Breaking AI & Tech News Analyzed

A newly launched green thinktank, Verdant, proposes that a 'Doge of the left' could save UK taxpayers up to £30bn annually by rooting out waste, fraud, and tax avoidance. This initiative is part of a broader effort to influence the future manifesto of the Green Party, led by Zack Polanski.The thinktank, co-chaired by James Meadway, a former adviser to Labour shadow chancellor John McDonnell, and civil society campaigner Deborah Doane, argues that a crackdown on waste could free up significant resources. This approach differs from the ideologically driven methods of Elon Musk's former Department of Government Efficiency in the US.Meadway emphasized that the political right has monopolized discussions about savings in government spending, leading to disastrous effects. He stated that a 'Doge of the left' would focus on eliminating tax avoiders, profiteers, and fraudsters, ultimately delivering high-quality public services.The report suggests several measures, including:Appointing a 'chief savings officer' to identify waste and fraud.Granting the National Audit Office the power to halt overspending projects.Opening public procurement to more transparent competition.Establishing an internal consultancy function to reduce reliance on costly private consultants.The proposed £30bn in savings is largely based on independent estimates of annual losses due to fraud, waste, under-collection of tax, and lack of competition in procurement. Additionally, Verdant recommends scrapping £3.6bn in tax reliefs and government support for oil and gas producers.Polanski's economic policy speech last week highlighted sweeping changes, including rent caps and a new wealth tax. He also emphasized the importance of protecting consumers from rising energy prices and expressed skepticism about using GDP as a measure of economic performance.

The estate of late British tech tycoon Mike Lynch has been ordered to pay £920m to the technology company Hewlett-Packard (HP) two years after he died in a superyacht disaster.The ruling by London’s high court said the estate was liable to pay the sum as compensation, costs, and interest for HP’s acquisition of Lynch’s firm Autonomy, after a UK legal ruling in 2022 that he duped the US firm into paying £8.2bn for his software firm Autonomy.The deceased entrepreneur’s estate has been estimated to be worth about £500m, so the damages could leave it bankrupt.Lynch and six others, including his 18-year-old daughter Hannah, died in August 2024 on a trip with friends and family celebrating his acquittal on US fraud charges relating to HP’s $11bn takeover of Autonomy in 2011.HP accused Lynch and Autonomy’s former chief financial officer, Sushovan Hussain, of inflating the firm’s value before the takeover. HP wrote down Autonomy’s worth by $8.8bn (£6.5bn) within a year of the purchase.The US tech company has sought damages in UK civil proceedings of up to $4.55bn from the estate of the late tycoon, who was once hailed as Britain’s answer to Microsoft founder Bill Gates.However, the level of the claim was ruled last year by the high court to be “always exaggerated”, as it concluded that Lynch’s estate owed £700m in compensation. The £920m figure includes costs and interest.Lawyers for Lynch’s estate sought permission to appeal against Tuesday’s ruling, which was refused. However, the estate can apply directly to the court of appeal.HP welcomed Tuesday’s decision, which it said in a statement “brings us another step closer to resolution of the dispute”.A spokesperson for the Lynch family said: “We are disappointed by the court’s refusal and believe an application to the court of appeal should follow in the interests of justice. HP’s $5bn damages claim has already been shown to be vastly exaggerated.“Today’s judgment describes the exaggeration as ‘without foundation’ and the purposes for which it was ‘calibrated, publicised and pursued’ as objectionable, misleading shareholders and extending the litigation unnecessarily.“Dr Lynch’s acquittal in the US, where witnesses were properly cross-examined, exposed the truth. The damage to Autonomy was the result of HP’s own actions and failures, not wrongdoing at Autonomy.”

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.

A new and disturbing trend in scams, known as 'friendship fraud,' is on the rise, specifically targeting older people who are lonely or bereaved. This type of scam involves criminals using social media platforms to build relationships with potential victims, often over a long period, before requesting money for various reasons. The scam typically begins with a connection on social media, where the fraudster will research and tailor their initial messages to appear as though they share common interests with the victim. Once a level of trust is established, the scammer will begin to make requests for money, often for small amounts or seemingly urgent needs. According to TSB, the average amount lost by victims of friendship fraud is £3,100. In some cases, victims have lost as much as £4,000 or more over several years. The fraudsters often request payments through bank transfers or gift cards, making it difficult for victims to recover their losses. Experts warn that older people who are lonely or bereaved are particularly vulnerable to these scams, as they may be more desperate for human connection and more likely to trust someone who appears to share their interests. Caroline Abrahams of Age UK describes the fraud as 'especially horrible and insidious,' noting that it can have devastating consequences for victims, including financial loss, health issues, and a breakdown in trust. To avoid falling victim to friendship fraud, experts advise severing contact immediately if someone you met online requests money. If you suspect you or someone you know has been targeted, report it to Report Fraud and discuss it with your bank. Documenting all interactions with the scammer can also help in efforts to recover losses or prosecute the fraudster.

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.