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AI News Digest - 2026-03-12

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1.
Codewall demonstrated that an AI agent had breached McKinsey's internal AI platform Lilli in two hours, obtaining full read and write access to the production database by exploiting a decades-old technique.
2.
Google released Gemini Embedding 2, a native multimodal embedding model that brought text, images, video, audio, and documents into a single vector space, reducing the need for separate models in AI pipelines.
3.
OpenClaw adoption in China sparked a commercial surge of installation services, preconfigured hardware sales, and local government support while prompting a Chinese cybersecurity regulator to issue warnings about security and data risks.
4.
OpenAI released IH-Challenge, a training dataset designed to teach AI models to prioritize trusted instructions over untrusted ones, and reported early results showing significant improvements in security and defenses against prompt injection.
5.
Microsoft and a broad coalition of AI researchers, former military leaders, and civil rights organizations filed amicus briefs supporting Anthropic in its legal dispute with the U.S. Department of Defense.

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