Daily Tech Digest - December 29, 2025


Quote for the day:

"What great leaders have in common is that each truly knows his or her strengths - and can call on the right strength at the right time." -- Tom Rath


Beyond automation: Physical AI ushers in a new era of smart machines

“Physical AI has reached a critical inflection point where technical readiness aligns with market demand,” said James Davidson, chief artificial intelligence officer at Teradyne Robotics, a leader in advanced robotics solutions. “The market dynamics have shifted from skepticism to proof. Early adopters are reporting tangible efficiency and revenue gains, and we’ve entered what I’d characterize as the early-majority phase of adoption, where investment scales dramatically.” ... To train and prepare these models, a new specialized class of AI model emerged: World Foundation Models. WFMs serve two primary functions for robotics AI: They enable engineers to develop vast synthetic datasets rapidly to train robots on unseen actions, and they test these robots in virtual environments before real-world deployment. WFMs allow developers to create virtual training grounds that mimic reality through “digital twins” of environments. Within these simulated scenes, robots learn to navigate real-world challenges safely and at a pace far exceeding what physical presence would permit. ... Despite grabbing a lot of headlines, humanoid robots only represent a small fraction of AI robotics deployments. For now, it’s collaborative robots, robotic arms and autonomous mobile robots that are transforming warehouse and factory settings. The forefront example is Amazon.com Inc., which uses intelligent robots across its warehouses. 


When Digital Excellence Turns Into Strategic Technical Debt

Asian Paints' digital architecture was built for a world that valued scale, predictability and discipline. Its systems continuously optimize for efficiency, minimize variability and ensure consistency across thousands of dealers and SKUs. For nearly 20 years, these capabilities have directly contributed to better margins, improved service levels and increased shareholder confidence. But today's market is different. New entrants, backed by capital and "largely free from legacy" process constraints, are willing to accept inefficiencies to gain market share quickly. ... The result is a market that is more volatile, more tactical, and less patient. Additionally, new technology plays a vital role in creating a competitive edge. This is where the strategic technical debt surfaces. Unlike traditional technical debt, this isn't about outdated systems or underinvestment. ... The difference lies in architecture and intent. Newer players are born cloud-native, with a more modular approach, better governance and greater tolerance for experimentation. They use analytics and AI proactively to adjust incentives quickly, test local pricing strategies and pivot dealer engagement models in response to demand. Speed and flexibility matter more than optimization. ... Strategic technical debt accumulates because CIOs are rewarded for stability, uptime and optimization. Optionality, speed and the ability to unlearn don't appear on scorecards. Over time, this imbalance becomes part of the architecture and results in digital stress.


The Evolution of North Korea – And What To Expect In 2026

What has changed most notably through 2024 and 2025 is the shift away from “purely external intrusion” towards “abuse of legitimate access,” says Pontiroli. “Rather than breaking in, North Korean operators increasingly aim to be hired as remote IT workers inside real companies, gaining steady income, trusted network access, and the option to pivot into espionage, data theft, or follow on attacks.” ... The workers claim to be US based with IT experience, “but in reality, they are North Korean or proxied by North Korean networks,” he explains. Over time, the threat actors have developed deep expertise in software engineering, mobile applications, blockchain infrastructure, and cryptocurrency ecosystems says Tom Hegel, distinguished threat researcher, SentinelLABS. ... In parallel, cybersecurity researchers have observed related campaigns with distinct names and tradecraft. A malicious campaign dubbed Contagious Interview involves threat actors masquerading as recruiters or employers to lure job seekers, particularly in tech and cryptocurrency sectors, into fake interviews that deliver malware such as BeaverTail, InvisibleFerret, and variants such as OtterCookie, says Pontiroli. ... Today, fake worker schemes remain an “active and growing threat,” says Jack. KnowBe4 offers training to customers to combat this and strengthen their security culture, he says. Security leaders must assume that the hiring pipeline itself is part of the attack surface, says Hegel. 


Five Attack-Surface Management Trends to Watch in 2026

In 2026, regulators will anchor security and risk leaders’ approaches to exposure strategy. This will mean not only demonstrating due diligence during annual audits, but also demonstrating proof of resilience every day. Exposure management platforms that can map external assets against regulatory expectations; provide real-time compliance dashboards and metrics; and quantify benefits and exposures to boardrooms will become table stakes. ... Attackers see the enterprise as a single, unified attack surface, with each constituent part informing the next priority: cloud workloads, SaaS, subsidiaries, shadow IT, and third-party dependencies. In 2026, savvy security leaders will be adopting that same perspective. Point-in-time, penetration-test-style engagements and bug-bounty programs will give way to organizations that expect full-scope, attacker-centric discovery of digital asset footprints, as well as automated prioritization to cut through the noise.  ... In 2026, successful vendor choices will be those that strike a balance between consolidation and integration. Enterprises will demand more flexible integration into existing workflows, including third-party APIs and visibility into SIEM, SOAR, and GRC tools, as well as the ability to support hybrid and multi-cloud environments without friction. Transparency and visibility into roadmap, enterprise-readiness proofs, and customer success will become significant differentiators in a category that has been defined by mergers and acquisitions.


Daon outlines five digital identity shifts for 2026

Daon said non-human identities, including agentic AI systems, are expanding quickly across enterprise networks. It cited independent 2025 studies reporting roughly 44% year-on-year growth in non-human identities and a rise in machine-to-human ratios from around 80:1 to 144:1 in some environments. The prediction for 2026 is that enterprises will treat autonomous and agentic systems as full participants in the identity lifecycle. These systems would be registered, authenticated, authorised and monitored under formal policies, with containment processes defined in case of compromise or misbehaviour. ... Daon said progress in techniques such as zero-knowledge proofs, federated learning and sensor attestation now enables biometric checks on personal devices while reducing movement of raw biometric data. On-device processing can bind verification to a specific capture environment and lower the risk of replay or injection. Local storage of biometric templates supports data-minimisation approaches. The company expects these on-device checks to align with proof-of-possession flows and hardware-backed sensor attestations. It said federated learning and zero-knowledge techniques allow systems to validate claims without sharing underlying biometric templates with servers. ... Daon expects continued pressure on pre-hire verification because of deepfake applicants and impersonation. It said the more significant change in 2026 will come after hiring as employers adopt continuous workforce assurance.


Quantum computing made measurable progress toward real-world use in 2025

Fully functional quantum computers remain out of reach, but optimism across the field is rising. At the Q2B Silicon Valley conference in December, researchers and executives pointed to a year marked by tangible progress – particularly in hardware performance and scaling – and a growing belief that quantum advantage for real-world problems may be achievable sooner than expected. "More people are getting access to quantum computers than ever before, and I have a suspicion that they'll do things with them that we could never even think of," said Jamie Garcia at IBM. ... Aaronson, long known for his critical analysis of claims in quantum computing, described the progress in qubit fidelity and control systems as "spectacular." However, he cautioned that new algorithms remain essential for converting that hardware performance into practical value. While technical strides have been impressive, translating those advances into applications remains difficult. Ryan Babbush of Google Quantum AI said hardware continues to outpace software in usefulness. ... Dutch startup QuantWare introduced an architecture aimed at solving one of the industry's most significant hardware limitations: scaling up without losing reliability. The company's superconducting quantum processor design targets 10,000 qubits, roughly 100 times more than today's leading devices. QuantWare's Matt Rijlaarsdam said the first systems of this size could be operational within 2.5 years.


Ship Reliable AI: 7 Painfully Practical DevOps Moves

In AI land, “what changed” is anything that teaches or nudges the model: training data slices, prompt templates, system instructions, retrieval schemas, embeddings pipelines, tokenizer versions, and the model binary itself. We treat each as code. Prompts live next to code with unit tests. We commit small evaluation sets in-repo for quick signals, and keep larger benchmarks in object storage with content hashes and a manifest. ... Shiny demos hide flaky edges. We force those edges to show up in CI, where they’re cheap. Our pipeline runs fast unit tests, a tiny evaluation suite, and a couple of safety checks against handcrafted adversarial prompts. The goal isn’t to solve safety in CI; it’s to block footguns. We test the glue code around the model, we lint prompts for hard-to-diff formatting changes, and we run a 50-example eval that catches obvious regressions in latency, grounding, and accuracy. ... For AI pods, that starts with resource quotas and limits. GPU nodes are expensive; “just one more experiment” can melt the budget by lunch. We set namespace-level quotas for GPU and memory, and we stop requests that try to sneak past. For egress, we deny everything and allow only the API endpoints our apps need. When someone tries to point a staging pod at a random external endpoint “just to test it,” the policy does the talking.


What support is available for implementing Agentic AI systems

The adoption of Agentic AI systems is reshaping the way organizations implement security measures, particularly for NHIs. Agentic AI—capable of self-directed learning and decision-making—proves advantageous in deploying security protocols that adapt in real-time to evolving threats. By utilizing such technology, organizations can leverage data-driven insights to enhance their NHI management strategies. ... Given the critical role of NHIs in maintaining robust cloud security, organizations need to adopt advanced methodologies that integrate seamlessly with their existing security frameworks. ... Effective NHI management relies heavily on leveraging insights that stem from analyzing large data sets. Organizations that prioritize the use of data analytics in their cybersecurity strategies can efficiently discover, classify, and monitor machine identities and their associated secrets. Advanced analytical tools can help security teams identify patterns and anomalies in system activities, providing early indicators of potential security threats. These insights make it possible to implement more effective security protocols and prevent unauthorized access before it happens. ... The security of an organization is not solely the responsibility of the IT department; it is a shared responsibility across all stakeholders. Building a culture of security awareness is crucial in ensuring that every member of an organization understands the role that NHIs play in cybersecurity.


Godspeed curtain twitchers: DPDP and its peers just got ruthless

Organisations will have to work on privacy very seriously- in everyday business operations and in every area, Bhambry cautions. They will have to make sure it pervades product development, processes (From the onset), internal audit, regular training and the very culture of that company and its employees. Enterprises will have to focus on individual rights, consent protocols and data governance.” There is no doubt that data privacy is going to get stronger, transparent, and comprehensive, affirms Advocate Dr. Bhavna Sharma, Delhi High Court. Cybercrime Expert and Legal Consultant, Delhi Police and a techno-legal policy professional. But it is also going to get complex in 2026 as it shifts from abstract legal principles to a tangible operational mandate with the notification of the DPDPA Rules, 2025, adds Dr. Sharma ... “India’s DPDPA and MeitY’s localisation mandates echo a growing consensus that data sovereignty equals digital sovereignty. Governments are recognising that control over citizen data is foundational to national security and economic resilience.” Cheema explains. In an era marked by competition among nations with their own data systems, state leaders are taking control, Yadav observes. “They are not willing to allow strategic assets to slip through their fingers. And as a result, the government calls for ‘localisation’ to trap extra-territorial storage simply because it has yet to be regulated by authorities in those countries.


Tech innovations fuelling Indian GCCs as BFSI powerhouses

Responsible AI governance, model explainability, and auditability remain difficult across regulated domains worldwide. Institutions everywhere also face constraints around scalable compute, high-quality data flows, and real-time analytics. As AI systems process more sensitive financial data, cybersecurity risks are rising across the industry, prompting greater investment in zero-trust architectures, model-security testing, and stronger third-party controls. ... GCCs in India have been instrumental in orchestrating cloud migrations for complex banking systems, allowing banks and insurers to transition from monolithic legacy systems toward microservices and API-led platforms. This modular architecture has enabled financial institutions to launch products rapidly and build disaster resilience. Additionally, regulatory complexity and rising compliance costs have created a fertile ground for RegTech innovation. Indian GCCs are helping global enterprises build AI-powered KYC and Anti-Money Laundering (AML) solutions, compliance dashboards, and automated regulatory reporting pipelines that reduce manual work and false positives and make audits more efficient. ... Security, observability, and governance have also become board-level priorities. According to industry insights, as GCCs ingest more sensitive financial data and run mission-critical AI models, investments in cyber-resilience, third-party access monitoring, and federated data controls have surged.

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