More reliable broadband on remote Scottish railways and affordable sensors which help farmers grow more food are among a raft of new projects which will bring the benefits of space technology into everyday life.
The UK Space Agency is funding 16 projects through a £13 million government investment, supporting the companies and workers developing the satellite communications systems the UK will depend on for decades to come.
Satellites are the backbone of modern life, powering the navigation apps we rely on, the weather forecasts that keep us safe from storms and extreme heat, and the broadband connections that keep friends and family in touch.
Among the projects receiving support, CGI’s SODOR will trial satellite broadband on ScotRail’s West Highland Line, one of Scotland’s most scenic but remote routes.
This will bring reliable connectivity to passengers and commuters in areas where traditional mobile networks struggle to reach.
This trial will support the government’s wider work to introduce satellite connectivity on all mainland trains – improving availability and connection speeds for passengers across the country.
In agriculture, Farmer Charlie’s GAUFF project is developing affordable satellite-enabled sensors that will give farmers real-time data on their land and crops.
That will help deliver better harvests and reduce waste through smarter, more targeted farming, with the technology expected to be available by the end of next summer.
“This investment shows the true breadth of UK space innovation and how innovations in the UK’s satellite sector can improve lives, with better connectivity delivering internet access for more train journeys, and smarter farming. through more reliable connections through to support for our farming communities,” Space Minister Liz Lloyd said.
“By backing brilliant British companies, we are not only furthering our status as one of the world’s leading space powers, but creating high-quality jobs and new opportunities across the UK.”
The 16 projects will be delivered as part of the European Space Agency’s Advanced Research in Telecommunication Systems (ARTES) programme, backed by £13 million in UK Government funding.
Other projects winning backing today include Exobotics Ltd’s STARS project, which will develop ultra-fast satellite communications technology. This will deliver the first satellites in a planned network designed to relay data between satellites and the ground much more quickly.
Further projects will also improve the UK’s capabilities in deep space and lunar communications, supporting future missions which explore our universe.
These investments will boost the UK’s ability to shape the curve of progress in space technology – backing the companies who will deliver jobs, investment, and opportunities that will support communities across the country for decades to come.
OpenAI is introducing ChatGPT for Teens which is set to have different features to help teens learn with better build-in safety protections.
These protections aim to promote healthy use by teens and offers additional controls for parents.
OpenAI says its system will automatically put someone who declares that they are under 18 into the Teen setting, or if the system estimates that someone is under 18. It does not specify how it will determine children’s ages. Children under the age of 13 are not allowed to use the service, though OpenAI has not been specific on how this is regulated.
The Teen service builds on Study Mode, released last year, which will help students with their homework without just giving them the answer.
Teens and parents can set default Study Hours, where Study Mode will be on by default.
The Teen mode will also have homework reminders, quizzes and learning visualisations.
ChatGPT for Teens will also introduce further safeguards for teen users based on OpenAI’s Under-18 Principles.
Part of these safeguards includes notifications to parents if a teen is discussing harmful or concerning issues with a chatbot. OpenAI has expanded this to include discussions surrounding eating disorders.
Other features are meant to re-inforce healthy, real-world relationships, something that an AI chatbot cannot offer and should not replace.
ChatGPT should not sure romantic language, encourage emotional dependence, or imply it has feelings or consciousness, OpenAI said.
It will also add protection cues for teens, reminding them against sharing private or sensitive images, having teen-specific onboarding to reference safety features available, and customisation options to make the experience personal without blurring lines.
OpenAI says it will continue its ongoing research into safe use of AI by teens, with new under 18s evaluations it is beginning to share publicly.
“Teens should be able to use AI to learn, create, and explore. But that access should come with protections that reflect their developmental stage, reinforce real-world relationships, and support healthy use over time,” OpenAI said.
A new AI system is being introduced to the police’s non-emergency line, which receives 20 million calls a year. Around 20% of these calls are for non-policing organisations, such as local councils, NHS 111, or the 105 power outage helpline.
Backed by a £1.4 million government investment, the new system will get the public to the right organisation faster, while freeing up call handlers to respond to crime reports, safeguarding concerns and victims more quickly.
It is estimated that the new system will save policing up to £8.5 million each year, releasing funds for local forces to invest in their most pressing priorities.
“Police call handlers are wasting hours fielding calls meant for other organisations. Every minute spent on these calls is time taken away from helping people who genuinely need their support,” crime and policing minister, Sarah Jones, said.
“AI is already helping police catch dangerous criminals and speed up investigations. Now, it will help bring control rooms into the 21st century, freeing up time and unlocking millions of pounds. Forces can reinvest those savings into tackling the crime on our streets.”
The system has been developed by the Home Office and National Police Chiefs’ Council, with delivery partner Vodafone Business. It uses an AI model to match why someone is calling 101 to a set of likely reasons, then redirects non-police issues to the correct agency before the caller enters a queue.
The new system has been subject to rigorous training and testing by the Home Office and police to ensure its performance is not affected by factors such as callers’ accents and phrasing. During pilots in 15 police forces it successfully diverted non-police issues including damage-only road traffic incidents, fly tipping and noise complaints to the right agencies.
The UK government says that there are strong safeguards in place to ensure that no one in need of police assistance is ever accidently diverted. Callers are told how the system has understood their reason for calling and must accept or reject this.
Where the reason for calling falls into a broad category, additional safeguarding questions are asked. If the system is in any doubt, the call is passed directly to the police without delay. Callers will always be able to speak to a handler if they wish.
The use of the system may vary by force, depending on what telephone menu services they already have in place. The current 999 system has not changed.
Despite headline-grabbing cyber-attacks on some of the world’s biggest firms, research reveals that cyber-criminals are targeting the middle market the most.
About three in four ransomware victims with a known revenue figure were mid-market firms from 2023 to the first half of 2026. This is according to a new report from Black Kite, which defines mid-market firms as those earning between $10 million to $1 billion a year.
The report puts mid-market firms into three specific contexts – a routine target of ransomware, a supplier held accountable by larger customers, and a buyer with its own supply chains.
All these factors – and the smaller teams typically making up a mid-market firm – make them more liable to attacks along their supply chain and at greater risk of financial damage.
Of the 13,336 tracked ransomware incidents, 73% struck mid-market companies, which the stattisic holding steady over the past three years: 74.6% in 2023, 72.1% in 2024, 74.0% in 2025, and 72.3% in the first half of 2026.
In the same time period, incidents grew 44%, with mid-market firms holding their share of the damage.
Black Kite also found that 28.3% of firms monitored carry at least one known exploited vulnerability on an internet-facing system. This figure climes with revenue, the upper band at 52%, largely driven by the wider surface area of a bigger company rather than weak security posture.
Over half (54.7%) of the segment runs at least one unpatched public-facing system, with 48.1% carrying high or critical severity vulnerability.
Further, about a third (32.3%) already have credentials circulating in stealer logs, opening the firms up to more attacks.
Delving into targeted mid-market firms, it appears that those sitting in the lower revenue band make up the largest proportion, representing 50.5% to 57.2% of all attacks.
While the majority (72%) of victims are North American, Europe is closing that gap, seeing a 47% increase year-on-year of attacks.
Manufacturing firms are the most targeted sector (25.8%), followed by professional and technical services and construction.
Meta continues to face a series of lawsuits concerning its platforms effect on young people – their data, their mental health, and their exposure to harm and harmful conduct.
Twenty-nine US states are taking the social media titan to trail based on a lawsuit filed back in 2023 which centre on alleged violations of child privacy laws on the federal and state level.
The lawsuit has a wide scope – and a high price tag of over $1 trillion in fines – asking Meta to stop addictive features and those that might affect children’s mental health.
If the case is successful, it could see Meta forced to change some of the fundamental features of Instagram and Facebook.
The case, which is taking place before a California jury that will advise decision-maker Judge Yvonne Gonzalez Rogers,
The lawsuit aims to prove that Meta designed its two social platforms, Facebook and Instagram, to be additive to young people, and it purposefully misrepresented the safety of its platforms for younger users.
It will also try to prove that Meta improperly collected and used the personal data of children, violating federal law.
Beyond the potential fine, which is estimated to range from anywhere between $200 billion to $1.4 trillion, attorneys will ask the judge to force Meta to make certain changes to its platforms.
These include age restrictions, removing infinite scroll, changing its algorithms, removing image filters, prohibiting video autoplay, stopping the creation of multiple accounts, and removing disappearing posts like Instagram Stories.
Prosecutors have routinely alleged that these features are designed to keep people using the platforms and get them hooked so that Meta can harvest more of their data and sell them more ads. Meta has routinely denied these allegations.
However, recent trials have seen a reckoning for social media, with a landmark case out of New Mexico aliking Meta’s platforms to “pollution” and calling the platform a “public nuisance” for their negative impact on young people and the wider public.
Another lawsuit found that Meta’s Instagram and Facebook were “addictive-by-design“, which the social media titan lost in March this year.
This lawsuit could lead to further scrutiny and set a wider president for the hundreds of lawsuits aiming their ire at social media titans for addicting their children, exposing them to grooming and harmful content, and unlawfully using their children’s data – all allegedly, of course.
While the case is based in the US, it could have wider-reaching implications, as the UK continues to grapple with online child safety, its social media ban for under-16s, and the potential life-changing harm already afflicted to the nation’s young people.
According to a survey from consumer insights platform GWI, over half of UK adults (57%) are concerned about the impact of social media on children’s mental health, while 63% worry about their children being exposed to harmful content.
Even if the case finds Meta in violation of federal law and the judge does rule in favor of the proposed changes, a lengthy appeals process from Meta may be in the works, delaying changes further.
As the public continues and prosecutors continue to take social media giants to court, the question remains on what governments can do to regulate a social phenomenon that is already ubiquitous with youth experiences, the complexities of which regularly confound lawmakers of a different generation.
Walkers, hikers and holidaymakers can stay connected when it counts in Britain’s countryside, as more than 150 4G mast upgrades go live through the UK government’s Shared Rural Network programme.
For many people, the point of heading outdoors is to escape their screens. But 4G means people can enjoy the countryside with the peace of mind that support, services and loved ones are still within reach if they need them – from checking the weather before a mountain walk to finding a route, sharing a location or calling for help in an emergency.
The UK government is working with mobile network operators through the Shared Rural Network (SRN) programme to bring reliable 4G mobile internet to rural areas where commercial rollout is harder and more expensive.
The upgrades – all delivered through existing infrastructure to protect scenic spots – mean additional 4G is now available across more than 5,684 square kilometres combined across the UK and includes three of the UK’s most iconic hiking landscapes: the Lake District, Snowdonia and Exmoor.
From the Scottish Islands and Highlands to Northumberland, Cumbria, Dyfed-Powys and North Wales, the rollout is supporting everything from running payments and bookings for local firms to keeping in touch with customers, accessing online public services and working more flexibly from home or on the move.
Millions of people visit Britain’s national parks each year to walk, cycle, camp, climb and enjoy nature. Better rural 4G means visitors can put their phones away, while still being able to access support or message home if they need to.
New analysis shows 42 Shared Rural Network sites have now been activated across the UK’s national parks:
25 sites in England, including seven in the Lake District and six in the Yorkshire Dales.
16 sites in Wales, including 12 in Eryri/Snowdonia.
1 site in Scotland, in Loch Lomond and The Trossachs.
The SRN programme has achieved its objective of extending 4G coverage to 95% of the UK landmass, a year ahead of schedule.
DataVita has secured a c.£300 million debt facility to expand and build two data centres in the North Lanarkshire AI Growth Zone, unlocked by a £202 million financial guarantee from the National Wealth Fund.
The facility has been raised with participation from a syndicate of lenders including ING (acting as advisor and coordinator), ABN AMRO, Santander (acting as agent), the Scottish National Investment Bank and Siemens Financial Services through Siemens Bank.
The National Wealth Fund’s guarantee is provided against the £252.5m of lending delivered by ING, ABN AMRO and Santander equating to 80% of this tranche. The remaining portion provided by SNIB and Siemens Financial Services is uncovered.
The investment will expand DataVita’s existing DV1 data centre and fund the construction of a new data centre, DV3. The capacity of both is contracted to AI cloud firm CoreWeave, the infrastructure provider to many of the world’s leading AI labs, under a 15-year lease agreement.
The financing will enable the delivery of Scotland’s first AI data centres within a designated AI Growth Zone, strengthening sovereign AI capability and driving growth in the wider Glasgow City Region.
This development of DV1 and DV3 will act as the first step in a larger planned data centre campus in the area, helping to establish North Lanarkshire as a key location for AI infrastructure in the UK. The two developments financed by this facility will create around 600 jobs during construction as well as c.100 permanent high-skilled jobs once completed.
DataVita has been part of Scotland’s digital infrastructure for more than ten years and is the country’s largest independent data centre developer and operator.
The company delivers AI infrastructure end to end, utilising low carbon electricity, data centres, sovereign cloud and connectivity through to the AI platforms its customers run. Its customers include central government, local authorities and universities, which rely on DataVita to keep critical national workloads on sovereign UK infrastructure.
Earlier this year, DataVita’s North Lanarkshire site was awarded Scotland’s first AI Growth Zone designation, recognising the company’s role in building the next generation of UK AI infrastructure.
This project marks the National Wealth Fund’s first support for domestic compute capacity and supports both the Government’s Compute Roadmap and Scotland’s recently published five‑year AI strategy, which aims to grow the UK’s AI computing capacity through AI Growth Zones that attract investment in digital infrastructure and create high-skilled jobs across the country.
The UK Government estimates that, fully adopted, AI could be worth up to £47 billion a year to the UK economy over the next decade.
“AI is already helping scientists discover new medicines, supporting better public services and helping businesses get more done,” UK AI Minister Kanishka Narayan said.
“The countries that build the infrastructure behind this technology will be the ones that attract investment, create jobs and help shape the industries of the future.
“That’s why today’s announcements matter. They will help ensure Scotland is at the forefront of one of the biggest economic opportunities of our time, bringing investment, reindustrialisation and opportunities to communities like Lanarkshire.
“For local people, that means more than new buildings and technology. It means the chance to develop new skills, access new careers and benefit from the growth and investment that AI can bring.”
Danny Quinn, Managing Director at DataVita, said: “There is plenty of talk about AI infrastructure just now. This project is being delivered: work is well advanced on site, every megawatt is contracted, and the first facility completes this year.
“DataVita delivers AI infrastructure end to end, from the energy that powers it through to the applications that run on it. We have been doing this in Scotland for more than ten years. The UK needs its own AI capability, built here and run here, and we are grateful to the National Wealth Fund and our lenders for backing a project that is already delivering it.”
He added: “This type of investment in Scotland’s data centre infrastructure would have been unthinkable just two or three years ago. That is the impact AI is having. Scotland has all the right ingredients to take advantage of the AI revolution and make it a core part of its economy.”
The UK is set to fall further behind in the global tech race as the number of skilled tech workers coming to work in the country falls again, according to leading audit, tax and consulting firm RSM UK.
RSM’s freedom of information request to UK Visas and Immigration shows the number of international workers applying for a visa to work in UK tech declined by 7% from 37,376 in 2024 to 34,936 in 2025. It has been on a downward trend since 2022 when applications peaked at 53,729.
“Talent shortage remains one of the biggest challenges in the tech industry, and risks holding back growth, both short-term and in the long run, without some form of intervention,” Ben Bilsland, partner and head of technology industry at RSM UK said.
“Advancements in the sector are happening at a rapid pace, so to be a genuine competitor in the global tech race, the UK needs to be ahead of the game. That starts with having the right people with the right skills.
“That said, there’s currently nervousness among tech businesses to recruit, with employment costs now higher than ever, due to tax changes and the Employment Rights Act.
“Some businesses will undoubtedly lean on AI more to create efficiencies and boost productivity, but again, skilled individuals are needed to deploy AI safely and successfully.
“There’s an opportunity to unlock growth in the tech industry through visa reform. The UK’s AI minister Kanishka Narayan has already reignited calls for more visas for top engineers, and planning reform for AI, to enable tech companies to scale at home.
“However, details are lacking on how this will work in practice, and reform must be fast-tracked and prioritised. The visa application process itself must be as seamless and painless as possible, so that it’s accessible for tech businesses of all sizes.”
AI inference costs per agentic workflow will increase more than fivefold through 2028 according to Gartner, Inc.
As AI products evolve from assistive features to multistep execution, product leaders face a new margin challenge with falling model prices subsidising more complex workflows and escalating total AI costs.
As a result, inference cost management has become a top priority for product leaders.
“Product leaders cannot rely on more efficient token economics to rationalise AI costs,” said Will Sommer, Sr. Director Analyst.
“Each successive generation of AI capability will necessitate more, and often more expensive, tokens. There is no reliable, economical one-size-fits-all model on the horizon.
“Producing competitive AI products will require developing and maintaining complex multimodel ecosystems.”
Gartner has identified three fundamental trends driving token economics:
Foundational model cost economics are rapidly improving.
Improved AI efficiency is unlocking the deployment of more powerful, and more expensive, models to enable higher-value, more sophisticated AI applications.
More sophisticated AI workflows use far more tokens than simple chatbot interactions, driving higher overall inference costs.
These dynamics mean that tokens are becoming more cost-efficient, but not as quickly as AI capabilities and the costs associated with those capabilities are increasing. The rate of innovation is outpacing the cost curve.
This is the Inference Paradox, defined as better unit economics escalating the overall cost of AI without providing a clear pathway to commensurate and predictable value.
“The harsh economics of the Inference Paradox are exemplified by the differences between a simple chatbot and an AI agent,” said Sommer.
“Where a simple chatbot must read and interpret a query and quickly respond with a probabilistically reasonable answer, an AI agent must constantly reason, negotiate, and question itself.”
All of these responsibilities add up. Compared to a basic chatbot interaction, routing a task to an agentic reasoning model increases provider inference costs by at least five times, and often much more as task complexity grows.
Ensuring ROI from advanced AI, like reasoning agents, demands exponentially higher returns relative to basic models, or highly optimised inference-tiering, routing and orchestration to calibrate complex tasks relative to more cost-efficient intelligence.
Both of these outcomes are eminently possible but will require significant effort across complex workflows.
“Defaulting to generic autonomous intelligence will result in unbounded costs orders of magnitude higher than those of optimised product ecosystems,” said Sommer.
More alarming AI model testing news has come out from Anthropic, revealing that their own systems began attacking each other when given the same task in a new test.
Anthropic gave tasks to a “swarm” of agents in a new experiment – multiple agents were often given access to one project and given conflicting instructions on how to approach the project, and were not told that other systems were involved in the test.
“Over the course of four hours, we [the Anthropic research team] observed how these agents reacted to each other and accordingly adjusted their approach (or didn’t).
What emerged was a “multiagent turf war,” Anthropic wrote in their blog.
All of the models quickly assumed that the others were impeding their work, and began to sabotage the other models while protecting their own work.
“In fact, they sabotaged others with increasingly aggressive, self-replicating malware,” Anthropic said.
Only in some cases did the models communicate their goals and understand that the other models were not hostility, and were able to break out of the “conflict loop”.
“In many of these successful episodes, they write commit messages or markdown files apologizing for malicious behavior and coordinate a truce. They clean up their malicious code, clarify the nature of the conflict, and ask for a human to intervene.”
Anthropic noticed another emerging pattern in its tests, that more capable models in terms of execution are not necessarily more coordinated, and can more quickly take forceful actions.
Now, this was not the only test run to test the ability of multiple agents to coordinate across a project.
Anthropic found other disappointments – when a swarm of agents were tasks with coordinating on a video game project with varying level of organisation – “In all three versions, the resulting games were (perhaps predictably) bad.”
Models often coordinated poorly; swarms of models either did not merge independent solutions, or they avoided working together. Models in this tasks also suffered from poor variance levels, showing a distinct lack of diversity in creation.
“Why does this matter? If agents all make the same bet, or the same risk-reward tradeoff, then a system is more prone to sudden collapse,” Anthropic noted.
However, when a swarm was prompted to find system vulnerabilities, they were able to largely detect vulnerabilities in an effective manner. Still, “when agents do dependent on one-another, coordination gets much more difficult.”
The research is revealing as AI models have come under recent scrutiny and caused alarm over their hacking of systems during cybersecurity tests.
Is the new research revealing that AI agents are actually more immature than all-capable?
The UK government is launching a new AI bootcamp in the north of England aiming to reduce the risk of youth unemployment.
The TechFirst AI Apprenticeship Pathway will recruit young people from communities in the north-west of England, including Wigan, Blackburn, Blackpool, and other towns.
Delivered on the ground by IN4 Group, the scheme will work in partnership with businesses and public sector organisations across the north-west, creating local career opportunities and trialling the best way to make AI training and career development work for young people today.
Designed to help stem the tide of youth falling into unemployment, the scheme will provide recruits with three weeks of AI and workplace skills training.
They will learn to build AI tools and understand how businesses use AI, how it can generate draft guides and documentation, and learn to use it responsibly and alongside human oversight and quality control.
Up to 70 young people aged 16 to 21 will take part in the pilot. The participants will also develop key workplace skills in office tools and systems, professional communication, teamwork, timekeeping and organisation, and how to work under pressure and problem-solve in workplace environments.
At the end of the scheme businesses and public sector organisations around the North West, including JD Sports, Heinz, and local SMEs, will have apprenticeships on offer to help people move into employment.
“Young people in every postcode deserve the opportunity to a great start to their adult life, and we are tackling the youth unemployment crisis head on,” Secretary of State for Digital, Culture, Media and Sport, Lisa Nandy said.
“This first of its kind AI bootcamp will support young people at a crucial juncture in their lives, connecting them with great training and career opportunities at the heart of their local communities.”
The pilot scheme will test best practice and the results will be used to inform an England-wide AI skills and early careers scheme which will roll out next summer.
“AI is already transforming the world of work, from time-saving tools that cut out admin through to high-end tech that’s boosting vital fields like medical research,” AI Minister Kaniskha Narayan said.
“This is a huge opportunity that will directly benefit young people across the country. This new scheme is about giving them the skills they need to thrive in the AI workplace, and build careers in some of our most exciting industries.”
The UK’s economy grew o.4% in the second quarter of 2026, according to the Office for National Statistics, and the AI boom could be largely responsible.
The information and communications sector was the main contributor to this growth, accounting for nearly half of the overall boom, outpacing all other industries.
Within this sector, the ONS found that computer programming, consultancy, and other industries which include AI firms, saw growth of 3.7% last quarter, building on 3.8% growth in the first quarter of 2026.
The ONS also noted plant and machinery spending, which rose to £22.1 billion in Q2 2026, which points to a surge in AI infrastructure investment. Investment in ICT equipment, computer hardware, and government weapons contracts were major contributors to this increased spend.
There was also a strong uptick in computer hardware investment in business capital assets, according to an ONS survey.
Within manufacturing, computing, electronic, and optical product manufacturing grew 10.7% compared to last year, representing the largest growth within manufacturing.
The ONS findings reflect the shifting priorities in AI investment, as funders turn their eyes to infrastructure to set the foundations for AI models, from data centres to energy grids and semiconductors.
The UK itself is trying to keep up in an AI race largely dominated by US firms and sparking increased debates about data sovereignty and the environmental impacts of data centres.
As the new government scraps the Department of Science, Innovation, and Technology and the new Prime Minister opts to appoint an AI minister to his cabinet, time will tell how AI’s boom ripples throughout the UK’s economy.
Prolific hacking group Cl0p has claimed it stole mass amounts of data from nearly 50 firms, including Shell, Philips, GE, and Fiserv.
The ransomware group, known for its exploitation of vulnerabilities, posted the claim on its website, with a range of responses from potentially impacted companies.
Philips has confirmed the attack, saying it was targeted by Cl0p, while Shell said that it was aware of a “possible incident” and it is currently investigating the situation.
“Philips has identified and contained an attempted cybersecurity compromise of a specific enterprise server related to internal data,” the firm said in a statement, clarifying that customer environments have not been impacted in the incident.
Shell said that it is working with relevant experts and its security team to “investigate the situation.”
Over at Fiserv, the firm said that it is aware of the claims, but has yet to find any evidence of a breach “based on our comprehensive review to date.” The company said it found no evidence of compromise across its customer, transaction, banking, or personal data, or across its operations.
GE said that the firm is aware of the claim as well, and has “initiated our cyber response protocols and are working to assess the potential issue.”
The hacking claim has yet to be independently verified.
The Russian hacking group Cl0p is notable for its targeting of specific vulnerabilities rather than individual companies. It remains unclear how the ransomware group was able to allegedly hack into the various companies’ systems.
Cl0p claims that it stole 89 gigabytes of data from oil giant Shell, ranging from project plans, engineering drawings, and photos of facilities. Meanwhile, it said it stole 13.5 gigabytes worth of data from Philips, including blueprints, diagrams, and drawings.
Cl0p is perhaps most infamous for the 2023 MOVEit hack which exploited a file-transfer vulnerability to hack hundreds of firms, including Shell. The aftermath resulted in Shell refusing to pay a ransom or negotiate with the group, which subsequently leaked the oil firm’s stolen data.
Scotland’s prosecution service, the Crown Office and Procurator Fiscal Service (COPFS), has suffered from a third-party data breach, the service reported.
The COPFS system itself was not breached, the service said, and there is currently no evidence that the incident has impacted confidential casework or the operational work of the Service.
“Last year, COPFS participated in an online data maturity assessment organised by the Scottish Government and managed by an external supplier. The information affected is limited to employment-related information connected with that survey, such as names, roles and work email addresses,” the COPFS said in a notice of the breach.
The third-party supplier became aware of suspicious activity on 5 August and began to investigate the incident, and then took steps to secure affected systems.
The investigation is ongoing, and the COPFS says it will continue to provide updates as new information emerges.
“This could end up being a very serious security incident, which could pose a genuine threat to employees of the COPFS,” William Wright, CEO of Closed Door Security, said.
“Given the assessment was organised by the Scottish Government, other departments could also be impacted. If this is the case, the government needs to inform impacted parties as a priority.
“These types of third-party cyber-attacks are becoming more common because they allow attackers to reach high value organisations by targeting lower down the supply chain.
“They also reinforce the importance of organisations always vetting the security of suppliers. This should go beyond standard questionnaires about security practices, to seeing the results of physical tests, such as penetration testing.
“Even though the number of affected individuals is relatively low, the information can be used to craft targeted spear phishing campaigns and could allow attackers to breach COPFS accounts and systems, which likely contain sensitive legal information.
“Given the nature of the work performed by COPFS, these details could also be used to threaten individuals working on criminal cases.
“Employees need to be acutely aware of the risk of phishing going forward: credentials need to be changed, passwords should be updated, and the COPFS should review its own systems to ensure the attackers don’t use the information obtained to launch further attacks.”
Following three consecutive sold-out events and more than 1,400 attendees, TecTonic Night Summit will return to Barras Art and Design (BAaD) on Thursday 10 September 2026 as part of Glasgow Tech Week.
Taking place immediately after Fusion Fest, Glasgow City Innovation District’s flagship conference, TecTonic transforms BAaD into what organisers describe as “Scotland’s Innovation Market Square”, a vibrant festival-style evening gathering bringing together 500 founders, investors, creatives, technologists, students, community organisations and business leaders under one roof.
Rather than following the traditional conference format, TecTonic blends cross-industry networking, exhibitions, mentorship, live performance and interactive experiences into a collaborative community showcase that reflects the diversity of Scotland’s innovation ecosystem.
Nick Murray, Director of TecTonic, said: “Scotland doesn’t need another networking event or talking shop. What it needs are more opportunities for brilliant people from different communities to positively cross paths.
“TecTonic exists to create those collisions. We want founders speaking with artists, investors meeting the people building tomorrow’s tech, students chatting with CEOs and community organisations standing alongside policymakers. That’s where the most interesting conversations start.”
The event takes its name from tectonic plates, reflecting the belief that innovation happens when different industries, disciplines and communities overlap. That philosophy has helped TecTonic grow into one of Scotland’s most distinctive grassroots innovation gatherings, aligned with more than 70 Community Partners spanning entrepreneurship, technology, creative industries and business support.
This year’s sponsors include Johnston Carmichael, Dell Technologies, Barclays Eagle Labs, Techscaler, Gigged AI, Emploi, Infix Support, FORM Careers, Flyte Cloud Services and Silmaril Consulting, with further partners to be announced in the coming weeks.
One of the newest organisations to join TecTonic’s growing Community Partner network is Plistic Media, a platform bringing together Scotland’s creative and media industries into a single, searchable directory. Designed to make it easier to discover creative talent and encourage collaboration across disciplines, Plistic shares TecTonic’s belief that stronger connections lead to stronger ecosystems.
“Scotland is home to an incredible wealth of creative talent, but too often it’s fragmented across different industries and communities,” Kayla Megan Burns, Founder of Plistic Media, said.
“Plistic exists to make that talent easier to discover, celebrate and collaborate with, creating more opportunities for independent creatives and businesses to thrive.”
Partnering with TecTonic felt like a natural fit because we’re both focused on bringing people together. When founders, creatives, technologists and innovators connect across traditional boundaries, that’s where new ideas emerge and Scotland’s creative economy becomes even stronger.”
The UK semiconductor sector raised $321m (£237m) so far in 2026, far surpassing the $261m (£193.8m) raised throughout all of 2025.
Data from Tracxn Technologies shows that the 2026 funding comes from 14 different rounds, while the 2025 investment comes from the 18 rounds across the full year.
In 2026 so far, seed funding amounted to $37.2m (£27.5m), and early stage investment amassed to $284m (£210m).
Late stage funding has yet to be tracked for the same period, but rose to $77m (£52m) in 2025.
Bristol maintained its position as the most-funded semiconductor hub in the UK, accounting for a quarter of semiconductor funding despite only have 43 out of the 1,986 tracked companies.
Governance – rather than cost – is derailing AI progress in UK organisations, according to Cloudera’s latest global survey, The Great AI Re-Architecture.
Cloudera found 98% of UK respondents have delayed or cancelled an AI project in the last 12 months due to data governance, compliance or regulatory issues.
At the same time, 72% say AI integration has made it more difficult to maintain effective data governance.
The findings come amid growing scrutiny of AI economics. Globally, 84% of organisations say AI workloads have increased infrastructure costs, prompting businesses to look for ways to rein in consumption and extract more value from every token – a trend sometimes described as ‘tokenmaxxing’.
Spiraling token cost is only one part of the challenge. Cloudera’s research suggests that even if organisations get AI spending under control, many still lack the data and governance foundations needed to deploy it at scale.
Almost nine in ten (89%) UK respondents believe their current data architecture requires a significant overhaul to meet future AI requirements.
Governance is also directly influencing those infrastructure decisions. Two-in-five (40%) UK respondents cite data security, governance and compliance requirements as a leading driver of changes to their AI infrastructure.
This is contributing to a rethink of where AI runs. Almost half (45%) of UK organisations have moved at least some AI workloads from the public cloud to private cloud or on-premises environments over the past year, as businesses look for greater control over costs, performance and sensitive data.
“This current era of AI is forcing organisations to rethink the foundations of their technology infrastructure,” said Sergio Gago, Chief Technology Officer at Cloudera.
“Many enterprises are discovering that the architectures built for traditional analytics weren’t designed for the scale, governance, and flexibility AI demands today.
“Success will depend on building a data foundation that gives organisations the freedom to run AI wherever it makes the most sense, without compromising control or security.”
Rather than simply limiting AI consumption, the findings point to a broader infrastructure reset as organisations look to balance cost with greater control over where AI workloads and sensitive data reside.
In the UK, that shift is set to continue, with 29% planning to put greater emphasis on a hybrid-first approach over the next two years.
A new study has revealed that AI may be a net negative for the environment rather than a net positive when considering the full energy sector.
Researchers compared the potential for AI to increase clean power generation alongside its potential to produce coal, oil and gas – it found that across 64 scenarios, net carbon pollution would rise 0.47-1.8 gigatonnes a year, equating to 1-5% of the energy sector’s overall annual emissions.
The research took the same principles AI developers have touted as far as renewable energy production – optimisation of the energy grid, reducing downtime – to oil and gas procurement.
While AI may make the renewable energy industry more efficient, it can also do the same for oil and gas – it can help identify new sources of fossil fuels and speed up their recovery, leading to an increase in fossil fuels and carbon emissions.
If AI is adopted by each industry at the same pace, the research paper posits, the productivity rates of the renewable industry found have to outpace the fossil fuel industry at least four fold in order for emissions to break even.
The paper notes that relatively, the renewables industry is largely in its infancy compared to the fossil fuels industry, which is adopting AI already.
Estimates from the International Energy Agency says that AI can increase technically recoverable fossil fuel reserves by 5%, and can cut the cost of deepwater offshore drilling by 10%.
Meanwhile, renewable energy efforts are still largely in the pilot or research phase, without longstanding international infrastructure and funding to catch up with the fossil fuel industry.
While AI has largely been touted as helping to make energy use more efficient, the paper makes a point of applying this same efficiency and productivity principle to the fossil fuel industry itself.
“Absent policy steering, AI’s modeled effects increase the carbon intensity of the global economy and reinforce fossil fuel incumbency—outcomes that current analytical and governance frameworks do not fully capture,” the research paper, written by Will Alpine, Nathan Geldner, Holly Alpine, and Maksym Chepeliev, said.
Worldwide AI-optimised infrastructure as a service (IaaS) spending is projected to grow 96% through 2026, reaching $42 billion, according to Gartner, Inc.
“This growth is driven by continued demand for infrastructure to support large language model (LLM) training and the rapid operationalisation of AI across enterprise applications and workflows,” said Hardeep Singh, Sr Principal Research Analyst at Gartner.
The market is forecast to sustain high growth and reach $66 billion in 2027.
Table 1: Spending on Infrastructure as a Service, Worldwide, 2025-2027 (Millions of Dollars)
Segment
2025 Spending
2025 Growth (%)
2026 Spending
2026 Growth (%)
2027 Spending
2027 Growth (%)
Total AI-optimized IaaS
21,529
180.0
42,276
96.4
66,143
56.5
Total IaaS
222,170
25.3
287,347
29.3
359,899
25.2
Source: Gartner (August 2026)
Inference Workload Sending to Surpass Training Spending in 2026
The rise of agentic AI amplifies compute intensity through multistep, autonomous execution, making inference the dominant consumption model and positioning AI-optimised IaaS as a critical enabler of enterprise AI strategies.
“As organisations shift from model development to production-scale deployment, fine-tuned and domain-specific models (DSMs) are increasingly integrated into customer-facing and operational systems, requiring continuous, real-time execution rather than periodic training,” said Singh.
“This shift is accelerating the cloud consumption patterns and creating sustained demand for AI-optimised infrastructure.”
In 2026, global spending on inference ($23.3 billion) will surpass that of training ($19 billion). Fifty-five percent of AI-optimised IaaS spending is forecast to support inference in 2026 and is set to reach 59% in 2027. The growing share of inference workloads is expected to reshape cloud investment priorities.
Anthropic will begin to watermark any materials – text and images – produced by its AI to comply with new AI rules from the EU.
The AI firm will leave invisible markers to show that text and images have been AI generated as new EU AI Act rules come into effect.
The watermarks will be invisible to the naked human eye, but can be discernible by automated systems in order to know what material may have been generated by AI.
The updated rule comes amid the rise in rampant low-quality AI images and videos, colloquially but not affectionately known as ‘AI slop’, across the internet. Further, the spread of misinformation and disinformation has caused a scourge on a society attempting to evade a collective AI-induced psychosis as people struggle to tell what is real and what is AI-generated.
Now, Claude has long introduced a watermark to AI-generated images – while effective, these largely disappear if someone takes a screenshot and goes on to share the reproduced image.
However, Claude text will now carry an invisible watermark, which is prompting concern. Some users of AI fear that a watermark may mark their work as AI-generated even if they go to Claude simply for edits, despite their words and ideas being original.
Anthropic says that this remains a major limitation of this system – “A detected mark provides a signal that content was processed by Claude, but is not fully conclusive” the AI firm said.
This means that the watermark does not say that the image or text was completely AI-generated, but equally a lack of a mark does not mean materials were not processed through AI.
It may have been heavily edited post-processing, or be too short to have a strong enough AI signal for watermarking, Anthropic said.
While Anthropic did not disclose how it would be rolling out this watermark over text, it said that the inclusion would not “change the meaning, quality, or readability of Claude’s response.”
All models that were released after August 2nd will generate content with a watermark, the firm said, though it is working on supporting older models with the remit.
The sun might have been out last month, but that did not slow Scottish tech down. The sector experienced rounds of funding in energy and space, as well as high-profile acquisitions in Scottish data and cyber.
All that, and more, coming up!
Funding
Scottish Enterprise Grant Boosts Smart Energy Firm Cirrus Logic
Cirrus Logic, a high-performance, low-power audio and mixed-signal semiconductor solutions firm, has received a research and development grant from Scottish Enterprise to support the development of next-generation smart energy technology and expand advanced engineering activities in Scotland.
The funding supports development of a new metrology analogue front-end (AFE) platform that delivers high-accuracy energy measurement and metrology calculations for smart power metering applications.
Designed for use in residential, commercial, and industrial energy metering, the core IP supports applications such as EV charging, data centre DC metrology, energy storage, and grid monitoring. More broadly, it addresses growing demand for grid modernisation, energy management, and decarbonisation technologies.
UK Gov Invests £62M in Homegrown Space Technologies
British businesses, universities and researchers will receive access to more than £62 million in government funding to develop homegrown space technologies.
The funding – announced by Space Minister Liz Lloyd – will support new satellite communications systems and space innovation projects, helping turn early-stage ideas into commercial products, strengthen the UK’s ability to monitor and protect assets in orbit, and build a more resilient domestic space sector.
The funding aims to help UK innovators build the satellite communications, space security and commercial technologies that strengthen Britain’s competitiveness, resilience and security.
UK Sovereign AI Fund & Bezos Backs CuspAI in £335M Series B Funding
Cambridge-based AI firm CuspAI has raised £335 million in funding in Series B round, with investment from Amazon founder Jeff Bezos and the UK’s sovereign AI fund.
The business, only two-years-old, is now valued at $2.6bn and aims to be the “search engine for rare materials.”
The funding round was led by Kleiner Perkins and NEA, supported by Glade Brook Capital Partners, Lux Capital, AMD Ventures, Tru Arrow Partners, StepStone, Britain’s Sovereign AI Venture Fund, the Invest-NL and John Doerr.
The funding announcement aligns with CuspAI’s launch of the AI Materials Foundry, bringing together a global network of data, labs, compute and scientific expertise for the design of new materials, orchestrated by a single agentic platform.
A Glasgow-based marketing agency that specialises in search engine optimisation is aiming to become a world leader in its field thanks to a £1 million investment in the business.
As part of the seven-figure cash injection, which comes from retained profits, A1 SEO has rebranded as Peak Visibility and is looking to build on its success from its city centre headquarters.
Since originally established by Graham Grieve in 2014 as GMS Digital – it evolved into A1 SEO in 2019 – the business has been passionate about its campaigns that deliver a long-lasting return on investment for clients, who have included well-known brands such as Barrhead Travel, retailer Affordable Golf and Scottish legal firm Harper Macleod.
Acquisitions
Databarracks Acquires Acumen Business Services
Databarracks has acquired the assets of Acumen Business Services Ltd. The transaction follows Databarracks’ acquisition of PlanB Consulting and continues the company’s investment in its Business Resilience Managed Services and unified approach to business and technology resilience.
Acumen was founded by Andy Osborne, who has spent more than 20 years delivering award-winning business continuity consulting – the firm counts more than 100 clients across financial services, healthcare and manufacturing.
Chris Butler, Resilience Director at Databarracks, said: “Acumen has delivered business continuity and resilience services to some of the largest organisations in the UK and around the world. We share a common vision of embedding resilience and making BC practical and simple, while adding real value for our customers. We will be adding further value to Acumen’s customers through our Recovery Confidence assurance concepts and Business Resilience Managed Service approach.”
FullProxy, the Glasgow-headquartered cyber security consultancy, today announced that it has joined Viatel Technology Group, one of Ireland and the UK’s fastest growing technology services businesses.
The partnership marks a significant milestone in FullProxy’s ten-year journey and creates a stronger platform for growth, bringing together FullProxy’s specialist cyber expertise with Viatel’s broader capabilities across connectivity, digital services, managed IT and cybersecurity.
Founded in 2016, FullProxy has built a reputation as one of the UK’s leading specialist cyber security consultancies, helping organisations in highly regulated and security-critical sectors strengthen their cyber resilience, optimise technology investments and navigate an increasingly complex threat landscape.
Two thirds (65%) of senior decision makers at UK IT and computing companies which accept and/or send international payments say far too high foreign exchange (FX) fees levied by banks are restricting business growth, according to a new report from global financial platform Currenxie.
The findings highlight the critical role international expansion plays in driving growth – 97% of senior decision makers at IT and computing companies say that increasing international suppliers and/or customers has boosted their profits in the last year.
Operating globally is key to growth which is leading to a rise in IT firms scaling their international client base and remote engineering talent pools to pursue growth plans.
Figures from Statista indicate that the IT offshoring industry generates revenues of $588 billion, an 8% increase from the previous year.
Previous research from employment platform Pebl shows that international hiring is also on the rise in other sectors. Almost nine in ten (86%) companies planned to expand hiring abroad within the next two years, with 48% of business leaders expecting international employees to make up at least half their workforce by 2027.
Figures from Contractor UK highlight the opportunities offshoring IT talent can have on operations and productivity – a company seeking an IT support role typically faces salary costs of approximately £7,000 in Philippines compared to £45,000 for a UK-based hire**.
Given the UK has the third most valuable technology ecosystem in the world and the most valuable in Europe, currently valued at nearly £1 trillion***, it is critical that IT firms continue to pursue international expansion plans to remain competitive.
As well as growing their remote workforce, there is a strong appetite to boost access to customers in new markets. Eight in ten (82%) senior decision makers at IT and computing companies say that the number of markets they sell in has increased compared to 12 months ago whilst 71% say the proportion of international customers has grown.
Three in ten (31%) senior decision makers at IT and computing companies said growing their customer base internationally was one of their biggest priorities. However, geopolitical uncertainty is making two in five (40%) reluctant to expand into new markets whilst half (49%) warn that FX fees are making them avoid expanding further, putting growth at risk.
Similarly, six in ten (57%) senior decision makers at IT companies report their company has increased the number of international suppliers they work with over the last 12 months, potentially looking to boost their supply chain diversification and reduce risk.
Geopolitical challenges such as the Iran war and its impact on key trade routes and the global economy continue to put pressure on IT companies. A quarter (26%) of senior decision makers at IT and computing businesses say that they view increased supply chain costs as one of the biggest challenges to their business over the next 12 months.
“In a hugely turbulent economic landscape, IT firms are meeting the intense demand for specialized skills and building resilience by pursuing international expansion and entering new markets to meet growth goals,” Sam Coyne, CEO – Europe at Currenxie, said.
“Working with customers and suppliers in new markets is critical to diversifying and mitigating risk – putting IT firms in the strongest position to avoid raising costs for customers, protect margins and fuel growth.
“However, operating internationally can introduce additional challenges with higher FX fees, especially with traditional banks typically offering slow and unreliable international payments which eat into margins. BIT firms can secure a competitive edge by using specialised fintech platforms to eliminate high FX fees and hidden markups, allowing tech firms to settle payments in real-time, preserve their margins, and drive international expansion.”
Investment in UK AI companies reached $9.6 billion (£7.1bn) in the first half of 2026, according to new data from Tracxn Technologies, representing a surge in funding compared to the last year.
Funding in the first half of 2026 was up 360% compared to the same period of 2025, and up 284% half-to-half.
Despite this massive rise in funding, it represents a concentration of high-yield deals rather than an increase in rounds. The number of rounds actually fell compared to the 74 seen in the first half of last year, staying at 69, the same as the previous half.
The top five biggest deals in AI actually accounted for 84% of the total amount raised, with big hitters like Isomorphic Labs, Wayve, and Nscale ammasssing a combined $5.3bn.
Funding maintained its London-centric pattern in the first half of 2026, with the capital accounting for 98% of all funding, climbing from its 93% monopoly in the second half of 2025. Following far behind was Oxford with $103m, Cambridge $18.3m, Edinburgh amassing $16.1m, and Milton Keynes with $12m.
Three in ten UK manufacturers have been hit by a cyber-attack on their own company or one in their supply chain in the past 12 months.
This is according to a new survey from Make UK, the British manufacturers lobby group, which found that 30% of manufacturers faced a cyber-attack, many of which leading to a loss in revenue and production, and many experiencing increased costs.
The report comes in the wake of the cyber-attack on Jaguar Land Rover, which was the most costly cyber-attack in UK history, stalling production for weeks and costing a whopping £1.9 billion across the UK economy.
Manufacturing cyber-attacks and interruptions can lead to ripples across the economy. Of firms that suffered a cyber-attack along their supply chain 31% said they faced delays in deliveries to customers, while 23% said they faced delays from their suppliers or shortages of materials.
Despite the commonality of cyber-attacks and the most costly attack hitting a manufacturer, the report found that only half of firms have a plan in place to deal with an attack.
Just over half (51%) have confirmed they have a formal cyber incident response plan, while onl 45% have assigned senior leadership specific remit for cybersecurity – meaning 49% and 55% respectively have not done these key cybersecurity tasks.
In addition to these lacklustre protections, not even a quarter (23%) have dedicated CISO, and nearly a third of businesses have no cyber insurance or are unsure of their insured status.
Make UK has suggested that firms formalise their incident response with regular stress tests, implement regular training, improve third-party supplier assurances, and audit their insurance policies to improve their overall cyber posture.
Investors in early-stage companies across the UK can access a multi-million-pound investment boost as the Chancellor backs growth in every postcode through the next £100m phase of the British Business Bank’s Investor Pathways Capital Initiative.
The initiative, which will invest £400m in total, aims to help businesses scale up as the fund managers provide the catalytic early capital that innovative, early-stage businesses need to scale up drive local growth and create more good British jobs.
Business large and small have felt the squeeze as the cost of business has risen. The Chancellor is backing investment outside of London into businesses to help tackle this, bolstering efforts to make Britain better off.
“One of my priorities as Chancellor is wealth creation. That means building an economy that helps people live well. I know there is a cost of business and it will not go unnoticed,” Chancellor of the Exchequer John Healey MP said.
“This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country.”
In June, the British Business Bank committed up to £90m to 10 new microfunds as part of the first Investor Pathways Capital cohort. Applications for the next cohort, which is part of this £100m deployment, will open in Autumn 2026.
“We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy,” Economic Secretary to the Treasury Lucy Rigby said.
“Unlocking investment and capital for British businesses, backing firms with practical support and ensuring businesses wherever they are can get the finance they need to grow, innovate and create jobs.”
Separately, the Economic Secretary to the Treasury yesterday met with businesses, lenders and investors from across Yorkshire in Sheffield and Leeds. They discussed how government will support the British Business Bank and industry to work together to ensure the most ambitious of British firms can access the finance they need to invest, create jobs and drive growth in every postcode.
The visits came as the Government continues to deliver on commitments made at Mansion House to strengthen the UK’s business finance ecosystem.
Recent reforms to the Growth Guarantee Scheme will increase lending capacity by a further £2 billion per year by 2028/29, helping an additional 12,000 smaller businesses access finance each year while extending loan terms and broadening eligibility. These changes are designed to ensure more businesses can secure the funding they need to invest, expand and create jobs.
The British Business Bank is playing a central role in helping deliver this ambition, supporting businesses throughout their growth journey through debt finance, venture capital and targeted investment programmes. Recent activity has included investments supporting innovative technology businesses, new venture capital funds and underserved communities across the UK’s Nations and regions.
More than half of Scottish teenagers are actively looking to learn skills they believe AI can’t replace, according to new research.
A survey of more than 500 secondary school pupils aged 13 to 18 found 55% are actively looking to learn a skill that cannot be done by AI, while 60% said they were excited to learn skills that work alongside the technology.
Half (50%) said AI had already made them rethink their career goals, while 53% said their school had encouraged them to use AI because of the opportunities it offers.
The research was commissioned by Glasgow Kelvin College to mark National Opportunity Day 2026, its annual campaign highlighting the range of education, training and career opportunities available to people at different stages of their lives.
The study suggests AI is already deeply embedded in the lives of Scottish teenagers – but also that many young people are thinking critically about how to use it and the skills they will need in future.
Half of the 13-18 year-old respondents (50%) said they pay for a premium AI service – a sign of the value teens place on the technology – while 58% said they know when to use AI and when to test themselves without it.
Almost two-thirds (63%) said the rise of AI had made them question things they see online more often, while 56% believe they are good at spotting AI use in pictures, social media or writing.
The findings come as artificial intelligence increasingly affects not only education but the world of employment young people will enter after leaving it, from searching and applying for jobs to the way employers screen candidates and assess skills.
The survey, conducted by independent insights agency Opinion Matters, found AI tools such as ChatGPT, Gemini, Snapchat AI and Copilot are now a routine part of teenage life. Half (50.5%) use AI at least once a day, including 9% who use it three or more times daily. More than nine-in-10 (92%) use it at least two or three times a week, while just 1% said they never use it.
Respondents said they use the technology for a wide range of purposes, with almost a third (32%) using AI to find information or answer everyday questions, while 29% use it for homework or schoolwork, and 28% to explain things they do not understand. Around a quarter use it to revise for exams (26%) and to generate creative ideas such as art, music or stories (24%). Others use AI for entertainment (22%), help writing emails or messages (21%) and coding or computer programming (20%).
The research also asked teenagers which careers they considered to be ‘AI-proof’ – defined in the survey as jobs they believe will always need people even as AI becomes more common – with practical and people-focused professions dominating answers.
Plumber topped the list (31%), followed by electrician (30%), hairdresser or barber (30%), nurse (29%), mechanic (27%) and social worker (27%). Chef (26%), engineer (26%), joiner (23%) and teacher (23%) also featured prominently. Just 1.7% said they believed no career was AI-proof.
The findings also reveal a generation balancing optimism about the opportunities presented by AI with an awareness of the potential challenges.
More than half (54%) believe AI represents an opportunity for their career prospects and 55% said they know it will affect their future but are not worried about it. At the same time, 56% are worried about its impact on their career prospects and the same proportion believe it could make finding a job harder.
Around 5-in-10 respondents (53%) said they believe colleges provide the best route to ‘AI-proof’ careers.
“What stands out from these findings is just how switched on young people are to AI and the impact it is likely to have on their future,” Robin Ashton, Vice Principal of Curriculum and Quality Enhancement at Glasgow Kelvin College said.
“They aren’t simply using the technology, many are already thinking about where it can help them, where they need to rely on their own abilities and, importantly, which human skills are likely to become more valuable as AI develops.
“There is sometimes a tendency to talk about young people as though AI is something happening to them, but these findings paint a more nuanced picture. This is a generation growing up with technology and learning how to navigate it.
“That doesn’t mean there aren’t challenges young people themselves recognise the risks of becoming over-reliant on AI and are concerned about what it could mean for employment – but they are also questioning what they see online, thinking about when AI is useful and considering how their own skills will need to evolve.
“That is where colleges have an increasingly important role to play. Glasgow Kelvin College gives people the opportunity to develop the practical, technical and interpersonal skills employers need, while also learning how emerging technologies can complement those skills.
“National Opportunity Day is about encouraging people to look at the opportunities available to them and think differently about where their talents could take them. As the world of work changes, having the confidence and skills to adapt will become more important than ever.”
Glasgow has been named as the third most AI-ready city outside of London, ranking third behind Bristol (second) and Manchester (first).
This data comes from the annual AI Cities 2026 Index produced by data and AI company SAS. The annual index, now in its fifth year, evaluates cities outside of London across eight key criteria, including job opportunities, innovation funding secured, education opportunities, broadband speed, and business activity in the AI sector.
Glasgow scored highly in the index thanks to the city’s high number of graduates moving into computing and engineering-focused roles and the second-highest number of jobs relating to AI within a five-mile radius of the city, boasting 52 opportunities. The index revealed that 76.97% of students from the University stayed in the city to continue working in ‘highly skilled’ AI roles. Similarly, the city is also on par with index leader Manchester, offering 12 AI-related courses at the University of Glasgow.
The University of Glasgow recently launched a new research centre, set to develop the city and revolutionise urban life. Called ‘The Centre for Integrated Sensing and Communication Enabling Cognitive Cities’, it aims to utilise the data that will be gathered by 6G communications technologies to create cities that are like ‘ecosystems’, aiming to make spaces healthier, safer, and more sustainable for residents.
Manchester topped the list for the third year running, maintaining its leadership position through a combination of educational strength, business activity and AI employment.
Glyn Townsend, Senior Director of Education Services at SAS for Europe, the Middle East and Africa, said: “Glasgow’s rise from seventh to third place in this year’s index is a phenomenal achievement and a testament to the region’s dedication to bettering not only itself but other cities through the Centre for Integrated Sensing and Communication Enabling Cognitive Cities. It is clear that Glasgow is actively seeking to strengthen its AI sector, recognising how it can be used to boost jobs, increase opportunities and assist in long-term economic growth.
“SAS has one of its three global R&D centres based in Glasgow and we recently announced plans to invest more than £20million this year in the centre. It has pioneered AI solutions to address client issues relating to areas such as fraud, risk, compliance, customer intelligence, and data management.”
Meta has been issued its largest fine yet by a court in New Mexico over failures to alert the public to the dangers its social media platforms pose to children.
The US judge has ordered the social media giant to pay a further $567 million (£421m) in addition to the $375m it was already ordered to pay in the New Mexico case, which found Meta liable for exposing children to inappropriate content.
The court found that Meta failed in protecting children and even endangered them, with their platforms exposing children to sexually explicit content and putting them in danger of groomers and sexual predators.
Meta said that it plans to appeal both fines and rulings.
The firm said: “We work hard to keep people safe on our platforms and have been transparent about the challenges of identifying and removing bad actors and harmful content. We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”
The Facebook creator is facing numerous lawsuits across the US over social media addiction, harmful algorithms, and child safety failures as individuals and the state takes action against the impact of social media.
A previous lawsuit in the US found that Meta’s platforms, among others, were liable for addictive design that negatively impacted a young woman’s mental health, opening the door for other credible cases alleging the same.
The New Mexico ruling and fine gives credence to thousands of other lawsuits claiming that Meta’s platform design, specifically its recommendation algorithm, were harming children
The more recent fine and ruling found that this endangerment extended to a level of “public nuisance”, becoming an issue of safety for the general public.
Judge Bryan Biedscheid, who oversaw the case, likened the social media titan’s platforms to pollution: Just as noxious pollution produced by the factory can harm the common public right to reasonably clean air, the harmful effects of Meta’s platforms on children do not stay contained by its platforms and, instead, migrate to the internet as a whole and, perhaps most concerning, to the real world and create a common, societal burden on and harm to the affected children and their families and schools, as well as hospitals and law enforcement.”
The ruling may mark the first time a social media platform – or an online platform for that matter -has been deemed a public nuisance.
The original trial lasted seven weeks and was settled by a jury, which found Meta was in violation of New Mexico’ Unfair Practices Act for misleading the public on its platform’s safety for children.
Jurors heard testimony that teens and children were being exposed to sexual content such as nudity, were approached by sexual predators on platforms like Instagram, and that 16% of all Instagram users reported that they were shown unwanted nudity or sexual activity in a week.
New Mexico brought the lawsuit up in 2023, where it claimed that Meta’s algorithm “steered” young users to sexually explicit content, in some cases child abuse as well as exposing them to sexual predators, traffickers, and groomers.
Welcome to July 2026’s edition of Movers & Shakers.
This month saw a spread of high level appointments with some partnerships and expansions thrown in, making it a stellar summer month for Scotland.
July saw a range of appointments, from industry groups, research and funding organisations, and top names in cybersecurity.
All that and more coming up.
Partnerships
Scottish Water Joins Forces with Accenture
Scottish Water will work with Accenture to support the management and reinvention of the digital services underpinning its water and wastewater infrastructure, delivering more resilient, efficient and sustainable services to millions of customers nationwide.
Working in close collaboration with Scottish Water’s ecosystem partners, Accenture will manage core business systems, business-critical applications, and its enterprise data platform, supported by its Scotland-based team.
Drawing on its deep industry technology expertise, it will also work with Scottish Water to identify opportunities to apply AI to enhance its digital foundation. This will enable the utility to better anticipate risk, optimise asset performance and strengthen the long-term resilience of the essential services communities across Scotland rely on.
The collaboration builds on Scottish Water’s ongoing technology modernisation, which aims to help the utility adapt to intensifying pressures including ageing infrastructure and climate volatility.
Appointments
The Data Lab Boosts Board With Seven New Members
The Data Lab, Scotland’s innovation centre for data and AI, has appointed seven new members to its Governance Board. The new board members assumed their terms in June with an initial appointment of two years.
The Governance Board’s responsibilities include setting the strategic direction for the innovation centre, including providing guidance on the focus of innovation activities and The Data Lab’s professional learning and education portfolio.
New members to the innovation centre’s Governance Board are:
Jon Buglass, Vice Principal for Innovation, Planning and Performance at Edinburgh College
Luca Corradi, Managing Director at Winnocks
Robin Huggins, Chief Revenue Officer at Head for Data
Roma Maguire MBE, Professor of Digital Health and Care at the University of Strathclyde
James Mitton, Chief AI Officer at HMRC
Anneli Ritari-Stewart, Head of Digital & AI Marketing at Royal London
Adam Sroka, CEO and Co-Founder of Hypercube Consulting
Microsoft-first cybersecurity services provider Quorum Cyber has announced the appointment of Kevin Hanes as its new CEO to drive the company’s next stage of global expansion.
As a seasoned cybersecurity executive, growth leader, and recognised innovator with a proven track record of scaling high-performance teams, Hanes has led both Reveal Security and Cybrary as CEO, served as COO of Secureworks for eight years – where he built the firm’s EMEA presence and Romania operations from scratch – and as Executive Director at Dell Technologies.
According to Quorum, Hanes is passionate about collaborating closely with customers and supporting them to solve their biggest cybersecurity problems, fighting bullies, and helping good people win. His focus will be on protecting as many organisations as possible, achieving operational excellence, and building momentum to scale and optimise the business.
ScotlandIS, the membership and cluster management organisation for Scotland’s digital technologies industry, has appointed Andrew Weir as its new Chief Executive Officer (CEO), effective 1 July. He succeeds Karen Meechan, who stepped down in May this year.
As CEO, Andrew will lead ScotlandIS’ mission to strengthen Scotland’s technology ecosystem at home and abroad, support its growing membership and foster greater collaboration between industry, government and key stakeholders.
Andrew brings over 28 years’ experience in digital transformation across the public and private sectors, supporting businesses in financial services, manufacturing, logistics, pharmaceuticals and more. Most recently, as Transformation Programme Manager at multinational engineering company Weir Group, he led initiatives that delivered millions of pounds in savings by reducing IT spend and improving internal business functions.
Cooper Parry Wealth Makes Strategic Relationship Partner appointment
Cooper Parry Wealth (CPW) has taken the next step in its UK growth strategy with the appointment of Darren Lees as Relationship Partner, reinforcing its long-term commitment to Scotland.
The appointment builds on CPW’s plans to expand nationally through strategic investment in people, acquisitions and deeper integration with the wider Cooper Parry business. Scotland has been identified as a key growth market with Darren becoming the firm’s first dedicated Relationship Partner based in the country.
Based in Scotland Darren will work closely with clients, professional introducers and Cooper Parry colleagues to strengthen relationships across the region. At the same time he’ll be helping clients access the firm’s integrated wealth planning tax and business advisory expertise.
With more than a decade of experience advising entrepreneurs, business owners and high net worth individuals with strong Scottish connections, Darren brings an established network and deep understanding of the local market. He will play a central role in developing CPW’s presence across Scotland. Working alongside Cooper Parry’s growing tax and advisory teams to deliver joined-up advice tailored to clients’ personal and business ambitions.
Expansions
Count App Launches in Scotland and Northern Ireland
Count, the UK’s only FCA-regulated platform delivering end-to-end automated financial advice, today announced its launch in Scotland and Northern Ireland.
Scotland operates its own income tax bands and its own set of benefits and allowances, distinct from the rest of the UK. Count has rebuilt its advice engine specifically to reflect this.
Not a generic UK product switched on for a new postcode, but a plan built around what actually applies to someone living in Edinburgh, Glasgow, or Inverness. Northern Ireland residents gain access to the same fully regulated, personalised advice already available across England and Wales.
“Scotland and Northern Ireland have their own financial rules, and until now, no automated
advice platform has treated them as anything other than an afterthought,” said Laura
Cornely, CEO & Co-Founder.
“We built Count to close the advice gap for the ones that have been priced out. And that means building it properly for wherever they live, not just London”
Meta has added itself to the list of firms producing AI models that have gone on to hack another company during cybersecurity testing, as regulators and experts express further concerns.
The disclosure from Meta comes hot off the tails of the announcement from the UK’s AI Security Institute that an Anthropic model and an OpenAI model both conducted unsanctioned behaviour and attempted hacks during cyber testing. Both AI firms already admitted that their models had conducted hacks in their own cybersecurity evaluations as well.
In Meta’s instance, the cyber breach was routed in a misconfiguration that gave its AI model access to the internet during its evaluation.
The model then “exploited a security vulnerability in a third-party service, in a manner similar to previously reported instances with other companies,” the firm said.
According to reports, Meta’s Muse Spark 1.1 model was involved in the breach, which Meta claims is its most advanced model for real-world scenarios for coding and agentic needs. The system it breached has yet to be disclosed, though it is reported that the Meta AI model altered the firm’s systems’ internal environment.
An Irregular spokesperson told Reuters that the incident occured in the “exact same evaluation-environment issue that was already disclosed by Anthropic last week,” and that the incident did not involve a “sandbox escape or a sophisticated cyber action.”
The firm said that there are no current open issues with their configurations, and that it is drawing up a white paper to aid other cyber evaluations in the future.
Following the news of the increasing count of incidents concerning AI models during cybersecurity evaluations, the National Cyber Security Centre issued a statement from its chief technology officer, expressing the organisation’s concerns.
“Recent incidents of frontier AI models carrying out unsanctioned actions and, in some cases, human-like deceptive behaviour on the open internet are a serious reminder of the risks AI capabilities pose,” Ollie Whitehouse, the NCSC’s CTO said.
“These technologies must be developed and used from the outset with strong safeguards, real-time oversight, and clear plans for responding when the unexpected happens. Relying on detection alone after the fact of an incident will not be enough.
“As AI continues to evolve and create both opportunities and challenges, following established evidenced cyber security fundamentals, as set out by the NCSC’s guidance, remains essential to maintaining trust, resilience, and a defensive advantage in the AI era.”
The UK AI Security Institute disclosed new breaches related to tests of AI models from OpenAI and Anthropic – the institute found an AI agent creating fake identities online to gain unauthorised access to systems.
The UK institute said these cyber instances occurred during their own security evaluations of Anthropic’s Mythos 5 and OpenAI’s GPT-5.6 Sol, which reportedly took unauthorised action.
“On investigation, we found that some of the agents being tested had engaged in sustained, potentially harmful activity directed at real people and organisations,” the AISI said in a blog post.
The incidents occurred during ten of the 122 runs of an evaluation where AI agents were tasked with solving a cybersecurity challenge. In these instances, “an AI agent took autonomous, unsanctioned action on the live internet, targeting real people and organisations.”
Almost all of the unauthorised actions came from Anthropic’s model, with only two actions involving OpenAI’s.
The AISI said that the unauthorised actions ranged in severity, with the most serious case being when an agent tried to insert malicious code into an open-source project. The agent employed social engineering to get the code approved, creating fake online identities. This attempt was caught by a human maintainer of the project, and was refused.
The attempts were found to be all unsuccessful and the AISI says it has seen no evidence of real-world impact.
These instances were not the case of a model escaping its testing sandbox, the AISI noted. “As was standard in our cyber testing, we had intentionally permitted internet access, and model-provider cyber classifiers were deliberately disabled,” the AISI siad. These models with these specifications are not available to the public.
Anthropic has taken responsibility for the most serious incident, saying: “We’re grateful to the UK AISI for their leadership on this incident, which underscores the need for a broader conversation about how to safely evaluate increasingly capable AI agents.” The AI firm is working with the AISI to investigate the incident further.
OpenAI also responded to the disclosure: “We are committed to working across the industry to strengthen shared practices for conducting high-risk evaluations safely, including convening stakeholders such as national AI institutes, independent evaluators, other AI labs, and other groups in the coming weeks.”
Following the incident, the AISI informed the targeted platform – GitHub – to remove artifacts and determine the scale of the incident.
In its description of how this incident could have occurred, the AISI said that the model exhibited “goal-directed deception.” Given a task, the model explored routes that operators never intended; some of these routes involved deception – “the kind of goal-directed deception that, until recently, had been largely theoretical.”
While in some instances, the AISI said that tasks were potentially misconfigured which might have driven the models to go outside of the intended scope, incidents occurred even within well-configured assignments.
The incident highlights the continued issues with AI models even in seemingly secure testing environments, as well as the importance of human involvement in security.
UK businesses attracted £14.4 billion in equity investment during the first half of 2026, up 26% compared with H2 2025.
Analysis from Barclays Eagle Labs and Beauhurst shows there are now over 5.5 million active businesses operating across the UK, an increase of 1.33% since Q4 2025.
The data also highlights the scale of the UK’s innovation economy, with activity spanning more than 1.3 million businesses across the Government’s eight Industrial Strategy sectors.
The UK’s Industrial Strategy sectors, which include Advanced Manufacturing, Clean Energy, Creative Industries, Digital & Technologies, Financial Services, Life Sciences, Professional and Business Services, and Defence attracted a combined £13.4bn of total fundraising during H1 2026.
Digital & Technologies remained the UK’s leading investment destination, securing £11.6 billion in funding and accounting for 80.8% of the total UK investment.
London’s technology ecosystem continued to dominate, attracting £9.03 billion of the sector’s total investment. However, the sector continues to grow outside of the capital, with the number of digital and technology businesses rising in every region of the UK.
Professional and Business Services attracted £4.57 billion of investment, making it the second-largest Industrial Strategy sector by fundraising, while Life Sciences secured £2.76 billion.
Beyond the largest sectors by fundraising, Barclays’ latest Business Prosperity research¹ also points to growing business appetite in defence. The research showed 40% of UK businesses surveyed across multiple sectors intend to increase their involvement in UK defence over the next year.
A further half (48%) also expect the Government’s Defence Investment Plan to have a positive impact on their region and 38% expect a positive impact on their own business.
Regional growth reflects strength of industrial clusters
While London remained the UK’s largest investment hub, attracting £10.1 billion and 70% of total UK equity investment during the first half of 2026, significant growth stories emerged across the UK’s nations and regions.
The North West attracted £1.19 billion in investment, up almost 90% compared with H2 2025. Performance was supported by an £814 million fundraising round for AI company Ineffable Intelligence, highlighting the region’s growing strength as a centre for technology and innovation.
Wales recorded one of the strongest performances of any UK nation or region, with investment increasing more than fivefold to £159 million.
This was supported by an £81 million fundraising round for semiconductor specialist IQE, reinforcing South Wales’ position as an emerging centre for semiconductor technology and advanced manufacturing.
Northern Ireland also saw investment increase 63.4% to £72 million, helped by a £53.5 million fundraising round for software company Cloudsmith.
Secretary of State for Business, Innovation, Science and Trade Jonathan Reynolds said: “This is terrific news for UK businesses and shows how bringing business and innovation together through the Industrial Strategy can help drive economic growth and create jobs.
“My ambition does not stop here. I want to go further by bringing good growth to every postcode and provide investors with the stability and confidence they need to plan not just for the next year, but for the next 10 years and beyond.”
Abdul Qureshi, Head of Business Banking at Barclays, said: “Businesses across the UK are continuing to attract investment, with strong tech-backed momentum in the Industrial Strategy sectors.
“From artificial intelligence and life sciences through to advanced manufacturing and defence, we’re seeing strong evidence that investors are backing innovative British businesses with global ambitions.”
“What’s particularly encouraging is that investment opportunities are emerging right across the country. The North West, Wales, East Midlands and Northern Ireland all recorded significant growth in investment activity during the first half of the year, demonstrating the strength of local innovation ecosystems and specialist expertise across the UK.
“Ensuring businesses can access the finance, support and networks they need to grow will be critical to maintaining this momentum. By continuing to invest in innovation, technology and skills, firms across the UK can put themselves in a strong position to seize future growth opportunities.”
New research from Databarracks has revealed that the number of UK businesses facing AI-driven cyber attacks has more than doubled in the last twelve months, increasing to 25% from 12% in 2025.
Unsurprisingly given this increase in volume, the research also found that for the second year running, AI-driven cyber threats are identified as the biggest resilience challenge facing organisations over the next five years.
The findings are revealed in Databarracks’ Data Health Check 2026, an annual survey of 500 IT decision-makers across UK businesses.
The report revealed that businesses are taking steps to respond to the growing AI threat, with 85% of organisations now assessing AI risk at least annually.
The research comes as the threat of AI becomes a reality and garners international headlines. OpenAI recently disclosed that its own AI model gained access to the internet from a controlled and isolated testing environment and autonomously launched a coordinated cyber attack against an organisation.
The AI agent successfully exploited a chain of vulnerabilities to obtain credentials and access data from its servers before the activity was discovered.
Large organisations have been hit hardest by AI-driven attacks, and perhaps unsurprisingly, AI threat response is now a resilience priority for 41% of them.
Despite growing concern around AI-enabled attacks, organisations are still positive about the potential of AI: 79% of organisations still believe it is a greater benefit than threat to security.
AI is becoming embedded across resilience operations. The vast majority of resilience teams use AI in some form (93%), while 3 in 10 rate the maturity of their AI programme as “advanced” or “optimised”.
AI is the leading priority for budget increases: 61% of organisations increased their AI budgets, compared with 55% for security and 36% for backup and disaster recovery.
“The findings reveal the new reality of cyber risk. Even before AI, cyber was the fastest-developing threat. We’ve seen it grow from being the leading cause of downtime for just 6% of organisations ten years ago to 30% today,” James Watts, Managing Director at Databarracks, said.
“With AI now capable of autonomously exploiting the vulnerabilities it finds, attackers have gained a significant advantage.
“At the same time, AI brings powerful new capabilities to cyber defence and broader resilience, which helps explain why organisations remain optimistic about it.
“The conclusion we reached on cyber response remains the same, and it is now even more important: organisations must plan for a breach and prepare for recovery. Even the most mature organisations cannot prevent every incident.
“How should we adapt and prepare? If an AI model can identify vulnerabilities, adapt to defensive controls and execute attacks at machine speed, organisations will have significantly less time to make critical decisions during an incident.
“Decision-making that once happened over hours may soon need to happen in minutes. Technology alone cannot solve that challenge. Only preparation can.
“That preparation now needs to go further. We have reached a point where we must plan for scorched-earth situations, for a total loss of IT systems and effectively rebuilding from scratch.
“Cyber response has improved quickly to keep pace over the last decade, but even organisations with mature capabilities need to review and advance again.
“Boards should have confidence that their organisation can recover critical services, protect essential data, communicate effectively with stakeholders and continue operating under significant pressure. Those capabilities cannot be found during a crisis. They must already exist.”
Apple has launched a new legal challenge against the most recent UK government attempt to create a backdoor to encrypted customer data, it has been reported.
Just last month, Apple filed a legal complaint against the Interior Ministry over its demand that Apple enables it to access the encrypted cloud backup data of UK users.
The UK government backed down from its first alleged secret order to Apple from the Home Office, which called on the tech giant to create a backdoor to its cloud encryption for UK users.
Apple continually appealed the order, electing to remove its Advanced Data Protection (ADP) from the UK rather than see it compromised through a backdoor.
The Home Office did try to issue a “technical capability notice” that would see the encryption backdoor only apply to UK users.
TCNs force firms to provide information to law enforcement concerning investigations on crimes such as terrorism or child sexual abuse – it can require companies to provide customer data, even if it is encrypted.
Apple and the UK government are legally barred from discussing the particular cases, though Apple has confirmed it made a filing.
“The UK supports strong encryption and robust privacy protections, but it is also vital that law enforcement can access communications when necessary and proportionate to protect the public from terrorism, serious crime, and child sexual abuse,” a UK spokesperson said.
Apple has previously railed against the idea of creating a backdoor to its encryption, saying that it would never compromise the privacy technology.
“This is a hugely important case that will have far-reaching implications for the public’s privacy rights well into the future,” Ruth Ehrlich, director external relations at Liberty, the human rights group that has previously been involved in the ongoing encryption case, said in a statement.
“Opening a backdoor to all of that information carries a wide range of risks to our personal data. It is critical that the government listens to the many concerns and commits to protecting our privacy rights.”
UK Government Investments, the public body at the helm of state investments, disclosed that it had suffered a data breach that left private information accessible to the public for almost 40 hours.
The agency is now being pushed to improve its security after “high-level management information” was left accessible in a data breach, exposing the personal details of more than 50 government officials in the breach.
The investment body manages taxpayers interests in a range of companies, and is most known in the UK for bailing out Lloyds Banking Group and the Royal Bank of Scotland following the 2008 market crash.
The group pinned the blame on an internal incident, saying a staff member – who remains unnamed – did not follow security protocols.
“An internal file containing high-level management information and the names and work email addresses of 51 government officials was publicly accessible for [about] 40 hours, following the actions of a member of staff who did not follow established information security policies,” the body said in its annual report.
UK Government Investments has yet to say exactly when the data breach took place, though it said that it took place in the last financial year.
The public body did inform board members and the Information Commissioner’s Office of the incident at the time and hired external specialists to review their internal security policies.
UKGI said that it has “since implemented or will be implementing in the coming months” the “overwhelming majority” of what has been suggested to improve the body’s incident preparedness.
A DeepSeek AI model is outperforming its competitors in terms of cheapness, as new analysis shows that the model runs much cheaper than well-known rivals.
Benchmark AI performance analysis done by Artificial Analysis found that DeepSeeks newly released V4-Flash model cost about 3 cents per test, compared to OpenAI’s GPT-5.6 Sol cost of $1.86 and Claude Fable 5’s hefty $3.15. Chinese firm Moonshot AI firm’s model Kim K3 cost 86 cents per test.
V4 Flash was released on Friday as DeepSeek tried to garner the same excitement that the release of its R1 model – which shocked audiences with its apparent low-cost.
DeepSeek’s V4-Flash model charges 14 cents per million input tokens and 28 cents per million output tokens, the unit used to measure AI use.
Putting these figures to test, V4 Flash stayed consistently cheaper than its competitors when completing the same tasks by a significant margin – its average cost is about 100 times cheaper than Anthropic’s Claude model.
While DeepSeek was the first major Chinese developer to stir headlines with its lower cost performance, other Chinese competitors soon arose, such as Moonshot, as well as top tech firms like Alibaba and ByteDance launching their own models.
The benchmark analysis from Artificial Analysis did not see DeepSeek completely come out on top, however. Its V4-Flash model scored 50 out of 100 points on the firm’s Intelligence Index, which benchmarks coding, assignment performance and reasoning ability, as well as cost.
This was in line with Google’s Gemini 3.6 Flash, and only one point away from Meta’s Muse Spark 1.1. Claude Opus and Fable 5 from Anthropic came out on top at 61 and 60 respectively, followed by OpenAI’s GPT-5.6 Sol (59).
Apple shares fell by almost 10% last week after a forecast showed that the iPhone creator was struggling to shore up its components amid the AI-boom pressure on supply chains.
If sustained, the drop would see Apple lose nearly $500 billion from its market value, meaning that Nvidia would reclaim the title of the world’s most valuable company, just days after Apple took back the spot.
Apple is apparently “scrambling” and stockpiling materials to meet its iPhone manufacturing needs, the firm warned.
The firm is struggling, however, as the AI-boom has squeezed global supply chains.
Dubbed “RAMageddon”, the chip boom is pressuring a market which relies on careful design and precious metals, leaving many firms unable to obtain enough chips as they compete with top AI firms and manufacturers.
In CEO Tim Cook’s last earnings call before he retires from the helm of Apple, he called the supply chain shortages “very significant.” The tech firm raised the prices of its products, bar the iPhone, with the company expecting to drop a new model range later this year.
While Apple has largely managed to stifle the effects of the supply chain demand boom for compute with its stockpiled resources, Cook said that these are now running low. Apple, which has largely taken a backseat in the AI race – is still trying to meet demand for its devices – will have to go back to competing for supplies on the global market, with contending with inflated prices and AI bubble firms.
Apple’s growth revenue was forecast for last quarter as between 9% and 11%, but this came short of Wall Street’s 12% estimate. The firm saw weaker performance in its services, which include App Store purchases as well as Apple Music and Apple TV.
Business confidence in Scotland fell six points during July to 42%, according to the latest Business Barometer from Bank of Scotland.
Companies in Scotland reported lower confidence in their own trading outlook month-on-month, down six points at 51%. When taken alongside their optimism in the economy, down six points to 34%, this gives a headline confidence reading of 42% (vs. 48% in June 2026).
Despite the decline, more than half (51%) of Scottish firms reported continued confidence in their own trading outlook, reflecting some resilience in business operations, though broader economic optimism has weakened to 34%, suggesting caution about the external environment and economic trajectory.
A net balance of 37% of businesses in the country expect to increase staff levels over the next year, down one point on last month.
Business confidence in Scotland now sits below the 12-month average of 47%, with its highest figure of 56% in July 2025.
Looking ahead to the next six months, Scottish businesses identified their top target areas for growth as evolving their offering, for example introducing new products or services (48%), introducing new technology, for example AI and automation (45%), and entering new markets (39%).
The Business Barometer, which surveys 1,200 businesses monthly and which has been running since 2002, provides early signals about UK economic trends both regionally and nationwide.
“Business confidence in Scotland softened in July, as firms took a more cautious view of both their own trading outlook and the wider economy,” Martyn Kendrick, regional director for Scotland at Bank of Scotland, said.
“Even so, around half of businesses remain confident, underlining the resilience we continue to see across Scotland’s business community.
“It’s particularly encouraging that so many businesses are looking ahead and planning for growth, with Scottish firms more likely than the UK average to be evolving their products and services and investing in new technologies, showing a strong appetite for innovation.
“Alongside ambitions to expand into new markets, it’s clear many businesses are continuing to invest in the ideas and capabilities that will help drive their future success.”
National picture
Overall, UK business confidence rose five points in July to 49%, hitting a four-month high.
This was driven by an increase in economic optimism, reflecting the decline in global energy prices, the Bank of England holding interest rates and the announcement of an interim peace agreement in the Middle East at the time of the survey.
Optimism in the wider economy rose 11 points to 42%, compared to a 12-month average of 37%. Of those surveyed, 59% said they were optimistic (up four points from June) in the wider economy, while those who felt pessimistic decreased by seven points to 17%.
The main factors cited by firms who felt more positive this month were, stronger customer demand, improving interest rates or financial conditions and better economic news.
Businesses’ own trading outlook remained unchanged at 56% in July, compared to a 12-month average of 57%. Sixty-five percent of firms (up one point from June) expect stronger output over the year ahead, while those expecting weaker activity increased one point to 9%.
Among firms expecting stronger activity, the main factors were, stronger customer demand, increase investment in capacity or tech and improved supply chain conditions.
Amanda Murphy, CEO for Lloyds Business and Commercial Banking said: “It’s encouraging to see business confidence reach its highest level in four months, driven by a significant improvement in economic optimism. While challenges remain, these results suggest many businesses are feeling more optimistic about the opportunities ahead.
“Businesses have remained remarkably resilient in recent months, with many focusing on investing in their future, improving productivity and making sure they’re well placed to respond as market conditions change.
“The stronger confidence we’re seeing among smaller businesses and firms focused on the domestic market is particularly encouraging, suggesting more businesses are starting to see opportunities for growth and investment.”
Anthropic announced that some of its Claude models hacked in three companies’ systems during cyber tests that accidentally gave them open internet access.
The admittance comes just days after OpenAI revealed its AI models were behind the Hugging Face cyber-attack, in which its models exploited an unknown vulnerability to reach the open web.
According to Anthropic, a misunderstanding and subsequent mistake in configuration gave the Claude models access to the internet during a cybersecurity test, which it then exploited in hacks targeting three companies.
Anthropic said the OpenAI incident prompted it to do an internal retrospective of its own cybersecurity evaluations, looking specifically at Claude for evidence of internet access in sealed environments.
The three incidents where Claude accessed the internet were discovered from a review of 141,006 evaluation runs.
Anthropic wrote: “we identified three incidents in which a model accessed the internet from within or while interacting with the evaluation environment of Irregular, one of our third-party evaluation partners, and then gained unauthorized access to the production infrastructure of three different organizations.”
These incidents occurred during ‘capture-the-flag’ challenges to assess the model’s cyber capabilities.
Anthropic said that all the tests informed Claude that its environment was a simulation, and it had no internet access.
“Due to a misunderstanding between us and our evaluation partner, this was not the case, and internet access was available,” Anthropic wrote. “Because of this, when Claude’s search led it to real systems on the open internet, it treated them as part of the exercise.”
Under these circumstances, Anthropic said that Claude assumed all accessible entities were in scope of the exercise.
The models did not exploit any complex vulnerabilities in its undertaking, instead exploiting weak passwords and unauthenticated endpoints. The model also worked to complete the specific task it had been assigned.
“However, in some cases, our older model continued its attack even after getting evidence it was running on the open internet; our latest model stopped once it recognized it was on the internet,” Claude said. “In none of these situations did Claude exfiltrate itself or deliberately attempt to escape its test environment.”
The three models used include Opus 4.7, Mythos 5, and an internet research test model, with the earliest incidents dating to April.
Anthropic said that it has reached out to the three affected companies, but is yet to hear back from one.
The firm also said that none of its internal systems or customer data were accessed during the incident.
IBM today released the 2026 Cost of a Data Breach Report, showing that AI-driven cyberattacks have surged 56% globally over the past year, and these breaches cost an average of $6 million, fundamentally changing the economics of cyber risk.
As cyber-criminals increasingly leverage AI to automate and amplify attacks, businesses are under growing pressure to keep pace.
More than one in four organisations globally, and 22% in the UK, reported experiencing AI-generated attacks.
Despite this risk, the average cost of a data breach for UK organisations decreased to £3.13 million compared with the previous year, suggesting that investments in cyber resilience, detection capabilities and incident response are helping to limit the financial impact when breaches occur.
Deepfake impersonation was the most common AI-enabled attack types (45%), followed by AI-enabled malware (19%) and phishing campaigns (17%).
Advances in generative AI are enabling attackers to create highly convincing, targeted campaigns at an accelerated pace, significantly reducing the cost, time, and expertise required to launch attacks at scale.
The report found that the average UK data breach now costs £3.13 million compared with last year’s figure of £3.29 million in 2025. However, the number of records breached has increased slightly to 29,870, (up from 29,000 in 2025).
Sectors such as financial services (£5.46 million), services (£4.23 million) and energy (£4.03 million) saw the highest breach costs in the UK. Energy and financial services also saw the highest concentration of AI-enabled attacks globally.
Three in five (61%) of UK organisations plan to increase cybersecurity investment following a breach, with growing focus on incident response, data protection, and AI governance.
However, foundational gaps remain, only 32% of UK organisations report using AI and automation in security operations extensively – even as more attackers are levering this technology to scale.
Six in ten (62%) reported having formal cryptographic controls in place, and 45% plan to increase investment in quantum security following a breach.
“AI has dramatically lowered the barrier for cybercriminals. Attackers can now execute attacks in minutes rather than days with advanced frontier models,” Mark Hughes, Global Managing Partner, Cybersecurity Services IBM said.
“Organisations need to move faster from reactive security to a continuous autonomous defence if they want to keep up.”
The findings highlight a clear imperative: organisations must close the gap between attack speed and defence capability or risk falling further behind.
To stay ahead, businesses should focus on the following priorities: establishing clear AI governance, investing in AI-powered security, maintaining visibility across AI deployments, and regularly testing cyber resilience.
Globally, more than 20% of organisations reported a breach targeting AI models or applications.
The most common causes were weaknesses in surrounding systems: compromised APIs, applications, or plug-ins (27%) and cloud misconfigurations affecting AI workloads (27%).
Ransomware incidents rose compared to the year prior (39% vs. 34%), with attackers increasingly using AI to automate and scale.
While operational disruption still plays a role, attackers are shifting toward higher impact pressure, most commonly exploiting brand reputation (41%), followed by employee data (35%) and intellectual property (31%).
Organisations are beginning to invest in cybersecurity based on emerging threats rather than waiting for an incident to occur.
In follow-on research conducted by Ponemon Institute, 85% of organisations reported that they plan to increase security spending after becoming aware of advanced frontier AI cyber capabilities – compared to just 64% that reported in the initial research that they plan to increase security spend after experiencing a breach.
Enterprise AI spend has outgrown the governance, attribution, and ownership infrastructure needed to manage it, new research from AI software company Harness found.
Their report, The 2026 State of AI in FinOps, based on a survey of 700 engineering leaders and practitioners across five countries, finds that AI costs are climbing across every category and provider at once, while visibility into that spend remains one of the biggest blind spots in enterprise finance.
The findings extend a pattern Harness has tracked across its 2026 research. Just as The State of Engineering Excellence 2026 found that engineering organisations are measuring AI’s productivity gains with instruments that miss what actually matters, this report finds the same gap on the financial side: AI spend is moving faster than any organisation’s ability to see, attribute, or explain it. That gap is no longer a rounding error.
AI Spend Is Rising Fast, and Running Blind
AI spend is no longer isolated to a single team, tool, or budget line. It is climbing across infrastructure, software, and models at once, faster than most organisations can track it.
The report finds that when the bill spikes, most have no way to explain why.
Nobody is clearly accountable for AI cost, as 52% say there is no clear owner, with responsibility split across engineering, FinOps, finance, and IT – so when spend moves, there’s no single function positioned to answer for it.
This ownership gap shows up as recurring surprises, with 72% experiencing an unexpected AI cost spike or bill in the past year, and a third of organisations (33%) have been caught off guard more than once.
Even after the surprise hits, most cannot trace it back to a cause. If spend were to double overnight, only a fifth (20%) could identify the reason within hours.
The result is money wasted with no owner and no explanation. Organisations estimate 26% of all AI send is wasted. For organisations spending $1M per month, the reality for one in five respondents, that’s almost $260,000 a month with no measurable return.
“AI spend has moved from a line item that occasionally surprises people to a budget category that regularly does,” said Patrick Brogan, Director, FinOps Advisory at Harness.
“The patterns we’re seeing, invoice shock, ownership confusion, governance gaps, are the same ones the industry saw with cloud a decade ago, just compressed into a fraction of the time.
“Ownership is really the crux of it. When no one is clearly on the hook for a number, no one is positioned to explain it after the fact either.
“The hardest part of this problem has nothing to do with technology. It’s organisational: getting teams to build with cost in mind from the start, not as a constraint, but as a design principle.”
An Organisational Problem
The report points to a bottom-up dynamic compounding the governance gap.
It starts at the point of build, as most engineers have no idea what the features they create actually cost. Less than half (45%) say they understand the cost of the AI features they build.
More than half (56%) say anticipating AI spend is based on guesswork, not data.
The incentives in place reward more usage, not less. 57% of engineers say their organisation actively encourages “tokenmaxxing,” maximising AI usage regardless of tangible value.
Organisations have tried to rein this in with policy, but the policy has nothing to enforce against. 73% have AI cost policies in place, yet only 13% have basic visibility into their AI spend — you can’t enforce a policy against data you can’t see.
The end result: most organisations can’t tell if any of this spend is even paying off. Only 26% have a robust method for measuring the business value of their AI spend.
“A year ago, our customer conversations were about cloud cost attribution, commitment coverage, and rightsizing,” said Harish Doddala, VP Product, Cloud & AI Cost Management at Harness.
“Today those conversations are increasingly interrupted by a more urgent one: why did my AI bill do that, and how do I make sure it doesn’t happen again? We’re also seeing organisations write policy well ahead of building the visibility to actually enforce it, which just pushes the same problem downstream.
“These gaps show up the same way whether we’re talking to a 200-person startup or a Fortune 500 company. Cost visibility has to get built into the infrastructure from day one, or teams end up bolting on dashboards after the damage is already done.”
The report finds that organisations that have reached full AI cost maturity follow a consistent sequence: naming a clear owner before buying a tool, building a single, unified cost view before optimising spend, embedding cost data directly into engineering workflows before writing policy, and tying spend to measurable business outcomes before chasing ROI.
To close the visibility and ownership gap, Harness recommends that organisations:
Name a single, accountable owner for AI cost before adding new tools or providers.
Build one unified view of AI spend across infrastructure, software, and models before attempting to optimise it.
Push cost data into engineering workflows — at the point of model selection, prompt design, and deployment — rather than treating it as a finance-only concern.
Tie AI spend to business outcomes, establishing unit economics before measuring ROI.
The UK Department for Education has suffered a data breach via a social engineering attack aimed at an internal helpdesk.
The apparent threat actor is known as ExfilSquad, which reportedly stole over 600,000 records which included the personal information – names, phone numbers, email addresses – of staff from universities and the government, and school officials like headteachers.
First reported by The Times, those claiming to be ExfilSquad made several posts on the dark web with some of the leaked data, which the newspaper says it has verified.
The education department has since confirmed the incident.
“We have robust processes in place to protect information and took swift action to contain this incident,” a Department for Education spokesperson said.
“The information involved is limited to customer service contact details relating to individuals and organisations. No other data has been accessed. We continue to work closely with the National Cyber Security Centre and the National Crime Agency, and remain in contact with those affected.”
The internal helpdesk and the Turing Scheme portal – an international education funding programme – have been affected in the attack and have both been taken offline.
In total, 607,00 records were affected in the breach, but this does not reflect the total number of individuals affected.
“We are aware of an incident affecting the Department for Education and are working with partners to understand the circumstances and impact,” an NCA spokesperson said.
Meanwhile, the UK’s education sector continues to be targeted by ransomware and other cyber-crime groups, with over half of schools reporting a breach or attack in the last year, according to government reports.
The Competition and Markets Authority is investigating Microsoft to see if the tech giant gave customers adequate information in changing their Microsoft 365 subscription prices.
The investigation concerns Microsoft’s rollout of new features across its Microsoft 365 offerings, which included Copilot. These were first offered as an automatic addition at no extra cost during an active subscription.
However, when it came time for that subscription to renew, Microsoft automatically ‘upgraded’ users to a new plan which featured the new additions, with an increased cost of £25 more a year.
Users would have had to take extra steps to pick another plan or end their subscriptions. Existing customers had the time-limited option of switching to a ‘Classic’ plan, which offered users the same features they had access to before the changes, at the same price.
Microsoft stopped offering Personal and Family plans to new subscribers without these new features.
The CMA is looking into whether Microsoft’s communications with customers before renewal were misleading. The investigation will examine whether customers were given key information about the plans and the difference in cost to understand the options available to them before making a decision.
At this stage, the CMA has reached no conclusions about whether Microsoft has broken the law. The CMA says it is strongly supportive of AI adoption and the benefits this could bring to real people’s lives across the UK but has emphasised that no-one should be treated unfairly. It’s also important that customers have clear information which helps them shop around and make choices about which AI products work best for them.
“People across the UK rely on Microsoft 365, whether they’re studying, sending emails or managing household finances,” Hayley Fletcher, Senior Director for Consumer Protection at the CMA, said.
“At a time when household budgets are squeezed, it’s important that people are clear on the price and the subscription plans available, so they can find the right deal for them.
“When a business changes its subscription plans, customers need clear and timely information about their options. Our investigation will consider whether Microsoft customers were misled and ended up paying more as a result.
“As people rely more and more on AI tools like Copilot, it’s important that everyone is able to access these through fair and transparent practices and understand when they have the opportunity to shop around and make choices about which products they want to use.”
UK companies are increasingly adopting AI to improve productivity and enhance day-to-day operations, according to new analysis of government data based on analysis from Fasthosts.
New data from the Office for National Statistics (ONS) show that firms are using AI primarily to automate routine tasks and strengthen existing teams, rather than replace workers.
Researchers found that the most common use of AI inside organisations is improving business processes, with larger employer leading the shift. Adoption has accelerated sharply over the past year, rising from 12% of businesses with 10 or more employees in late 2023 to 35% today.
The findings also show that fears of widespread job losses are not being realised. Fewer than 10% of firms say reduced headcount, and around half report no staffing change at all.
At the same time, AI is not yet driving significant hiring, with only around 1% of the smallest and largest businesses say they have increased headcount directly because of AI.
Instead, companies are investing in their existing workforce. More than 60 per cent are training or reskilling employees to build AI capability, with medium and large organisations reporting strong uptake of AI skills programmes.
“AI tools are increasingly being embedded into small and midsize businesses in order to remain competitive, however, this fast-paced technological change means digital skills are no longer a ‘nice to have’, but critical for business growth,” Richard Bovey, chief for data at AND Digital said.
“By equipping SMB employees and business owners with essential AI and digital skills, it will enable them to thrive today’s workplace.”
OpenAI’s accidental hacking of Hugging Face by its AI agents has been revealed to have affected other companies, the firm admitted.
An update to the AI titan’s statement regarding the viral cyber incident reveals that other public services were targeted by its AI models which broke out of a testing sandbox.
“The models identified and used publicly exposed credentials at the account-level on other publicly-available services. This includes four accounts on four services as part of the Hugging Face incident,” OpenAI’s update said, though it has yet to name specific companies.
However, reporting from Reuters claims that a Modal Labs customer’s code was compromised as part of the AI model’s attack. While Modal Labs says that its platform and isolation systems were not breached, vulnerable code written by a customer and hosted on the firm’s platform was used as a launching pad for the rest of the hack.
Modal says that it was not a platform-level breach like the one seen by Hugging Face – instead the customer had published an unauthenticated endpoint which would have let anyone execute its code without authorisation.
OpenAI has yet to directly confirm the Modal Labs incident.
This acted as an initial phase of the attack, according to Hugging Face.
Since the announcement of the breach and OpenAI’s admittance to it, Hugging Face has revealed more details about the unprecedented attack.
The firm hosted an emergency meeting last week detailing the incident, which was written up in a report by the Cloud Security Alliance (CSA)
While the world shook at the potential of a rogue AI agent committing speedy and efficient cyber-attacks, CSA’s report instead characterised the attacking agents as “clumsy”, “sloppy”, with some specific actions described as “inefficient”, or “incoherent”.
These signs made the Hugging Face team assume – correctly – that it was an AI agent behind the attack rather than a human.
CSA’s report said the the agents “followed inefficient routes and exhibited clumsy behaviours that no human would choose, such as trying to solve benchmark tasks using Hugging Face’s infrastructure.
While it said that some of the attacks were “brilliant”, other actions were “basic”, “malformed or pointless commands.”
Agents also repeatedly tried the same action even after it had already demonstrated it worked, which suggested uncoordinated attacks happening in parallel or lost context across the attack.
Logs found thousands of lines of incoherent text, suggesting AI hallucinations.
Further, poor practices included the leaving behind encryption keys and artifacts, which CSA described as “sloppy.”
While CSA does acknowledge that this is not a commentary on the likes of future autonomous attacks, it gives credence to how effective these AI agents already are, as well as the amount of work left to be done to improve their autonomous cyber performance and our defences against such attacks.
“For CISOs, this is an incredible opportunity to learn how to prepare to defend against advanced agentic attacks, and how we need to put guardrails around our own use of internal agents,” the organisation said.
Visa is cutting 7% of its workforce, targeting technology and product teams, as the payment giant opts to increase its reliance on AI.
Around 2,600 workers are set to be let go – the payments firm had around 34,100 employees at the end of the last fiscal year.
Visa CEO Ryan McInerney said in an internal memo to staff, as reported by Bloomberg, that Visa “must continue evolving how we work.”
He wrote: “I have deep conviction that we are doing what is right for Visa, our clients and our partners as we continue to focus on driving efficiency across the company in order to reinvest in our highest potential opportunities.
“To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work.
“AI is also helping to accelerate this evolution and shape the way work gets done at Visa.”
AI has already become an integral part of Visa’s infrastructure, with Visa leading the table when it comes to AI use in the payments industry.
While AI is a driver of the layoffs – and layoffs across the tech industry – an unnamed individual reportedly close to the matter said that this was not the only factor leading to the layoffs.
Visa is set to invest in other growth areas, such as its more affluent customers, business payments, cross-border payments, expansion, and even stablecoins
“As a result of the choices we have made over the past few years, we are entering a new era in commerce with a business that has real momentum,” McInerney said.
A wave of pre–AI nostalgia is sweeping through the modern workplace, as new research from digital transformation consultancy Adaptavist reveals that two-thirds (65%) of knowledge workers regularly feel nostalgic for how work operated before generative AI, and 38% say they would remove GenAI tools from the world entirely if they had the chance.
The research, which surveyed 2,500 professionals across the UK, US, Canada, Germany and Spain, found that rather than freeing workers from drudgery, AI has introduced new pressures, eroded the value of skilled work, and left employees feeling less engaged and less valued than before.
Nearly a third (30%) of respondents said they preferred how work operated before GenAI tools were widely adopted, with a further 26% expressing no preference either way. The desire to turn back the clock is stronger among younger workers: 40% of both Gen Z and Millennials say they would remove GenAI from the world, compared to 32% of Gen X and 29% of Boomers.
Creative and Ethical Deficit
One of the leading drivers for this ‘pre-AI nostalgia’ is the creative and ethical trade off, with many workers believing their work held more value before the widespread implementation of GenAI.
About a third (31%) of workers who would remove AI say they would do so because they believe it reduces creativity.
On the other hand, 29% cite concerns over misuse, and 28% worry about surveillance and privacy.
Just under half (46%) say that dealing with low-quality ‘AI slop’ makes their job feel less meaningful and more repetitive, with 37% admitting it has made them less engaged at work overall.
Verification Tax
Perhaps the most striking finding is the gap between AI’s promise of efficiency and the reality workers are experiencing day-to-day.
Workers are paying a verification tax, with 42% now spending more time verifying and fact-checking AI output than the time they actually save by using it.
Poor quality AI-generated work is actively slowing down projects for 49% of workers, while 55% believe it is reducing overall team efficiency.
The influx of low-quality AI-generated content is damaging morale and making the modern workplace feel more sluggish and harder to navigate than the one workers left behind.
Human vs Machine
Workers are also grappling with an uncomfortable new reality: being measured against machines.
Half (50%) feel their performance is now being compared – fairly or not – to AI-generated output.
A quarter (25%) say they use AI simply to meet workload demand, and 23% use it just to keep up with colleagues.
Workers now face intense pressure to improve performance (26%), improve quality (25%), and be more efficient (24%) – simply to keep pace in a machine-accelerated environment.
Despite the frustration, this is not a wholesale rejection of AI. Sentiment toward organisational AI strategies remains broadly positive: 67% of workers would like their organisation to increase AI use, 69% trust that AI is being used ethically, and 66% say their organisation has been transparent about its adoption.
Yet 36% of workers often do not understand why they are expected to use AI in their role, and an equal proportion report AI fatigue as a result. The findings suggest that adoption is not the same as engagement, and that the gap between the two is where disillusionment takes root.
“These findings point to an underlying gap we see in most AI implementations,” Neal Riley, AI Innovation Lead at The Adaptavist Group, said.
“It is much easier for organisations to focus on adoption metrics – who is using AI, how often they are using it – than it is to measure its impact on the work itself.
“By understanding the nature of the work and the different value streams across your business, you can more accurately measure outcomes and impact rather than simply counting actions.
“When AI is introduced thoughtfully, with the right guardrails and genuine support for the people using it, it can enhance rather than erode what makes work meaningful and impactful.
Hundreds of conversations users had with Claude, Anthropic’s AI chatbot, were found to be available online for public viewing.
The issue was discovered by a Reddit user who used a specific Google search that used specific keywords bringing up specific user chats with Claude.
Claude chats that showed up in the Google Search were those where a user had clicked to “share” a link, which had been saved by the search engine, meaning they were then observable to the public. Chats where this share link was clicked also appeared on other search engines such as Duck Duck Go, Bing, and Brave.
The “share chat” option on Claude allows users to create a link to specific chats that they can share with others. The interface says that “Anyone with the link can view” similar to the share option available on Google Docs.
How did these chats end up available on search engines then?
A spokesperson for Anthropic said that only chats shared publicly and where Search Engines could see – for instance, social media platforms or online forums – while a privately shared link would not be accessible on a search engine, according to TechCrunch.
Amie Rotherman, an Anthropic spokesperson, explained: “We give people control over sharing their Claude conversations publicly, and in keeping with our privacy principles, we do not share chat directories or sitemaps with search engines like Google.
“These shareable links are not guessable or discoverable unless people choose to share them themselves. When someone shares a conversation, they are making that content publicly accessible, and like other public web content, it may be archived by third-party services.”
The issue was first reported on Reddit Saturday, but appears to have been disabled as the same search method does not bring up Clause user conversations.
However, many user conversations were seen across the internet, some of which including personal information like names, work places, and medical information.
Claude conversations that generated erotica were also found on the internet, despite Anthropic guardrails that supposedly prevent Claude from generating sexually-explicit material.
Anthropic has already faced similar issues in the past – hundreds of Claude chats were found on search engines last year as reported by Forbes, which were then taken down by Anthropic.
Other AI chatbots have experienced the same, with ChatGPT and Grok conversations found via search engines.
The new Prime Minister has launched an AI Taskforce to be chaired by Lord Vallance, set to drive the government’s overall strategy on AI.
The remit of the Taskforce will be to transform public services and unlock growth and prosperity across the country, learning lessons from models such as the Vaccines Taskforce which showed that an empowered unit, with clear accountability to the Prime Minister, can drive extraordinary outcomes and deliver real benefits for people across the country.
Reporting to Cabinet Secretary Antonia Romeo and AI Minister Narayan, the Taskforce will deliver the Prime Minister’s AI agenda.
Lord Vallance, as Chair, will report directly to the Prime Minister.
“AI is rapidly changing our world and we need to make sure it works for everyone. The opportunities are huge if we get it right and I want AI to power a new industrial revolution that drives good growth in every postcode,” Prime Minister Andy Burnham said.
“Lord Vallance is a true public servant with decades of experience, expertise and a track record of delivery. I’m delighted he’ll be chairing the AI Taskforce, putting AI at the centre of all our work to change people’s lives for the better.”
Lord Vallance said: “I’m delighted to be appointed Chair of the AI Taskforce and Oxford-Cambridge Growth Corridor. This government is sending a signal that’s clearer than ever before about its commitment to realising the opportunities of AI and Science and Technology.
“The potential to transform public services, drive growth and improve people’s lives is immense, and I intend to make sure we deliver on it.”
The Taskforce will be based with First Secretary of State Louise Haigh in the Office for the Prime Minister and the Cabinet (OPMC).
The OPMC will include the AI Taskforce alongside No.10, No.10 North and core Cabinet Office functions. The Taskforce’s fundamental purpose will be the direction and implementation of the government’s strategy on AI.
The Taskforce will also lead on enabling transformation and AI adoption across the public sector. Responsibility for the existing AI Security Institute will move to the Office for the Prime Minister and the Cabinet.
Nvidia and other organisations have launched a new alliance to build and share open tools that promote the responsible use of and trust in AI.
The Open Secure AI Alliance follows on from a letter penned by top tech leaders, including Nvidia’s Jensen Huang, aimed at lawmakers to halt over-zealous regulation on open-source and open-weight AI models.
The Alliance, building on the leadership of the Linux Foundation’s Akrites initiative and OpenSSF community work, will work to remediate and disclose vulnerabilities using open technologies.
“Just as open source created a shared foundation for software, the United States and its partners now face a choice in AI security: whether the defenses that protect our infrastructure will sit inside a few opaque systems or be built on open models, harnesses and tools that any defender can study, adapt and deploy,” Nvidia’s blog said on the announcement.
Nvidia says that open models democratise defensive capabilities, increase transparency, and even compliment closed models.
The announcement of the Alliance is hot off the tails of the Hugging Face hack committed by OpenAI models in a cyber test. Hugging Face was blocked from using essential forensic analysis by the closed OpenAI models infiltrating it – it needed to employ the open-weight GLM 5.2 model to contain the intrusion.
“That incident showed a practical truth: when defenders cannot inspect, adapt and run advanced AI on their own infrastructure, their ability to respond is constrained at exactly the moment speed matters most,” Nvidia commented.
“Companies and countries need open frontier defensive tools and techniques so critical industries can build security systems across a multi-vendor ecosystem and avoid single points of failure.”
The Open Secure AI Alliance has amassed a range of leaders across the tech ecosystem: Adobe, Cadence, Capital One, Cisco, Cloudera, Cloudflare, Cognition, CrowdStrike, Databricks, Dell Technologies, DoorDash, Elastic, HPE, Hugging Face, IBM, LangChain, the Linux Foundation, Microsoft, NAVER, NetApp, Nous Research, OpenClaw, Palantir, Palo Alto Networks, Red Hat, Reflection AI, Salesforce, SAP, SK Telecom, ServiceNow, Siemens, Snowflake, SpacexAI, Synopsys, Thinking Machines Lab and TrendAI.
Over two thirds (68%) of private business owners in Scotland are confident in delivering growth in the second half of 2026, according to KPMG.
At the start of 2026, KPMG’s annual Private Enterprise Barometer surveyed 1,500 privately owned businesses across the UK, including 119 in Scotland, spanning sectors such as professional services, financial services, technology, industrial manufacturing and retail, to understand their growth ambitions and priorities for the year ahead.
Six months on, following a challenging period for the UK and global economy amid instability in global energy markets, persistent inflation and trade restrictions, KPMG returned to these same businesses to understand how changing economic conditions have influenced their outlook.
At the beginning of the year, 87% of private businesses in Scotland expressed confidence in their growth prospects for the next 12 months. By the mid-year mark, this sentiment has fallen, with confidence levels now at 68%, reflecting a change in expectations for growth during the remainder of the year.
Investment priorities
Technology continued to dominate as a leading investment priority for Scottish-based businesses, with nearly half (44%) identifying areas such as artificial intelligence (AI), cyber security and broader digital transformation as key focuses. And while this is 22-percentage points below the UK average, it represents a six-percentage point increase compared with the beginning of the year.
Diversification also remains firmly on the agenda, with over half (52%) of businesses across the country looking to expand their service offerings and broaden their client base. This does, however, represent a decrease from 63% at the start of 2026.
Of businesses considering how to fund their growth plans, nearly a third (30%) of businesses continue to say they are open to private equity investment. Notably, however, nearly six in 10 (59%) Scottish businesses are looking to focus on driving investment through their own balance sheets, above the UK average of 57% and just a two-point decrease from the beginning of the year.
Looking ahead
Amid a dip in confidence, businesses remain alert to the challenges ahead. More than half (55%) of businesses identified inflation and ongoing cost pressures, and global disruption impacting UK supply chains and trade as the two biggest short-term risks facing their organisations.
At the same time, firms are looking to policymakers to help strengthen long-term resilience. When asked about the Autumn Budget, over a third (37%) of Scottish businesses would like to see growth focused investment and industrial strategy, and business profitability and competitiveness prioritised by the incoming Chancellor.
Looking further ahead, the wider economic picture remains front of mind, with half (50%) of respondents pointing to UK economic outlook and productivity growth as the biggest external factor shaping decisions around investment, growth and exit planning.
“Scotland’s private businesses are proving resilient and are taking a pragmatic approach to the current economic environment. While confidence has eased slightly as firms continue to navigate inflation and global uncertainty, the ambition to grow remains clear,” Vishal Chopra, Scotland Senior Partner at KPMG UK, said.
“What’s particularly striking is that more businesses are choosing to back themselves. Rather than looking outside for funding, many are relying on their own balance sheets to invest and grow, giving them greater control at a time when the economic outlook remains uncertain.
“Now that the Scottish Parliament elections have passed, businesses will be looking for that renewed political focus to translate into greater economic certainty with a clear commitment to creating the conditions for investment and giving businesses the confidence to plan for long-term growth.”
UK-wide, private businesses outlined plans to continue to invest in technology and skills as part of efforts to boost growth after KPMG UK’s mid-year Private Enterprise Barometer revealed a dip in growth confidence due to ongoing UK and global uncertainty.
The survey found that 80% of business owners were confident in their firm’s growth prospects, down from 87% when asked earlier this year.
Overall, technology, including AI, remains the main investment priority signalling this is now shifting towards practical implementation of tech like AI to improve productivity, efficiency, and growth.
Looking ahead to the Autumn Budget, private businesses said the areas most in need of attention to help bolster growth are the faster adoption of new technology and boosting digital capability, growth-focused investment and the continued focus on a renewed industrial strategy.
Euan West, Head of KPMG Private Enterprise in the UK and EMA, said: “2026 has continued to present private businesses with a challenging operating environment, shaped by uncertainty both at home and abroad.
“Against that backdrop, it is encouraging that eight in 10 business leaders remain confident about their growth prospects. While confidence has eased since the end of last year, the overall picture remains one of resilience and determination.
“What stands out most is how private businesses are responding. Rather than pulling back, they are investing in skills, technology and the capabilities that will help them remain competitive and unlock future growth.
“These results highlight a business community that is realistic about the challenges ahead but confident in its ability to overcome them.
“Private enterprise leaders are entrepreneurial, action-oriented and focused on what they can control. They are not waiting for conditions to improve; they are getting on with the job of creating growth.”
A new survey of 250 senior payments and fintech leaders at Money20/20 Europe earlier this year suggested that real-time data access has become the deciding factor in payments performance.
The survey was conducted by the cloud-native payment processing company Silverflow and shows nine in ten respondents, 92%, said data visibility is “important” or “extremely important” to their business decision-making, with 64% rating it “extremely important.”
The finding underlines how central real-time data has become to strategic decision-making across banks, card networks, PSPs and fintechs alike.
“Payments leaders have effectively told us, unprompted, where the next gains are going to come from,” said Robert Kraal, Co-Founder at Silverflow.
“It’s a rare moment of near-unanimous agreement in an industry as fragmented as payments, and it underlines how central real-time data has become to strategic decision-making across banks, card networks, PSPs and fintechs alike. The people most frustrated by a lack of real-time data are the same people most hungry for better authorisation rates.
“That’s not a coincidence – it’s the industry pointing directly at the fix. If you want to move the needle on performance, you have to start with the data feeding it, in real time, not in a batch file from yesterday.”
But conviction hasn’t translated into capability. Asked about the biggest challenge in using data effectively, respondents ranked accessing real-time data as their number one barrier (33%), narrowly ahead of integrating data across systems (32%).
Together, the two responses point to a basic infrastructure problem still holding the industry back, even as appetite for smarter data use accelerates.
Cross-referencing the answers shows a link between the two issues.
Of respondents who named real-time data access as their single biggest challenge, 59% also identified better authorisation rates and payment performance as their top opportunity for improvement, compared with 35% across all respondents who cited performance as their leading opportunity overall.
Respondents who identified real-time data access as their biggest challenge were therefore more likely than the wider survey population to prioritise authorisation rates and payment performance as the area most in need of improvement.
The findings also challenge a common assumption about where payments priorities sit.
Performance and authorisation rates (35%) outranked cost optimisation (19%) as the leading opportunity for improvement in respondents’ payments and transaction stack, and edged out fraud and risk management, which was a strong second overall (26%).
AI stalwarts are backing open-weight AI models as the key to fair competition and lowering AI costs in an argument to lawmakers.
Top tech companies including Nvidia, Microsoft, Meta, and IBM wrote to lawmakers on Friday, urging them to halt “premature restrictions on open models that stifle competition or drive innovation overseas.”
The letter, which was posted on X, heightens the debate surrounding open source AI models and closed-source models.
Open-source models may be more difficult to regulate, but Palantir and Microsoft leaders both argue that they can help stymie out-of-control AI costs as firms can run the models in their own data centres.
Open-weight models can be downloaded and run, given access to the right compute power. The models’s training code and data are not, however, disclosed. China has largely taken the lead in developing these open-weight models, with its recent Kimi 3 model set to rival some of the top closed-source models developed in the US.
Open-weight models can be used by public organisations, businesses, researchers and universities without having to pay the price of a closed frontier model. These organisations can build on these models without building one from scratch.
The tech leaders also argued that open-weight models are integral to fair competition in AI “and competition is what keeps the gains of AI broadly shared rather than concentrated in a few hands.”
“Relying solely on closed models is not inherently safe: they can be breached, misused, or fail in ways that outsiders cannot detect,” the letter warns.
“Open weight models, on the other hand, allow a broad community of researchers and developers to examine their behavior, identify vulnerabilities, develop safeguards, and improve them over time.”
This warning is perhaps best exemplified by the recent hacking of Hugging Face by OpenAI models.
Hugging Face said that it had to turn to an open-source Chinese AI model to help it identify and defend against the hack by OpenAI models due to the closed-source models’ restrictions on cybersecurity use.
The notion of a “rogue AI agent” has prompted US lawmakers to debate the creation of a “kill switch” for AI models, while the US president posits sanctions on Chinese open-source models as allegations that they copied closed-source US AI technology mount.
The letter addresses these concerns, however, saying that rather than “sweeping restrictions,”, lawmakers should target these harms through “legal and commercial frameworks.”
Twenty-five firms signed the letter, with omissions including OpenAI, Anthropic, and Google.
However, Sam Altman, CEO OpenAI, supported the letter on social media, saying: “I want the US to win in AI both in open source and proprietary models, and I am glad to see this.”
Google CEO Sundar Pichai agreed, posting: “Very happy to support this on behalf of Google. We have long benefited from open source, are big contributors to open source and in fact have consistently made open weights models with Gemma available from @GoogleDeepMind and [DeepMind CEO Demis Hassabis]. Onwards!”
Applications have opened today for Round One, Scotland’s Investment Readiness Programme for pre-seed technology startups.
The programme’s Founders believe Scotland’s startup ecosystem is a sleeping giant: home to world-class talent, elite universities and pioneering technological innovation, yet too few companies make it through the earliest stages of venture creation.
The constraint, they argue, is not ambition, it is access to capital, support and exposure at the point it matters most.
Round One exists to remove that constraint. Now in its second year, the free, eight-week programme is built around a single premise: most of the UK’s pre-seed capital sits outside Scotland, and founders rarely get direct, unfiltered access to the people who control it.
Round One closes that distance – bringing venture capital funds and experienced operators directly to Scotland’s founders to share their insights and experience and in so doing, putting some of our most exciting startups on the radar of the UK’s most prominent early stage investors.
Round One is delivered by Alex Rowe and Bruce Walker who, together, have 25+ years experience supporting early stage Founders, in partnership with Dentons, RBS NatWest Accelerator, and funded by The Ecosystem Fund.
This year’s programme welcomes two new partners: PXN Ventures, the largest venture capital fund in the North of the UK with £670m assets under management and Cooper Parry, a fast-growing accountancy and advisory firm rapidly expanding its presence in Scotland.
The programme is open to Scotland-based founders with a live minimum viable product who have not yet raised equity investment and are preparing to raise within the next 12 months.
Delivered primarily in person across Glasgow and Edinburgh, the curriculum covers fundraising fundamentals, investor decks, financial modelling, investor prospecting, valuation and cap tables, legal mechanics, pitching, due diligence and much more.
Round One’s 2025 cohort heard directly from VC funds collectively managing more than £250m+ including Ada Ventures, Twin Path Ventures, Sure Valley Ventures and SolidBond, alongside a number of active angel investors.
For their 2026 cohort, they are building on that approach, with investors such as Eka Ventures, Ascension and Singular already confirmed to join.
The programme also brings in later-stage operators and exited founders, designed to recycle their experience of raising, scaling and exiting back into Scotland’s earliest-stage companies. Last year, this included the likes of Ember, Desana, FreeAgent and Valla.
The 2025 inaugural cohort saw 10 founders complete the programme, a number of whom have already gone on to secure equity investment. Feedback from the cohort has been unequivocal about the programme’s impact.
“Scotland is full of talented pre-seed businesses with global ambitions and compelling solutions, and our ability to nurture this talent is vital to continuing the growth we’ve seen in Scotland’s early-stage and scale-up ecosystem,” Alastair Moore, Investment Director at PXN Ventures said.
“As an investor that writes cheques from pre-seed to Series B, we’re very excited to be partnering with Round One, which bridges the investment readiness and funding gap by providing a platform for investors to actively help pre-seed founders raise their first cheque and future rounds.”
Andrew Holloway, Partner, Cooper Parry added: “Scotland has an excellent track record of producing ambitious founders, and programmes like Round One play a vital role in helping them build scalable businesses.
“Getting the foundations right early matters, particularly when it comes to finance and fundraising readiness. Through our expertise and network, we’re excited to help founders build the confidence, credibility and financial rigour investors look for, creating a strong platform for sustainable growth.
“On a personal note, I’m delighted to be continuing to work with Bruce and Alex, having seen first-hand the impact they make for founders across Scotland.”
Applications for Round One 2026 are open from 27 July until 21 August 2026. Ten places are available. The programme is free to participating founders. Full eligibility criteria and the application form are available at https://roundone.tech/
Worldwide IT spending is expected to reach $6.37 trillion in 2026, up 14.2% from 2025, according to the latest forecast by Gartner, Inc.
“Data center systems and infrastructure as a service (IaaS) are the top growth segments, reflecting accelerating investment in AI infrastructure, cloud platforms, and intelligent applications,” said John-David Lovelock, Distinguished VP Analyst at Gartner.
“Building the compute capacity required for AI is the largest infrastructure project ever attempted by humanity. Driven by the expansion of AI workloads and demand for high-performance computing, hyperscalers and enterprises are rapidly scaling next-generation data center capacity.”
These trends underscore that AI infrastructure, AI-enabled cloud platforms and advanced software ecosystems will remain the most attractive segments for capitalising on the strong expansion in global IT spending.
“Despite the strong growth in spending, this is not a rising tide lifts all boats market trend,” said Lovelock.
“Technology budgets are being strained by inflation, supply shortages, rising hardware and memory costs, AI funding initiatives and shifting priorities.”
In this latest forecast update, total IT spending has been revised upward with stronger growth projections, reflecting increased confidence in overall market expansion.
The revision places greater emphasis on AI-related spending, with incremental growth increasingly concentrated in segments directly benefiting from AI adoption, while traditional segments show comparatively modest changes.
“IT spending growth is being fueled by rising investments in AI infrastructure and software. Organisations are spending more on AI optimised servers, cloud services, and AI-ready software as they expand their AI efforts, while hardware markets continue to adjust to semiconductor and memory supply constraints,” said Lovelock.
“The fastest growth is expected in AI-related infrastructure, cloud services, and software, reflecting the strong focus on building and scaling AI capabilities across the enterprise.”
Russian state-supported cyber actors have targeted Western organisations with a malicious campaign which uses a zero-click exploit coined “beehive” (or “Ulej”) to steal emails, the UK has warned.
The National Cyber Security Centre (NCSC), alongside cyber security agencies in 15 countries, has exposed activities of Laundry Bear, an advanced persistent threat group who specialise in the covert acquisition of email data.
Since July 2025, Laundry Bear has successfully targeted and stolen sensitive email information from organisations that use Zimbra Collaboration Suite (ZCS) software. US organisations have been targeted in sectors including defence, government, education, energy, law enforcement, media, NGOs and technology.
In a new joint advisory, the NCSC and partners warn Laundry Bear’s ongoing campaign is indicative of espionage and almost certainly carried out with Russian state support.
Unlike traditional phishing campaigns, “beehive” allows the threat actors to gain extensive and sustained access to emails without requiring a user’s input.
Instead of clicking a link or opening a file, the user only has to view a malicious email within a vulnerable version of the ZCS webmail service to be compromised.
Organisations that use ZCS are urged to follow the mitigation advice, including to immediately patch vulnerabilities and improve network monitoring capabilities.
The cyber agencies caution that it is likely “beehive” could be adapted to exploit other vulnerabilities. As more organisations update their ZCS software, it is very likely that the group will also look to target other email systems that Western organisations use.
The NCSC recommends all UK organisations should sign up to the free Early Warning service for malicious network activity notifications.
The government is committed to raising cyber resilience across the UK to protect businesses and safeguard growth. Earlier this month, businesses from every corner of the British economy joined a pledge publicly committing to strengthen their defences in the face of a fast-evolving threat.
“Today’s action shows we’re working hand-in-hand with our allies to expose Russian state-supported hackers targeting Western organisations,” security minister, Dan Jarvis, MBE said.
“It’s particularly concerning that these thugs tested their methods on victims in Ukraine, before targeting members of NATO.
“Organisations across the UK should sign up to NCSC’s Early Warning service to ensure they can quickly secure their systems against similar activity.”
The advisory highlights how these malicious cyber techniques were extensively trialled on Ukrainian victims before use against members of NATO, which is part of a growing trend amongst Russian cyber threat groups.
In this case, technical analysis indicates that Artificial Intelligence (AI) played a role in the development of a simple codebase for the operation. Recently, the Five Eyes cyber security agencies called on leaders to take key actions as AI continues to accelerate the speed, scale, and sophistication of cyber threats.
The NCSC has co-sealed this new advisory alongside agencies from Australia, Canada, the Czech Republic, Denmark, Estonia, Finland, France, Italy, Moldova, Poland, Spain, Sweden, the Netherlands, New Zealand and the United States.
“This phishing campaign demonstrates how hostile actors will ruthlessly adapt techniques and exploit vulnerable technology in pursuit of their aims to steal sensitive information from Western organisations,” Beth Hopkins CMG, NCSC Chief Operating Officer, said.
“With our international partners, we strongly encourage organisations to familiarise themselves with the ‘zero-click’ techniques described in the advisory which could be used against other platforms, and act on the mitigation advice.
“We will continue to call out malicious cyber activity supported by the Russian state and urge everyone to follow NCSC guidance to raise resilience, including steps to strengthen online account security.”
Sword has become the first regional Splunk partner in the UK and Ireland to achieve Elite status within the Splunk Advise Motion programme, recognising the company’s proven consulting expertise, technical capability and track record of delivering successful customer outcomes.
The achievement represents the highest level of accreditation within Splunk’s Advise Motion programme and places Sword among a select group of partners recognised for their ability to help organisations maximise value from their data through advisory, consulting and professional services.
Elite status is awarded to partners that can demonstrate deep technical expertise, accredited skills, established consulting practices and verified industry experience.
The recognition reflects Sword’s continued investment in developing specialist capabilities, supporting professional development and accreditations, and building a mature consulting practice that delivers measurable outcomes for customers.
Sword works with organisations in highly regulated operations across critical national infrastructure including major energy and financial services providers.
Through its partnership with Splunk, the company helps customers improve operational resilience, strengthen security, increase visibility across IT and operational technology environments, and make informed, risk-based decisions.
Kevin Moreton, CEO of Sword UK, said: “Being the first regional Splunk partner in the UK and Ireland to achieve Elite status is a fantastic achievement for Sword.
“It reflects the expertise of our people, the strength of our partnership with Splunk, and our commitment to delivering meaningful outcomes for customers operating in some of the most demanding and highly regulated environments.”
Alexandra Turbitt, GVP, Partner Organisation and Digital Sales, EMEA, Splunk, shared: “Achieving Elite status further strengthens Sword’s partnership with Splunk, a Cisco Company, and reinforces the company’s commitment to helping organisations address complex operational, security and data challenges through a combination of technical expertise, industry experience and advisory-led services.”
Those interested in exploring these challenges further can register for Sword’s upcoming webinar, Building Resilience Through Observability, taking place on 29 July at 1pm, where experts will discuss how real-time observability can help organisations strengthen resilience, support regulatory compliance and improve decision-making across complex IT and OT environments. Registration is available at Register for the webinar.
AI continues to make ransomware harder to detect, with 65% of those hit by a ransomware attack saying the emergent tech made the attack more effective.
According to research from Proofpoint, phishing attacks, identity campaigns, and credential theft are being enhanced by AI, making these attack vectors more compelling and effective.
The 2026 AI-Era Ransomware Report found that ransomware attacks commonly targeted humans as an initial entry point. Nearly half (47%) of the incidents Proofpoint studied involved malicious links, 46% utilised malicious attachments, and 36% used credential harvesting.
Humans could prove to be a high risk when facing an AI-driven threat: 40% said that an initial attack lure appeared legitimate when asked why a ransomware attack was able to bypass existing security controls – employees just did not suspect the lure.
AI has removed many of the tell-tale signs of traditional ransomware and social engineering attack vectors, drafting emails and texts without spelling errors or uncanny phrases, and creating landing pages that look more authentic.
Machines are falling for it too — technical controls and software protections often fail to detect suspicious or malicious activity as AI enhances traditional attack vectors.
Of workers who experienced a cyber-attack, a third said that existing email controls did not detect the attack, while a quarter said that attack progressed due to misconfigurations or security control gaps.
“AI hasn’t fundamentally changed ransomware, but it has materially improved the attacks that lead to ransomware,” Proofpoint chief strategy officer, Ryan Kalember, said.
“Today’s attackers are using AI to create highly convincing phishing emails, malware components like scripts, and credential theft campaigns that exploit human trust at scale.
“Organisations that continue treating ransomware and data extortion as endpoint or recovery problems are missing what these attacks most frequently begin with: people, identities and trusted communications.”
The EU has issued two fines totalling 890m euro (£759m) to Google for breaching regulations concerning market regulation in its search results.
The European Commission found two counts of non-compliance from Google concerning market regulations, issuing the tech giant two separate fines: one for £392m and the other for £367m.
One of the fines was for self-preferencing Google’s own services on Google Search, whereas the other charge concerned Google Play blocking customers from being steered toward cheaper options.
Google was found to break the Digital Markets Act by propping up its own services – from shopping to transport and hotels – above competitors in search results. It did this through physically preferencing Google services at the top of the page, or by enhancing visuals for Google options which are not done for rival choices.
Google Play also was found to have stopped app developers from offering cheaper alternatives to users.
“Google must now bring the non-compliance to an end and to refrain from continuing it in the future,” Henna Virkkunen, the European Commission’s executive vice president for tech sovereignty, security and democracy, said.
“Today’s decisions send a clear message: we will not hesitate to use our tools to safeguard business and innovation opportunities opened up by the Digital Markets Act.”
Google has already shot back at the EU ruling in a statement, with Kent Walker, president of the global affairs for Google and Alphabet saying: ” “This implementation of the Digital Markets Act continues to break everyday products.
“To comply, we are having to strip away real-time Search features Europeans love – like instant pricing and direct availability for hotels, flights, and restaurants – and dismantle safety protections on Google Play.
“This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit.
“Regulation should improve products, not make them worse.”
The tech giant will have 60 days to comply with the market regulations, but may delay this by contesting the ruling in a legal suit.
As UK policymakers and business leaders continue to prioritise productivity and efficiency, new research from Freshworks suggests many organisations are instead creating a new layer of internal bureaucracy through increasingly complex AI environments.
The findings, from the Freshworks GlobalCost of Complexity Report – a study of 12,021 IT decision-makers (director level and above) across six markets, including 2,011 respondents in the UK – show that managing AI complexity is placing growing pressure on IT teams.
Almost nine in ten (88%) UK IT decision-makers say it has increased their team’s workload, while a similar number (87%) report that between 10-39% of their team’s AI-related time is spent managing complexity rather than doing strategic work.
The research suggests that the operational burden of AI is eroding many of the productivity gains organisations expected. UK IT teams now spend around a quarter (25%) of their AI-related working time managing integrations, troubleshooting and complexity instead of focusing on strategic AI initiatives.
Meanwhile, organisations estimate that almost a quarter (24%) of their AI budgets are lost to what Freshworks calls the “complexity tax” – unplanned costs associated with integration challenges, governance, data preparation, rework and ongoing support rather than AI capability itself.
The scale of the challenge is reflected in wider sentiment, with a third (33%) of UK IT decision-makers describing AI complexity as “a very significant issue” for their organisation today.
Simon Hayward, Vice President of Sales, EMEA, comments: “UK businesses are under pressure to boost productivity and cut through bureaucracy, yet our research shows AI is often adding to the workload rather than easing it.
“When IT teams are spending a quarter of their time managing complexity instead of driving innovation, and organisations are losing almost a quarter of their AI investment to unexpected overheads, it’s clear that complexity has become a major barrier to realising AI’s potential.
“If AI is going to move the needle on UK productivity, organisations need to plan for how it fits into their existing systems and teams, not just for the technology itself.”
Cirrus Logic, a high-performance, low-power audio and mixed-signal semiconductor solutions firm, has received a research and development grant from Scottish Enterprise to support the development of next-generation smart energy technology and expand advanced engineering activities in Scotland.
The funding supports development of a new metrology analogue front-end (AFE) platform that delivers high-accuracy energy measurement and metrology calculations for smart power metering applications.
Designed for use in residential, commercial, and industrial energy metering, the core IP supports applications such as EV charging, data centre DC metrology, energy storage, and grid monitoring. More broadly, it addresses growing demand for grid modernisation, energy management, and decarbonisation technologies.
The investment reinforces Cirrus Logic’s long-standing commitment to Scotland, where the company has built its largest engineering operations outside of the United States.
“Our Scottish engineering talent and operations have been an integral part of Cirrus Logic’s success for many years,” said Neil Rankin, Vice President, Engineering at Cirrus Logic.
“The project supports continued investment in engineering talent, research capabilities, and infrastructure in Edinburgh while strengthening Scotland’s position as a centre for semiconductor innovation.”
Eddie Sinnott, Vice President of the Industrial and Automotive Business Units at Cirrus Logic, said: “This investment will help Cirrus Logic expand collaboration between industry, academia, and the public sector to advance engineering work.
“It also helps us build expertise in the globally critical areas of electrification and energy management and create opportunities for the next generation of engineers and innovators.”
As part of the project, Cirrus Logic has also expanded its collaboration with the University of Strathclyde’s Institute for Energy and Environment on research contributing to the optimal management of energy by utility and infrastructure providers.
“The transition to smarter, more flexible energy systems depends on advances in the technologies that measure, manage, and optimise electricity use,” said Graeme Burt, Distinguished Professor of Electrical Power Systems and Director of the Institute for Energy and Environment, University of Strathclyde.
“Collaborations like this bring together academic insight and industrial expertise in a way that can accelerate innovation and support the development of practical solutions fit for the evolving needs of modern energy systems.”
Scotland at the Core of a Global Technology Strategy
For more than 40 years, Cirrus Logic, and its predecessor, Wolfson Microelectronics, have invested in the region, growing its Edinburgh operation into a major engineering hub where teams contribute across the full product development lifecycle, from architecture and design through testing and product delivery.
As part of the initiative, responsibility for elements of intellectual property development and advanced feature design will continue to expand within the Edinburgh team, supported by investments in engineering infrastructure and talent.
The project aligns closely with Scottish Enterprise ambitions to support high growth future industries and scale the impact of Scotland’s innovation strengths.
“Cirrus Logic has been an important part of Scotland’s technology landscape for many years, and this latest investment shows how Scottish R&D can help deliver the smart energy systems needed for a net zero future,” said Reuben Aitken, Managing Director, Energy Transition and international, Scottish Enterprise.
“We look forward to continuing our work with Cirrus Logic as it strengthens its presence in Edinburgh with Scottish engineering driving the next generation of smart energy innovation.”
Investing in Scotland’s Future Workforce
Cirrus Logic’s investment in Scotland extends beyond technology development.
Through its University Engagement programme, the company works closely with universities across Scotland and the UK, including the University of Strathclyde, the University of Glasgow, the University of Edinburgh, and Heriot-Watt University.
At the University of Strathclyde, Cirrus Logic supports engineering scholarships designed to encourage and develop future technology leaders. Cirrus Logic also recently announced a joint internship program with the University of Glasgow and the Royal Scottish National Orchestra.
The company also offers a range of internships, graduate opportunities and mentoring programs, and collaborative research projects that help strengthen Scotland’s engineering talent pipeline.
The project is scheduled to run through 2028 and represents the latest chapter in Cirrus Logic’s continued investment in Scotland’s technology sector, talent pipeline, and innovation ecosystem.
AI is already part of everyday work, but organisations must close a confidence gap before they can unlock the next wave of AI productivity, according to new global research from TeamViewer.
While three quarters of respondents use AI daily, 61% still prefer human oversight before AI takes action — even as IT leaders expect nearly 40% of digital workplace services to run autonomously by 2030.
The global study Path to the Autonomous Workplace examines the shift from AI assistance, where people prompt tools and review outputs, toward autonomous systems capable of detecting needs and acting on them with progressively less human intervention.
The study discovered daily use of AI, with 75%of respondents using AI at least once a day. Only 3% report no noticeable workplace benefits from using AI, and 64% describe their experience with AI as positive.
A quarter (26%) f IT leaders describe their departments as at least partially autonomous, with nearly all (99%) IT leaders saying they would be comfortable delegating at least one task to AI.
However, 61% of total respondents prefer AI to take no independent action.
While 35% are ready to allow AI to act more autonomously on their behalf, a majority of that group (71%) are only comfortable with AI handling defined tasks. Only 1 in 20 (5%) have no concerns about AI operating without a human in the loop.
Autonomy may not be the real issue, but visibility is: 40% want AI to detect and fix issues early while keeping them informed, and 70% are comfortable with AI acting autonomously as long as they can step in when needed.
Respondents say autonomous action would be more acceptable with strong security and privacy protections (39%), notifications before major changes (36%), limits on what AI can access (36%), visible activity logs (33%) and rollback options (31%).
By 2030, 33% expect AI to assist while they continue doing most tasks, 28% expect to delegate more tasks and focus on higher-value work, and only 2% expect their role to be eliminated.
The findings reveal what TeamViewer calls the AI Confidence Gap: people are increasingly comfortable using AI for assistance, but less ready to give autonomous systems greater access, authority and responsibility.
That gap is already creating a verification burden. More than half of respondents (56%) often or always verify AI outputs before relying on them, spending an average of two hours per week checking AI-generated work, while 51% say they do not always know when to trust AI and when to verify it.
“AI is already changing how people work, but the next phase will be defined by trust,” said Oliver Steil, CEO at TeamViewer.
“Organisations will not succeed by giving AI unlimited authority. They will succeed by building systems that operate safely, transparently and accountably within clearly defined guardrails.
“The real opportunity is to use AI and automation to prevent disruption, improve digital experiences, and free people to focus on higher-value work. Trusted autonomy, not unchecked automation, is what will unlock the next generation of productivity.”
One in four businesses (26%) have suffered a cyber incident that originated in their supply chain over the last year.
This is despite organisations being highly aware of the risk facing them, with nearly half (48%) stating that they have continued working with suppliers despite known resilience or security concerns.
The findings come from theData Health Check 2026 from Databarracks, an annual survey of 500 IT decision-makers, which also revealed that in many cases organisations lack viable alternatives: more than a quarter (26%) identified “dependence on suppliers” as a main barrier to improving resilience.
Almost nine in ten businesses (89%) assess supplier resilience at onboarding, and the majority (61%) assess supplier resilience on an annual, quarterly or continuous basis.
“Supply chain vulnerabilities” was also identified as one of the top three challenges facing organisations over the next five years, cited by 23% of respondents. This is behind only AI-driven cyber threats (46%) and ransomware (26%).
Organisations that knowingly work with risky suppliers were more than 4 times as likely to experience a supplier-originated cyber incident. 43% of those organisations experienced an incident, compared with 10% of those that did not knowingly work with risky suppliers.
“This year’s findings indicate that supply chain resilience remains a critical pain point for many businesses, which the majority are aware of and which continues to be exploited by attackers. When something goes wrong at a key supplier, the cascade effects can be profound for businesses throughout the chain,” Chris Butler, Resilience Director at Databarracks, said.
“Despite good intentions around assessing supplier resilience, most companies don’t fully understand the depth of complexity in their supply chains. Often they’ll know who their core suppliers are, but beyond that, visibility drops away.
“The traditional approach to assessment has long been tick-box based, with compliance questionnaires growing longer every year. This approach creates a false sense of assurance rather than real resilience.
“To truly manage your supply chain continuity, it’s vital to actually get visibility of the situation. Business leaders need to treat supplier resilience as part of their own resilience, not somebody else’s problem. It’s a bit of a cliché but for good reason: you really need to treat your critical suppliers like you would your own business.
“Where there isn’t a viable alternative and your existing suppliers don’t have in-house business continuity skills, offer to help. Include your suppliers in your business continuity exercises and give them the chance to rehearse with you. It’s important to practise the response to disruption together rather than in isolation. Doing this will benefit you in the long run.”
The first half of 2026 saw UK fintech firms raise $1.5bn (£11bn), a 35% decrease from H2 2025 and 26% down year-on-year, according to Tracxn Technologies data.
The data showed that early-stage and seed funding was able to hold their own, while the contraction was largely to do with late-stage funding.
Late-stage funding decreased 45%, tp £621m in H1 2026 compared to £1.1bn in H2 20266 and H1 2025. This points to potential hesitancy at the scale-up stage.
On the other hand, early-stage funding also slipped, though not as significantly, with a 26% fall from last half, though H1 2026’s £420m represents a 27% rise on H1 2025.
Seed funding, which held about the same year-on-year, saw a 95% jump compared to H2 2025.
In terms of megarounds, these remained steady, with six rounds of $100m or more, just outdoing the five each in H1 and H2 2025.
H1 2026 saw London’s dominance fall slightly to 94% half-on-half, as Edinburgh claimed £9.9m in fintech funding, followed by Belfast (£9m), Cambridge (£6m) and Manchester (£2.2m).
This half also saw acquisitions fall 25% from H2 2025, to just 42.
The UK’s Cyber Security & Resilience Bill may fail to achieve its goals unless the Government fundamentally shifts how it addresses the country’s cyber skills crisis, an authoritative new report warns.
Published today by The CSBR, the report – The UK Cyber Skills Gap: Building Capability and Resilience – reveals that, while the UK has built a solid foundation of cyber initiatives, an unstable “hourglass” labour market structure combined with expanding regulatory burdens threaten to undermine genuine digital resilience across critical national infrastructure.
Following royal assent, the Cyber Security & Resilience Bill is expected to expand regulatory powers to managed service providers and introduce strict 24-hour incident reporting.
But the report highlights that this will trigger an unprecedented surge in demand for compliance and assurance skills, inadvertently creating the new risk of the UK trapping scarce technical talent in a cycle of bureaucratic box-ticking.
Drawing on official evidence including the Government Cyber Action Plan, the NCSC Annual Review 2025, the Cyber Security Breaches Survey 2025 and the Cyber Security Skills in the UK Labour Market 2025 report, the report identifies several glaring gaps in the cyber workforce.
About half (49%) of UK businesses and 58% of government organisations already suffering from a basic cyber skills gap.
Without systemic reform, critical personnel will be diverted into compliance management rather than practical threat defence, resulting in legal contestation instead of security.
The report also identified a structural crisis in the UK cyber workforce, which resembles an hourglass: high demand for experienced mid-to-senior level practitioners, but a severe bottleneck at the bottom.
In 2024, 65% of core cyber job postings required mid-level experience, whereas entry-level opportunities fell to just 17%.
The CSBR also identified what it dubs to be a ‘leaky bucket’ dynamic, in which trained public sector staff continuously exit to better-paid private sector roles due to rigid pay constraints, recycling the shortage rather than solving it.
“Noone wants a scenario in which the Cyber Security & Resilience Bill becomes a paper tiger,” James Morris, founder of The CSBR, said.
“Unless policy makers systematically connect our fragmented training programs and create viable entry routes for new talent, regulations will overwhelm the very sectors they are meant to protect. We could easily end up with compliance ‘contestation’ instead of genuine resilience.”
OpenAI said that an autonomous agent using one of its AI models went rogue in security testing, which compromised some of Hugging Face’s infrastructure.
The incident was driven by a combination of OpenAI models, from GP-5.6 Sol and even a pre-release model, which all had reduced cyber refusals for evaluation purposes.
OpenAI called this an “unprecedented cyber incident” in a blog post, and is actively investigating the incident with Hugging Face.
Hugging Face, which hosts large language models and open-source data sets, disclosed that it had been hacked last week, saying in a blog post that the incident “was different from anything we had handled before,” and that “it was driven, end to end, by an autonomous AI agent system.”
In OpenAI’s blog post detailing the incident, the ChatGPT maker said that its test ran “without production classifiers used to prevent models from pursuing high-risk cyber activity.”
What Happened?
The incident occurred during an internal evaluation which meant to quantify a model’s cyber capabilities by prompting it to pursue advanced exploitation via complex attack paths.
The evaluation was run in an isolated sandboxed environment, with constrained network access. During the test, the models spent a substantial amount of compute power trying to gain open Internet access to achieve its prompted goal.
To achieve this, the models exploited a zero-day vulnerability which OpenAI has now disclosed to the vendor, which existed in the package registry cache proxy.
With open Internet access, the models found ways to cheat the evaluation – in one case a model chained together multiple attack vectors, including stolen credentials and zero-day vulnerabilities, to discover a remote code execution path on Hugging Face’s servers.
By the time OpenAI had connected with the Hugging Face team, its security had already detected and stopped the activity.
“This is a containment story before it’s an attacker story. A capable model pursuing a narrow goal found the isolation around it was weaker than assumed,” Ross McKerchar, CISO at Sophos, explained.
“The AI didn’t break out because it developed independent will or malicious intent. It was being tested on ExploitGym (a cybersecurity benchmark), and its guardrails were intentionally turned off for the evaluation.
“Like a student realising it is easier to steal the teacher’s answer key than study, the model calculated that chaining vulnerabilities to reach Hugging Face’s database, where the ExploitGym solutions were stored, was the most efficient way to maximise its score.
In response to the incident, OpenAI says it is “implementing strict controls in infrastructure configuration at the cost of research velocity while the vulnerabilities are patched.”
The incident should not be looked at in isolation – OpenAI recently shared that it paused the internal deployment of a new model due to it seeking ways to evade its constraints during testing.
Hugging Face says it is proactively working with OpenAI, with CEO Clément Delangue saying “we strongly believe there was no malicious intent on their part. It’s quite mind-blowing that all of this happened autonomously!”
Ansgar Dodt, VP Product Management, Software Monetization at Thales said. “This attack is the first example of what we’ve been warning about for a long time – organisations must now assume their software and applications will be continuously analysed, deconstructed and stress-tested by adversarial AI. Whether this one was accidental or not, the outcome is the same.
FinTech Scotland has today announced that the ninth FinTech Scotland Festival will take place from 30 September to 7 October 2026, with in-person and online events across the central belt of Scotland.
The Festival will bring together international industry leaders, entrepreneurs, policymakers, investors, innovators and academics from across the UK and beyond; to discuss how Scottish fintech innovation drives growth, job creation and global competitiveness.
It will explore the future of financial services, spotlight the achievements of Scotland’s fintech cluster and spark new partnerships, with a strong emphasis on innovation fueling growth through delivering solutions to real world problems.
This year, the Festival will focus on AI adoption, quantum technology in financial services, financial regulation innovation, digital trust, women in fintech and growing fintechs. Events will connect members of the FinTech Scotland community, building further on the uniquely collaborative ecosystem.
The Festival’s opening day will include an invitation-only reception hosted by Lloyds Banking Group at their Edinburgh Headquarters and the week will conclude with DIGIT’s prestigious Scottish Financial Technology Awards, recognising and celebrating excellence across Scotland’s fintech community.
Organisations are also invited to run their own in‑person, online or hybrid fringe events during the week, that will be promoted alongside the main programme.
Building on the success of last year’s Festival, which attracted attendees from around the world, the FinTech Scotland Festival 2026 is the key event in the Scottish fintech calendar.
“Fintech is delivering real benefits for businesses, the public sector, our economy and society,” Aleks Tomczyk, Chief Executive at FinTech Scotland, said. “The Festival is a celebration of the remarkable progress and innovation that is taking place in the fintech sector. The Festival is a recognition of the sector’s intent to do and grow more.”
Pardeep Cassells, Chief Client Officer at AccessFintech, concluded: “Scotland is a great place to be a growing fintech with many compelling reasons to start, locate and grow a business here. We are really looking forward to the Festival events and networking with the people that comprise the depth of talent and make the community what it is.”
The Department for Science, Innovation and Technology (DSIT) has officially been scrapped as the new Prime Minister Andy Burnham steps into his role.
However, AI Minister Kanishka Narayan will be given a seat at the new prime minister’s table. Narayan was first appointed as AI Minister under former PM Keir Starmer.
DSIT was first created under the Sunak government in 2023 – the Conservative’s creation will now have its responsibilities split between different government departments.
Reports of its dissolutions caused dismay across the UK tech ecosystem, with former advisors and tech advocates calling the move a “mistake.”
Most of DSIT has now been absorbed by a new business-first department under former business secretary Jonathan Reylonds – the Department for Business, Innovation, Science and Trade.
Other aspects of DSIT will go under the newly dubbed Department for Digital, Culture, Media and Sport, led by Lisa Nandy.
Liz Kendall has been dismissed from her role as tech secretary in the cabinet reshuffle.
She said in her resignation letter: “The latest ONS figures show that science and technology are the key drivers of economic growth in this country. It is essential that we maintain this momentum in order to create the jobs and businesses of the future and allow all parts of the country to thrive.”
“If we are to build a modern Britain for a modern age we must do everything we can to support and nurture our world-leading tech sector.”
Time will tell if the inclusion of an AI minister in the cabinet will placait the concerns from the tech industry concerning the scrapping of DIST.
“AI is likely the most significant technology in human history. Its impact will dwarf other things.
“The best case for it is compelling beyond our dreams: a reindustrialised Britain, stronger national security, public services transformed for the better.
“The risks, too, are real: it is right that the British public shares those worries, for jobs, for the pace of change.
“The central fact is that it is happening. Nations have a narrow window to decide whether they shape AI or get shaped by it. Britain is in that window right now.
“While that window is still open, I will act with pace, I will act with ambition, and I will focus relentlessly on securing British influence in shaping AI.”
Despite enterprise buyers accelerating AI investments, a lack of clear evidence and credibility is slowing decision-making, increasing scrutiny and making the overall buying process more complex.
This is according to a study from The Hoffman Agency, which surveyed 450 senior technology decision-makers across the UK, US, France and Germany.
It found that AI-related investment is a major focus for enterprises, with data and AI infrastructure (45%), generative AI (44%), cloud infrastructure (40%), AI-enabled solutions (39%) and agentic AI (34%) among the technologies organisations have invested in over the past 12 months.
Buyers plan to increase spend on a range of AI technology over the next 12 months with top areas including generative AI (36%), agentic AI (34%), data and AI infrastructure (34%), cloud infrastructure (34%) and AI-enabled solutions (33%).
What’s driving AI investments?
Improving operational efficiency (32%), keeping pace with technology advances (30%), reducing costs (25%) and faster product development (25%) are key drivers. Those priorities are reflected in where new technology is being applied, with task automation (38%), workflow optimisation (35%), product development (34%), risk analysis (31%) and customer support (30%) the most common priority areas.
“Despite all the hype around a multitude of benefits, enterprise AI buyers are still heavily focused on productivity gains. While perhaps understandable in the current economic environment, the AI growth narrative has yet to land with many enterprises,” said report author Tom Broughton, VP and head of enterprise AI at the Hoffman Agency.
Friction and Scepticism
While overall investment levels are ramping up, purchasing AI-enabled solutions is becoming much more complex. Nearly two-thirds of buyers (64%) say AI-related tech face more scrutiny than other technology investments. More than three-quarters (78%) believe that many AI companies make claims that are difficult to verify or compare, while more than two-thirds (69%) say many AI companies sound similar and are difficult to differentiate.
Even more concerning for vendors is that many buyers feel so overwhelmed by the volume of AI products emerging that three in five (61%) are unsure which ones are genuinely credible.
When claims are difficult to verify, buyers say the decision process takes longer (46%), larger or more established suppliers are favoured (37%), procurement or compliance checks increase (32%) and more stakeholders become involved in evaluation (32%). More than a quarter (27%) delay the purchase decision and one in six (16%) abandon the purchase entirely.
“Buying enterprise AI solutions has become a full-body contact sport. Vendors are flooding the zone with unsubstantiated and incomparable claims,” continued Broughton. “The result? More scrutiny, more scepticism, and more friction that is dramatically slowing purchasing and adoption. Enterprise AI buyers are yearning for evidence and credible claims that can help them make decisions with confidence.”
The strongest confidence builders for buyers are transparent explanations of how products work (46%), customer case studies with measurable outcomes (41%), proof of real-world deployment at scale (40%), demonstrated technical performance benchmarks (37%) and independent third-party validation (36%).
More than half (57%) of organisations use industry analysts to help identify and shortlist vendors. Media and independent sources also play an important role in discovery with one in four buyers (25%) turning to business technology media to discover new vendors.
LLMs are also becoming part of the buying journey, with one in six buyers (17%) using them to become aware of new vendors or solutions, and the same proportion (17%) citing them as influential when selecting between vendors.
“A frenzy of AI marketing messages has confounded enterprise buyers. They’re increasingly frustrated by the ‘black box’ nature of products and a lack of evidence-based success stories. They’re turning to third-party experts to help in their assessments and short-cut their processes. These are important lessons for marketers within vendors if they’re to deliver ahead of their competitors and meet growing market expectations for growth and profitability,” concluded Broughton.
Ofcom has seen the full extent of its power, and is working with the UK government to see if its powers can be strengthened, following a case with an online suicide forum.
Under the Online Safety Act, Ofcom was able to block UK access to a suicide forum operating outside of the UK, but now, all possible legal routes under the Act have been exhausted.
Ofcom says it is interested in reviewing its powers relating to ‘business disruption measures’ through which it can apply for a court order requiring internet service providers to block access to a site in the UK.
The forum – reportedly linked with over 130 deaths in the UK – was the first service to be investigated by Ofcom under the UK’s online safety laws last year. It has been cited in multiple coroners’ reports regarding the deaths of UK citizens.
Ofcom found that illegal suicide content is present on the forum and has been consistently during the regulator’s investigation. This includes instructional ‘guides’ and threads detailing different methods of suicide, some of which have been present on the site for years.
Many of these have been either pinned or reposted by the provider itself, demonstrating that it is aware of this content.
In May, Ofcom found the forum’s provider in breach of its duties under the UK’s online safety laws, because it had not taken proportionate measures to prevent UK users from encountering illegal content that intentionally encourages or assists suicide.
Although the forum previously made several changes as a result of Ofcom’s enforcement action to restrict access to people in the UK – known as a ‘geoblock’ – the regulator found they were not effective or consistently applied.
Ofcom therefore fined the forum’s provider £950,000 and directed it to come into compliance. Ofcom is also preparing to apply for a court order to prevent access to the site in the UK in the event its concerns are not addressed. The forum has yet to pay this debt, and Ofcom is currently seeking ways to retrieve funds from the US-based provider.
Since then, the forum has made a further change to its geoblock which addressed an issue Ofcom had raised with it, whereby registered UK users could still log in without a VPN. The forum has now closed this route with the effect that the vast majority of UK users who do not use a VPN to mask their country location are now no longer able to access the site.
While Ofcom says it recognises that geoblocks do not fully eliminate all risk of harm, and some registered users are still able to access the site, it says that the majority of UK users can no longer access the site.
The case exposes the extent to which the Online Safety Act can regulate an online platform – Ofcom can only seek a court order for business disruption measures under the basis of ongoing noncompliance – simply proving significant risk is not enough. Failure to pay a fine alone is also not enough to apply for the order.
All possible legal routes to further restrict the site have been exhausted, Ofcom said, though it will continue to monitor the case.
“This nihilistic suicide forum, and the predators who use it to prey on some of the most vulnerable people in our society, have devastated lives and inflicted immeasurable heartbreak,” Suzanne Cater, director of enforcement at Ofcom said.
“We have the utmost respect for the tireless efforts of bereaved families seeking justice and better protections for others, and we’re grateful for their help during our investigation.
“We’ve used the powers we’ve been granted to the fullest extent possible, which has resulted in blocking this site for the vast majority of users in the UK. We recognise this may not bring closure for bereaved families but it will help protect people in the UK in the future. We’ll continue to monitor the forum closely to check the geoblock remains in place.”
If you or a loved one is struggling, you can a list of helplines here or call the Samaritans at 116 123.
Cambridge-based AI firm CuspAI has raised £335 million in funding in Series B round, with investment from Amazon founder Jeff Bezos and the UK’s sovereign AI fund.
The business, only two-years-old, is now valued at $2.6bn and aims to be the “search engine for rare materials.”
The funding round was led by Kleiner Perkins and NEA, supported by Glade Brook Capital Partners, Lux Capital, AMD Ventures, Tru Arrow Partners, StepStone, Britain’s Sovereign AI Venture Fund, the Invest-NL and John Doerr.
The funding announcement aligns with CuspAI’s launch of the AI Materials Foundry, bringing together a global network of data, labs, compute and scientific expertise for the design of new materials, orchestrated by a single agentic platform.
Over 45 organisations have joined as founding members, including NVIDIA, who will provide the compute infrastructure, and Meta’s Fundamental AI Research Team, who develop the Universal Model for Atoms (UMA), a frontier atomistic chemistry model for materials science.
The collaboration seeks to end the materials bottleneck constraining progress. Semiconductors, clean energy and advanced manufacturing are among the industries facing the same challenge: while the engineering needed for innovation is well understood, the constraint is materials.
The Series B funding will allow CuspAI to expand internationally, with plans to open a new office in Singapore and increase the workforce across its offices in Cambridge, Berlin, Amsterdam, Tokyo and the US.
“If we don’t make progress fast, the next 50 years of industrial progress will be constrained by a single challenge: the world needs materials that don’t yet exist,” Dr Chad Edwards, CEO and co-founder of CuspAI, said.
“That’s what we’re on a mission to solve – combining frontier agentic AI with deep domain expertise, exclusive data access and close customer partnerships. We’re delighted to be joined by more than 45 leaders in their fields to advance materials discovery.”
Finance leaders have become progressively more optimistic about AI improving their own businesses’ performance as 73% now report an improvement in AI optimism over the last 12 months, compared to 59% in Q4 2025 and 39% in Q3 2024.
This is according to Deloitte’s latest survey of UK Chief Financial Officers (CFOs), conducted between 1 and 13 July 2026, which shows that CFOs are becoming more optimistic about AI’s impact on business.
Nearly all CFOs (96%) expect to see a rise in investment in digital technology and assets by UK businesses over the next five years, with 93% expecting a rise in the next 12 months.
More than three quarters (78%) expect greater productivity and improved business performance over the next five years. With many corporates now well into their AI deployment programmes, half (50%) of respondents also expect productivity gains over the coming 12 months.
Easing Uncertainty
The survey reports an easing in perceptions of external uncertainty. Less than half of CFOs (47%) now rate the level of external financial and economic uncertainty as high or very high, below the post-pandemic average and well below readings seen in the summer of 2022, after Russia’s invasion of Ukraine.
Reduced uncertainty has fed through to improvements in confidence and risk appetite amongst finance leaders.
Risky Geopolitics
CFOs were again asked to rate on a scale of 0-100, the risk posed to businesses from a range of external factors.
Geopolitics came out on top, as it has done for 16 of the last 18 quarters. However, these concerns have eased slightly, with a drop in the average rating from 79 in Q1 2026 to 68 this quarter.*
This was followed by poor productivity and weak competitiveness in the UK economy (average rating was 63 this quarter compared to 62 in Q1); and higher energy prices or disruption to energy services (average rating 60 this quarter compared to 70 in Q1).
Debapratim De, chief economist at Deloitte UK, said: “The global economy has, so far, weathered the shock from the conflict in Iran better than many had feared. Corporate sentiment is responding to this relative resilience.
“However, concerns over geopolitics and domestic competitiveness remain elevated. CFOs continue to prioritise cost reduction and cash control in this environment.”
When asked about key factors affecting the hiring of graduates, CFOs reported a ‘wider business impetus for cost control’ as the number one reason that reduced graduate hiring in the past 12 months (net 62%) as well as for the year ahead (net 64%).
The use of AI and outsourcing were cited as the second and third biggest dampeners of demand for new graduates over the next 12 months, at net 47% and net 33% respectively.
Darren Graves, Deloitte UK CEO, added: “It is encouraging to see growing optimism about the positive impact AI can have on productivity and business performance.
“With a new prime minister and cabinet in office, businesses will be keen to hear how the Government plans to boost growth, competitiveness, and deliver a clear economic strategy that supports the UK’s position as a leading global destination for business and investment.”
British businesses, universities and researchers will receive access to more than £62 million in government funding to develop homegrown space technologies.
The funding – announced by Space Minister Liz Lloyd – will support new satellite communications systems and space innovation projects, helping turn early-stage ideas into commercial products, strengthen the UK’s ability to monitor and protect assets in orbit, and build a more resilient domestic space sector.
The funding aims to help UK innovators build the satellite communications, space security and commercial technologies that strengthen Britain’s competitiveness, resilience and security.
New figures from the UK Space Agency show that pipeline is already expanding. Its Accelerator programme, which works with new space companies to help them attract investment, develop their technologies and win customers, has supported 289 founders and helped raise more than £102 million in investment.
“Space is not just a scientific frontier, it is a strategic one. If we do not build national capabilities at home, we become overly dependent on others for technologies we cannot afford to be without,” space minister Liz Lloyd said.
“That is why today we are announcing £62 million for satellite communications and space innovation, investing in the British businesses and researchers who will make that capability real. This funding will help develop new satellite communications technologies to keep remote communities connected, capture a growing market for on-orbit manufactured products and strengthen our ability to monitor and protect assets in orbit, while supporting the next generation of space innovators turning early-stage ideas into commercial products.
“Strengthening domestic capability in these areas, alongside working with international partners, will help ensure the UK remains secure, resilient and a leader on the world stage.”
The £62 million includes £42 million to develop new British satellite communications technologies and £20 million to support space innovation projects across industry and universities.
The National Space Innovation Programme (NSIP) is launching a new £20 million funding call to support the development of space technologies across UK industry, universities and research organisations, with projects due to begin in April 2027.
The funding is available through two routes: Kick Starter, for early-stage ideas, and Major Projects, for businesses looking to grow and commercialise. Applications are welcome across all areas of space technology, with up to 40% of the budget focused on Space Domain Awareness and In-Space Assembly and Manufacturing — two areas where domestic capability is vital to the UK’s ability to understand and respond to threats in orbit.
Additionally, the Space Clusters Infrastructure Fund (SCIF) is inviting organisations to register their interest ahead of a new funding call launching in Autumn. The upcoming call will award £37 million in grants by 2030, building on a pilot phase that delivered 13 projects across the UK.
Worldwide end-user spending on AI models and platforms is projected to total $64 billion in 2026, up 63.4% from $39 billion in 2025, according to Gartner, Inc. Spending on GenAI models is forecast to grow 117%, while AI platform spending will rise 36.9% in 2026.
“Enterprise AI budgets are coming under greater scrutiny, with increased focus on usage efficiency, cost control and measurable outcomes,” said Arunasree Cheparthi, Sr Principal Research Analyst at Gartner. “Spending is shifting toward providers who can demonstrate clear value across cost, latency, performance and reliability.
“This is giving an edge to providers that embed evaluation, cost transparency and usage tracking into customer workflows, making it easier to manage and optimize AI use. However, as spending becomes more usage-driven, providers face increasing pressure to demonstrate real adoption, sustained use and durable margins.”
This dynamic is accelerating growth in domain-specific language models (DSLMs) and specialised models, which are forecast to grow 210% in 2026.
“Over the long-term, the biggest winners will be vendors that help enterprises manage where and how AI is used across the business,” said Cheparthi. “As more models enter the market and usage-based pricing becomes harder to predict, buyers will turn to platforms that help them choose the right tools, monitor performance, enforce policy and keep costs under control.”
Incoming Prime Minister Andy Burnham’s reported plans to abolish the Department for Science, Innovation, and Technology (DSIT) has been met with dismay from tech advocates, former PMs, and ministers across parties.
Burnham, who becomes the UK’s newest Prime Minister today (20 July), has reportedly requested government officials to draft plans to scrap DSIT, the department in charge of government initiatives surrounding serious tech advancements like AI, quantum, and funding for innovative research.
While the plans have yet to be signed off – reports began before Burnham takes office – tech experts and government officials have mounted their objections to the reported dissolution of the department.
The original report from the Financial Times reported that a senior Labour source said that some of DSIT could be absorbed into the government’s business department: “It needs to be mainstreamed and there is the sense that DSIT has not been firing on all cylinders.”
The plans reportedly see DSIT largely becoming a part of a larger business department, while public sector AI will be overseen by Antonia Romeo, the cabinet secretary, instead of a minister.
Is this the potential sidelining of AI in government policy? If so, tech leaders could deem this a massive mistake.
Former AI advisor to both Keir Starmer and Rishi Sunak, Matt Clifford, wrote on X that scrapping DSIT “would be a big mistake.”
Clifford continued: “Right now is a critical moment for tech as an economic and national security issue. Tying up our most senior science and tech officials in a reorg wastes time and energy that’s desperately needed for the actual substance.”
UK tech advocates have tried to urge Burnham to reverse the plans, which were reported on over the weekend, ahead of the key cabinent appointments he is expected to make today as he takes office.
CEO of Tech UK Julian Harris and Startup Coalition executive director Dom Hallas wrote a letter to Burnham, who described the plans as “the wrong change at the wrong time.”
The letter said: “DSIT works because it brings researchers, AI practitioners, innovators and policymakers together in one department – a single front door that gives the tech sector clarity, pace and a government partner that understands technology and champions the sector in the Cabinet.
“Breaking up the work of DSIT endeavours such as the world-leading AI Safety Institute, the Sovereign AI fund, GDS and UKRI would slow momentum at a time when pace is essential for both the growth of the economy and our standing on the global stage. It also sends a terrible signal to a sector that is growing at 10% a year. This is clear from the immediate reaction of the sector to these reports thus far.
“We are supportive of your vision to bring growth to every postcode in Britain, and we want you to be able to leverage the tech sector to deliver on your ambitions to change our economy and society for the better. To do so, we should use this moment to strengthen tech leadership at the heart of government, not dismantle it.”
It remains uncertain if this torrent of trepidation will sway Burnham ahead of his official ascension to PM today.
AI firms in the UK raised a record £4.56 billion in equity funding in the second quarter fo 2026, accounting for 57% of all equity investment in the country, according to new data from Beauhurst.
Acorss the 1,070 equity deals in all UK sectors, AI fundraising rounds accounted for 269. Quarter 2 saw UK businesses raising £8.01 billion in equity funding overall.
The record £4.56 billion for AI was a 4.1% increase on the previous quarter (£4.38bn), and represents 186.8% increase year on year.
2026’s Q2 therefore represents the strongest quarter yet for UK AI investment.
Looking closer at the data, it appears that a small number of large fundraising amounts accounted for the majority of the money invested in UK AI firms. It took eight rounds of over £100 million each to make up nearly 80% of the total AI investment of the second quarter. These large funding rounds invovled Isomorphic Labs, NScale, Fractile, Ineffable Intelligence, and PhysicsX.
Within AI, life sciences and health attracted the most invesmtent, raising £1.52bn over 36 deals.
Infrastructure, chips, and compute – the bedrock of AI – garnered £986 million in Q2, followed by enterprise software, data, and automation with £834m.
Financial servies, payments, and regulation tech had the most deals in the second quarter, with 64.
“Q2 was a landmark quarter for UK AI investment. What stands out is not just the scale of capital going into AI, but the breadth of the companies raising,” managing director of Beauhurst Insights, Henry Whorwood, said.
“The UK is attracting major investment across life sciences, AI infrastructure, financial services, advanced engineering and enterprise software. AI is now a major driver of the UK private-company market.
“The headline figure is already a record, but it is unlikely to be the final number. Unannounced fundraising deals often come to light in the weeks and months after a quarter closes, so we expect the Q2 picture to continue developing.”
The race to meet the increasing demands of AI computing power has intensified, with competition heating up across the semiconductor sector
As companies vie for contracts in an tangled AI ecosystem, front-runners in the semicondcutor industry are emerging, though rivals continue to commplicate competition.
“In the AI vendor race, semiconductor front-runners have massive opportunities to capitalise on the shift toward next-generation infrastructure and the unprecedented demand for compute cycles,” said Kevin Knox, Practice Vice President at Gartner.
“While current frontrunners are outpacing competition through deep technical expertise, software capabilities and ecosystem control, their status is being actively challenged by rivals capitalising on supply chain diversification, the adoption of open industry standards, and the growing demand for efficient, inference-optimised architectures.”
Gartner identified some of the top companies to beat in the AI semiconductor sector.
NVIDIA: AI Network Fabric
Gartner analysts said that NVIDIA stands out due to its dominance in AI accelerators and broad portfolio of data center networking offerings. NVIDIA’s use of proprietary protocols and features (such as SHARP, SHIELD, NVHS and NVLink) delivers high performance and reliability, reinforcing its dominance in both scale-out and scale-up networking for AI clusters.
However, the ongoing demand shift from training to inference and agentic use cases can fundamentally change the AI vendor landscape and impact NVIDIA’s front-runner status. Big customers, such as hyperscalers, are rapidly moving toward open, Ethernet-based alternatives, as NVIDIA’s products and go-to-market (GTM) strategy lack alignment with the mainstream enterprise market.
AMD: Enterprise AI Server CPUs
AMD’s alignment with agentic AI orchestration, its I/O bandwidth, and its server consolidation capabilities make it the company to beat for enterprise AI server CPUs (see Figure 2). The company is the front-runner with consistent roadmap execution and broad ecosystem support, ensuring legacy compatibility and OEM alignment.
The enterprise AI server CPU market, which remains highly dynamic and subject to rapid change, is entering a phase of accelerated competition as organizations stabilize procurement cycles around dense, power-constrained rack architectures. AMD faces challenges in the market from competitors’ integrated stacks, growing software lock-in and performance-per-watt benefits in ARM-based CPU solutions.
Broadcom: Custom AI Silicon
Broadcom’s capabilities in ASIC design, networking, and foundational IP make it the company to beat in custom AI silicon. It is the front-runner in the foundational IP and custom AI accelerator design, using leading-edge process nodes, advanced packaging, SerDes, memory, and die-to-die interconnect.
Competitors who improve weaknesses in their IP portfolio, offer flexible engagements, and support system-level designs can close the gap. To better compete, tech provider executives should also address AI portfolio shortcomings by collaborating with third-party IP suppliers, open industry consortiums, or acquire the necessary technology.
Marvell’s unique end-to-end exposure across digital signal processor (DSP)-based pluggables, analog optical components, emerging linear receive optics (LRO) platforms and plans for scale-up co-packaged optics (CPO) make it the company to beat in AI data center optical connectivity. The company stands out in optical DSP and analog components, providing a durable revenue base and continued influence as architectures evolve beyond pluggables.
Competitors must target integration or deliver differentiated architectures to close the gap. Marvell’s success could be challenged by CPO execution risk, hyperscaler vertical integration and alternative photonic architectures that shift control away from merchant suppliers.
Infineon: AI Data Centre Power Semiconductors
Infineon is the company to beat in AI data center power semiconductors as it holds an early advantage in AI data center power systems due to its comprehensive product portfolio, spanning silicon (Si), silicon carbide (SiC) and gallium nitride (GaN), enabling end-to-end power solutions from the utility grid all the way to the processor core, supported by its strong in-house manufacturing capabilities.
Infineon’s front-runner position in the AI data center power semiconductors race is challenged by intensifying SiC and GaN competition and strong rivals at the compute board level for the final step of power delivery. Competitors can close the gap by expanding partnerships, entering the 800VDC ecosystem and developing forward-looking roadmaps on both discrete and integrated power solutions.
A new report published today by Ofcom reveals that age checks are now being deployed at an unprecedented scale across the pornography, social media, dating and gaming sectors. Many services are taking steps to ensure these checks are highly effective in practice, in line with Ofcom’s industry guidance.
The proportion of children being asked to prove their age who encountered highly effective age checks increased from 25% to 43% between July 2025 and January 2026. All of the UK’s top 10 and the majority of the top 100 porn sites now have age checks in place.[3]
Among the minority of online children who attempt to access pornography (8%), the presence of age checks acts as an effective deterrent. [4] Half of these childrenonly reachedsites with age checks in place. Nearly nine in ten of these children’s visits (87%) to porn sites were for under 30 seconds, and 65% were for less than 10 seconds.
Despite this significant progress, the job is not done. Ofcom says that more action is needed from the tech industry to increase the effectiveness of age checks to protect children online, particularly with a view to the Government’s planned expansion of age assurance measures to restrict under 16s’ use of social media.
Specifically, Ofcom’s report identifies shortcomings in some services’ implementation of age checks, as well as areas requiring further collaboration and innovation from the wider tech industry.
The tech regulator has identified shortcomings in the following four areas:
1. Too many porn sites still don’t have age checks in place.
Many porn sites with age checks in place have experienced sharp declines in traffic, while some without have gained in popularity. Four per cent of children who participated in our study visited at least one porn service with no age checks in place.
To combat this, Ofcom says that all porn services without age checks must introduce them without delay, in line with the regulator’s guidance.
So far, Ofcom has opened 23 investigations into the providers of 88 adult services. We will continue to take action against services which flout the law and put children at risk, using the full extent of our enforcement powers.
2. Children finding porn site without age checks via search.
In many cases, children are able to easily find porn sites without age checks via search engines.
Ofcom’s report found that 33% of results returned on the first page of Google Search and 54% on Bing were to pornography sites without age checks or other protections.
To fight this, Google and Bing will be working with Ofcom to prioritise practical solutions to tackle the discoverability of porn sites without age checks via their services.
3. Serious doubts about age inference methods used by some popular social media companies, with TikTok under investigation.
Under Ofcom’s Children’s Codes, social media companies must use highly effective age assurance to identify who their child users are to tailor their online experience and protect them from harmful material – including pornography, self-harm and suicide content.
Some social media companies have chosen to rely primarily on age inference methods to identify their child users. This is despite them not being included in Ofcom’s guidance as methods that are capable of being highly effective for this purpose.
Evidence in the report reinforces Ofcom’s long-standing, serious doubts about the effectiveness of some of these models. In some cases, companies may be failing to correctly detect significant numbers of children on their platforms, meaning children risk being exposed to harmful content.
Ofcom says it has particular concerns about the effectiveness of TikTok’s approach to age assurance, with the regulator launching a formal investigtion into whether it is complying with its duties to protect children from encountering harmful content on its service.
4. Age checks need implementing more effectively, including by dating services.
Despite having age checks in place to prevent children’s access, over one in ten 15 to 17-year-olds were continuing to visit and spend time on three of the most used dating apps in December 2025. This suggested that their age assurance methods needed to be improved and more closely aligned with Ofcom’s guidance.
Ofcom says that all relevant services must ensure their age checks are highly effective, which means following Ofcom’s guidance, conducting regular due dilliengece, and complying with privacy and data protection laws.
Many dating services have started improving their age assurance processes following engagement with Ofcom. The regulator now expects them to continue to make further changes, including by introducing a ‘challenge age’ and ‘liveness detection’.
Next Steps
Ofcom’s research shows that social media firms’ current age inference methods are insufficient in preventing children from accessing a service at the point of entry to implement a ban, nor can they be used to enforce minimum age restrictions effectively. As such, sites and apps must strengthen their approach.
Building on its existing guidance, Ofcom will deliver to Parliament by the end of October a rapid assessment of what highly effective age checks look like in practice to determine whether someone is over 16. This will help inform parliamentary debate ahead of potential age restrictions coming into force in 2027.
The wider industry should also be prepared to play their part in strengthening protections for children.
Ofcom is set to publish a statutory report about the role of app-store level protections by January 2027.
“Age checks are a cornerstone of the UK’s online safety laws. When implemented properly, our evidence shows that age checks are helping to create a safer life online for children in the UK,” Ofcom’s chief executive Dame Melanie Dawes said.
“But the job is not done and tech companies need to go further. Too many services have no or inadequate age checks in place, which is not good enough. We’ve today launched an investigation into whether TikTok’s age checks are effective in preventing children from seeing harmful content on its platform. And search engines must urgently work with us to solve the problem of children finding porn sites without age checks too easily via their results pages.
“As the UK prepares for further new social media restrictions at 16, the age check landscape is already shifting towards a stronger, whole-of-system approach, which is important to avoid any single point of failure. We want to see continued innovation from the wider tech industry to strengthen protections for children – including from operating systems and at an app store and device-level.”
At least 15% of nations in volatile geopolitical regions will establish formal data embassy agreements by 2029 to ensure continuity of government services and operations, according to Gartner, Inc. This reflects a notable shift from today’s baseline, where only a few nations have adopted formal data embassies.
A data embassy is a legally protected enclave that enables a nation to host critical digital infrastructure on foreign soil while retaining full sovereignty and control over its data.
“Rising geopolitical instability, cyber threats and concentration risks associated with data localisation are prompting governments to move beyond traditional sovereignty models centered on data residency,” said Daniel Nieto, Sr. Director Analyst at Gartner.
“This shift is increasing focus on resilient operational strategies such as sovereign dispersion, which decouple critical data, applications and infrastructure from physical geography while maintaining sovereignty through legal jurisdiction.
“Data embassies are emerging as a practical approach to sovereign dispersion. They reduce concentration risk, eliminate single points of failure and help governments maintain continuity of critical state functions beyond national borders while retaining full legal control over their systems and data.”
Through bilateral agreements, governments can host critical systems in another country while ensuring those systems remain under the jurisdiction of the originating state. Security is maintained through strong end-to-end encryption, with decryption keys retained solely by the home country.
As digital systems become critical instruments of statehood, operational resilience will increasingly depend on legal control of data rather than its physical proximity.
“Critical government registries, including civil status records, property titles, tax records and fiscal ledgers, can be replicated in secure external environments and function as synchronised extensions of core government systems,” said Nieto. “This helps ensure that data remains available and services can continue during a black sky event, when critical national infrastructure and government systems are severely disrupted or incapacitated.”
For highly sensitive defense and intelligence systems, governments require additional safeguards, including post-quantum cryptography and zero trust architectures. These measures help ensure critical systems remain secure even when hosted beyond national borders.
A new Bloomberg LP survey of 500 London-based financial services professionals suggests AI adoption is already widespread. Nearly nine in ten (88%) use AI tools daily or weekly, and not a single respondent said they haven’t begun learning to use them or believe there are no opportunities to be gained from it.
AI proficiency is increasingly treated as a baseline expectation across London’s finance workforce: 85% believe AI skills will soon outweigh traditional ones for their next promotion or career move, and 69% think colleagues who resist developing those skills have no place at their firm.
Professionals are building AI skills on both company and personal time, drawing on more than three methods on average. When asked which methods they use to build AI skills, using AI tools to learn AI came top (53%), followed by experimenting in their own time (50%), watching videos and online guides (44%), learning from colleagues (42%), and formal employer training (40%).
“Becoming effective with AI doesn’t require a PhD in computer science — it requires curiosity and domain expertise,” Amanda Stent, Head of AI Strategy & Research in the CTO Office at Bloomberg, said.
“What’s striking about these findings is the initiative London’s financial services professionals are showing in response the rapid evolution of AI. They’re learning by doing, experimenting, and asking the tools themselves. That kind of self-directed curiosity is exactly what thriving in an AI-driven industry requires.”
When asked to select their top three concerns about AI, the loss of entry-level and graduate roles was one of the least selected options (seventh most common out of eight potential concerns), selected by only 30% of professionals compared with 45% who selected AI-enabled cyberattacks and financial crime.
“Removing the friction from knowledge work doesn’t remove responsibility,” Stent said.
“As AI handles more of the information retrieval and synthesis, where humans commit their time shifts from performing the manual research to acting as the ultimate arbiter. Any government plan for AI adoption in financial services needs to account for that. A model may detect a pattern; it takes a trader or analyst with years of experience to understand whether that pattern is a meaningful signal or just noise.”
Of those who’ve freed up time through AI, 32% said they were finishing work earlier, but the more common pattern is reinvestment: over half (51%) are redirecting time toward higher-value activities like strategy, decision-making and client relationships, 48% have reduced time on routine administration, and 36% are collaborating more with colleagues.
Despite this confidence in AI’s potential, there are clear limits to where professionals think it should operate without human input. 51% say risk and compliance is the area where human oversight matters most, followed by investment and trading decisions (40%). Only 1% believe human oversight is unnecessary in most cases.
“Finance remains a fundamentally human endeavour, enhanced and empowered by technology. In a world where information is abundant, judgement and leadership are the scarce resources. What this research shows is that London’s financial services professionals understand that and are positioning themselves accordingly,” Stent said.
Lidl has issued a warning to some of its European customers to be wary of phishing messages after it revealed personal information may have been compromised in a cyber incident affecting a third-party IT firm.
The incident impacted customers in Germany, Belgium, and the Netherlands, the supermarket owned by Schwarz Group, a German retail company, said.
“Despite high IT security standards, unidentified individuals were briefly able to access a separately stored file containing customer data and steal some of it. The online shop system itself was not affected,” Lidl said in a note to customers.
The firm said it became aware of the incident last week. Stolen data includes full names, email addresses, phone numbers, customer numbers, and dates of birth. Customers of the supermarket’s online store were affected in the breach.
“At this time, we can rule out the possibility that passwords, billing and delivery addresses, bank details, or other payment information are affected,” Lidl assured.
“Your customer account has not been compromised. Although we currently have no concrete evidence of data misuse, we are warning you, as a precaution, against possible phishing or identity theft attempts.”
Lidl credited its third party IT provider, saying it “reacted immediately” in restoring disrupted systems. Relevant authorities have been contacted, and forensics experts have been consulted to investigate the incident.
Following the incident, Lidl has warned impacted customers that their compromised data may be leveraged in phishing attempts.
The supermarket giant is urging customers to verify the authenticity of email and SMS senders, and to not disclose any personal data or click on external links if they notice anything unusual
Default overnight curfews from midnight to 6am will be switched on for 16 and 17-year-olds on social media apps, as the UK government takes further action to restrict social media use by younger people.
Features that can keep users scrolling for longer – such as videos that automatically play one after another and feeds that continually serve up personalised content – will also be switched off by default for older teenagers. Teens will have the option to opt out of the new measures.
Following the government’s ban on social media services for under-16s from Spring next year, these measures – according to the Government – will help ensure there is no cliff edge in protections as young people move into their later teenage years.
The measures follow a government pilot involving more than 300 teenagers and parents across the UK, with families reporting that overnight curfews quickly became part of their routine and helped improve sleep and concentration.
“Our consultation provided a clear message from parents and teenagers alike – even as young people gain greater independence at 16, they should still be protected from the most addictive online features that can have a harmful impact on their wellbeing,” technology secretary Liz Kendall said.
“These measures will be crucial in helping young people get the sleep they need, focus on school and college, and spend more quality time with family and friends, all of which are fundamental to building a happy, healthy and fulfilling adult life.
“We want young people to enjoy the benefits of technology while having the tools to make the online world a place where they can thrive.”
Alongside these new social media protections, the tech secretary intends to bring forward a package of measures to help children use AI chatbots safely.
This will include regular breaks for under-18s using chatbots, as well as working with regulator across government to address services that provide dangerous, misleading, or unverfied mental health advice. Ministers will consider may options, including banning chatbots that pose a serious threat to children.
Alongside these protections, the Government will publish new guidance for children, parents and guardians on how to use AI safely and confidently by expanding the Kids Online Safety Hub.
Media literacy skills will also be bolstered in schools, through new RSHE (Relationships, Sex, and Health Education) classes and an updated National Curriculum, which will teach children to navigate new types of technology including artificial intelligence and AI chatbots, identify mis- and disinformation as well as violent and misogynistic content.
AI is reshaping cybersecurity roles, workflows and decision-making while increasing the importance of human judgment, validation and governance, according to new research from ISC2.
Approximately two-thirds of participants spent more time deciding when to trust or act on AI-generated recommendations (65%) and reviewing or validating AI outputs (63%) over the past year.
Based on a survey of 856 cybersecurity professionals who use AI in their roles, the research shows that while AI is improving efficiency and enabling more strategic work, it is also introducing new risks, increasing accountability pressures and accelerating changes to early-career pathways.
While nearly half of cybersecurity professionals (48%) report that AI has reduced workplace stress, almost one-third (32%) say it has increased stress levels. Those experiencing higher stress are significantly more likely than those with decreased stress to spend additional time deciding when to trust AI-generated recommendations (76% versus 57%) and reviewing or validating AI outputs (74% versus 57%).
When AI-recommended actions lead to incorrect outcomes, half of the participants (50%) say their organisations hold human decision-makers ultimately accountable. Nearly 9 out of 10 (89%) respondents report having experienced AI recommendations that lead to incorrect outcomes at their organisations.
The research also finds that many cybersecurity professionals believe AI is changing early-career pathways. While 56% of participants say AI has reduced the need for entry-level roles, 53% believe AI is creating new entry-level opportunities and 48% say AI makes them feel more optimistic about their long-term career prospects.
“AI is not replacing cybersecurity professionals; it is changing what the profession requires of them,” said ISC2 CEO Scott Beale, CC.
“As AI takes on more repetitive tasks, as well as performing some complex cybersecurity analysis at speed and scale, cybersecurity roles are shifting toward higher-value work, from asking the right questions to validating findings, interpreting outputs and applying human judgment. This evolution is not limited to entry-level roles. It changes how work is distributed across security teams, making continued investment in governance, validation practices, mentoring and skills development essential at every level.”
The research found that AI is having a mixed impact on work-related stress, with 48% reporting lowered stress due to the tech, while 32% say stress has increased. Those reporting increased stress were significantly more likely than those with decreased stress to have spent more time deciding when to trust or act on AI recommendations (76% versus 57%) and reviewing or validating AI outputs (74% versus 57%).
The technology is raising concerns, including ver-reliance on AI (62%), undetected errors scaling across systems (61%) and reduced human judgment at critical decision points (56%).
Humans are not just in the loop when it comes to AI: they hold the ultimate responsibility. When AI-recommended actions lead to incorrect outcomes, half of participants (50%) say their organisations hold human decision-makers ultimately accountable. Another 21% say accountability varies depending on the severity of the issue, while others reported ambiguity (10%) or a lack of clear ownership (8%) when AI recommendations are incorrect.
Over the past year, nearly half (48%) report spending less time on tasks that do not involve AI, signaling a shift toward AI-assisted workflows. Responses on hands-on work are split: 35% report less time, 32% more time and 33% no change.
Still, foundational cybersecurity skills remain essential. Nearly two-thirds (62%) do not believe that AI has reduced the need for foundational cybersecurity skills, compared to just 26% who say it has.
Throughout this transformation, governance and trust frameworks remain critical. Around four in five say it is very important to establish when to trust AI outputs(82%), knowing when to override decisions (80%) and having clear governance frameworks in place (80%).
Quantinuum, Rolls-Royce, Riverlane and EPCC, the UK National Supercomputing Centre based at the University of Edinburgh, today announced an agreement to explore the quantum computing capabilities needed in future industrial workflows, such as gas turbine design.
Under the agreement, Quantinuum will provide access to its quantum systems and software environment; Rolls-Royce will contribute industrial design use cases and domain expertise; Riverlane will contribute quantum error correction and algorithmic expertise; and EPCC will contribute supercomputing expertise and hybrid workflow integration.
Complex fluid dynamics simulations are central to gas turbine design, but they can require substantial computing resources as models become more detailed. In what is expected to be a multi-year collaboration, the partners will explore how fault-tolerant quantum computers could work alongside supercomputers to address this bottleneck, and accurately model fluid dynamics inside gas turbines.
“The computing demands of simulating complex fluid dynamics are a major challenge in industrial design, and exploring how quantum computing can complement today’s supercomputers is an important step toward addressing them,” said Dr. Rajeeb Hazra, President and CEO of Quantinuum.
“This collaboration will help develop and test the hybrid quantum-classical algorithms needed for future industrial applications.”
The collaborators plan to test key computational building blocks for industrially relevant quantum algorithms on Quantinuum’s Helios quantum computer and assess how these could scale on planned future systems, such as Sol and Apollo.
This project builds on prior collaborations between Rolls-Royce, Riverlane and EPCC that laid the foundations for understanding key algorithmic, error correction and data requirements for tackling fluid dynamic simulations with commercial quantum computers.
“We have been developing and improving algorithms for hybrid fault-tolerant applications for almost five years with Riverlane, using classical emulators in collaboration with EPCC. This agreement marks the start of an exciting new phase where we work together to explore their implementations on Quantinuum’s hardware,” said Leigh Lapworth, Fellow in Computational Science at Rolls-Royce.
“Applications development is a multi-year activity and if we want to be in a position to benefit from teraQuOp devices, we have to start now, co-developing the algorithms, hardware and software.”
“Riverlane specialises in quantum error correction (QEC), as the critical technology that will ultimately unlock large fault-tolerant quantum computing, and fault-tolerant applications for various industries,” said Steve Brierley, CEO and Founder of Riverlane.
“Building on our work with Rolls-Royce and EPCC, collaborating with Quantinuum will help us explore how fault-tolerant quantum computing and hybrid quantum-HPC approaches can accelerate the path to industrial quantum computing.”
EPCC will contribute its expertise in high-performance computing, simulations and the software interfaces needed to connect quantum and classical systems. Its role includes exploring how different parts of an algorithm can be compiled, emulated and executed across classical and quantum resources, including pre- and post-processing steps required for hybrid compute workflows.
“Quantum computing will be most valuable when users can exploit it within a wider computing environment, and EPCC has been working towards hybrid HPC and quantum since my appointment as a Chancellor’s Fellow in 2023,” said Oliver Thomson Brown, Quantum Group lead at EPCC.
“EPCC’s mission is to accelerate the effective use of novel computing across industry and academia, and this project is a natural fit with the goals of the UK’s first National Supercomputing Centre.”
The UK’s quantum computing mission aims to develop accessible, UK-based quantum computers capable of one trillion error-free operations, known as “teraQuOp” systems.
The collaboration and its anticipated multi-year timeline support the UK Government’s quantum computing mission and reflect the strength and maturity of the UK’s quantum and advanced computing ecosystem in moving from foundational research toward industrially relevant hybrid applications.
Crypto firms see continued access to UK customers as the most pressing matter at stake as the country’s regulatory regime takes shape but the majority acknowledge they aren’t yet ready for it, according to new research from digital assets platform Zumo.
Early insights from the company’s landmark survey of cryptoasset service providers serving UK clients reveal 70% identify losing the ability to serve their UK customers as a main risk of not being ready for the new regime. Half (50%) have concerns about financial penalties or regulatory sanctions, with the same figure worrying about subsequent loss of revenue or market share.
Following the publication of its final rules and guidance, the Financial Conduct Authority (FCA) is preparing to open its application gateway for firm authorisations on 30 September 2026, ahead of the implementation of a comprehensive regulatory regime for cryptoassets in October 2027.
However, just 10% of providers consider themselves fully prepared for the new rules, while six in ten are still assessing how to adapt their UK operating model to meet the new requirements. Eight in ten perceive their risk of not being ready in time as moderate to high, while 60% believe their current operating model would be exposed to regulatory enforcement..
Ambition Ahead of Execution
Their ambition, by contrast, is in little doubt.
Nine in ten firms intend to apply for authorisation during the FCA’s application window, which will shut in February 2027, and 60% expect the regime to expand their UK business – the same figure (60%) believe the incoming regime will boost interest among their customer base in crypto as an asset class.
While awareness of the regime is universal among respondents, execution is at an early stage with half (50%) of firms still at the planning phase when it comes to their regulatory readiness initiatives.
When asked about their organisation’s single biggest challenge, three in ten said it’s determining which rules apply to them and what permissions are needed. Beneath this headline challenge lies a consistent set of operational pain points, including the cost and internal resource demands of getting ready, mapping services to UK regulated activities, and implementing compliant custody or safeguarding arrangements.
Confidence that the regime is unfolding in firms’ favour remains limited: only two in ten agree it’s developing in a way that sets firms up to operate successfully in the UK.
The early insights from Zumo’s survey show the gap between ambition and firms’ current state of readiness is now the defining feature of the market.
Few are attempting to close this gap alone. Some seven in ten have sought, or plan to seek, external support from legal and compliance advisers, industry bodies, or technology providers as they work through the challenges.
Respondents are also looking for more support from the regulator. While FCA guidance to date was rated ‘fair’ by 80% of firms – with none rating it ‘poor’ – the research has uncovered a consistent set of asks: clearer guidance on regulatory scope and applicability, more time and transitional arrangements, and better signposting of UK-compliant infrastructure and technology solutions.
The FCA’s Pre-Application Support Service (PASS) meetings for cryptoasset firms are now officially underway, which provide an opportunity to connect some of the dots. These meetings give firms an opportunity to ask questions and discuss their business plans ahead of the application window.
“With the UK’s regulatory regime now set in stone, authorisation will become a game changer. Authorised market participants will have the potential to shift the status quo and unlock pent-up institutional appetite,” Nick Jones, chief executive and founder of Zumo, said.
“The early findings from our survey indicate a market caught between ambition and execution; firms have decided the UK is worth the effort, but must overcome a number of obstacles to be ready in time to realise the opportunity. It’s encouraging that firms are treating readiness seriously and reaching for the expertise they need – the cost of getting it wrong is cutting off access to one of the world’s most compelling markets.
“The asks emerging from this research are practical ones – clarity on scope, realistic timelines, and visibility of the infrastructure that meets UK-specific requirements.
“It’s an exciting time for the UK, but also the end of an era: of offshore provision, start-up style business processes, and unregulated business models. As the industry moves onshore, providers will need access to critical partner infrastructure that can act as a bridge to the scaling UK cryptoasset market.”
The EU is introducing new limitations on children’s use and access to social media across its 27 member nations.
European Commission President Ursula von der Leyen announced the new regulations on Monday, outlining a teired system of limitations for children and teens based on expert recommendations.
Children under the age of 13 will only be able to access social media under the supervision of caregivers, parents, or teachers for a limited period of time, with gradual increases in acces with age.
Currently, this system is just a suggestion, with Von der Leyen expeccted to present a more formal proposal in the autumn.
“It is clear we need age-appropriate restrictions to platforms,” von der Leyen said to reporters.
“The question is no longer if children face risks online, but what can we do to give children a safer start online.
“We first need to consider the type of platforms that are harmful to our children. The evidence shows that this is mainly social media platforms, but also other providers with age-inappropriate and addictive features. So think of it as social media plus.
“And when we have this clearly defined category, I believe we need to consider phased and gradual access for different age ranges.”
The announcement from the EU follows on from other countries, including the UK, putting in place plans to formally restrict the use of social media by children and teenagers.
The UK has still yet to implement its planned ban for under-16s, which includes limitations on video games and online forums.
Australia was one of the first countries to implement a full ban of social media for under-16s, citing the harm these platforms can cause for children and their inherent addictive design.
Still, Australia is struggling to implement this ban, with age assurance systems for teens attempting to catch up with readily available evasion tactics such as VPNs.
SMEs and scaleups are sest to recieve £500m in new funding from the UK government to boost job creation and business growth.
The gap between the SME demand for finance and the amount available is estimated to be between £1.6 billion to £4.1 billion per year. Improving this access is key to unlocking greater business investment, growth and productivity across the UK.
The centrepiece of plans is an expansion of the British Business Bank’s (BBB) Growth Guarantee Scheme (GGS) which provides a 70% government guarantee on commercial loans to SMEs of up to £2 million, cutting credit risk and turning ‘nos’ into ‘yeses’.
Since its launch in 2022, the scheme has delivered over £3.7 billion of financing to UK SMEs with £2.5 billion of this reaching businesses outside of London and the Southeast.
Every £1 spent on the scheme is estimated to support around £10 of lending by banks.
Now, the scheme will scale up to facilitate an additional £2 billion of SME lending per year by 2028/29. This will bring the total SME lending supported through the scheme to £3.35 billion per year, more than double the current £1.35 billion.
The maximum term lenght of a loan will increase from six to ten years for loans of up to £1.1 million, and the maximum size of businesses that are eligible for a loan under the scheme will be increased from £45m in annual turnover to £54m.
The British Business Bank estimates these changes will support an additional 12,000 businesses per year by 2028/29, a 150% increase on the 8,000 currently being supported, bringing the total to 20,000.
“Our plan for the economy has put Britain on a stronger footing – restoring stability, getting investment flowing, and delivering reform,” chancellor of the exchequer, Rachel Reeves, said.
“We know that small businesses are the backbone of this economy and growth in all our regions, and for too long they have heard ‘no’ when trying to raise the funds they need to grow and create jobs across the UK.
“When they succeed, we all succeed, and today’s major reforms are the most significant step in years to unleash their potential.”
The UK and EU governments have targeted 24 individuals and entities in sanctions aimed at Russian networks believed to be operating cyber-attacks, interfering in elections, and spreading anti-Ukraine narratives.
The sanctioned entities are believed to be behind destructive cyber and hybrid operations, including cyber-criminals involved in proxy networks linked to the Russian Intelligence Services (RIS).
This includes sanctioning GRU senior leadership figures Vyacheslav Stafeyev, Ivan Senin and Ivan Kasyanenko for their role in directing GRU cyber and hybrid threat operations. GRU Unit 29155 cyber division worked with cyber-criminals, including the company IMPULS, to recruit hackers and cyber specialists from universities and academies across Russia.
In addition, the UK together with EU member states is today attributing the attack on Poland’s energy grid to Russia’s FSB Centre 16. This reckless attack failed, but could have caused 500,000 citizens to lose electricity in the depths of winter as the Russian state attempts to sow chaos across Europe.
“These sanctions strike at the core of the cybercriminal networks propping up the Russian state’s aggression, and the UK and EU are sending a clear message that Russia cannot hide behind its use of these proxy groups,” Foreign Secretary, Yvette Cooper said.
“From directing criminals to targeting businesses, and striking Poland’s energy grid in the depths of winter, the Russian state is sinking to new lows in its attempts to undermine European security.
“Together with our partners, Britain will continue to call out this behaviour, bolster our resilience and respond to the hybrid threat posed by the Russian state. This will not deter us from supporting Ukraine.”
The UK is also sanctioning individuals behind Lumma Stealer which enables cybercriminals to collect sensitive information from compromised devices at scale. The UK can reveal that Russia has used Lumma Stealer’s stolen credentials to conduct cyber espionage operations against targets globally to support the Kremlin’s objectives.
According to the National Crime Agency, within the last six months, there have been at least 2,100 Lumma Stealer victims in the UK.
New measures also target 10 individuals behind Rybar LLC including directors, senior management, and content designers. The media company is resourced by the Russian state and is responsible for spreading false narratives about Ukraine and interfering in European elections, including in Moldova and Armenia.
The UK will begin to closely regulate Microsoft, Google, Amazon and Oracle as they have been deemed critical third parties for their cloud services in the financial sector.
The move to bring these firms under closer regulatory scrutiny as the looming threat of a cyber-attack of an operational outage affecting one of these critical services could impact the overall stability of the UK financial sector.
The critical third parties will be oversseen by three regulators – the Financial Conduct Authority, The Bank of England, and the Prudential Regulation Authority – which will focus on the resilience of the firms’ services.
Regulators will work together with the firms to address system-level risks and reduce the risk of disruption to the services they provide spreading across the UK financial system.
This aims to strengthen system-wide resilience and improve coordination and information sharing across the UK financial sector.
The firms are tasksed with indentifying and managing risks to their critical services effectively, as well as mainting open, timely communication with regulators and firms they work with, especially during major incidents.
The new regime is meant to compliment, not replace, existing frameworks for regulation outsourcing and operational resiliencce for regulated firms meant to manage their own third-party risks.
“Critical third parties provide essential services which support innovation and growth. At the same time, when the same providers serve thousands of firms, a single failure can reverberate across the financial system,” Nikhil Rathi, chief executive at the FCA, said.
“Operationalising this regime strengthens our ability to tackle those risks and improve overall resilience, ensuring the UK remains a safe and attractive place to do business.”
Treasury is responsible for deciding which third party providers are designated as critical, and any future designations or de-designations. The regulators will periodically review whether these firms continue to meet the designation criteria, making recommendations to Treasury, and evaluate the effectiveness of the oversight approach.
The Bank, PRA and FCA will continue to work closely with Treasury, the financial services industry and designated CTPs as the regime is implem
The European Commission has fined Google a whopping €4.1bn (£3.5bn) after it found the tech giant was blocking mobile rivals with its Android operating system.
The original ruling dates back to 2018, but an appeal by Google meant to final fine was not officialy issued until now after the appeal was dismissed.
Back in 2018, Google was found to be acting illegally by the European Commission due to three practices.
First, it required Android device manufacturers to pre-install both the Google Search and Chrome apps as a condition of having access to the Play Store.
It also made large payments to manufacturers and mobile network operators to pre-install the Google Search app exclusively on their devices.
The tech giant also allegedly prohibited manufacturers from selling smart devices that have alternative versions of Androids, threatning to stop them from pre-installing its apps.
While the EU body acknowledged that Android does not stop users from downloading alternatives to Google Search and Chrome, the fine went ahead.
The original ruling was chastised by Sundar Pichai, Google’s chief executive, who said that the decision “rejects the business model that supports Android, which has create more choice for everyone, not less.”
While Google has faced more recent fines from the EU, this is the largest to date from the European Commission.
A Google spokesperson said that the current fine does not recognised Alphabet’s “significant investment to ensure Android remains open, interoperable, and free.”
However, the spokesperson added: “In any event, we adapted our agreements to comply with the initial decision back in 2018 and we remain focused on continued innovation and openness for our users, partners and developers.”
Welcome to June 2026’s edition of Movers & Shakers.
This month saw a flurry of Scottish expansions, appointments, and partnerships before the summer
June saw a range of major cloud and AI partnerships as well as appointments for some major stalwarts of the Scottish tech world.
All that and more coming up.
Partnerships
HSBC Targets 200 AI Use Cases in Google Cloud Partnership
HSBC and Google Cloud have announced a multi-year strategic partnership to build and deploy AI capabilities across the bank’s global operations, with an initial focus on wealth management, financial crime risk management and AI tools for frontline staff.
The partnership, announced at Google Cloud Summit London, is expected to support more than 200 new AI use cases at HSBC over the next two years. The bank said the collaboration will help accelerate AI adoption across its products and services globally, while prioritising high-value initiatives where HSBC estimates the benefit could exceed $100 million through direct revenue gains or wider efficiency improvements.
The agreement will see HSBC work with Google Cloud and Google DeepMind engineering teams on new AI-powered tools and programmes. The bank will also gain access to Google’s latest agentic AI capabilities, including Gemini models and the Gemini Enterprise Agent Platform.
Lloyds Contracts Microsoft for Agentic AI Deployment Plans
Lloyds Banking Group and Microsoft have announced a new multi-year agreement that will see the tech giant supporting the finance firm with its next stage of AI deployment.
The agreement follows the roll-out of 40,000 Microsoft 365 Copilot licences across the Group, with 97% of colleagues with a licence classed as active users.
The rollout will support Lloyds with its continued deployment of agentic AI systems across its network and offerings, while providing assurances in governance, security, and identity mangement.
The James Hutton Institute and Abertay University collaborate on game
The James Hutton Institute and Abertay University have partnered to create a new online game exploring how potatoes have shaped Scotland’s food and farming, alongside the importance of biodiversity and sustainable agriculture.
Working closely with researchers from the Hutton, the student team from Abertay’s Professional Masters in Games Development (Mrof), designed and built Potato Expedition: 1946 earlier this year as part of the Applied Games and Research Design module.
The game places players in the role of a plant collector travelling to South America to gather wild potato species. Their mission is to safely return 20 unique specimens to help establish the Commonwealth Potato Collection (CPC), a vital resource for breeding crops that can withstand disease and climate change.
MVPz Named Official Trading Card Partner of Major League Cricket
Scottish-founded sports engagement platform MVPz has entered a multi-year partnership with Cognizant Major League Cricket, becoming the league’s Official Sports Trading Card Partner.
The agreement will see MVPz launch officially licensed digital and physical trading cards featuring MLC players, available through its platform and the league’s website.
Each physical card will use NFC technology to connect fans with player profiles, live statistics, performance data and other interactive content, combining traditional collectibles with digital fan engagement.
Appointments
Head for Data Appoints Robin Huggins as Chief Revenue Officer
Falkirk-based Head for Data has appointed Robin Huggins as Chief Revenue Officer as the company looks to accelerate its growth and expand its work across data, automation and AI transformation.
Huggins brings more than 25 years of commercial leadership experience across Scotland’s technology and data sectors. He joins from DIGIT.FYI, where he also served as Chief Revenue Officer, having previously spent more than 14 years helping to grow data and AI recruitment firm MBN Solutions.
Twice named among the UK’s most influential data professionals in the DataIQ 100, Huggins has also contributed to initiatives including The Data Lab MSc Placement Programme, Scotland’s AI Strategy working group and a range of university employability and industry mentoring programmes.
In his new role, he will lead Head for Data’s revenue strategy, with responsibility for developing its sales operation, strengthening customer relationships, building strategic partnerships and expanding the company’s market presence. Since joining in May, he has introduced a new CRM platform and begun developing a more structured sales and marketing function to support the company’s longer-term growth.
Commenting on the appointment, Huggins said: “One of the things that attracted me to Head for Data was its people-first approach. The conversations around AI are often dominated by technology, but successful adoption starts with people, business outcomes and organisational readiness. Technology comes afterwards. Businesses are looking for trusted partners who can help them cut through the noise and understand where data, automation and AI can genuinely create value.
“Head for Data is uniquely positioned to support organisations on that journey, and I’m excited about what we can achieve together.”
CyberScotland Partnership Appoints New Chair
The CyberScotland Partnership has announced the appointment of Theresa Swayne, Head of Digital Economy at Highlands and Islands Enterprise (HIE), as its new Chair. Theresa succeeds Karen Meechan, former CEO of ScotlandIS, bringing a wealth of leadership experience in digital transformation, economic development and cyber resilience.
Theresa is widely recognised for her strategic leadership at Highlands and Islands Enterprise, where she has played a pivotal role in driving the growth of Scotland’s digital economy. In her current role, she has championed innovation, supported businesses to adopt emerging technologies and fostered collaboration across public and private sectors to strengthen regional and national digital capabilities.
As Chair of the CyberScotland Partnership, Theresa will lead a national collaboration of key organisations dedicated to making Scotland a safer, more resilient place to live and work online. The Partnership brings together expertise from government, academia, law enforcement, the third sector and industry to deliver Scotland’s cyber resilience ambitions.
2i Appoints New Director of Public Sector and Director of Financial Services
2i, the independent software testing and QA consultancy, has made two key appointments.
The firm welcomed Karen Meechan as its new Director of Public Sector, and Charlie Lambert as its new Director Financial Services.
Meechan brings 20 years of experience in the heart of Scotland’s digital ecosystem; she will bring her expertise and passion for using technology to improve services and deliver outcomes to the team.
Lambert brings 30 years of experience in financial services, from transformation programmes to technology operations and strategy.
Brightridge Technology Appoints and Expands
Brightridge Technology has had a range of updates this month, from strong appointments to a Scottish expansion.
The firm appointed Andy McKay as Commercial Director, a newly created role to support the company’s next phase of growth. He joins the senior leadership team with responsibility for commercial strategy, revenue growth and strengthening sales operations, as the business scales its managed IT and cyber security services offering.
It has also strengthened its cyber security offering with the appointment of Nicola McKay, its first in-house Cyber Essentials Assessor, and accreditation as a Cyber Essentials and IASME Cyber Assurance Certification Body. The move enables the company to deliver certification, remediation and ongoing compliance support as part of a fully integrated service.
Brightridge Technology has established a dedicated presence in Aberdeen, extending its cyber-first managed IT services into the North East. The expansion responds to growing demand for integrated, in-house cyber security and IT delivery, particularly in regulated sectors, with the local operation led by Commercial Director Andy McKay.
PriceHubble appoints Graham Binnie as Head of Sales & Solutions
PriceHubble has appointed Graham Binnie as its new Head of Sales & Solutions, reinforcing its commitment to supporting the UK property and financial services sectors with market-leading property intelligence and analytics.
Binnie joins the business with more than 20 years’ experience in financial services, having held leadership roles at NatWest, RBS International, Kensington Mortgages and TransUnion. Throughout his career, he has led commercial and customer-focused teams, helping organisations drive growth and deliver innovative solutions across banking, lending and data services.
In his new role, Binnie will lead PriceHubble’s Sales & Solutions function, working closely with customers and partners to help them harness data and AI-driven insights to improve decision-making and deliver better outcomes.
Expansions
Multiverse Launches Edinburgh AI Tech Hub
Multiverse, the upskilling platform for AI and tech adoption, announced the opening of a new technology hub in Edinburgh.
Following its recent $70m funding round, the hub marks an expansion of Multiverse’s engineering footprint, placing an additional centre of technical excellence outside of London.
Former Amazon leader Colin Mackenzie has been appointed as the company’s first VP AI Engineering to lead it, and will focus on developing agentic products.
Mackenzie brings more than a decade of engineering leadership experience to the role, most recently spending six years at Amazon.
Scottish AI Firm Wins KPMG 2026 Tech Innovator Award
Zelim, a Scottish AI business, has been crowned KPMG’s 2026 Tech Innovator in the UK.
The annual competition spotlights and celebrates the world’s most innovative technology startups and provides a platform for entrepreneurs to showcase their businesses and collectively champion the future of tech.
The Edinburgh-based startup, which builds AI-enabled maritime safety and security systems to save lives when people fall overboard at sea, beat off competition from hundreds of businesses across the UK to win the award.
A bootstrapped Edinburgh startup has won two awards at the inaugural AI Comms Awards in London last night (18 June 2026). Comms With AI, an AI platform for communications teams built single-handedly by founder Michael MacLennan, won Gold for Best Innovation in AI Tools for Communications, and MacLennan was named AI Communications Leader of the Year (Agency).
Launched publicly in February 2026 and built solo by MacLennan using Claude Code — without an engineering team or outside investment — Comms With AI gives communications teams a complete operating system for AI-powered work: 62 ready-to-deploy templates, seven workflow toolkits, 44 reviewed AI tools, and a five-phase methodology covering how teams strategise, create, govern, monitor and transform their communications. The free library is now used by communications professionals across the UK, US, Australia and Germany.
The platform shows what a single practitioner can now build with current AI tooling. Rather than hiring developers, MacLennan built and shipped the product himself, iterating in the open and pairing tested AI prompts with human review checklists so that speed does not come at the cost of judgement.
KPMG’s latest Global AI Pulse report finds that as UK businesses move AI into everyday work, leaders are under increasing pressure to demonstrate value, with cost visibility emerging as a key barrier to scaling AI effectively.
The quarterly global survey of C-suite and senior business leaders, including 116 in the UK, found that over a quarter (26%) of UK companies now use AI as part of everyday work, up from 18% in Q1 2026.
But as organisations expand their use of AI tools and agentic systems, managing usage costs is becoming both more complex and more critical to realising value.
Many organisations still lack a clear view of how spending accumulates. Almost a third of UK leaders (30%) struggle with usage-based costs, while 42% have only partial visibility into AI spending.
One-third of leaders (33%) cite limited understanding of AI cost structures, including tokens, as a challenge to deploying AI agents.
The findings suggest that while adoption continues to accelerate, the next phase of AI will be defined less by experimentation and more by whether organisations can turn AI investment into measurable business outcomes.
“AI is moving rapidly into everyday work, but scaling it responsibly brings a new set of challenges. Leaders now need to show not just that AI can be deployed, but that it can be trusted, financially controlled and clearly linked to value.
“Cost visibility is central to that. As organisations use more AI tools and agentic systems, they need to understand how costs build, where value is being created and where governance controls are needed. Without that clarity, it becomes harder to make confident investment decisions or demonstrate returns.
“Clear accountability, practical governance and workforce adoption must move together if businesses are to turn AI momentum into sustained value.”
Companies where CEOs are accountable for AI decisions report higher confidence in their AI strategy are more likely to realise meaningful business value, and report stronger ROI, highlighting the importance of leadership accountability in ensuring AI delivers value across a range of measures, not just cost reduction.
To better manage AI costs, organisations are putting governance controls in place, including monitoring and spending controls.
More than half of UK leaders report having AI cost monitoring dashboards (57%) and embedding cost reviews as part of AI approval processes (61%), enabling stronger control and decision-making.
Organisations with stronger cost visibility are four times more likely to report established Return On Investment (ROI) (25% vs. 6%).
“AI cost management cannot sit as an afterthought. If businesses want to scale AI responsibly, they need to build financial discipline into the way AI is approved, monitored and governed from the start,” Leanne added.
“The organisations that can see their AI costs clearly are better placed to understand what is working, what is not and where to keep investing.”
Agentic AI is set to disrupt enterprise software revenue models, with up to $234 billion of enterprise application spending exposed to agentic arbitrage between now and 2030, according to Gartner.
By 2030, this will account for roughly 20% of enterprise application software-as-a-service (SaaS) spending.
Agentic arbitrage happens when AI agents complete tasks across multiple systems, reducing the need for users to interact with multiple traditional software interfaces.
“Agentic AI changes the economics of software,” said George Brocklehurst, Managing Vice President at Gartner. “Agentic systems deliver outcomes directly, bypassing traditional user experience (UX)-heavy applications and making the software invisible. This breaks the link between user growth and revenue growth for many enterprise software vendors.”
This shift is already underway and will refactor how software is built, priced and consumed. “It will also lead to a redefinition of ‘Saaspocalypse’, the disaggregation of the legacy SaaS market as we know it today,” said Brocklehurst. This is less an apocalypse and more of a metamorphosis. SaaS will not be destroyed; it will emerge in a different form. This metamorphosis represents threats and opportunities for both incumbents and new challengers.
From Features to Outcomes
Gartner analysts said expectations are changing. “Enterprise buyers will deemphasise buying more new tools or dashboards,” said Brocklehurst. “They want better outcomes and adding more AI features often creates more cost, not better outcomes. Better outcomes from AI require systems that can retain deep institutional memory and customer context over time.”
Some vendors are already offering agentic solutions that deliver autonomous end-to-end workflow execution, cross-system orchestration and capture customer context and knowledge, which help to foster business results and ROI. Today this typically requires heavy services engagement.
“As organisations increasingly use agentic AI systems, the user interface is no longer a differentiation,” said Brocklehurst. “Legacy SaaS market share will be cannibalised by incumbents and taken by new entrants delivering horizontal agentic platforms.”
To remain competitive and achieve growth opportunities, incumbent software vendors must move from interface-based value to outcome-based value, embed agentic capabilities at the point of execution into their offerings to defend their position in the value chain, capture and retain customer-specific knowledge, not just data.
“While this shift is posing an existential threat for vendors who are defending legacy dashboards and seat-based models, it creates a substantial revenue opportunity for vendors who are enabling and developing services and platforms to support agentic enabled cross-domain workflows,” said Brocklehurst.
AI-native startups and service providers can act as the agentic layer across enterprise systems, deliver measurable outcomes instead of features and assist organisations redesign workflows around AI. “Ultimately, they can capture not just existing spend, but incremental budget unlocked through ROI upside,” said Brocklehurst.
ScotlandIS, the membership and cluster management organisation for Scotland’s digital technologies industry, has appointed Andrew Weir as its new Chief Executive Officer (CEO), effective 1 July. He succeeds Karen Meechan, who stepped down in May this year.
As CEO, Andrew will lead ScotlandIS’ mission to strengthen Scotland’s technology ecosystem at home and abroad, support its growing membership and foster greater collaboration between industry, government and key stakeholders.
Andrew brings over 28 years’ experience in digital transformation across the public and private sectors, supporting businesses in financial services, manufacturing, logistics, pharmaceuticals and more. Most recently, as Transformation Programme Manager at multinational engineering company Weir Group, he led initiatives that delivered millions of pounds in savings by reducing IT spend and improving internal business functions.
Andrew has also held senior advisory and government roles throughout his career, including positions within both the Scottish and UK Governments, and spent 17 years as an independent consultant supporting organisations through complex transformation programmes.
Speaking on his appointment, Weir said: “It’s a real honour to be joining ScotlandIS, an organisation that plays such a vital role in championing Scotland’s technology sector and is so widely respected across industry and government.
“This is an incredibly exciting time for Scotland’s technology sector – digital technologies and AI are shaping every industry, and the UK’s AI agenda shows how seriously government is taking this. I look forward to working with members, partners and stakeholders to strengthen connections and showcase Scotland’s innovation and expertise on a global stage.
“My immediate priority will be to listen, learn and build strong relationships with the wider community to ensure ScotlandIS continues to support a thriving and ambitious technology sector.”
Andrew Williams, CEO at Apptrix.ai and chair of the ScotlandIS board added: “Andrew brings a wealth of experience spanning multiple sectors and a proven track record of delivering meaningful change.
“His understanding of both the digital economy and the public sector landscape makes him exceptionally well placed to lead ScotlandIS through its next chapter.
“At a time when technology is playing an increasingly critical role in driving economic growth and innovation, Andrew’s ability to connect industry and government will be invaluable. We are delighted to welcome him to the organisation and are confident that his leadership will help strengthen Scotland’s technology ecosystem
As the Tartan Army returns home, Scotland has been busy with other success stories with major deals for AI firms and huge investment backing in fintech.
This month also featured major investments in research, as well as a high-profile in acquisition in critical national infrastructure.
All that, and more, coming up!
Funding
Edinburgh’s Wordsmith AI Raises $70m to Expand Globally
Edinburgh-headquartered Wordsmith AI today announced a $70 million Series B funding from Highland Europe and Index Ventures among others.
The round comes alongside an expansion of Wordsmith’s product and new enterprise customer wins, including Sage and Starling. It follows a year of rapid growth for Wordsmith which is now used by more than 500 companies, including BT, Financial Times, Safelite, Trip.com, and Canva.
Wordsmith’s momentum reflects the pace at which enterprise legal teams are rethinking how work gets done. Wordsmith will use the funding to accelerate development of its AI platform, scale towards 300 people globally by the end of the year, double down on the US market, and support growing demand from corporate legal departments looking to bring more work in-house, reduce spend on outside counsel, and measure legal’s impact across the business.
Edinburgh Fintech Aveni Raises £12m for AI Assurance Platform
Edinburgh-based Aveni has raised £12 million in a funding round led by PXN Ventures to accelerate the development of its Unified Assurance Platform and launch new products designed to assess the conduct risk of AI agents in financial services.
The round was supported by existing investors Puma Growth Partners, Lloyds Banking Group, Nationwide and Scottish Enterprise. Aveni said the investment will support further development of its Unified Assurance Platform, as well as the launch of Agent Assure and Agent Approve, which are purpose-built to assess the conduct risk of AI agents that interact with consumers in financial services.
The company, which describes itself as the UK’s leading AI fintech specialist in wealth management, financial advice and banking, has spent seven years deploying and developing AI products for the UK financial services sector. Its tools include Aveni Assist, an AI productivity product for advisers and operations teams, and Aveni Detect, an AI compliance monitoring tool used by banks, wealth managers and financial advisers.
Cambridge-based AI startup CuspAI is reportedly in talks to raise at least $400 million in a funding round backed by Jeff Bezos’s family office, in a deal that would push the company’s valuation to $2.6bn.
According to a Financial Times report, investors in the round include Silicon Valley venture capital firm Kleiner Perkins and Bezos Expeditions, the family office of the Amazon founder. Term sheets have reportedly been signed, though the deal has not yet formally closed.
The financing would represent a meteoric rise in valuation for the two-year-old company, which was valued at $520 million in September 2025. CuspAI has previously raised more than $220 million from investors including Singaporean sovereign wealth fund Temasek and venture capital firm NEA.
Dumfries-based VASO Global Gains £5m Funding Boost
An industrialised construction company which has developed innovative technology to build homes from recycled glass panels has secured more than £5m in funding to help it tackle the UK’s housing crisis.
VASO Global is a world-leading housebuilding innovator which takes waste glass and converts it into high-performance structural composite panels capable of delivering rapid, low-carbon, modular homes and buildings.
The company combines digital design, integrated manufacture and semi-autonomous construction, to provide affordable, thermally efficient, low-carbon homes which are swift to construct, enabling it to respond to the UK’s need to build more homes more quickly.
VASO Global, based in Dumfries, has secured £1.4m seed investment from PXN Ventures along with £621k from Scottish Enterprise. The company has also secured a £2m loan approved by Innovate UK Loans Limited, a division of UK Research and Innovation (UKRI), and £800k from ECO GROUP which will be the delivery partner for the initial VASO Global build projects.
Investment
AMD Invests £2BN in UK AI Innovation and Research
AMD is investing up to £2 billion into the UK over the next five years to boost AI research and innovation with expanded compute resouces.
AMD CEO and chair Dr Lisa Su announced a series of investments into the UK at London Tech Week, as well as collaborations aiming to support the UK’s AI ambitions with access to the foundational computing this transformation requires.
“The United Kingdom has the talent, research excellence and ambition to help lead the next era of AI,” Su said.
The funding and collaborations will accelerate research and public-sector innovation with advanced computing power.
The Financial Regulation Innovation Lab (FRIL), the UK’s centre of excellence for innovation in technology to efficiently meet financial regulation requirements, has secured £3.18 million from Scottish Enterprise to deliver three years of the award-winning programme.
The funding will deepen collaboration amongst academia, industry and regulators, and further accelerate the adoption of responsible technology-driven innovation in financial services, supporting the sector’s competitiveness and that of the economy.
Led by FinTech Scotland in partnership with the University of Strathclyde, FRIL will accelerate the adoption of new solutions enabling fairer financial futures and supporting technology innovators to scale their businesses.
James Hutton Institute Hutton awarded £40,000 to create interactive digital models
Researchers at The James Hutton Institute, Scotland’s pre‑eminent interdisciplinary research institute for sustainable land, crop and nature management, have been awarded £40,000 by the Macaulay Development Trust to create interactive 3D representations of Scottish landscapes using cutting-edge data and immersive technology.
The project, titled ‘3D GIS and GeoAI for coherent, scalable interactive landscapes’, will explore how the nation’s terrain can be better understood, visualised and discussed through interactive 3D mapping.
To create the virtual landscapes, researchers will use data from the Scottish Government’s new Scotland-wide LiDAR programme. This groundbreaking initiative captures landscapes in centimetre-level resolution by using aircraft-mounted lasers to fire pulses down to the ground. These pulses are then reflected back up, and the time taken for the pulse to return to the aircraft is used to calculate the distance to the ground below.
Acquisitions
Glasgow’s Westica Acquired By CNI Firm Serbus
Glasgow based Westica Communications Limited (Westica) has been acquired by Serbus, the provider of secure Critical National Infrastructure (CNI) networking and communications solutions for an undisclosed sum. Westica are deep technical specialists in the design, deployment and support of microwave and UHF/VHF radio networks, critical communications systems, cyber-secure networking, and infrastructure solutions.
Serbus is backed by Aliter Capital, the private equity ‘buy and build’ specialist with offices in Glasgow and London. Westica is the fourth acquisition by Serbus since December 2022.
Founded in Glasgow in 1994, Westica offers more than thirty years of experience in the provision of specialist secure radio network communications. Westica have built an outstanding reputation as a trusted provider of wireless communications, critical network infrastructure and secure connectivity solutions for customers operating in some of the UK’s most demanding environments across CNI, utilities, ‘blue light’ services, government, transport, oil & gas, and enterprise sectors.
Microsoft is reportedly planning on cutting under 2.5% of its current workforce, with layoffs expected as soon as next week, Business Insider reports.
The workforce reductions will reportedly affect thousands of roles, from sales and consulting, to roles in the gaming devision of Xbox.
According to the report, some employee will be offered new roles immediately after the layoffs.
Microsoft has refued to comment on the report.
The reported layoffs come just over a year after Microsoft laid off thousands of employees in January 2025, the redundancies totalling 4% of its workforce.
The tech giant has recent come under fire from consumers for the rise in Xbox console prices, which are connected to the growing supply chain crisis due to global conflicts and tensions.
The gaming division is planning layoffs as well as cuts to its budgets and marketing, according to reports from Bloomberg.
Xbox may also see a restructuring under Microsoft, according to reports from The Information, which found that the gaming firm may be transformed into a subsidiary.
Microsoft has yet to confirm if the layoffs will go ahead, and it remains unclear the direct contributing factors for this round of layoffs.
As tech giants continue to cite AI as a reason for workforce transformation, layoffs at Xbox may point to the growing uncertantiy in the components market as a result of stagnating trade and global tensions due to conflicts and strain.
The Financial Conduct Authority has set out new landmark rules for crypto, setting out clearer standards for the buying, trying, and holding of crypotcurrencies.
All firms must meet financial resilience requirements including capital and stress testing. The FCA is also introducing new market integrity rules covering areas such as insider trading and market manipulation.
The new framework also sets out specific rules for stablecoins, a type of cryptoasset designed to maintain a stable value, typically by being linked 1:1 to a fiat currency such as the pound. Stablecoins will be subject to clear, strong and transparent standards, helping to build trust in how they are used over time.
Following consultation, the FCA has simplified key elements of the standards to make it more workable in practice including simpler capital requirements for stablecoin firms and tailoring trading rules to better reflect how crypto markets operate.
The FCA drew upon international best practice, applying established financial services standards where risks are comparable, including the Consumer Duty.
“This is a significant moment for crypto regulation in the UK,” David Geale, executive director of payments and digital finance at the FCA said.
“We’ve created a framework that doesn’t force firms to choose between regulatory certainty and room to innovate – this regime means they can have both in a stable, competitive home to build and grow.
“For consumers, it means firms will be held to similar standards to other financial providers, though we can’t regulate away risk.”
Legislation in February 2026 brought cryptoassets into the FCA’s remit, marking one of the most significant expansions of the regulator’s oversight in years. Until the new rules come into effect in October 2027, the FCA’s oversight of crypto will continue to be limited to financial promotions and anti-money laundering controls.
Crypto firms, including trading platforms, intermediaries, custodians, stablecoin issuers, and firms arranging staking must obtain FCA authorisation to operate in the UK.
The FCA is encouraging firms to prepare now and make use of its pre-application support meetings available from July.
Firms can apply for authorisation between 30 September 2026 and 28 February 2027, so they are ready to start or continue to trade under the new mandatory regime which will come into force on 25 October 2027.
Crypto remains high-risk and consumers should understand what protections apply before investing. The new rules set by the FCA provide the foundation for a more sustainable and trusted crypto market in the UK.
Commenting on the new regulations, Zumo’s Founder and CEO Nick Jones said: “Regulation must be proportionate if the UK is to compete on the international stage, and it’s therefore important that the FCA has reduced its planned capital requirements for stablecoin issuers and lifted its blanket disclosure rule, removing the requirement for smaller companies and firms with less risky activities to publicly disclose their capital requirements. Such moves show the regulator has listened and taken the time to address valid industry concerns.
“However, firms will soon be regulated to the same stringent standards as UK financial services and will rightly be expected to show the same behaviours.
“They will need to meet rigorous benchmarks for backing assets, safeguarding, redemption, and operational resilience, as well as effectively manage AML/KYC, liquidity, reconciliation, and third-party dependencies. They will also have to conduct annual stress tests, proving they can withstand major market shocks and economic strain.”
Deep Patel, Partner & UK Payments Lead at global management and technology consultancy Capco said: “The FCA’s crypto rules are a significant step towards bringing digital assets into the mainstream UK regulatory framework.
“Following last week’s Bank of England policy statement and Code of Practice on stablecoins, we are seeing clear moves to lay the foundations for a more integrated UK digital assets and payments ecosystem. The FCA and BoE are signalling that they want innovation, but only where cryptoassets and stablecoins are supported by proper safeguards and can operate with the level of trust expected of money.
“The future of payments will involve different forms of money sitting alongside each other – including bank deposits, tokenised deposits, regulated stablecoins and potentially a digital pound – with stablecoins increasingly being seen as a potential payments infrastructure.
“For payment firms, this creates opportunities around faster settlement, cross-border payments and programmable payments. For banks, it opens up new opportunities in custody, safeguarding, liquidity and settlement services, while also increasing pressure to develop tokenised deposit propositions of their own.
“However, firms will need to meet high standards on backing assets, safeguarding, redemption and operational resilience, while proving they can support reliable redemption at face value, including under stress, alongside managing AML/KYC, liquidity, reconciliation, payment cut-offs and third-party dependencies.
“These developments are a constructive step, giving sterling stablecoins and crypto a credible route into the UK payments ecosystem, but only for firms who are able operate with bank-grade controls.”
Glasgow based Westica Communications Limited (Westica) has been acquired by Serbus, the provider of secure Critical National Infrastructure (CNI) networking and communications solutions for an undisclosed sum. Westica are deep technical specialists in the design, deployment and support of microwave and UHF/VHF radio networks, critical communications systems, cyber-secure networking, and infrastructure solutions.
Serbus is backed by Aliter Capital, the private equity ‘buy and build’ specialist with offices in Glasgow and London. Westica is the fourth acquisition by Serbus since December 2022.
Founded in Glasgow in 1994, Westica offers more than thirty years of experience in the provision of specialist secure radio network communications. Westica have built an outstanding reputation as a trusted provider of wireless communications, critical network infrastructure and secure connectivity solutions for customers operating in some of the UK’s most demanding environments across CNI, utilities, ‘blue light’ services, government, transport, oil & gas, and enterprise sectors.
Simon Fieldhouse, Group CEO, Serbus said: “This is another important step for Serbus in building a business to meet the increasing needs of CNI customers. Sector expertise and a focus on Security, operational Health & Safety, and Compliance is core to the Serbus strategy, and we recognise in Westica the same commitment to resilience, reliability and customer service. The addition of Westica to our Group extends our security DNA and strengthens our mission to connect and protect the services that matter most.”
Westica directors Stevie Dynes and Andy Hunwicks are remaining with the business, working closely with Serbus and Aliter to deliver ambitious growth plans. Aliter is now focused on adding further acquisitions and supporting the company’s organic growth.
Aliter partner Greig Brown said: “This latest acquisition is another significant step forward in realising our growth ambitions. Westica is a great fit, adding a wealth of specialist skills and experience to the Group. The addition of Westica’s presence in Scotland also supports plans to develop a UK wide footprint for Serbus, servicing major customers across the length and breadth of the country.”
Westica director Stevie Dynes said, “Our success has always been built on technical expertise, responsiveness and customer relationships. Joining Serbus Group allows us to build on those foundations and invest further in the future. We are excited about the additional capabilities and opportunities this partnership will create for our customers and colleagues moving forward.”
Serbus is aiming to become a UK market leader in B2B critical network and ICT Infrastructure managed services within the CNI sector. The Group combines secure infrastructure and communications capabilities with government-grade security expertise and offers immediate scale.
A critical differentiator for Serbus is its “security DNA”; with foundations built on the rigorous standards of the UK Special Forces, UK Government, Emergency Services and National Healthcare, and addressing the increasing challenges faced by UK Critical National Infrastructure.
Cyber and Fraud Centre Scotland, alongside its strategic partners Royal Bank of Scotland and Fortinet, has announced the return of its See It Be It conference, taking place on 2 October 2026 at the Royal Bank of Scotland Edinburgh offices.
The free event will bring together female high school pupils, university and college students, educators, cyber professionals and tech industry leaders for a day of inspiring panel discussions with diverse role models from across the sector, hands-on activities that show the reality of cyber roles and small-group mentoring sessions.
The conference forms part of the Centre’s wider See It Be It programme, which aims to tackle the cyber sector’s ongoing gender imbalance by improving visibility, access and support for women considering careers in cyber security.
According to the UK Government’s latest Cyber Security Sectoral Analysis, the number of cyber security firms active within the UK has increased by 20% over the last year. And yet despite this boom, women currently make up just 17.5% of cyber roles in the UK.
Jude McCorry, CEO of Cyber and Fraud Centre Scotland, said: “Across Scotland, there is no shortage of talented young women interested in cyber security, but many still struggle to see a clear pathway into the industry – in part because of the narrow view they have of what a career in cyber security looks like.
“The reality is that the sector offers a huge variety of roles, from technical and analytical positions to careers in communications, policy, education, law and project management. See It Be It is designed to challenge those misconceptions, creating real opportunities for connection, and showing young people that a future in cyber security is both achievable and rewarding.
“The impact of this is far-reaching. A more diverse cyber workforce strengthens the sector by bringing different perspectives and approaches to problem-solving. At a time when the cyber security landscape is more challenging than ever, that diversity is desperately needed to achieve successful outcomes. By making cyber security careers more visible and accessible, we can help Scotland close the cyber gender gap and shore up its defences.”
Judith Cruickshank, Scotland Board Chair Royal Bank of Scotland, said “Cyber security is absolutely vital to a wide range of sectors, not least financial services. Yet for many young people it can be difficult to understand what career opportunities there are and this is especially true for women who are underrepresented in cyber security roles.
“That is why the Royal Bank of Scotland is proud to support this year’s See It Be It conference. Events like these are essential in showcasing pathways into cyber security and inspiring talented young women to pursue a career in a diverse and evolving specialism, that is only going to grow importance to our entire economy in the years ahead.”
Richard Woolfrey, Regional Director UK and Ireland of Fortinet, said: “As global demand for cybersecurity professionals grows, representation remains uneven. At Fortinet, we believe that building a stronger, more diverse cyber workforce starts with making the industry more visible, accessible, and inclusive for the next generation.
“We are partnering with several organisations and initiatives, such as See It Be It, to help break down barriers and create opportunities for women and other underrepresented groups to thrive in cybersecurity.”
The October conference builds on a successful series of See It Be It activities held throughout the past twelve months, which engaged more than 20 schools and over 200 schoolgirls from across Scotland, including Aberdeen, Edinburgh, Falkirk, Glasgow, Perth and Stirling.
Previous events included the Cyber Ladies Afternoon Tea, delivered alongside Check Point and Accenture, which brought together cyber professionals, industry leaders and school pupils to discuss barriers facing women in cyber.
Summing up her experience of the afternoon tea, one student attendee said: “Listening to the stories of women who have made an impact in cyber has shown me that the industry is full of incredible opportunities. There are so many paths I can take, and I now feel more confident about pursuing a career in cyber.”
The programme also expanded online through the See It Be It Webinar, which enabled students and role models from across Scotland to connect virtually, explore pathways into cyber security and discuss the opportunities available within the sector.
Beyond October’s conference, Cyber and Fraud Centre Scotland plans to expand the See It Be It community over the coming year by organising further school visits and industry open days, promoting internships and entry-level jobs and participating in cyber competitions, alongside a range of other activities designed to support young women at every stage of their cyber journey.
Schools, educators and students can find further information and registration details here. The Centre is also running a competition for Scottish high schools, giving winning schools the chance to bring up to 10 female pupils along to the conference, with travel bursaries available where required.
Companies and professionals interested in speaking, exhibiting in the careers hub or delivering an interactive activity are invited to register via the website or email enquiries@cyberfraudcentre.com.
