diff --git a/.github/workflows/canister-tests.yml b/.github/workflows/canister-tests.yml
index 78b6b449b4..39bd73543f 100644
--- a/.github/workflows/canister-tests.yml
+++ b/.github/workflows/canister-tests.yml
@@ -851,6 +851,40 @@ jobs:
           # https://docs.github.com/en/actions/security-guides/automatic-token-authentication#using-the-github_token-in-a-workflow
           GITHUB_TOKEN: ${{ secrets.GITHUB_TOKEN }}
 
+
+        # Bump the version in the download links and create A Pull Request
+      - name: Update README
+        env:
+          PREVIOUS_RELEASE_TAG: ${{ steps.latest-release-tag.outputs.result }}
+          NEW_RELEASE_TAG: ${{ github.ref_name }}
+        run: |
+          echo "II release: $PREVIOUS_RELEASE_TAG -> $NEW_RELEASE_TAG"
+          sed -i "s/$PREVIOUS_RELEASE_TAG/$NEW_RELEASE_TAG/g" ./README.md
+          cat ./README.md
+
+      - name: Create Pull Request
+        if: startsWith(github.ref, 'refs/tags/release-')
+        uses: peter-evans/create-pull-request@v4
+        with:
+          token: ${{ secrets.GIX_BOT_PAT }}
+          base: main
+          add-paths: ./README
+          commit-message: Update release in README
+          committer: GitHub <noreply@github.com>
+          author: gix-bot <gix-bot@users.noreply.github.com>
+          branch: bot-release-readme-update
+          delete-branch: true
+          title: 'Update release in README'
+
+        # Since this may be triggered on tag push, a failure won't be shown on any
+        # PR status. To notify the team, we send a message to our Slack channel on failure.
+      - name: Notify Slack on failure
+        uses: ./.github/actions/slack
+        if: ${{ startsWith(github.ref, 'refs/tags/') && failure() }}
+        with:
+          WEBHOOK_URL: ${{ secrets.SLACK_WEBHOOK_URL }}
+          MESSAGE: "Release creation failed"
+
   # A native, fast cached build. We use the produced test assets to run the canister & e2e tests.
   # The asset's checksum is compared against that of the (slower) docker build.
   cached-build:
diff --git a/README.md b/README.md
index 17e6d64bd8..452ed1f785 100644
--- a/README.md
+++ b/README.md
@@ -50,8 +50,8 @@ Use the Internet Identity canister in your local dfx project by adding the follo
   "canisters": {
     "internet_identity": {
       "type": "custom",
-      "candid": "https://github.com/dfinity/internet-identity/releases/download/release-2023-11-17/internet_identity.did",
-      "wasm": "https://github.com/dfinity/internet-identity/releases/download/release-2023-11-17/internet_identity_dev.wasm.gz",
+      "candid": "https://github.com/dfinity/internet-identity/releases/download/release-2024-01-05/internet_identity.did",
+      "wasm": "https://github.com/dfinity/internet-identity/releases/download/release-2024-01-05/internet_identity_dev.wasm.gz",
       "remote": {
         "id": {
           "ic": "rdmx6-jaaaa-aaaaa-aaadq-cai"