Breaking AI & Tech News Analyzed

The amount of AI-generated child sexual abuse material found online surged by 14% in 2025, according to the Internet Watch Foundation (IWF). The watchdog identified 8,029 AI-made images and videos of realistic child sexual abuse material (CSAM) last year.The IWF reported a 260-fold increase in videos, with 65% of the 3,443 videos classified as category A, the most severe type under UK law. This is compared to 43% of non-AI videos. Kerry Smith, IWF chief executive, emphasized that advances in technology should not come at the expense of a child's safety and wellbeing.The IWF also found that offenders are discussing the potential of AI systems to create more realistic and violent content, including adding audio to videos or manipulating imagery of real children. The UK government has announced plans to test AI tools to prevent CSAM and introduced legislation to ban AI models designed to generate child sexual abuse material.Eight out of 10 UK adults want the government to introduce legislation ensuring AI systems are developed with safety as a priority. The IWF operates a hotline and has a global remit to monitor child sexual abuse content.

The UK government's decision to delay new regulations on low-carbon housing in England has sparked concerns that homebuyers will be locked into high gas prices for years to come. The updated regulations, known as the 'Future Homes Standard' (FHS), will require most newly built homes to be equipped with solar panels and heat pumps from March 2028.However, a loophole allowing wood-burning stoves in new homes could undermine efforts to achieve fully carbon-free homes. The FHS aims to reduce greenhouse gas emissions by 75% compared to existing 2013 standards, but experts warn that wood-burning stoves, which are highly polluting, may account for some of the remaining 25% of emissions.The delay is expected to result in hundreds of thousands of new homes being built with gas heating, despite rising energy costs. Experts argue that this is unacceptable given the availability of low-carbon alternatives like heat pumps. Jan Rosenow, a professor of energy at the University of Oxford, stated, 'It is outrageous that people will be buying homes that are expensively heated with gas when we have perfectly good technology – heat pumps – that can be installed instead.'The government claims that households will save around £1,000 per year on energy bills thanks to the new standards. However, critics argue that the delay and loopholes will hinder progress toward a carbon-free future and leave homeowners vulnerable to energy market fluctuations.

The United States' top intelligence official has identified Pakistan as one of five countries, alongside Russia, China, North Korea, and Iran, whose advancing missile capabilities could eventually pose a threat to US territory. Director of National Intelligence Tulsi Gabbard presented the 2026 Annual Threat Assessment before the Senate Intelligence Committee, highlighting that these countries are developing novel missile delivery systems with nuclear and conventional payloads that could reach the US homeland.Gabbard specifically noted that Pakistan's long-range ballistic missile development potentially includes Inter-Continental Ballistic Missiles (ICBMs) with a range capable of striking the US. The written assessment also flagged Pakistan across multiple threat categories, including missile technology and weapons of mass destruction.However, experts and Pakistani officials have pushed back against these claims. Pakistan's Ministry of Foreign Affairs spokesman, Tahir Andrabi, stated that Pakistan's strategic capabilities are 'exclusively defensive' and aimed at safeguarding national sovereignty and maintaining peace in South Asia. Experts also point out that Pakistan's longest-range operational missile, the Shaheen-III, has an estimated range of 2,750km, which is not sufficient to reach the US.The assessment has sparked a debate over intent, with some US officials suggesting that Pakistan might be developing missiles to deter Washington from intervening in a future India-Pakistan conflict. However, Pakistani analysts argue that Pakistan's deterrence posture is India-centric and not aimed at projecting power globally.The issue comes at a complex moment in US-Pakistan relations, which have undergone a diplomatic reset over the past year. US President Donald Trump has praised Pakistan's army chief, Field Marshal Asim Munir, and has been involved in brokering a ceasefire between India and Pakistan. The situation highlights the intricate dynamics at play in South Asia and the ongoing challenges in the region.

The US Department of Justice has charged three people, including a co-founder of Super Micro Computer, with helping to smuggle at least $2.5 billion worth of US AI technology to China. The indictment alleges a complex scheme to send US-made servers through Taiwan to other countries in Southeast Asia, where they were swapped into unmarked boxes and sent on to China.The defendants, Yih-Shyan Liaw, Ruei-Tsang Chang, and Ting-Wei Sun, are accused of using fabricated documents and staged bogus equipment to pass audit inventories, and a pass-through company to conceal their misconduct and true clientele list.The US has had export restrictions on China for advanced AI chips since 2022. Nvidia, which dominates the market for AI chips, has stated that strict compliance with export laws is a top priority.Liaw, 71, was arrested in California and released on bail, while Sun, 44, a company contractor, was held for a bail hearing. Chang remains a fugitive. Super Micro's shares fell 8 percent in after-hours trading following the news.

The Trump administration has formally opposed Anthropic's legal challenge, arguing that the Pentagon's decision to blacklist the AI firm was both lawful and necessary for national security. In a court filing submitted on Tuesday, the Justice Department contended that Anthropic’s refusal to remove guardrails preventing its technology from being used in autonomous weapons and domestic surveillance constituted conduct rather than protected speech.Defense Secretary Pete Hegseth designated Anthropic, the creator of the Claude AI assistant, a "national security supply chain risk" on March 3. This move effectively excludes the company from a limited set of military contracts. The administration’s legal team asserts that the dispute is rooted in contract negotiations and national security imperatives, not retaliation. They argue that no constitutional rights were violated because the government did not restrict the company's expressive activities.However, legal experts suggest Anthropic may have a strong case regarding potential overreach. The company is currently challenging the Pentagon's decision in California federal court. The implications of this conflict extend beyond the courtroom; Anthropic executives have warned that the blacklisting could cause billions of dollars in losses this year and severely damage the company's reputation.In a statement, Anthropic emphasized its commitment to national security while acknowledging the necessity of the lawsuit to protect its business interests and partners. The company is also pursuing a separate legal challenge in a Washington, DC, appeals court regarding a broader supply chain risk designation.

Iran has reportedly claimed to have downed a US F-35 fighter jet during a combat mission, a development that could challenge the aircraft's reputation as 'unkillable'. According to sources familiar with the matter, the incident occurred last week when the F-35 made an emergency landing at an airbase in the Middle East. The Iranian Islamic Revolutionary Guard Corps issued a statement saying it had targeted a US aircraft, and Iran's semiofficial Tasnim news agency released military footage purporting to show Tehran's air defence systems hitting a US F-35 stealth fighter. The F-35, manufactured by Lockheed Martin, is considered the cornerstone of Washington's aerial firepower, boasting advanced stealth technology, sensors, and high-speed computing. Its ability to gather and share data from a 360-degree camera suite and other sensors makes it a formidable asset in modern warfare. If confirmed, this would be the first time an F-35 has been struck by Iran during the ongoing conflict. Defence experts emphasize that even if the claims are true, it does not necessarily mean stealth technology is becoming obsolete, but rather that even advanced aircraft like the F-35 are not invulnerable in a dense, adaptive air-defence environment. The incident is under investigation, with the US military's Central Command stating that the pilot was in stable condition after the emergency landing. The US has not yet confirmed that the F-35 was hit by Iranian fire, with President Donald Trump stating, “We’re flying wherever we want. Nobody is even shooting at us.” This development comes amid heightened tensions between the US and Iran, with at least 13 US service members killed and roughly 200 wounded during combat operations against Iran. In Iran, at least 1,444 people have been killed and 18,551 injured since the start of the conflict.

Europe has achieved staggering progress in clean power production, but its efforts are being undermined by a slow transition away from fuel-burning machines. According to Adrian Hiel, director of the Electrification Alliance, the EU has radically transformed its power supply but now needs to focus on increasing the use of electricity in everyday applications.The sluggish pace of electrification has left households exposed to higher bills as the Iran war has driven oil and gas prices to soar. The International Energy Agency has called for a faster shift to electric cars and heat pumps to complement its fuel-saving action plan.Hiel emphasized that high taxes on electricity are a major barrier to the green transition, suggesting that electricity should be taxed like a fresh apple, not like alcohol and tobacco. EU leaders, including Ursula von der Leyen, have acknowledged the need to adjust energy taxes to promote clean air and secure energy.The Electrification Alliance, which includes industry associations like SolarPower Europe and the International Copper Association Europe, is pushing for a faster switch to a decarbonized economy. Hiel noted that the falling cost of clean technology has made it easier for people to ditch fossil fuels, citing his own experience of insulating his home and installing a heat pump and solar panels.Looking ahead, Hiel warned that gas prices are likely to remain high for several years, putting pressure on governments to help households pay their bills and potentially hindering efforts to promote home electrification.

Palantir, a Miami-based company backed by billionaire Peter Thiel, has secured a three-month trial contract with the Financial Conduct Authority (FCA) to analyze a vast amount of sensitive UK financial regulation data. The deal, worth over £30,000 per week, aims to help the FCA tackle financial crimes such as fraud, money laundering, and insider trading.The FCA has awarded Palantir the contract to investigate its internal intelligence data, which includes highly sensitive case intelligence files, information on problem firms, and reports from lenders about proven and suspected frauds. Palantir will apply its AI system, known as Foundry, to huge quantities of information held by the watchdog, including recordings of phone calls, emails, and social media posts.The contract has raised concerns about privacy and the company's ethical reliability. One source expressed concerns that Palantir may share the information it learns from the FCA with other parties. Palantir's technology is used by the Israeli military and in the US president's ICE immigration crackdown, leading to criticism from left-wing MPs.The FCA has stated that it has strict controls in place to ensure data is protected and that Palantir will only act on instruction from the regulator. The data will be hosted and stored solely in the UK, and Palantir will have to destroy the data after completion of the contract.Experts have highlighted the potential benefits of using AI to tackle financial crimes, but also emphasized the need for robust protocols to protect sensitive information. Prof Michael Levi, an expert in money laundering, noted that AI is a potentially valuable technology to tackle financial crimes, but also raised concerns about the ownership and control of the data.

Palantir, a leading AI and data analytics company, has secured a major contract with the UK's Financial Conduct Authority (FCA) to leverage its AI technology for detecting financial wrongdoing. This deal marks a significant expansion of Palantir's presence in the UK, where it has already embedded its technology in the NHS, police, and military. The contract, valued at over £500m, enables Palantir to access terabytes of data gathered by the FCA, providing it with an unparalleled view of the inner workings of British authorities and the City of London, a global financial hub. Campaign groups have expressed concerns over Palantir's work with public authorities, citing its previous involvement with controversial entities such as the US Department of Homeland Security and the Israel Defense Forces. However, the company continues to secure lucrative contracts in the UK. The FCA aims to utilize Palantir's AI technology to better detect signs of wrongdoing, such as money laundering and fraud, which account for approximately 40% of all crimes in the UK. The regulator's workplan for 2025-26 includes expanding the use of data and intelligence to identify and act on high-risk firms and individuals. However, experts warn that the use of AI in detecting financial wrongdoing may lead to new challenges, such as criminals adapting to evade detection by using techniques like invisible 'white text' in documents to instruct AI systems to ignore incriminating information. Prof Michael Levi, an expert in money laundering at Cardiff University, notes that while there are concerns about data privacy, the use of AI technology can also help target corporate holdings and shell companies used for illicit activities.