AI Weekly - Institutions Can't Keep Up

This week's AI news told one story from 49 different angles: the systems designed to govern, fund, and deploy AI are falling behind the technology itself. Google's breast cancer AI caught 25% of missed cancers in NHS screening — but doctors overruled it. The UK government's flagship AI investments turned out to be largely unverifiable. And the EU delayed its own AI Act before it fully took effect.

Key stories covered:
- Anthropic sues the US government after Pentagon blacklisting, backed by Microsoft
- Google AI detects missed breast cancers in NHS trial, but trust remains the bottleneck
- UK AI investment drive exposed as "phantom commitments" by Guardian investigation
- EU Council agrees to delay and simplify high-risk AI Act rules
- McKinsey's AI platform breached in two hours by a solo researcher using an AI agent
- CMA warns AI shopping agents may steer consumers toward worse deals
- 10,000 authors publish empty book ahead of UK copyright deadline
- Agentic AI goes operational — and goes wrong — across recruitment, finance, and crypto mining