A nightmare scenario of fully autonomous ransomware powered by AI remains largely theoretical, according to new research. While large language models (LLMs) are increasingly embedded in criminal workflows, new research suggests that, rather than ushering in a new era of automated cyberattacks, they’re mostly being used to augment and accelerate existing operations. SentinelLabs researchers found no evidence that LLMs are launching end-to-end ransomware campaigns without human operators. – https://cybernews.com/ai-news/llms-arent-launching-ransomware-but-they-are-optimizing-it/
Frontiers and Markets
New AI tool links genetic mutations to diseases with improved accuracy
(DigWatch) Scientists at the Icahn School of Medicine at Mount Sinai have created an AI tool called Variant to Phenotype (V2P) that can identify genetic mutations and predict the diseases they may cause, bolstering the field of genetic diagnostics. – https://dig.watch/updates/new-ai-tool-links-genetic-mutations-to-diseases-with-improved-accuracy
Canada advances quantum computing with a strategic $92 million public investment
(DigWatch) Canada has launched a major new quantum initiative aimed at strengthening domestic technological sovereignty and accelerating the development of industrial-scale quantum computing. Announced in Toronto, Phase 1 of the Canadian Quantum Champions Program forms part of a wider $334.3 million investment under Budget 2025 to expand Canada’s quantum ecosystem. – https://dig.watch/updates/canada-advances-quantum-computing-with-a-strategic-92-million-public-investment
Tensor Ventures and Seed Starter Invest Over €1 Million in Repsense
(AI Insider) Repsense, a European dual-use data analytics company focused on information tracking and threat detection, closed a €2 million seed round, including a final €1.1 million tranche led by Tensor Ventures and Seed Starter, the CVC of Česká spořitelna. The round, completed in tranches throughout 2025, included participation from Seed Starter alongside existing investors BSV Ventures and Coinvest Capital, reflecting interest in Repsense’s applications across defense, government, banking, and marketing. Founded in 2022, Repsense’s Havel platform is used by NATO and European institutions to track and predict information dynamics, while the company expands into algorithmic content analysis and emerging media monitoring from teams in Prague and Vilnius. – https://theaiinsider.tech/2025/12/16/tensor-ventures-and-seed-starter-invest-over-e1-million-in-repsense/
BoodleBox Secures $5M in Funding to Accelerate AI Collaboration in Higher Education
(AI Insider) BoodleBox raised a $5 million seed round co-led by Dogwood Ventures and Osage Venture Partners to scale its collaborative AI platform for higher education, following rapid adoption across more than 1,200 institutions and 100 workforce teams. The platform provides secure, FERPA-compliant access to multiple leading AI models through a single interface, using proprietary token-reduction technology to cut costs and environmental impact by up to 96% while supporting collaborative learning. The funding will support expanded adoption in education and new sectors, product enhancements, and the relocation of BoodleBox’s headquarters to Colorado Springs as it works to close the AI skills gap and improve equitable access. – https://theaiinsider.tech/2025/12/16/boodlebox-secures-5m-in-funding-to-accelerate-ai-collaboration-in-higher-education/
Shapes Raises $24M to Redefine How Organizations Manage People in the Age of AI
(AI Insider) Shapes raised $24 million across Seed and Series A rounds to build an AI-native PeopleOS that unifies HR, IT, and Finance into a single adaptive platform. The system replaces fragmented HR tools with a modular, builder-friendly operating system that automates the full employee lifecycle and supports custom apps and AI agents. Already serving hundreds of customers across 79 countries, Shapes will use the funding to scale its team and expand globally as demand grows for flexible, AI-driven people operations. – https://theaiinsider.tech/2025/12/16/shapes-raises-24m-to-redefine-how-organizations-manage-people-in-the-age-of-ai/
eleQtron Provides Hardware Testbed for FullStaQD Quantum Software Stack
(Quantum Insider) Germany has launched FullStaQD, a federally funded project led by Fraunhofer IAO to build a complete, modular, and interoperable quantum computing software stack for industrial use. eleQtron is the consortium’s sole hardware partner, providing its MAGIC-based ion-trap processors as the physical reference system for validating the full software–hardware toolchain. The initiative targets Europe’s fragmented quantum software landscape by introducing standardized interfaces and a shared architecture across platforms. – https://thequantuminsider.com/2025/12/16/germany-fullstaqd-quantum-software-stack/
OQC and Fraunhofer EMFT Partner on Superconducting Quantum Manufacturing
(Quantum Insider) Oxford Quantum Circuits and Fraunhofer EMFT have formed a strategic partnership to advance the industrial-scale manufacturing of superconducting quantum hardware using CMOS-compatible processes. The collaboration supports OQC’s move toward a fabless production model by combining its quantum system design with Fraunhofer EMFT’s semiconductor fabrication infrastructure. Fraunhofer’s Quantum CPU Pilot Line will be used to translate superconducting qubit research into repeatable, industrial-grade manufacturing workflows. – https://thequantuminsider.com/2025/12/16/oqc-fraunhofer-emft-quantum-fabrication-partnership/
TQI Exclusive: A Deep-Tech Investor’s Case for Patience in The Quantum Race
(Quantum Insider) Pablos Holman argues that deep-tech investing must focus on solving hard real-world problems by bridging the “invention gap” between scientific discovery and commercial viability, a gap he says quantum computing largely still inhabits. Drawing on decades as an inventor and investor, Holman contends that quantum computing remains an unfinished scientific endeavor misaligned with venture timelines, especially as rapid advances in classical and AI-driven computing narrow quantum’s near-term advantage. He sees stronger near-term opportunity in quantum sensing and cautions that deep tech requires long-horizon, platform-level investment strategies rather than feature-level fragmentation borrowed from software and SaaS models. – https://thequantuminsider.com/2025/12/16/tqi-exclusive-a-deep-tech-investors-case-for-patience-in-the-quantum-race/
Qilimanjaro and Oxigen Data Center Partner on Quantum–Data Center Integration
(Quantum Insider) Qilimanjaro Quantum Tech and Oxigen Data Center have formed a strategic collaboration to study how multimodal quantum computers can be integrated into commercial data center infrastructure. The partnership focuses on deploying analog quantum systems alongside classical and digital resources to support hybrid quantum–classical computing environments. The work aims to define technical, operational, and infrastructure requirements for future quantum-ready data centers in Europe. – https://thequantuminsider.com/2025/12/16/qilimanjaro-oxigen-quantum-data-center-integration/
IonQ Study Finds Linked Quantum Computers Can Beat Bigger Single Systems
(Quantum Insider) A study by researchers at IonQ and Aalto University finds that distributed quantum computers built from multiple linked processors can outperform a single larger machine, even when the connections between processors are relatively slow. Using simulations of realistic, intentionally conservative hardware conditions, the researchers show that carefully designed modular architectures can achieve lower error rates and shorter execution times than monolithic systems for certain classes of quantum circuits. The results suggest that scaling quantum computers through modular designs may be viable in the near term, without waiting for major advances in ultra-fast quantum networking, though the advantage demonstrated is architectural rather than a claim of classical–quantum supremacy. – https://thequantuminsider.com/2025/12/16/ionq-study-finds-linked-quantum-computers-can-beat-bigger-single-systems/
Tiny CMOS Photonic Chip Could Remove a Key Bottleneck in Scaling Quantum Computers
(Quantum Insider) Researchers demonstrated a CMOS-fabricated optical phase modulator nearly 100 times thinner than a human hair that enables low-power, scalable laser frequency control critical for large-scale quantum computing, according to a study in Nature Communications. The chip-efficient device uses microwave-frequency vibrations to precisely modulate laser phase while consuming roughly 80 times less power than many commercial modulators, addressing a key scalability and heat challenge in trapped-ion and neutral-atom quantum systems. Built entirely using standard semiconductor foundry processes, the technology supports mass production of integrated photonic control hardware and could accelerate the development of quantum computing, sensing, and networking platforms. – https://thequantuminsider.com/2025/12/16/tiny-cmos-photonic-chip-could-remove-a-key-bottleneck-in-scaling-quantum-computers/