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European executives warn AI growth is outpacing infrastructure, Nokia survey finds

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More than 1,000 business and technology leaders across Europe have raised serious concerns about the continent’s readiness to support the rapid expansion of artificial intelligence, according to a new study by Nokia. Executives identified energy supply, network capacity, and secure connectivity as the most pressing challenges that could slow the adoption of AI across industries.

The survey found that AI is already widely used by European companies, with 67% reporting that they have integrated the technology into their operations. Another 15% are running pilot projects, indicating that adoption is expected to grow significantly in the coming years. Many businesses see AI as essential for improving efficiency, automating processes, and strengthening innovation.

Cybersecurity emerged as the leading application area, with 63% of companies using AI to protect systems and data. Automation of business processes followed at 57%, while customer service tools such as chatbots and virtual assistants accounted for 55%. Companies are also using AI for product development, predictive analytics, robotics, and supply chain management.

Despite strong adoption, executives warned that infrastructure is struggling to keep pace with demand. Nokia’s report, titled “AI is too big for the European internet,” highlighted that Europe’s digital backbone is not yet equipped to handle large-scale AI workloads. The report noted that connectivity remains fragmented and security concerns persist, creating obstacles to expansion.

Energy supply was identified as the biggest constraint. About 87% of executives said they were worried that Europe’s energy infrastructure cannot meet rising AI demand. More than half said energy systems are already under strain or at risk. One in five companies reported delays to AI projects due to energy shortages, while others said they had to adjust project timelines or choose different locations because of limited power availability.

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High electricity costs were also cited as a major concern, with 52% of executives saying Europe’s energy prices are not competitive compared to other regions. Limited grid capacity, slow approval processes, and restricted access to renewable energy sources were also highlighted as barriers.

As a result, 61% of executives said they are considering relocating data-intensive operations to regions with lower energy costs or have already taken steps in that direction. Only 16% said they plan to keep operations in Europe regardless of energy constraints.

Connectivity issues are also affecting companies. More than half reported network performance problems, including delays and downtime linked to increasing data traffic. Around 86% of executives expressed concern about internet reliability as AI usage continues to expand.

The report warned that global data traffic is expected to increase sharply by 2033, placing additional strain on existing networks. Business leaders called for greater investment in energy infrastructure, improved network capacity, and clearer regulations to support Europe’s ability to compete in the global AI race.

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Siemens and Nvidia Test Humanoid Robot on Factory Floor in Push for AI-Driven Production

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German engineering group Siemens and US chipmaker Nvidia have carried out a live factory trial of a humanoid robot, marking a step toward integrating artificial intelligence into industrial production.

The test took place at Siemens’ electronics plant in Erlangen, where a robot developed by UK-based Humanoid was deployed to perform logistics tasks alongside human workers. The machine, known as HMND 01, was designed to handle routine operations such as picking up, transporting and placing containers used in daily factory processes.

According to Siemens, the robot operated autonomously for more than eight hours during the trial and successfully completed over 90 per cent of its assigned tasks. It handled around 60 containers per hour, demonstrating the potential for consistent performance in a real industrial environment.

The project forms part of a broader collaboration between Siemens and Nvidia aimed at developing what they describe as the world’s first fully AI-driven adaptive factories. The goal is to create production environments where machines can work alongside people, responding to changes and making decisions in real time.

Executives involved in the project said the trial highlights advances in “physical AI”, a concept that enables machines to perceive their surroundings, process information and adjust their actions without direct human control. Nvidia provided the underlying artificial intelligence technology, including simulation tools and real-time processing systems, while Siemens handled industrial integration.

The companies said much of the robot’s development was completed through virtual simulations before deployment. This approach significantly reduced the time required for testing and design, cutting development cycles from as long as two years to roughly seven months.

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Industry observers say such systems could help manufacturers address labour shortages and improve efficiency in areas where traditional automation has struggled. Tasks that require flexibility, movement and interaction with human workers have historically been difficult for machines to handle, but advances in AI are beginning to close that gap.

While the trial is being described as a milestone, Siemens and Nvidia have not provided a timeline for large-scale adoption of humanoid robots in factories. Questions remain around cost, scalability and safety before the technology can be rolled out more widely.

Even so, the demonstration offers a glimpse into how manufacturing could evolve, with intelligent machines taking on more complex roles while working in coordination with human staff on the factory floor.

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Study Finds AI Use May Weaken Basic Problem-Solving Skills

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Meta Launches Muse Spark, Its First Major AI Model in Nine Months

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Meta has unveiled its first major AI model in nine months, following a $14.3 billion (€12.24 billion) investment spree and executive hiring push to rival OpenAI and Google. The American tech company introduced the model, called Muse Spark, on Wednesday, claiming it is faster and smarter than its previous technologies.

The company, founded by Mark Zuckerberg, invested $14.3 billion in Scale AI in June 2025 and recruited its CEO and co-founder, Alexandr Wang, to oversee Meta Superintelligence Labs, which houses teams working on foundational AI models. Zuckerberg also embarked on a hiring campaign, bringing in executives from competitors including OpenAI, Anthropic, and Google.

In a blog post, Meta said, “Over the last nine months, Meta Superintelligence Labs rebuilt our AI stack from the ground up, moving faster than any development cycle we have run before. This initial model is small and fast by design, yet capable enough to reason through complex questions in science, math, and health. It is a powerful foundation, and the next generation is already in development.”

Muse Spark is positioned as a significant upgrade over Meta’s last major release, Llama 4, launched in April 2025. The company highlighted that the model excels in advanced reasoning, particularly in scientific, mathematical, and medical queries. To improve its health advice capabilities, Meta worked with over 1,000 physicians to curate training data, aiming for more accurate and comprehensive responses.

The AI model will power the company’s digital assistant in the Meta AI app and website, with planned integration across Facebook, Instagram, WhatsApp, Messenger, and the Ray-Ban Meta AI glasses. A “contemplating mode” will gradually roll out, allowing multiple AI agents to reason in parallel on complex tasks. Meta’s technical blog noted this feature is designed to compete with high-level reasoning in models such as Gemini Deep Think and GPT Pro.

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Zuckerberg emphasized on social media that Meta aims to build AI products that “don’t just answer your questions but act as agents that do things for you.” Unlike conventional chatbots, these AI agents operate autonomously, gathering information based on user preferences to assist without direct human commands.

One notable shift for Meta is the move away from open-source AI models. Unlike earlier releases, Muse Spark is not available for public download, meaning access to the technology is currently restricted. The company said the model is initially available only in the United States.

Muse Spark underscores Meta’s aggressive push into the competitive AI market, combining extensive investment, executive recruitment, and technical innovation to challenge the dominance of established players like OpenAI and Google.

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