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French Startups Face Political Uncertainty as AI Reshapes Innovation Landscape

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France’s startup ecosystem is undergoing a period of rapid change, driven by the rise of artificial intelligence and growing concerns about the country’s political future, according to new figures released by startup incubator Station F as it marks its ninth anniversary.

The Paris-based campus, regarded as the world’s largest startup incubator, has supported more than 9,000 startups since opening in 2017. Companies that emerged from the hub include Hugging Face, Pasqal and Pollen Robotics.

New data from Station F shows artificial intelligence has become a dominant force among resident startups. This year, the incubator launched its F/AI programme, attracting major AI firms, including Mistral AI.

According to the survey, 77 percent of startups said AI tools have reduced their hiring needs. Despite that, 82 percent reported they are either actively recruiting or expect to hire employees in the coming months.

One of the most widely used AI tools among startups at the campus is Anthropic’s Claude model, now used by 90 percent of teams. The result marks a major shift from last year when OpenAI held the leading position among AI providers at the incubator.

AI-related acquisitions have also become increasingly common. Earlier this year, cloud computing startup Koyeb was acquired by Mistral AI. Previous deals included the acquisition of Pollen Robotics by Hugging Face, reflecting continued consolidation within the sector.

The profile of startup founders is also changing. Station F reported that the average founder is now 36.5 years old, compared with 31 in 2018. Around 20 percent hold doctoral degrees, suggesting that technical expertise is playing a larger role in attracting investment and building companies.

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The report also found that startup ambitions have shifted. Half of founders expect their businesses to end in acquisitions rather than public listings. Only 9 percent believe their companies will eventually launch an initial public offering, down from 16 percent a year earlier.

International talent remains a key feature of the campus. Roughly one-third of residents come from outside France, with more than 60 nationalities represented. After France, the largest foreign groups come from the United States, Morocco, Germany, the United Kingdom, Algeria and India.

Despite continued growth, political uncertainty has emerged as a significant concern. More than half of founders surveyed said France’s upcoming presidential election is among their biggest worries. Nearly half expressed concern about a possible far-right victory, while about a quarter were worried about a far-left outcome.

Many entrepreneurs cited immigration policy as a major issue, warning that tighter visa rules could make it harder to attract global talent and build internationally competitive businesses.

The findings highlight a startup sector that remains innovative and internationally connected, but increasingly focused on the political environment shaping its future.

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Robotics Firm Says AI-Powered Humanoid Robots Could Carry Weapons by 2027

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A U.S. robotics company developing artificial intelligence-powered humanoid robots says weaponised versions of the technology could begin testing as early as next year, following field trials in Ukraine, raising fresh questions about the future of autonomous systems in modern warfare.

Foundation Future Industries, which builds humanoid robots for commercial and military applications, has already tested its Phantom robots in Ukraine in non-combat roles. Chief Executive Officer Sankaet Pathak said the company expects to explore weaponisation after evaluating the results of those pilot programs.

Pathak said public fears are often shaped by science fiction but argued that humanoid robots would not replace existing weapons such as missiles or drones.

“I think we have this psychological reaction, which is like the Terminator, but the reality is not really like that,” he said.

Instead, he believes humanoid robots could be deployed for highly precise military operations where limiting damage to infrastructure and reducing civilian casualties are priorities.

According to Pathak, drones and conventional weapons remain more effective for large-scale attacks, while humanoid robots would be better suited to complex ground missions requiring careful movement through buildings and urban environments.

He added that robots are unlikely to replace drones on the battlefield but could help reduce risks faced by soldiers in increasingly dangerous combat zones.

Currently, there is no international treaty specifically regulating humanoid or autonomous combat robots. Their use falls under existing international humanitarian law, which requires distinction between military targets and civilians during armed conflict.

The issue has drawn increasing attention from the United Nations. Last week, UN Secretary-General António Guterres renewed calls for restrictions on lethal autonomous weapons systems, describing them as “killer robots” capable of selecting and attacking targets without human judgment. The UN has been negotiating a treaty on lethal autonomous weapons since 2023, with proposals calling for a legally binding agreement by 2026.

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Pathak argued that humanoid robots should be treated similarly to other precision-guided military systems already in service, including armed drones and unmanned ground vehicles.

Foundation’s robots rely on artificial intelligence built around so-called world models. Unlike large language models that predict text, these systems learn from video, simulations and spatial information to understand physical environments and predict how objects and people move over time.

The company believes these models are essential for creating robots capable of safely navigating complex surroundings.

While concerns persist about advanced AI becoming uncontrollable, Pathak said the greater short-term threat comes from criminals or extremist groups misusing publicly available AI tools for cyberattacks, disinformation campaigns or modifying commercial drones for attacks.

He believes scenarios involving AI independently rewriting its own objectives and improving itself remain several major technological breakthroughs away.

Beyond combat, Foundation sees immediate military uses for its humanoid robots in logistics, reconnaissance and building inspections. Those capabilities have already been evaluated in Ukraine, helping shape the development of the company’s next-generation Phantom 2 robot.

The upgraded model is designed for harsh outdoor conditions, offering waterproof and dustproof protection, an increased payload capacity of around 80 kilograms and greater resistance to impacts.

Foundation currently leases Phantom robots to commercial customers for about $100,000 annually per unit, while military buyers purchase the machines at similar prices. Its investors include Eric Trump, payment company Stripe and venture capital firm Define.

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AI-Powered Parapharmacy in Lisbon Lets Customers Shop Without Staff or Checkout Lines

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A fully automated parapharmacy in Lisbon is changing the way customers shop for health and wellness products by combining artificial intelligence, cameras and sensors to eliminate checkout counters and in-store staff.

Located in the Parque das Nações district, the store operates without cashiers or pharmacists on-site during normal business hours. Staff only enter the premises to restock shelves, while customers complete their purchases independently.

The concept was developed to allow pharmacists to spend more time on clinical care instead of retail operations, according to Catarina Dias, the pharmacist who manages Pharma&Go.

“We are investing in solutions that allow pharmacists and the professionals we have to focus on the clinical side while reducing the time spent on commercial tasks,” Dias said.

The shop stocks products that customers can purchase without a prescription, including skincare products, baby care items, supplements and oral hygiene products. Prescription medicines and over-the-counter drugs are not currently available.

Customers begin their visit by tapping a credit or debit card at the entrance. Once the payment method is verified, the door unlocks and shoppers can enter the store. The card used at the entrance is linked to everyone entering at the same time, and all selected products are automatically charged to that payment method when customers leave.

“There are no tills, no queues and no complications,” Dias said, explaining that customers simply enter, choose their products and walk out.

The system relies on hundreds of cameras and sensors working alongside artificial intelligence software that monitors customers and tracks products as they move through the store. The technology identifies which items have been removed from the shelves and automatically completes the purchase when the customer exits.

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Dias said the automated system gives shoppers greater flexibility by allowing them to spend as much or as little time in the store as they choose. Some customers complete their shopping in less than a minute, while others take longer to compare products and read ingredient labels.

Since opening in November, the store has seen customer numbers increase every month as more people become familiar with the technology.

According to Dias, the system records an error rate of less than 2%, with most mistakes resulting from customer behaviour rather than technical failures.

She recalled one incident in which a customer politely held the door open for another shopper entering behind him. Because the system associated everyone entering together with the same payment card, both customers’ purchases were charged to the first visitor.

Although the concept was initially expected to appeal mainly to younger consumers, Dias said older customers have also embraced the technology. She noted that many shoppers in their seventies and eighties have found the process straightforward, helped by the store’s accessible design and simple payment system.

The 90-square-metre shop was developed through a partnership between Sensei and Glintt Life using private funding. Dias said an application for public funding under Portugal’s Recovery and Resilience Plan was unsuccessful because the project was not considered sufficiently innovative.

Despite that setback, she believes automated retail technology has significant potential and expects the concept to continue expanding in the future.

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Global Rights Groups Call for AI Companies to Be Held Responsible for Children’s Safety

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More than 100 international organisations have called on governments to hold artificial intelligence companies directly responsible for protecting children online, warning that existing regulatory approaches are failing to prevent harm.

The appeal, led by the children’s rights organisation 5Rights Foundation and supported by groups including Amnesty International and Save the Children, was issued ahead of the United Nations’ first Global Dialogue on AI Governance. The coalition argues that governments should require technology companies to prove their AI systems are safe for children before they are made publicly available.

The organisations said artificial intelligence is already affecting children in harmful ways and that current regulations often respond only after damage has occurred.

Leanda Barrington-Leach, executive director of the 5Rights Foundation, said children are not opposed to technological progress but want stronger safeguards in place before products reach the market.

“They aren’t asking us to block AI innovation, but it shouldn’t be a case of cleaning up the mess after harm has happened either,” she said.

The statement comes as legal challenges involving AI companies continue to grow. Firms including Character Technologies and OpenAI have faced lawsuits over allegations that AI-powered chatbots, particularly “companion” bots designed to simulate emotional relationships, can negatively affect children. Some claims also argue that these products have been presented as suitable for younger users without sufficient warnings about potential risks.

The coalition believes governments should focus on the commercial incentives that encourage companies to prioritise rapid product development and user engagement over safety.

Among the recommendations are mandatory safety assessments before AI products are released, financial penalties for companies whose systems violate children’s rights, bans on design features that exploit children’s psychological vulnerabilities, and restrictions on the commercial use of children’s images, voices and biometric data.

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The organisations maintain that governments do not need entirely new legislation to introduce these protections. Instead, they argue that countries should enforce commitments already made under international agreements, including the UN Convention on the Rights of the Child and the Global Digital Compact, which outlines principles for protecting human rights in the digital environment.

Barrington-Leach said stronger accountability is needed to change how AI products are developed and marketed.

“As long as companies are rewarded for speed, engagement and data extraction rather than safety, we’ll keep treating the symptoms while the disease becomes endemic,” she said. She added that respecting children’s rights should become a fundamental requirement for technology companies rather than a voluntary commitment.

The United Nations’ inaugural Global Dialogue on AI Governance is expected to bring together government representatives, technology companies, researchers and civil society organisations to discuss international standards for artificial intelligence. Child safety is likely to be one of the key topics as policymakers seek to balance technological innovation with stronger protections for vulnerable users.

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