Why sovereignty over data and models is becoming a defining factor in enterprise AI success,as well as a prerequisite for forging safe agentic systems. When generative AI first moved from research labs into real-world business applications, enterprises made a tacit bargain: "Capability now, control later." Feed your proprietary data into third-party AI models, and you will get powerful results. But your data passes through systems you do not own, under governance you do not set. The protections you rely on are only as durable as the provider's next policy update. Now, with generative AI established in everyday business operations and sophisticated new agentic AI systems advancing every day, companies are reevaluating the terms of that deal.

The success of agentic AI in financial services depends not just on smarter models, but on an authoritative context data store--one that is accessible, reliable, and governed at scale. Financial services companies have unique needs when it comes to business AI. They operate in one of the most highly regulated sectors while responding to external events that are updated by the second. As a result, the success of agentic AI in financial services depends less on the sophistication of the system and more on the quality, security, and accessibility of the data it relies on. "It all starts with the data," says Steve Mayzak, global managing director of Search AI at Elastic. Agentic AI--systems that can independently plan and take actions to complete tasks, rather than simply generate responses--holds enormous potential for financial services due to its ability to incorporate real-time data and optimize complex workflows.

The Download: deepfake porn's stolen bodies and AI sharing private numbers Plus: the US has approved Nvidia chip sales to 10 Chinese firms. When Jennifer got a research job in 2023, she ran her new professional headshot through a facial recognition program. She wanted to see whether it would pull up the porn videos she'd made more than a decade earlier. It did, but it also surfaced something she'd never seen before: one of her old videos, now featuring someone else's face on her body. Conversations about sexualized deepfakes usually focus on the people whose faces are inserted into explicit content without consent. But another group often gets ignored: the people whose bodies those faces are attached to.

Adult content creators are having their performances used without consent. This is just one way that AI now threatens their rights and livelihoods. When Jennifer got a job doing research for a nonprofit in 2023, she ran her new professional headshot through a facial recognition program. She wanted to see if the tech would pull up the porn videos she'd made more than 10 years before, when she was in her early 20s. It did in fact return some of that content, and also something alarming that she'd never seen before: one of her old videos, but with someone else's face on her body. "At first, I thought it was just a different person," says Jennifer, who is being identified by a pseudonym to protect her privacy. But then she recognized a distinctly garish background from a video she'd shot around 2013, and she realized: "Somebody used me in a deepfake."

AI chatbots are giving out people's real phone numbers People report that their personal contact info was surfaced by Google AI--and there's apparently no easy way to prevent it. A Redditor recently wrote that he was "desperate for help": for about a month, he said, his phone had been inundated by calls from "strangers" who were "looking for a lawyer, a product designer, a locksmith." Callers were apparently misdirected by Google's generative AI. In March, a software developer in Israel was contacted on WhatsApp after Google's chatbot Gemini provided incorrect customer service instructions that included his number. And in April, a PhD candidate at the University of Washington was messing around on Gemini and got it to cough up her colleague's personal cell phone number. AI researchers and online privacy experts have long warned of the myriad dangers generative AI poses for personal privacy.

Plus: Sam Altman claims Elon Musk tried to seize control of OpenAI. A startup called Varda Space Industries is betting that the future of pharmaceuticals lies in orbit. The company has signed a deal with United Therapeutics to test whether drugs crystallize differently in microgravity, potentially creating improved versions with new properties. The idea sounds futuristic, but falling launch costs and reusable rockets are making space-based manufacturing seem increasingly plausible. Varda says the partnership could mark an important step toward building products in orbit for use back on Earth. Discover how space could become the next frontier for drug development .

Join a subscriber-only discussion live on Thursday, May 21. A woman's uterus has been kept alive outside the body for the first time Jessica Hamzelou Want to understand the current state of AI? Check out these charts. A woman's uterus has been kept alive outside the body for the first time The team behind the feat plan to study uterine disorders and the early stages of pregnancy--and potentially grow a human fetus. Want to understand the current state of AI? Check out these charts. According to Stanford's 2026 AI Index, AI is sprinting, and we're struggling to keep up. The ultimate plan to live forever is a brand new body.

Plus: the first zero-day exploit built by AI has been discovered. A few months before he won the Nobel Prize in economics in 2024, Daron Acemoglu published a paper that earned him few fans in Silicon Valley. He argued that AI would give only a small boost to US productivity and would not eliminate the need for human work. Two years later, Acemoglu's measured take has not caught on. The technology has advanced quite a bit since his cautious predictions, but the data is still largely on his side. Here are the three things Acemoglu is paying closest attention to in AI right now .

Daron Acemoglu is more cautious than most about predictions of a jobs apocalypse. A few months before he was awarded the Nobel Prize in economics in 2024, Daron Acemoglu published a paper that earned him few fans in Silicon Valley. Contrary to what Big Tech CEOs had been promising--an overhaul of all white-collar work--Acemoglu estimated that AI would give only a small boost to US productivity and would not obviate the need for human work. It's okay at automating certain tasks, he wrote, but some jobs will be perfectly fine. Two years later, Acemoglu's measured take has not caught on. Chatter about an AI jobs apocalypse pops up everywhere from Senator Bernie Sanders's rallies to conversations I overhear in line at the grocery store.

Agentic AI is helping organizations completely reimagine core banking processes and operations from the customer perspective, rather than simply making incremental improvements. Despite years of digitization, organizations capture less than one-third of the value expected from digital investments, according to McKinsey research . That's because most big companies begin with technological capabilities and bolt applications onto them, rather than starting with customer needs and working backward to technology solutions. Not prioritizing the customer can create fragmented solutions; disjointed customer experiences; and ultimately, failed transformations. Organizations that achieve outsized results from AI flip the script. They adopt a "customer-back engineering" mindset, putting customers at the heart of technology transformation.