| And It’s Only January: A Turbulent Start for Tech Diplomacy in 2025 |
| China’s DeepSeek AI and the broader volatility in tech markets highlighted the growing geopolitical stakes of AI dominance, raising concerns over its impact on global finance and competition. As advanced AI models continue to reshape economic landscapes, discussions on governance gained momentum at the World Economic Forum in Davos, where leaders called for unified regulatory frameworks. Meanwhile, negotiations between the EU and the U.S. on AI safety standards signaled a push for greater international coordination in managing the risks and opportunities of AI innovation. |
| News Roundup Global DeepSeek AI Raises National Security Concerns DeepSeek, a Chinese-developed AI model, has rapidly gained popularity, amassing over 2 million downloads. However, it has raised significant national security concerns in the U.S. due to its storage of American user data on servers located in China. The U.S. Navy has advised its personnel against using DeepSeek, citing security risks. Additionally, DeepSeek has shown signs of censorship regarding sensitive topics related to China. The House bipartisan select committee on China has called for stronger export controls on technologies linked to DeepSeek’s AI. Prominent figures in the tech industry, such as Josh Kushner and Elon Musk, have raised alarms about the potential misuse of U.S. technologies in developing DeepSeek. The situation has impacted U.S. markets, causing a significant drop in market value and prompting concerns over the U.S.’s AI competitiveness against China. Global Standards for AI Regulation At the World Economic Forum in Davos, leaders emphasized the need for global standards in AI regulation. Abhijit Dubey, CEO of NTT DATA, advocated for consistent worldwide regulations to mitigate risks associated with AI development. He highlighted areas such as intellectual property protection, energy efficiency, and measures to combat piracy and deepfakes as critical for a unified global approach. North America TikTok Status In January 2025, the U.S. Supreme Court upheld legislation mandating that TikTok be sold by its Chinese parent company, ByteDance, due to national security concerns. Following this decision, TikTok briefly suspended its services in the U.S. but resumed operations after President Trump issued an executive order delaying the ban for 75 days to facilitate a potential sale to American investors. Negotiations are ongoing, with companies like Oracle expressing interest in acquiring TikTok’s U.S. operations. U.S. Executive Order on Artificial Intelligence President Donald Trump signed an executive order to foster artificial intelligence (AI) innovation, free from ideological bias. This new directive overturns policies from President Joe Biden’s 2023 AI executive order, deemed as barriers to AI advancement. Trump’s order mandates a review and possible suspension of Biden-era policies that don’t align with his goals of promoting human flourishing, economic competitiveness, and national security. Additionally, a 180-day timeline has been set for developing an AI action plan, overseen by a select group of White House tech and science officials, including David Sacks as the new Special Advisor for AI and Crypto. This move repealed efforts by the Biden administration to ensure AI uses were fair and nondiscriminatory. Critics argue that Trump’s approach might prioritize innovation at the expense of public safety and equality, reversing progress made under Biden to study AI’s impact and curbing improper government use of AI tools. Europe UK Advances Tech Policy with AI Strategy and ‘European Silicon Valley’ Initiative In January 2025, the UK government launched the AI Opportunities Action Plan, a national strategy to leverage artificial intelligence for economic growth and public services. Additionally, it announced plans for a “European Silicon Valley” supercluster in the Oxford-Cambridge corridor, projected to add £78 billion to the economy by 2035. The Competition and Markets Authority (CMA) also signaled potential investigations into Microsoft and Amazon over concerns of market dominance in cloud computing, while the UK invested £20 million in Orbex to strengthen its space launch capabilities. Political Tech Summit Held in Berlin On January 25, 2025, Berlin hosted Europe’s first Political Tech Summit, an event designed to bridge the gap between politics and technology. The summit brought together political professionals, consultants, academics, start-ups, and technologists to foster cross-party and cross-border collaboration. With over 40 presentations and workshops featuring around 90 speakers from Europe and beyond, the summit served as a melting pot for the European political tech ecosystem. Discussions centered on the future of political technology, social media strategies of European political parties, and combating misinformation. Denmark Strengthens European Tech Diplomacy Denmark announced plans to enhance its tech diplomatic engagement within Europe and beyond. Starting August 1, the Tech Ambassador position will relocate to the Ministry of Foreign Affairs in Copenhagen. This move aims to bolster Denmark’s collaboration with European Union members, the Nordics, Asia, the Indo-Pacific, Africa, and global tech companies. The initiative underscores the significance of technology in Denmark’s foreign policy and seeks to ensure that new and critical technologies contribute to the nation’s prosperity and security. Asia China Vows Crackdown on Illegal Data Handling On January 15, 2025, China’s state planner announced efforts to crack down on illegal data handling, targeting black and grey markets that unlawfully obtain, sell, or provide data. New regulations aim to improve data security governance, emphasizing the need to monitor data security risks, particularly in key industries. The goal is to prevent systemic and large-scale risks to maintain national security and social stability. Asian Tech Fundraising Expected to Expand by 10% in 2025 Citi projects a 10% increase in Asian tech fundraising in 2025, driven by developments in artificial intelligence and other emerging technologies. This growth reflects the region’s expanding role in the global technology landscape. Africa Africa Proposes Critical Minerals-Backed Currency The African Development Bank has introduced a plan for a new currency, termed African Units of Account (AUA), backed by critical minerals such as cobalt, copper, and lithium. This initiative aims to stabilize volatile currency markets and attract international financing for clean energy projects across the continent. By leveraging approximately 30% of the world’s critical mineral reserves, Africa seeks to enhance its economic sovereignty and reduce dependence on traditional foreign currencies. Microsoft to Train 1 Million South Africans in AI Skills Microsoft has announced an ambitious program to provide artificial intelligence (AI) and cybersecurity training to 1 million individuals in South Africa by 2028. This initiative is part of a broader effort to bridge the digital skills gap and prepare the workforce for the demands of the Fourth Industrial Revolution. The training will encompass various aspects of AI, aiming to enhance employability and drive innovation within the country. EU and Africa Deepen Space CooperationAt the EU Space Conference in Brussels, the European Commission unveiled the “Africa-EU Space Partnership Programme,” backed by a €100 million investment. This initiative focuses on advancing the green transition through space-based services, strengthening institutional collaboration, and engaging European private companies in service provision and innovation. The program aims to bolster Africa’s resilience to climate change, drive digitalization, and foster sustainable development through enhanced space capabilities. Latin America Latin America Positioned to Lead in AI Governance Latin America can set new standards in the use of artificial intelligence, owing to its abundant renewable energy, rich biodiversity, and deep cultural and linguistic diversity. The region is ripe for adopting and reinventing AI to serve local and global challenges, from sustainable agriculture to industrial modernization. By promoting investments, training data scientists, and implementing transparent governance for AI, Latin America can spur economic growth and contribute new ethical, cultural, and sustainable paradigms to global technology development. Oceania Cricket Australia Enhances Digital Experience with AI and Cloud Cricket Australia is leveraging AI and cloud technology to transform the fan experience and streamline operations across all levels of the sport. Using Microsoft Azure, the organization enhances match analysis, player performance tracking, and fan engagement, ensuring a more data-driven and immersive cricket experience. For more updates, stay tuned to the Tech Diplomacy Network! |
Tech Diplomacy Newsletter 1-25
