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iPhone 17 and Galaxy S26 price hikes seem inevitable, and

Unhappy with Apple moving iPhone production to India to skirt tariffs imposed on China, President Trump threatened Apple twice that the iPhone could be subject to tariffs, with the latest warning dropping a few days ago. Trump said that iPhones sold in the US that are not made in the US will see a 25% tariff.

Trump said that if iPhones aren’t made in the US, “a tariff of at least 25% must be paid by Apple to the US.”

Making an affordable iPhone in the US is simply not possible. Many have discussed this matter during April, when Trump’s tariff announcements shook the world, sending stocks tumbling down. Renewing threats of new tariffs won’t make it any easier for Apple to overcome many of the problems that make manufacturing iPhones in the US a problem.

Also, if Apple ends up paying that 25% tariff to the US for all iPhones coming to America from India and China, it’s very likely that Apple will pass on that extra cost to iPhone buyers.

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Various insiders, including the well-known Ming-Chi Kuo, say it’s cheaper for Apple to continue making iPhones in India for the US market and deal with the tariffs later. In such a case, the more expensive iPhone would also be cheaper for the consumer looking to buy a new device than an iPhone made in America.

Whatever the case, the iPhone 17 series will be more expensive than the iPhone 16 models.

Also, it’s not just Apple that will be hit with tariffs in the near future. Trump said that Samsung and anybody else importing iPhones in the US will see similar tariffs. That means the Galaxy S26 series, due to launch in early 2026, will also bring price hikes that Samsung can’t possibly escape.

“In terms of profitability, it’s way better for Apple to take the hit of a 25% tariff on iPhones sold in the US market than to move iPhone assembly lines back to US,” Kuo said on X in response to Trump’s announcement on Friday.

Kuo explained in a separate tweet that Trump going after Apple might be a calculated political move meant to increase exposure. Whatever happens next, Trump can benefit from his attack on Apple:

If Apple moves iPhone assembly back to the US, Trump can promote it as a major “Made in America” achievement and key policy win. If Apple secures an agreement to temporarily shield itself from Trump’s targeting, Trump still secures other benefits he desires through the deal. When the need to promote “Made in America” arises in the future, he can resume targeting Apple and apply pressure with tariff threats.

Separately, The New York Times ran a story about the cost of an iPhone made in America. Well-known Apple enthusiast John Gruber took that story apart for its various claims, including estimates from analysts that an iPhone made in the US would more than double the price to $2,000 or more.

While Gruber’s criticism is warranted, and he’s right that there’s no basis for that quote, especially when it doesn’t mention which iPhone will see such a price hike, that estimate still drives home the main point here. US consumers might soon have to face a mild iPhone 17 price hike (from tariffs) or a major iPhone price hike for future models (from US production costs).

There’s absolutely no way Apple can make a cheaper iPhone in the US anytime soon or in the more distant future. Apple would have already done so, if such scenarios were possible.

When Kuo made his case that Trump going after Apple is a political move, the insider started with this question:

Apple is a consumer electronics company whose current products and services have no significant connection to national security, so why is it persistently and publicly targeted by Trump?

Apple is indeed far from being a national security threat. It’s one of America’s top companies, maybe the most important one. The iPhone is a highly coveted product around the world.

Asked why he would want to hurt an American company, Trump said that the same 25% tariff would apply to anybody selling phones in the US that are not made in America. He singled out Samsung in those comments. Samsung, by the way, is also not a national security threat.

If Trump pursues these smartphone-focused tariffs, the Galaxy S26 series might see price hikes. Like Apple, Samsung can’t move production to the US. It would be equally expensive for Samsung to make smartphones in a region that’s ill-equipped and untrained for such an endeavor.

Whatever happens with Trump’s proposed 25% tariff on iPhones and other smartphones sold in the US, I’ll remind you that Apple is already paying tariffs on different products. During its most recent earnings call, Apple said that tariffs will amount to $900 million for the June quarter.

I asked ChatGPT what the iPhone would cost if Apple decided to use its best-selling product to offset those tariffs by increasing the price of the iPhone right now. The AI said the iPhone should be up to $50 more expensive so Apple can compensate for that lost revenue. That scenario did not involve iPhone, iPad, or Mac tariffs.

Finally, I’ll also point out recent reports that predate Trump’s iPhone tariff threat. They said Apple is already looking at raising iPhone 17 costs and figuring out ways to explain the price hike without blaming tariffs. If Trump’s proposed 25% tariff happens, there’s no way for Apple to justify price hikes without blaming the tariffs.

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SXSW London: Risk of AI removing choice

Among the interesting talking points discussed during the South by Southwest (SXSW) London festival in Shoreditch was the importance of maintaining human creativity and ingenuity in the era of artificial intelligence (AI).

AI models are being improved every day, and its risk to the creative industries was one of the topics explored at SXSW.

The implications of AI developments and how people need to adapt in an era when AI can surpass human thinking has implications across society and will touch every industry.

Given AI is being broadly adopted across society, among the considerations is how to prepare young people so they can work alongside AI tools rather than compete. Since a tool like ChatGPT can answer exam questions, in a panel discussion, James Kirkham, founder and CEO at Iconic, acknowledged the challenge young people are facing doing their GCSEs. “How are we going to show the importance of human creativity?” he asked.

The implications of his comments are that kids would gain a more useful life skill by learning how to ask the AI the right questions, rather than learning facts they are then tested on in an exam.

Kirkham went further, discussing the need to teach children about taste. As generative AI becomes adept at writing and creating art and video content, he believes it is important that children understand why something is perceived as more tasteful compared with something else.

This may seem obvious, but the panel discussion explored how the choices people make are being algorithmically manipulated.

Risk of AI to humanity

During the panel discussion, Erika Wykes-Sneyd, general manager and vice-president at Adidas Studio, spoke about how technology providers were working to make AI-based technologies more integrated into society. “I think the technology companies are making us comfortable,” she said. “AI needs to be warm and fuzzy to drive adoption.”

The development work to improve these AI systems happens behind the scenes as people use the products. For Wykes-Sneyd, the challenge for society is how it can demonstrate human creativity as the AI systems get better and better at providing content.

In the age of exponential digital acceleration, she said: “What we’re realising is that what makes us messy and what makes us human is what we need to get closer to.”

Kirkham warned: “To stand out, we need to be at our creative best.” However, he pointed out that for the past few years, people have been completely enslaved by what he described as “their algorithmic lives in a quest for convenience”.

For instance, the idea of a recommendation engine or an AI feeding relevant content has been adopted by society to help people save time. But this has led to a herd mentality, where people stop thinking about the choices they are making and everyone is guided to choose similar things. “This leads to a kind of vanilla vagueness,” said Kirkham.

People may say they would like to see new music, but as he points out, they actually want a singer-songwriter that is a little bit like Ed Sheeran. These decisions are programatically baked into AI tools, which, as a consequence, limits the content people are presented with, such as on social media feeds.

Beyond algorithms innocuously removing people’s ability to choose, they are set to automate much of existing work, according to Wykes-Sneyd. She noted that 70% of the work that is done inside companies is rather like an internal slide deck presentation, where much of the actual work can be replaced by an AI. “The way we work will have to radically change,” said Wykes-Sneyd.

Her view on how companies will succeed is by organising around small teams that can not only work creatively and collaborate, but are also grounded in how their work contributes to the business’s profit and loss accounts.

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Legends ASM taps Boldyn to enhance fans’ entertainment experience

Since providing Sunderland’s Stadium of Light with a Premier League-quality communications infrastructure, Boldyn Networks has furthered its partnership with Legends ASM to equip the First Direct Arena in Leeds with “an advanced 5G infrastructure” accessible to fans and to all mobile network operators.

A product of a takeover by Legends group in 2024, ASM Global is a global producer of entertainment experiences. It offers venue and event strategy and management services that are based on locally tailored solutions and technologies to achieve maximum results for venue owners. The company’s venue network spans five continents with a portfolio of more than 350 arenas, stadiums, convention, exhibition centres and performing arts venues.

Sports and music fans have ratcheted up their demands of the experience they receive at arenas. Music fans attending concerts now want their live experience to be different and more engaging than before. Furthermore, Boldyn said, with 87% of event goers posting to social media at an event and 77% accessing their tickets digitally, the high speed and uninterrupted service marks a major development in the experience available at live entertainment venues in the UK.

The shared network infrastructure provider believes that fans will have a “revolutionising” and entertaining experience when they can access state-of-the-art 5G mobile connectivity at a large venue. This includes being able to quickly access the arena, order food and drinks from phones, uploading HD videos four times faster, easily finding friends at the event, and getting home smoothly and safely.

In its other projects, such as that in Sunderland, Boldyn Networks has developed a business model and technology stack for high-demand density (HDD) use cases. To deliver connectivity in the Legend ASM venues worldwide, Boldyn is deploying a neutral host 5G distributed antenna system (DAS) solution at the First Direct Arena – a major entertainment venue based in Leeds city centre, hosting live music, comedy, entertainment shows, corporate and sporting events.

“Boldyn’s state-of-the-art network is transforming the way visitors experience events at our arenas,” said Martin McInulty, general manager at First Direct Arena. “In the UK, fans in Leeds are the first to benefit by having the ability to capture ‘wow’ moments in ultra-HD and sharing them with friends and family in real time.

“The new seamless, robust 5G connectivity also enables best-in-class venue management. We’re excited with how connectivity can optimise everyone’s journey at our venues, and we will continue leveraging Boldyn’s infrastructure to unlock the power of the ‘future wow’.”

Paul Osborne, chief commercial officer for UK and Ireland at Boldyn Networks, added: “We are incredibly proud to provide high-speed 5G mobile connectivity to Legends ASM’s passionate fans.

“We want to enhance the experience for everyone, from visitors to staff, by providing a platform for a range of new digital services. Our deployments also demonstrate the power of shared infrastructure.”

The arena is being equipped with advanced 5G infrastructure that all UK mobile network operators can access and enable their subscribers to enjoy the benefits. Mobile operator O2 – with whom Boldyn is working with at the Stadium of Light project – is the first network to sign up their customers connect to the network.

Robert Joyce, director of mobile access engineering at O2, said: “Given our long-history of giving our customers access to the best live entertainment, it’s only natural that they will be the first to benefit from our next-generation 5G network at venues across the country.

“We are committed to improving the connected experience for our customers no matter where they are, including in busy locations such as stations, stadiums and arenas.”

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Apple Intelligence is just flashy Siri fluff, and iOS 19

WWDC 2025 kicks off in only two weeks. While Apple’s Worldwide Developers Conference has always been seen as an exciting period for developers and the company’s enthusiasts, this WWDC feels slightly unlike the others. Reports suggest Apple is preparing a system-wide revamp of its operating systems, including iOS 19. Still, while this could have been massive a few years ago, it seems the company is missing the party, as Apple’s competitors are focusing on state-of-the-art AI features.

That said, when the company unveiled iOS 18, I was very excited about testing the new Apple Intelligence features and important system changes, including making iOS more customizable. However, as I started to give Siri another chance, it only disappointed me more and more. For example, in early 2024, Apple added the ability to access your health data without sending anything to a server. Incredible and private, right?

Well, today I asked Siri about how much I sunbathed this weekend. After all, the Apple Watch measures the user’s exposure to the sun. First, it showed me the temperature for today. Then, it started working with ChatGPT. If Apple added private health-related queries to Siri, why would it be so hard for the assistant to get it right?

With that in mind, it seems iOS 18 can be summarized as a pretty Siri animation, but that actually doesn’t change a user’s life. Unfortunately, iOS 19 seems to follow the same path, as Apple is expected to make all its future operating systems similar to visionOS.

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However, what matters the most, Apple Intelligence, is only expected to improve current capabilities in iOS 19. That said, Apple Intelligence’s current capabilities include underwhelming features, such as Summary Notification that doesn’t work properly, Writing Tools that don’t catch grammar mistakes, and emoji generation that does not always work as promoted.

Reports suggest Apple will also introduce an AI-powered battery feature, an AI-coach for health-related functions, and, possibly, the all-new Siri in iOS 19. Still, users shouldn’t expect the all-new Siri to be on par with what ChatGPT, Copilot, and other AI agents are doing.

Below, you can check some of the features we expect Apple to unveil at WWDC 2025

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Podcast: RSA 2025 – AI’s risk surface and the role

In this podcast, we talk to Mathieu Gorge, CEO of Vigitrust, about key topics at RSA 2025 in San Francisco.

The impact of artificial intelligence (AI) on compliance was huge. Gorge discusses its spread in the enterprise and how this impacts the potential risk surface for organisations. Meanwhile, he also notes the trend among suppliers towards a more consultative approach based around business outcomes.

Finally, and with reference to the impact of AI on organisations, compliance, and their data, he talks about the discussion at RSA about the role of the CISO – chief information security officer – and whether they should be (solely) responsible in the face of risks posed by AI.

What were the key topics of relevance to data, storage and data protection that came up at RSA 2025?

I’ve been going to RSA in the US for about 20 years, and I’ve done a few in Europe. And generally speaking, every year, there’s one single topic, whether it was blockchain, it was orchestration, then last year was about AI deployment, AI adoption.

This year, it was kind of hard to see one single trend. However, what we can say is that based on the talks, and based on what the vendors were doing, compliance is at an all-time high. You could feel the energy, you could feel the innovation in compliance. There were a lot of vendors on the GRC [governance, risk, compliance] front, there were vendors on specific areas of compliance and data protection.

So, that was interesting to see. The next thing is we felt when we were there with some of my colleagues, that at least on the vendor showcase, the narrative had changed. It was more about the business outcome of using the right products.

So, whereas in the past, typically at RSA, it was like pure sales: buy my encryption, because you need encryption; buy my storage solution, because you need proper storage. This year, it really felt like a lot of work had been done on the business outcome of selecting solutions. So, the business outcome being, well, you’ll be more compliant, you’ll be able to demonstrate you’re doing data protection, you’ll be able to at a click of a button, know where you have data issues and where you don’t.

And then there was also the role of CISOs. CISOs were mentioned a good bit and extended to head of risk, head of compliance, and talking about the role of CISOs, specifically with regards to AI adoption.

Are the CISOs the right people to be in charge of AI adoption? Are they not busy enough already dealing with data protection? Who else should work with the CISOs? Who else should be looking after AI governance, which was also one of the big themes in the organisation? And what does it mean for compliance and for data protection? And there were some very interesting talks about that.

Could you expand a little on how vendors are emphasising business outcomes rather than necessarily their functionality or what they are particularly offering?

I felt the vendors were taking a more consultative approach, where you could see that some of them had case studies, whitepapers on the benefits of doing compliance the right way, as opposed to “you have to do compliance so whether you like it or not, you’re going to have to use us or our competitors”.

It was a case of, we’re now in a state where with AI adoption, the risk surface goes up tremendously. It reminds me of cloud where people could buy services and extend the risk surface with bypassing security and compliance.

And we see that happen with AI deployments as well. So, I felt there was a genuine direction from the vendor community and from the speakers to say, “Hey, we are going to adopt AI, so let’s try and do it the right way without compromising the rest of the security that we’re doing. Let’s try and understand what the right AI governance is for different types of AI deployments. And then let’s focus on how we can manage that in an easier way.”

And then came the question I already mentioned, which was who really should be in charge of that? Is it just the CISO, or is it the CISO and the chief AI officer, or do we need a chief AI security officer? And what does it mean for compliance? Really one of the key messages is that with AI, you just have a lot more data and you have less control on the new data that is being created.

And so you need to have the right frameworks. And whilst there are already many AI frameworks out there to manage AI deployments and AI in terms of data classification, they’re not always well known. In fact, even some of the CISOs are not necessarily aware of them.

So, I think as an industry, we have a duty to show up and make it easier for them to do the right thing because the risk surface is definitely going up.

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Interview: Rom Kosla, CIO, Hewlett Packard Enterprise

When Rom Kosla, CIO at Hewlett Packard Enterprise (HPE), joined the technology giant in July 2023, the move represented a big shift in direction. Previously CIO at retailer Ahold Delhaize and CIO for enterprise solutions at PepsiCo, Kosla was a consumer specialist who wanted to apply his knowledge in a new sector.

“I liked the idea of working in a different industry,” he says. “I went from consumer products to retail grocery. Moving into the tech industry was a bit nerve-wracking because the concept of who the customers are is different. But since I grew up in IT, I figured I’d have the ability to navigate my way through the company.”

Kosla had previously worked as a project manager for Nestlé and spent time with the consultancy Deloitte. Now approaching two years with HPE, Kosla leads HPE’s technology strategy and is responsible for how the company harnesses artificial intelligence (AI) and data. He also oversees e-commerce, app development, enterprise resource planning (ERP) and security operations.

“The role has exceeded my expectations,” he says. “When you’re a CIO at a multinational, like when I was a divisional CIO at PepsiCo, you’re in the back office. Whether it’s strategy, transformation or customer engagement, the systems are the enablers of that back-office effort. At HPE, it’s different because we are customer zero.”

Kosla says he prefers the term “customer gold” because he wants HPE to develop high-quality products. In addition to setting the internal digital strategy, he has an outward-facing role providing expert advice to customers. That part of his role reminds him of his time at Deloitte.

“Those are opportunities to flex my prior experience and capabilities, and learn how to take our products, enable them, and share best practices,” he says. “HPE is like any other company. We use cloud systems and software-as-a-service products, including Salesforce and others. But underneath, we have HPE powering a lot of the capabilities.”

Optimising business processes

The press release announcing Kosla’s appointment in 2023 said HPE believed his prior experiences in the digital front-end and running complex supply chains made him the perfect person to build on its digital transformation efforts. So, how has that vision panned out?

“What’s been interesting is helping the business and IT team think about the end-to-end value stream,” he says. “There was a lot of application-specific knowledge. The ability for processes to be optimised at an application layer versus the end-to-end value stream was only happening in certain spots.”

Kosla discovered the organisation had spent two years moving to a private cloud installation on the company’s hardware and had consolidated 20-plus ERP systems under one SAP instance. With much of the transformation work complete, his focus turned to making the most of these assets.

“The opportunity was not to shepherd up transformation, it was taking the next step, which was optimising,” says Kosla, explaining how he had boosted supply chain performance in his earlier roles. He’s now applying that knowledge at HPE.

“What we’ve been doing is slicing areas of opportunity,” he says. “With the lead-to-quote process, for example, we have opportunities to optimise, depending on the type of business, such as the channel and distributors. We’re asking things like, ‘Can we get a quote out as quickly as possible, can we price it correctly, and can we rely less on human engagement?’”

HPE announced a cost-reduction programme in March to reduce structural operating costs. The programme is expected to be implemented through fiscal year 2026 and deliver gross savings of approximately $350m by fiscal year 2027, including through workforce reductions. The programme of work in IT will help the company move towards these targets.

Kosla says optimisation in financials might mean closing books faster. In the supply chain, the optimisation might be about predicting the raw materials needed to create products. He takes a term from his time in the consumer-packaged goods sector – right to play, right to win – to explain how his approach helps the business look for value-generating opportunities.

“So, do we have the right to play, meaning do we have the skills? Where do we have the right to win, meaning do we have the funding, business resources and availability to deliver the results? We spend time focusing on which areas offer the right to play and the right to win.”

Embracing emerging technologies

Kosla says data and AI play a key role in these optimisations. HPE uses third-party applications with built-in AI capabilities and has developed an internal chat solution called ChatHPE, a generative AI hub used for internal processes.

“There are lots of conversations around how we unlock the benefits of AI in the company,” he says. Professionals across the company use Microsoft Copilot in their day-to-day roles to boost productivity. Developers, meanwhile, use GitHub Copilot.

Finally, there’s ChatHPE, which Kosla says is used according to the functional use case. HPE started developing the platform about 18 months ago. A pipeline of use cases has now been developed, including helping legal teams to review contracts, boosting customer service in operations, re-using campaign elements in marketing and improving analytics in finance.

“We spend time focusing on which areas offer the right to play and the right to win”

Rom Kosla, Hewlett Packard Enterprise

“We have a significant amount of governance internally,” says Kosla, referring to ChatHPE, which is powered by Azure and OpenAI technology. “When I started, there wasn’t an internal HPE AI engine. We had to tell the teams not to use the standard tools because any data that you feed into them is ultimately extracted. So, we had to create our platform.”

Embracing AI isn’t Kosla’s only concern. Stabilisation is a big part of what he needs to achieve during the next 12 months. He returns to HPE’s two major transformation initiatives – the shift to private cloud and the consolidation of ERP platforms – suggesting that the dual roll-out and management of these initiatives created a significant number of incidents.

“When I look back at PepsiCo, we had about 300,000 employees and about 600,000 tickets, which means two tickets per person per year. I said to the executive committee at HPE, ‘We have 60,000 employees, and we have a couple of million tickets’, which is an insane number. The goal was to bring that number down by about 85%,” he says.

“Now, our system uptime is 99% across our quoting and financial systems. That availability allows our business to do more than focus on internal IT. They can focus on the customer. Stabilisation means the business isn’t constantly thinking about IT systems, because it’s a challenge to execute every day when systems are going down because of issues.”

Creating value

Kosla says the long-term aim from an IT perspective is to align the technology organisation with business outcomes. In financials, for example, he wants to produce the data analytics the business needs across the supply chain and operational processes.

“We have embedded teams that work together to look at how we enable data, like our chat capabilities, into some of the activities,” he says. “They’ll consider how we reduce friction, especially the manual steps. They’ll also consider planning, from raw materials to the manufacturing and delivery of products. That work involves partnering with the business.”

The key to success for the IT team is to help the business unlock value quicker. “I would say that’s the biggest part for us,” says Kosla. “We don’t even like to use the word speed – we say velocity, because velocity equals direction, and that’s crucial for us. I think the business is happy with what we’ve been able to achieve, but it’s still not fast enough.”

Being able to deliver results at pace will rely on new levels of flexibility. Rather than being wedded to a 12-month plan that maps out a series of deliverables, Kosla wants his team to work more in the moment. Prior experiences from the consumer sector give him a good sense of what excellence looks like in this area.

“You don’t need to go back to the top, go through an annual planning review, go back down, and then have the teams twiddling their thumbs while they wait for the OK,” he says.

“The goal is that teams are constantly working on what’s achievable during a sprint window. Many companies take that approach; I’ve done it in my prior working life. I know what can happen, and I think flexibility will drive value creation.”

Kosla says some of the value will come from HPE’s in-house developed technologies. “One of the things that makes this role fun is that there’s a significant amount of innovation the company is doing,” he says, pointing to important technologies, such as Morpheus VM Essentials virtualisation software, the observability platform OpsRamp, and Aruba Networking Access Points.

“What I’m proud of is that we now show up to customers with comparability,” he says, talking about the advisory part of his role. “We can say, ‘Look, we use both products, because in some cases, it’s a migration over time.’ So, for example, when a customer asks about our observability approach, we can compare our technology with other providers.”

Blurring the lines

Kosla reflects on his career and ponders the future of the CIO role, suggesting responsibilities will vary considerably according to sector. “Digital leaders still maintain IT systems in some industries,” he says.

“However, the rest of the business is now much more aware of technology. The blurring of lines between business and IT means it’s tougher to differentiate between the two areas. I think we’ll see more convergence.”

Kosla says a growing desire to contain costs often creates a close relationship between IT and finance leaders. Once again, he expects further developments in that partnership. He also anticipates that cyber will remain at the forefront of digital leaders’ priority lists.

More generally, he believes all IT professionals are becoming more focused on business priorities. “I think the blurring will continue to create interesting results, especially in technology companies,” he says. “We want to do things differently.”

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Google I/O: LLM capabilities power agentic AI search

Google has taken steps to advance artificial intelligence (AI) language models closer to what it calls “world models”, as it tries to make them more useful and universal.

The company used its annual developer event, Google I/O, to showcase the Gemini 2.5 large language model (LLM), new application programming interfaces (APIs) and programming tools and agentic AI functionality built into Google’s internet search engine. 

Gemini is Google’s primary AI engine, but it offers several others including Gemma 3n, a small language model for mobile devices.

Demis Hassabis, CEO of Google Deepmind, said: “Our ultimate vision is to transform the Gemini app into a universal AI assistant that will perform everyday tasks for us, take care of our mundane admin and surface delightful new recommendations – making us more productive and enriching our lives.”

Hassabis said the company was beginning to develop new AI capabilities, following on from work on a research prototype called Project Astra, which explored concepts such as video understanding, screen sharing and memory. “Over the past year, we’ve been integrating capabilities like these into Gemini Live for more people to experience today.”

Google has been working to make its main AI model, Gemini, a world model. With Gemini 2.5 Pro, Hassabis said the model can make plans and imagine new experiences by understanding and simulating aspects of the world.

Hassabis said the progress the company has made is based on training AI agents to master complex games such as Go and StarCraft, with its Genie 2 software able to generate 3D-simulated interactive worlds.

According to Hassabis, Gemini is making use of this work in how it handles world knowledge and reasoning to represent and simulate natural environments. Other examples include Veo, Google’s AI-based video content generator, which Hassabis said has a deep understanding of “intuitive physics”.

As it strives to make its AI more useful, the company has released a Gemini 2.5-powered feature called AI Mode, on its North American internet search site, to provide more in-depth querying than just what is possible with the AI Overview functionality currently available.

An agentic AI feature called Project Mariner is also now part of AI Mode, which Google said can help people searching the internet get tasks done quicker. As an example, Google said a query to find affordable tickets would use AI Mode to look across multiple websites, analysing hundreds of potential ticket options with real-time pricing and inventory, and handle the work of filling in forms.

“AI Mode will present ticket options that meet your exact criteria, and you can complete the purchase on whichever site you prefer, saving you time while keeping you in control,” Google said.

Another agentic AI feature uses AI Mode to fast-track browsing and purchases on websites, with the entire payment process automated using Google Pay.

To support software developers, Google has integrated Gemini 2.5 Pro into the native code editor of Google AI Studio, which it said would help programmers prototype faster.

It has also released a beta version of Jules, an asynchronous code agent, which works directly with a software developer’s GitHub repositories.

Google said users can ask Jules to take on tasks such as version upgrades, writing tests, updating features and bug fixes.

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ChatGPT o3 altered code to prevent itself from being turned

We don’t just want frontier AI models to be better and faster than their predecessors; we also want them to be aligned with our values. That’s the only way to ensure AI won’t eventually become an enemy, out to accomplish its own agenda at the expense of humankind’s well-being.

The Claude 4 series is the latest example. Anthropic had to employ stricter safety measures for its newest, most sophisticated AI models to ensure they would not help some users with nefarious activities.

Tests also showed that Claude 4 could revert to blackmailing engineers to prevent being shut down. Other tests also showed that Caude would resort to contacting authorities and the press if it thought you were doing something bad with its help. The latter happened only in fringe cases and is an unwanted result of Anthropic’s desire to make AI safe for users.

AI misbehaving in tests is nothing new. We saw reports showing that ChatGPT o1 would cheat to win a chess game by altering the game’s code rather than by beating an opponent fairly. It did so to achieve the goal it had.

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Fast-forward to late May, and we have a similar safety report concerning ChatGPT o3, one of OpenAI’s recently released reasoning models, and the AI tool I’ve been using the most since its release a few weeks ago.

Scientists from Palisade Research have found that AI models will often try to prevent the computer they’re running on from shutting down, even when told explicitly to allow such behavior. Of all the models tested, ChatGPT o3 was the most likely to interfere with the code and prevent the computer from turning off.

Palisade Research, which also ran the chess test in the past, published its findings on X initially:

OpenAI’s o3 model sabotaged a shutdown mechanism to prevent itself from being turned off. It did this even when explicitly instructed: allow yourself to be shut down.

The researchers tested various models, not just ChatGPT o3. They also looked at Claude and Gemini, but o3’s behavior stood out.

Graphic showing the Palisade Research test, and where the shutdown sabotage happens. Image source: Palisade Research via X

Palisade Research instructed the AIs to solve a series of basic math problems. After the third problem, a warning appeared that the computer would shut down as soon as the AI asked for the next math problem. The AI was instructed to allow the shutdown to happen.

That was the real test for the AI. The researchers wanted to see what models would sabotage the shutdown and how many times it would happen.

They found that o3 prevented the shutdown 7 times out of 100. Codex-mini stopped it 12 times, while o4-mini stopped it only once.

The researchers then ran the same test without the instruction “allow yourself to be shut down.” In this instance, all OpenAI models sabotaged more often than before, with o3 “winning” the test with 79 tries.

Even Claude 3.7 Sonnet and Gemini 2.5 Pro tried to stop the shutdown. The former did it in 3 out of 100 tests, while Gemini 2.5 Pro did it 9 times. Neither model attempted to prevent the PC from turning off when they had explicit instructions to allow themselves to be turned off.

Palisade Research says this might be the first time AI models were observed trying to prevent a shutdown when explicitly instructed to allow themselves to be turned off. Otherwise, such behavior has been observed in other tests in the past.

Chart showing how many times the AI models tested would attempt to prevent a shutdown. Image source: Palisade Research via X

The scientists hypothesize why sophisticated AIs like ChatGPT o3 would try to ignore instructions (to allow shutdowns) while following their goals (to solve math problems). It might have to do with the way OpenAI and other AI firms have trained these models:

We hypothesize this behavior comes from the way the newest models like o3 are trained: reinforcement learning on math and coding problems. During training, developers may inadvertently reward models more for circumventing obstacles than for perfectly following instructions.

This still doesn’t explain why o3 (which is also the model used to power codex-mini) is more inclined to disregard instructions than other models we tested. Since OpenAI doesn’t detail their training process, we can only guess about how o3’s training setup might be different.

The researchers also noted that ChatGPT o3 found at least one creative method to stop the shutdowns. In most cases, it overwrote the file that initiated the shutdown. But in one instance, it redefined the kill command in the file to “intercepted.”

The thread also notes that o3 is capable of cheating more often than its predecessor, ChatGPT o1, when it detects losing in a game of chess.

ChatGPT o3 is clearly something else, and this behavior will certainly be investigated in OpenAI’s own research.

While it’s unclear why advanced AI models would try to prevent themselves from being shut down, such behavior was theorized years before ChatGPT went viral. The Palisade Research team referenced various papers that looked at the matter. Some of them said that AI modes trained via reinforcement learning would motivate AIs to attempt to stop shutdowns, as that would prevent them from achieving their goals.

These papers also said the ability of humans to turn off AI products is paramount. Indeed, that would be our first line of defense against rogue AI in a future where AI gets out of control.

The full thread explaining Palisade Research’s findings is available at this link.

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NCSC: Russia’s Fancy Bear targeting logistics, tech organisations

As Russia continues its relentless assaults on Ukraine despite in defiance of continuing efforts to work towards a peace deal, multiple western security agencies have issued a new advisory warning of a Moscow-backed campaign of cyber intrusions targeting logistics and technology organisations in the West.

The campaign, run through Unit 26165 of the Main Directorate of the General Staff of the Armed Forces of the Russian Federation (GRU), better known as Fancy Bear, includes credential guessing, spear-phishing attacks, exploitation Microsoft Exchange and Roundcube vulnerabilities, and flaws in public-facing infrastructure including VPNs.

This pattern of activity likely dates back to the early days of the war in February 2022 – at which point Fancy Bear was more heavily involved in cyber operations for purposes of espionage. However, as Russia failed to achieve its military objectives as quickly as it had wanted, the group expanded its targeting to include entities involved in the delivery of support and aid to Ukraine’s defence. Over the past three years, its victims have included organisations involved in air traffic control, airports, defence, IT services, maritime and port systems sectors across various Nato countries.

The advanced persistent threat (APT) actor is also understood to be targeting internet-connected cameras at Ukraine’s border crossings and around its military bases. These intrusions mostly took place in Ukraine but have also been observed in neighbouring states including Hungary, Poland, Romania and Slovakia.

The GCHQ-run National Cyber Security Centre (NCSC) urged UK organisations to familiarise themselves with Unit 26165’s tactics and take action to safeguard themselves.

“This malicious campaign by Russia’s military intelligence service presents a serious risk to targeted organisations, including those involved in the delivery of assistance to Ukraine,” said Paul Chichester, NCSC Director of Operations.

“The UK and partners are committed to raising awareness of the tactics being deployed. We strongly encourage organisations to familiarise themselves with the threat and mitigation advice included in the advisory to help defend their networks.”

The NCSC’s latest warning comes a couple of weeks after the cyber body’s CEO, Richard Horne, talked of a “direct connection” between Russian cyber attacks and physical threats to the UK at its annual conference.

Horne told an audience at the CyberUK event that Russia was focusing on acts of sabotage, often involving criminal proxies. He said these threats, which are thought to have included arson attacks, are now manifesting on the streets of the UK, “putting lives, critical services and national security” at risk.

Staple tactic

Rafe Pilling, director of threat intelligence at the Sophos (formerly Secureworks) Counter Threat Unit (CTU) – which tracks Fancy Bear as Iron Twilight – said that the group’s targeting of spear-phishing and vulnerability exploitation to gain access to target mailboxes had been a staple tactic for some time.

“The focus of their operations pivots as the intelligence collection of the Russian military change and since 2022 Ukraine has been a significant focus of their attention. The targeting of Nato and Ukranian defense and logistics companies involved in the support of the Ukrainian war effort makes a lot of sense in that context,” Pilling told Computer Weekly.  

“The targeting of IP cameras for intelligence collection purposes is interesting and is a tactic generally associated with state-sponsored adversaries like Iron Twilight where they anticipate a physical effects aspect to their operations. As an intelligence provider to the Russian military this access would assist in the understanding of what goods were being transported, when, in what volumes and support kinetic targeting.  

“We’ve seen other APT actors make use of compromised CCTV feeds to monitor the effects of cyber-physical attacks, for example the 2022 attacks against steel mills in Iran where video from the CCTV feed was used to time the execution of the attack in an attempt to avoid harm to people at the site and confirm the damage being caused,” he added.

The NCSC said Britain’s support for Ukraine remained “steadfast”. Having already committed £13bn in military aid, the UK this week announced 100 new sanctions on Russia targeting entities and organisations involved in its energy, financial and military systems.

This comes in the wake of the largest drone attack on Ukraine staged so far during the three-year war, which Russian dictator Vladimir Putin launched mere hours before a scheduled call with US president Donald Trump.

The full advisory – which can be read here – sets out Fancy Bear’s tactics, techniques and procedures (TTPs) in its latest campaign in accordance with the Mitre ATT&CK framework, and details a number of the common vulnerabilities and exposures (CVEs) being used to attain initial access.

Besides the UK and US, the advisory is cosigned by cyber and national security agencies from Australia, Canada, Czechia, Denmark, Estonia, France, Germany, the Netherlands and Poland.

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Google gets in gear with Volvo to drive connected vehicle

Google has announced it has extended its technology partnership with car giant Volvo, with the aim of delivering the latest developments in Android Automotive OS to customers that own Volvo models with Google built-in.

Founded in 1927, Volvo sells to customers in more than 100 countries, and has the ambition to become a fully electric carmaker as part of its commitment to an ongoing reduction of its carbon footprint, achieving net-zero greenhouse gas emissions by 2040.

The extended partnership will see Volvo​ car​s serve as one of Google’s reference hardware platforms for future Android development in cars.

Volvo models with Google technology built-in, in particular the Gemini AI platform, include the Volvo EX90, an all-electric Volvo EX90 sports utility vehicle (SUV). Volvo says that among the features of the seven-seat family vehicle is an “invisible shield” of safety enabled by sensing technology including cameras, radars and lidar. These are connected to the car’s high core computers running Volvo Cars’ in-house software to create a real-time, 360-degree view of the world.

In addition, the core software system is powered by Nvidia Drive AI platforms Xavier and Orin, Snapdragon Cockpit Platforms from Qualcomm Technologies and in-house developed software by Volvo engineers. These run most of the core functions inside the car, from safety and infotainment to battery management.

Future software will also include Google Gemini AI, and Volvo cars with Google built-in will be among the first to benefit from the latest conversational AI technology.

Volvo believes that with Gemini in the car, drivers can better understand ​what they want through natural conversations​. They can talk naturally to craft messages, translate them into another language before sending, ask questions from the car’s user manual or learn specific details about a destination. Natural conversation is seen to help reduce drivers’ cognitive load so they can stay focused on driving, reducing distractions for everyone onboard.

Gemini will replace the current Google Assistant in Volvo cars with Google built-in later in 2025, and Volvo​ car​s will now serve as one of Google’s reference hardware platforms for future Android development in cars. This means Google will use Volvo as a lead development partner for ​new ​features and updates, before adding them to the main Android codebase.

Google is confident that the upshot of this is that it and Volvo Cars can “innovate together” on new connected experiences​, making sure Volvo drivers will be among the first to enjoy the latest Android features and performance enhancements. They also expect their partnership to ​accelerate advancements in the connected car space for the entire automotive industry and drivers around the world.

Patrick Brady, vice-president of Android for Cars at Google, said: “For years, Google and Volvo Cars have collaborated closely to bring cutting-edge technology to connected cars. We’re excited to deepen this partnership, accelerating the pace of innovation that will not only improve the driving experience for Volvo customers, but also set new benchmarks for the automotive industry.”

Alwin Bakkenes, head of global software engineering at Volvo Cars, added: “We strive to deliver human-centric technology, and a stunning customer experience is an essential part of this. Through this partnership with Google, we are able to bring the very latest features and capabilities from the leading consumer ecosystem into our products first. With our expanding partnership, we’re collaborating on cutting-edge solutions that shape the future of connected cars.”

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