Governance, Legislation, and Geostrategies
AI-Driven Productivity Scenarios
(Paul Samson, S. Yash Kalash, Nikolina Zivkovic – CIGI – 26 May 2025) Technological development and diffusion are rapidly transforming economic, financial and societal systems. Policy and legal frameworks may be unable to keep pace with approaches that maximize opportunities and manage risk, and advancing artificial intelligence (AI) technologies, combined with weak economic growth projections, create an urgent need to better understand AI-driven scenarios and the implications for productivity. This special report identifies three key conduits (drawing on established AI-related indices) that link actions and improved productivity outcomes: technological capabilities; applications and markets; and policy and regulation. It then provides a country-level assessment of G7 countries (plus China and India) to outline a current snapshot of AI-driven productivity in each and inform plausible futures for AI’s impact on productivity. Overall, G7 countries are generally well positioned on data infrastructure and research and development, as well as on some sector-specific applications and standards, but are typically less well positioned on ensuring the required labour and talent pool is in place. The report also examines four scenarios for the potential impact of AI on global productivity: flat AI; US-led AI; multipolar AI; and artificial general intelligence. These scenarios broaden the scope for G7 members to consider key areas and actions that could boost productivity under different circumstances. – https://www.cigionline.org/publications/ai-driven-productivity-scenarios/
AI regulation offers development opportunity for Latin America
(DigWatch – 26 May 2025) Latin America is uniquely positioned to lead on AI governance by leveraging its social rights-focused policy tradition, emerging tech ecosystems, and absence of legacy systems. According to a new commentary by Eduardo Levy Yeyati at the Brookings Institution, the region has the opportunity to craft smart AI regulation that is both inclusive and forward-looking, balancing innovation with rights protection. – https://dig.watch/updates/ai-regulation-offers-development-opportunity-for-latin-america
Texas considers statewide social media ban for minors
(DigWatch – 26 May 2025) Texas is considering a bill that would ban social media use for anyone under 18. The proposal, which recently advanced past the state Senate committee, is expected to be voted on before the legislative session ends June 2. If passed, the bill would require platforms to verify the age of all users and allow parents to delete their child’s account. Platforms would have 10 days to comply or face penalties from the state attorney general. – https://dig.watch/updates/texas-considers-statewide-social-media-ban-for-minors
Pakistan aims to become global crypto and AI leader
(DigWatch – 26 May 2025) Pakistan has set aside 2,000 megawatts of electricity in a major push to power Bitcoin mining and AI data centres, marking the start of a wider national digital strategy. Led by the Pakistan Crypto Council (PCC), a body under the Ministry of Finance, this initiative aims to monetise surplus energy instead of wasting it, while attracting foreign investment, creating jobs, and generating much-needed revenue. – https://dig.watch/updates/pakistan-aims-to-become-global-crypto-and-ai-leader
Chad aims to strengthen digital independence through regional connectivity reforms
(DigWatch – 25 May 2025) Chadian authorities have unveiled a set of strategic policies aimed at strengthening the country’s digital infrastructure and reducing its dependence on Cameroon for international internet connectivity. Central to these reforms is the establishment of Internet Exchange Points (IXPs) in major cities to enhance local traffic handling and reduce latency. Additionally, the government plans to create redundant international links with neighbouring countries such as Libya, Algeria, and Nigeria. These policies are designed to diversify connectivity routes, bolster digital resilience, and support Chad’s long-term goal of achieving greater digital sovereignty. – https://dig.watch/updates/chad-aims-to-strengthen-digital-independence-through-regional-connectivity-reforms
Security
AI agents bring new security risks to crypto
(DigWatch – 26 May 2025) AI agents are becoming common in crypto, embedded in wallets, trading bots and onchain assistants that automate decisions and tasks. At the core of many AI agents lies the Model Context Protocol (MCP), which controls their behaviour and interactions. While MCP offers flexibility, it also opens up multiple security risks. – https://dig.watch/updates/ai-agents-bring-new-security-risks-to-crypto
Agentic AI could accelerate and automate future cyberattacks, Malwarebytes warns
(DigWatch – 26 May 2025) A new report by Malwarebytes warns that the rise of agentic AI will significantly increase the frequency, sophistication, and scale of cyberattacks. Since the launch of ChatGPT in late 2022, threat actors have used generative AI to write malware, craft phishing emails, and execute realistic social engineering schemes. – https://dig.watch/updates/agentic-ai-could-accelerate-and-automate-future-cyberattacks-malwarebytes-warns
Tech coalition to push for faster US foreign cybersecurity aid
(DigWatch – 25 May 2025) A coalition of leading technology and cybersecurity firms, including Carahsoft, Dell Technologies, Forescout, Google Cloud, Trellix, and Velos, has launched the Strategic Cybersecurity Coalition (SCC). The group is dedicated to advocating for a more efficient and streamlined US approach to foreign cybersecurity assistance. Their goal is to accelerate the deployment of sustainable, interoperable cybersecurity solutions that can effectively respond to the growing global cyber threat landscape. The US government continues to face significant bureaucratic and legal barriers that slow the delivery of timely cybersecurity support to its allies. https://dig.watch/updates/tech-coalition-to-push-for-faster-us-foreign-cybersecurity-aid
CISA: Threat actors target M365 credentials via Commvault vulnerability
(DigWatch – 25 May 2025) The US Cybersecurity and Infrastructure Security Agency (CISA) has issued a warning about unauthorized activity targeting Commvault’s Microsoft Azure-hosted applications, particularly the company’s Microsoft 365 (M365) backup software-as-a-service (SaaS) platform known as Metallic. According to CISA, threat actors may have accessed client secrets stored by Commvault, potentially gaining unauthorized access to customer M365 environments. – https://dig.watch/updates/cisa-threat-actors-target-m365-credentials-via-commvault-vulnerability
Frontiers
Saudi Arabia unveils AI robot ‘Manara’ at Mecca to guide pilgrims in 11 languages
(Interesting Engineering – 26 May 2025) Each year, millions of pilgrims from around the world travel to Mecca to perform Hajj, one of the five pillars of Islam. With Hajj expected to begin on June 4 and end on June 9, Saudi authorities are preparing to host an enormous influx of worshippers at Islam’s holiest site. As part of these preparations, officials have unveiled the second version of the “Manara (Beacon) Robot” at the Grand Mosque in Mecca. The AI-powered robot is designed to support pilgrims by providing real-time religious guidance in multiple languages.- https://interestingengineering.com/innovation/saudi-arabia-unveils-ai-robot-at-mecca
China’s UBTech takes direct shot at Tesla with $20K humanoid home robot
(Interesting Engineering – 26 May 2025) The race to bring humanoid robots into homes is heating up, with major tech firms betting on what many see as the next frontier in consumer technology. Tesla, Figure AI, and startups across China, the US, and Japan are all developing robots designed to handle domestic chores. With aging populations and labor shortages driving demand, humanoids are quickly shifting from science fiction to commercial reality. – https://interestingengineering.com/innovation/ubtech-enters-humanoid-home-robot-race
Anthropic CEO Says AI Hallucinations Are Not a Barrier to Achieving AGI
(AI Insider – 26 May 2025) At Anthropic’s first developer event, Code with Claude, held in San Francisco on last week, CEO Dario Amodei downplayed concerns over AI hallucinations, asserting that such errors are not a fundamental roadblock on the path to artificial general intelligence (AGI). During a press briefing, Amodei claimed that current AI systems, including Claude, may hallucinate less frequently than humans — though in more unexpected ways. – https://theaiinsider.tech/2025/05/26/anthropic-ceo-says-ai-hallucinations-are-not-a-barrier-to-achieving-agi/
OpenAI Partners with G42, Cisco, Oracle, and NVIDIA to Launch 1GW Stargate Data Center in Abu Dhabi
(AI Insider – 26 May 2025) OpenAI has announced the launch of Stargate UAE, a major expansion of its AI infrastructure initiative, marking the company’s first Middle East deployment. The new data center cluster in Abu Dhabi will eventually scale to 1GW, with 200MW expected to go live by 2026. The project is being developed in collaboration with key partners including G42, Oracle, NVIDIA, Cisco, and SoftBank. – https://theaiinsider.tech/2025/05/26/openai-partners-with-g42-cisco-oracle-and-nvidia-to-launch-1gw-stargate-data-center-in-abu-dhabi/
Greenlite AI Raises $15M Series A to Help Banks and Fintechs Fight Financial Crime with Trusted AI Workforce
(AI Insider – 26 May 2025) Greenlite AI raised $15M in Series A funding, bringing its total to $20M, to scale its AI agent platform used by major banks and fintechs for KYC, AML, and sanctions compliance. Its proprietary Trust Infrastructure embeds U.S. regulatory standards, enabling AI agents to automate compliance tasks with high accuracy, auditability, and scalability. Clients like Ramp, Mercury, and Betterment report significant efficiency gains, with some reducing compliance workloads by up to 90% using Greenlite’s AI agents. – https://theaiinsider.tech/2025/05/26/greenlite-ai-raises-15m-series-a-to-help-banks-and-fintechs-fight-financial-crime-with-trusted-ai-workforce/
Skriber Secures Oversubscribed $1.3M Pre-Seed Funding to Accelerate AI-Powered Medical Documentation Revolution
(AI Insider – 26 May 2025) Skriber, a medical AI scribe startup, raised $1.3M in an oversubscribed pre-seed round co-led by SeedtoBe and Morgan Creek, with participation from investors tied to hospital systems and AI leadership. The funding follows a major product upgrade featuring faster processing, multilingual support, and EMR integration, now used by thousands of clinicians. Capital will be used to scale operations, expand R&D, and support healthcare providers seeking to reduce burnout through AI-powered documentation. – https://theaiinsider.tech/2025/05/26/skriber-secures-oversubscribed-1-3m-pre-seed-funding-to-accelerate-ai-powered-medical-documentation-revolution/
Study: AI Predicts Bacterial Resistance to Cleaning Agents
(AI Insider – 26 May 2025) A new study from Technical University of Denmark (DTU) shows that artificial intelligence and genome sequencing can accurately predict bacterial resistance to disinfectants, potentially transforming food safety protocols. By analyzing the full DNA profiles of more than 1,600 Listeria monocytogenes strains, researchers trained a machine learning model to predict resistance with up to 97% accuracy for both chemical compounds and commercial disinfectants. The method allows for quicker detection and tailored hygiene strategies in food processing environments, offering a data-driven alternative to traditional lab tests and opening the door for smarter, faster responses to contamination threats. – https://theaiinsider.tech/2025/05/26/study-ai-predicts-bacterial-resistance-to-cleaning-agents/
Artificial Traders, Real Behaviors: LLMs Mirror Human Irrationality in Market Simulations
(AI Insider – 26 May 2025) A new study shows that large language models like GPT-3.5 and GPT-4 can mimic human-like behavior in simulated economic markets, raising the possibility of using AI agents in economic research and policy modeling. When configured with memory and variability, the models reproduced realistic price forecasting behaviors and market dynamics, especially bounded rationality and trend-following, seen in human experiments. The findings highlight both the potential and current limitations of using AI for multi-agent simulations, including reduced behavioral diversity and inconsistencies between narrative explanations and numerical forecasts. – https://theaiinsider.tech/2025/05/26/artificial-traders-real-behaviors-llms-mirror-human-irrationality-in-market-simulations/
Rice Method Refines Ultrapure Diamond Film Fabrication For Quantum And Electronic Applications
(Quantum Insider – 26 May 2025) Rice University researchers have developed a new technique to produce ultrathin, high-purity diamond films for advanced technologies by eliminating the need for high-temperature annealing in the lift-off process. Instead of heating, the method uses diamond overgrowth to convert a buried damage layer into a graphite-like seam, allowing clean separation of the diamond layer while preserving the substrate for reuse. The resulting diamond films are electronic-grade quality and could accelerate the development of next-generation quantum sensors, electronics, and thermal management systems. – https://thequantuminsider.com/2025/05/26/rice-method-refines-ultrapure-diamond-film-fabrication-for-quantum-and-electronic-applications/
Iron guardians: Humanoid robots to douse fires, rescue lives in Singapore by 2027
(Interesting Engineering – 26 May 2025) Humanoid robots designed to assist in high-risk emergency operations will begin working alongside Home Team officers in Singapore as early as mid-2027. These advanced machines, developed by the Home Team Science and Technology Agency (HTX), are built to handle tasks such as firefighting, hazardous materials response, and search-and-rescue missions, reports an online media outlet. Initially controlled remotely, the robots are expected to operate autonomously by 2029, using artificial intelligence to navigate complex scenarios with minimal human input. Four prototypes were unveiled on May 26 at the opening of the AI TechXplore exhibition. – https://interestingengineering.com/innovation/humanoids-to-assist-singapore-in-emergencies
AI to disrupt jobs, warns DeepMind CEO, as Gen Alpha faces new realities
(DigWatch – 26 May 2025) AI will likely cause significant job disruption in the next five years, according to Demis Hassabis, CEO of Google DeepMind. Speaking on the Hard Fork podcast, Hassabis emphasised that while AI is set to displace specific jobs, it will also create new roles that are potentially more meaningful and engaging. He urged younger generations to prepare for a rapidly evolving workforce shaped by advanced technologies. Hassabis stressed the importance of early adaptation, particularly for Generation Alpha, who he believes should embrace AI just as millennials did the internet and Gen Z did smartphones. – https://dig.watch/updates/ai-to-disrupt-jobs-warns-deepmind-ceo-as-gen-alpha-faces-new-realities
Oracle and OpenAI target AI leadership with massive chip project
(DigWatch – 26 May 2025) Oracle has reportedly acquired around 400,000 Nvidia GB200 AI chips valued at approximately $40 billion for deployment at a data centre in Abilene, Texas. The location will be the first site of the Stargate project—a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, SoftBank, and Abu Dhabi’s MGX fund, which President Trump announced earlier this year. Once completed, the Abilene facility is expected to provide up to 1.2 gigawatts of computing power, rivalling Elon Musk’s Colossus project in Memphis. – https://dig.watch/updates/oracle-and-openai-target-ai-leadership-with-massive-chip-project
Nvidia unveils cheaper AI chip for China
(DigWatch – 26 May 2025) Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June. The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components. – https://dig.watch/updates/nvidia-unveils-cheaper-ai-chip-for-china
Gemini AI powers Aloha 2 robotic demo at Google I/O
(DigWatch – 26 May 2025) At its recent I/O developer conference, Google demonstrated its Gemini AI controlling Aloha 2 robot arms in an interactive exhibit. The robots were part of the company’s AI Sandbox and offered attendees the chance to interact with the system using voice instructions. – https://dig.watch/updates/gemini-ai-powers-aloha-2-robotic-demo-at-google-i-o
SynthID Detector aims to boost transparency in AI content
(DigWatch – 25 May 2025) Google has launched SynthID Detector, a verification portal designed to identify whether content was created using its AI models. The tool scans for SynthID, Google’s watermarking technology, which invisibly marks text, images, audio, and video generated by tools such as Gemini, Imagen, Lyria, and Veo. The Detector highlights which parts of the content likely contain SynthID watermarks. These watermarks are invisible and do not affect the quality of the media. According to Google, over 10 billion pieces of AI-generated content have already been marked using SynthID. – https://dig.watch/updates/synthid-detector-aims-to-boost-transparency-in-ai-content