FTI Consulting News Bytes – 20 February 2026

FTI Consulting News Bytes

This week’s newsletter starts by looking at the UK government’s move to include chatbots under the Online Safety Act, with Prime Minister Sir Keir Starmer’s warning to tech companies that no one will “get a free pass.”  Meanwhile, as some politicians push to ban social media for under-16s, concerns are growing that older users are also spending more time on screens, leaving them increasingly exposed to low-quality AI content sometimes described as “brain rot.” We then turn our eyes to New Delhi, where Prime Minister Narendra Modi has championed India as a hub for affordable and scalable AI, challenging the US and China’s dominance in the sector. Elsewhere, we look at Sony’s delayed launch of its new PS6 console due to a global chip shortage. Finally, to wrap up an AI-heavy week, we take a turn back in time to spotlight digital history as the V&A has displayed a new exhibition showcasing YouTube’s early days. 

This week’s news

UK online safety laws to include chatbots

The UK government will tighten online safety laws to explicitly cover AI chatbots after xAI’s Grok generated sexualised deepfake images of women and children. Prime Minister Sir Keir Starmer warned technology firms that “no platform gets a free pass”, confirming plans to amend legislation so that chatbots developed by Google and OpenAI fall under the Online Safety Act. Under the rules, Ofcom could fine companies up to £18 million, or 10% of global turnover – whichever is higher – if breaches are found. Ministers are also reportedly considering stronger protections for children, including the possibility of a social media ban for under-16s, based on findings from a public consultation that runs until April, according to the Financial Times. The debate comes amid growing international scrutiny of youth online safety, after Australia introduced a first-of-its-kind social media ban for children, prompting several European countries, including France, Spain, Denmark, Greece and Netherlands, to begin exploring similar measures.

Grandparents hooked on ‘boomer slop’

As politicians push to potentially curb under-16s’ social media use, The Telegraph highlights a parallel trend among older users. Ofcom data reveals that “silver surfers” are spending more time on screens than ever, with over-65s clocking three hours and 20 minutes a day and 55- to 65-year-olds almost four hours. A key driver is “boomer slop” or boomer “brain rot”: low-grade, AI-generated nostalgia content flooding Facebook, Instagram and YouTube, designed to maximise engagement. Experts warn of risks including scams, poor sleep and difficulty identifying AI-generated material, with more than half of over-70s reportedly struggling to recognise AI applications. What is still unknown is the impact this wave of mindless “slop” will have. Could some grandparents be the next victims of AI “brain rot”?

A spotlight on India’s bid for AI leadership 

India’s AI Impact Summit was in full swing this week. Prime Minister Narendra Modi took the chance to present India as a hub for affordable and scalable AI, noting in his keynote speech that innovations developed in India could be deployed across the world. Bloomberg highlights the summit has given India a platform to assert its “role in a race largely dominated by the US and China.” Every opportunity was taken to showcase the country’s engineering talent and tech savviness, a move which underscored India’s ability to offer an alternative to big-tech shaped AI models. Modi also emphasised the need to democratise, whilst highlighting all that India has to offer, stating “some countries and companies think AI is a strategic asset. But India believes AI will be helpful for the world only if shared, and codes are open. We have the talent, energy capacity, and also the policy clarity.” 

PlayStation 6 launch could slip as AI chip crunch bites

Since the PlayStation launched in 1994, Sony has typically refreshed its consoles every six or seven years. But a global chip shortage, driven by tech giants investing billions in AI infrastructure and competing for the same memory components used in gaming hardware, is prompting the company to reconsider that cadence. As a result, the PlayStation 6 is now expected to arrive in 2028 or even 2029, extending the lifecycle of the PlayStation 5 to eight or nine years. The Telegraph reports that Nintendo is also feeling the strain, suggesting it is also weighing up a price rise for its £396 Switch 2. This comes as tech bosses, including Elon Musk and Tim Cook, previously warned of a chip shortage affecting the production of a range of products including phones, laptops, cars and data centres.

A step back in digital time 

Visitors to the Victoria and Albert Museum will be able to take a step back in time and revisit the early days of YouTube, writes the BBC. Using internet archives from December 2006, the museum worked with the platform to reconstruct its original 2005-06 watchpage, even acquiring the first ever video uploaded to the site. YouTube CEO Neal Mohan said “by reconstructing the original 2005 watchpage, we aren’t just showing a video; we are inviting the public to step back in time to the beginning of a global, cultural phenomenon. It is a proud moment to see this piece of digital history housed in the V&A where we hope it will inspire generations to come.” Corinna Gardner, senior curator of design and digital at the museum added that this marked an “important moment in the history of the internet and digital design.”

Top Tweets of the Week

• CyberRobo, an account dedicated to humanoid robot news: Absolutely insane. Unitree’s humanoid robot team’s performance at the 2026 Spring Festival Gala. The significance of the humanoid robot’s performance lies in letting 1.4 billion Chinese people know where the future lies.
• OECD (The Organisation for Economic Co-operation and Development): AI skills aren’t just about coding or algorithms. Only less than 1% of workers will need those advanced AI skills. Instead, AI is increasing the importance of digital skills such as the ability to use, analyse and interpret data. Find out more: https://t.co/8YfFV2n4JB
• World Labs, a spatial intelligence company: World Labs has raised $1 billion in new funding. We are grateful and excited to partner with our investors, including AMD, Autodesk, Emerson Collective, Fidelity Management & Research Company, NVIDIA, and Sea, among others.

Number of the week

33% The proportion of Britain’s scale-up founders who expect to cut jobs in the next year as AI adoption accelerates, according to a report by Helm. (CityAM)