Ad for AI editing app which said it could'remove anything' banned An advert for a video and image editing tool that implied viewers could digitally remove a woman's clothing has been banned by the UK advertising regulator. The YouTube ad for PixVideo - AI Video Maker, seen in January, showed a before and after image of a young women, with red scribble overlaid on her midriff in the former, and parts of her bare skin exposed in the latter. Text across the bottom of the picture stated: Erase anything followed by a heart-eyes emoji. Eight people complained to the Advertising Standards Authority (ASA) that the ad sexualised and objectified women, and was irresponsible, offensive and harmful. It is not clear whether the image in the ad is of a real person or is itself AI-generated, with the ASA telling the BBC making such an assessment had not been part of its investigation.

RWDS Big Questions: how do we balance innovation and regulation in the world of AI? AI development is accelerating, while regulation moves more deliberately. That tension creates a core challenge: how do we maintain momentum without breaking the things that matter? The aim isn't to slow innovation unnecessarily, but to ensure progress happens at a pace that protects individuals and society. Responsible actors should not be disadvantaged -- yet safeguards are essential to maintain trust. For the latest video in our RWDS Big Questions series, our panel explores this delicate balance.

Prediction markets like Kalshi and Polymarket are booming, and so is a fight among regulators, lawmakers, and advocates over their legality. Former New Jersey governor Chris Christie, who currently serves as an advisor to the American Gaming Association, has criticized prediction markets. The political fight in the US over the future of prediction markets like Polymarket and Kalshi has escalated into a full-blown war, and battle lines aren't being neatly drawn along party lines. Instead, conservative Mormons have aligned themselves with Las Vegas bigwigs and MAGA royalty is siding with liberal Democrat lobbyists. One side argues that the platforms are breaking the law by operating as shadow casinos.

Apple and Google agree to change app stores after'effective duopoly' claim Apple and Google have agreed to make changes to their app stores in the UK following an intervention from the UK markets regulator. According to the Competition and Markets Authority (CMA), the tech giants have committed to not giving preferential treatment to their own apps and will be transparent about how others are approved for sale, among other agreements. It comes seven months after the regulator said Apple and Google had an effective duopoly in the UK over their dominance in the sector. The CMA's head Sarah Cardell said the proposed commitments will boost the UK's app economy and were the first of many measures. The ability to secure immediate commitments from Apple and Google reflects the unique flexibility of the UK digital markets competition regime and offers a practical route to swiftly address the concerns we've identified, she said.

EU investigates Elon Musk's X over Grok AI sexual deepfakes The European Commission has launched an investigation into Elon Musk's X over concerns its AI tool Grok was used to create sexualised images of real people. It follows a similar announcement in January from the UK watchdog Ofcom. Regina Doherty, a member of the European parliament representing Ireland, said the Commission would assess whether manipulated sexually explicit images have been shown to users in the EU. A previous statement from X's Safety account said the social media platform had stopped Grok from digitally altering pictures of people to remove their clothing in jurisdictions where such content is illegal. But campaigners and victims said the ability to generate sexually explicit pictures using the tool should have never happened in the first place, and Ofcom said its investigation would remain ongoing.

More than 75% of City firms now use AI, with insurers and international banks among the biggest adopters. More than 75% of City firms now use AI, with insurers and international banks among the biggest adopters. UK exposed to'serious harm' by failure to tackle AI risks, MPs warn Consumers and the UK financial system are being exposed to "serious harm" by the failure of government and the Bank of England to get a grip on the risks posed by artificial intelligence, an influential parliamentary committee has warned. That is despite looming concerns over how the burgeoning technology could disadvantage already vulnerable consumers, or even trigger a financial crisis, if AI-led firms end up making similar financial decisions in response to economic shocks. More than 75% of City firms now use AI, with insurers and international banks among the biggest adopters.

Elon Musk's AI tool, Grok, is being investigated by the UK's media regulator. Elon Musk's AI tool, Grok, is being investigated by the UK's media regulator. "Since discovering Grok AI, regular porn doesn't do it for me anymore, it just sounds absurd now," one enthusiast for the Elon Musk-owned AI chatbot wrote on Reddit. Another agreed: "If I want a really specific person, yes." If those who have been horrified by the distribution of sexualised imagery on Grok hoped that last week's belated safeguards could put the genie back in the bottle, there are many such posts on Reddit and elsewhere that tell a different story.

Improvements to a number of Apple services - including a more personalised version of its virtual assistant, Siri - are to be powered with AI provided by Google. The tech giants have announced a multi-year collaboration which will see the iPhone-maker base some of its key tech on Google's Gemini AI models. In a joint statement, the two firms said the partnership would unlock innovative new experiences for Apple users. However, experts say it demonstrates how Apple's cautious approach to building and rolling out its own AI tools has left it reliant on other companies. By outsourcing the foundational layer of its AI to Google, Apple is effectively admitting that its internal efforts couldn't compete with Google's Gemini in terms of capability and scale in the short term, IDC analyst Francisco Jeronimo said.

The UK's media regulator has opened a formal investigation into X. Malaysia and Indonesia are the first countries to block Grok, claiming that X's chatbot does not have sufficient safeguards in place to prevent explicit AI-generated deepfakes of women and children from being created and disseminated on X. Indonesia temporarily blocked access to Grok on Saturday, as did Malaysia on Sunday, the reports. Meanwhile, UK media regulator Ofcom has opened a formal investigation into X under the Online Safety Act. The government sees non-consensual sexual deepfakes as a serious violation of human rights, dignity and the safety of citizens in the digital space, Indonesia's Communication and Digital Affairs Minister Meutya Hafid said in a statement. Officials in the country said initial findings showed that Grok lacks effective controls to prevent users from creating and sharing sexually explicit deepfakes based on photos of Indonesian residents.

Malaysia and Indonesia are the first to block Grok over explicit deepfakes that the chatbot has been generating. The UK's media regulator has opened a formal investigation into X under the Online Safety Act. There have been deeply concerning reports of the Grok AI chatbot account on X being used to create and share undressed images of people -- which may amount to intimate image abuse or pornography -- and sexualized images of children that may amount to child sexual abuse material (CSAM), Ofcom said. The investigation will focus on whether X has has complied with its duties to protect people in the UK from content that is illegal in the UK. That includes whether X is taking appropriate measures to prevent UK users from seeing priority illegal content, such as CSAM and non-consensual intimate images; if the platform is removing illegal content quickly after becoming aware of it; and whether X carried out an updated risk assessment before making any significant changes to the platform.