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Tracking Law And Technology legal and regulatory developments.

95 entries in Tech Counsel Tracker

U.S. AI governance is shifting to real-time controls as policy lags

AI governance is shifting from static policy documents to real-time technical controls that can block or permit AI actions before execution. Enterprise vendors, governance-platform providers, and federal regulators are building runtime enforcement and continuous monitoring into AI systems as these tools become more autonomous and embedded in business operations. The White House has signaled a preference for federal preemption over a patchwork of state AI laws, even as states continue advancing their own disclosure and consumer-protection rules.

EU institutions strike deal on Digital Omnibus delaying key AI Act deadlines

The European Parliament, Council, and European Commission reached a provisional trilogue agreement on May 13, 2026, amending the EU AI Act and postponing key compliance deadlines for high-risk AI systems. COREPER, the Council's Committee of Permanent Representatives, approved the deal. Formal adoption by both Parliament and Council remains pending.

OpenClaw founders warn AI-generated “vibe slop” is creating risky code

OpenClaw creators Mario Zechner and Armin Ronacher have warned that AI-generated code is increasingly producing low-quality "vibe slop"—software that appears functional but contains bugs, security vulnerabilities, and maintainability problems. The concern centers on agentic AI tools that prioritize speed and conversational ease over correctness and safety, particularly as startups adopt these systems to accelerate product delivery.

U.S. states and Congress escalate AI deepfake, chatbot, and transparency rules in May 2026

More than two dozen states are enacting or advancing AI regulation laws, marking a decisive shift from policy debate to enforcement. California, Colorado, Texas, and Illinois lead the charge with rules targeting generative AI transparency, deepfake labeling, minor protections, and consumer liability. California's transparency and training-data disclosure requirements took effect in January 2026. Colorado's high-risk AI law entered enforcement on June 30, 2026. The White House released a national AI policy framework in March 2026 advocating for unified federal standards, while bipartisan efforts on Capitol Hill address nonconsensual deepfakes and AI safety. The FTC and state attorneys general are positioned as primary enforcers.

States move to claim ownership rights for AI-generated works amid federal gap

States are beginning to enact laws assigning ownership of AI-generated outputs to the person who supplied the prompt, breaking from federal copyright and patent doctrine that requires human authorship and inventorship. Arkansas has passed the first such law, reflecting growing frustration with the federal framework's treatment of machine-created content.

Robinhood launches AI agents for stock trading and credit-card spending

Robinhood announced it is opening its trading and banking platform to AI agents capable of executing stock trades and credit-card purchases on behalf of customers. The rollout includes two new products—Agentic Trading and an Agentic Credit Card—both integrated through Robinhood's Model Context Protocol servers and equipped with safety controls including spending caps and transaction alerts. The Robinhood Gold card offers 3% cash back on agentic purchases, and users can authenticate an agentic card on desktop after connecting the Robinhood Banking MCP. The features tie into Cortex, Robinhood's AI system for market analysis and personalized portfolio digests.

Verizon CLO Vandana Venkatesh discusses AI-era role of general counsel

Verizon Chief Legal Officer Vandana Venkatesh spoke Thursday at the Harvey Forum in New York City on how general counsel are shaping corporate governance, competition, and growth in an AI-driven environment. The panel discussion centered on the expanding strategic role of in-house legal leaders rather than any specific transaction or litigation matter.

Kirkland & Ellis to Spend $500M on In-House AI Platform

Kirkland & Ellis is investing $500 million to build its own proprietary AI platform for lawyers, marking one of the largest disclosed technology bets by a major law firm. The platform will allow attorneys to access the firm's collective knowledge and deploy custom AI tools across legal work, reducing reliance on off-the-shelf software. Chair Jon Ballis is leading the initiative, which drew input from 250 lawyers including 100 partners. Outside technology vendors are assisting with development but cannot resell the resulting system; Kirkland intends to own or control the technology outright.

AI security, autonomy, and robotics advances mark a “singularity” milestone

A commentary roundup argues that artificial intelligence has crossed from experimental technology into institutional infrastructure, framing recent advances across security, coding, education, and robotics as evidence that the "singularity" transition is already underway. The piece centers on Anthropic, citing claims that its Project Glasswing partners have identified over 10,000 high- or critical-severity vulnerabilities in major software systems, and reporting that internal leaks suggest the company is preparing a Claude Security dashboard for enterprise clients alongside a new model variant. The narrative also names OpenAI, Google DeepMind, Tesla, SpaceX, the NTSB, and the ECB as participants in this broader shift, alongside federal restrictions on AI-generated voice reconstruction technology.

AI disclosure rules still don’t prevent hallucinated citations

AI disclosure requirements have failed to stop lawyers and researchers from submitting fabricated citations, even when AI use is explicitly flagged. The problem is straightforward: telling readers that an AI was used does not verify that cited sources actually exist or accurately represent the law. Hallucinated case names, invented holdings, and false references continue appearing in court filings and legal work product despite disclosure rules and oversight mechanisms.

CNN sues Perplexity AI over alleged copying of 17,000+ news works

CNN filed suit against Perplexity AI in U.S. District Court for the Southern District of New York, alleging copyright infringement and trademark misuse. The complaint charges that Perplexity copied more than 17,000 CNN stories, videos, images, and other published works without authorization. CNN seeks damages and disgorgement of profits.

DocuSign expands AI agreement tools as it navigates “co-opetition” with rivals

DocuSign has launched new AI capabilities across its agreement platform, including contract review, data extraction, natural-language search across agreements, and workflow automation. The rollout represents the company's expansion beyond e-signatures into what it calls "Intelligent Agreement Management," powered by its AI engine, DocuSign Iris. The platform now integrates AI-assisted review, automated data extraction, and conversational search functionality alongside more than 1,000 third-party integrations and enterprise APIs.

White House orders voluntary prelaunch review of frontier AI models

President Trump signed an executive order on June 2, 2026, establishing a voluntary framework that permits frontier AI developers to share their most advanced models with the federal government for up to 30 days before public release. Titled "Promoting Advanced Artificial Intelligence Innovation and Security," the order explicitly disclaims any mandatory licensing, preclearance, or permitting regime for AI models.

AI is reshaping personal injury litigation and pressuring defense firms

AI tools are reshaping personal injury litigation by enabling plaintiff firms to process medical records, build demand packages, and identify evidentiary gaps at unprecedented speed. The shift is not driven by a single court ruling or regulatory action, but rather by widespread adoption of legal-tech platforms designed for case intake, document review, record summarization, and case analysis. Plaintiff-side firms are moving faster than defense counterparts in deploying these systems, creating an emerging competitive advantage in high-volume personal injury work.

Joe O’Donnell builds AI tools to automate analysts’ work at his hedge fund

Former short seller Joe O'Donnell is developing AI software designed to compress investment research timelines from weeks to hours. The tool automates analytical workflows that O'Donnell himself performed manually during his career as a hedge fund investor, effectively building technology to replace his own former job function.

OpenAI says its model solved an 80-year-old geometry problem; “tokenmaxxing” spreads at tech firms

OpenAI's internal reasoning model has produced a proof that resolves an open geometry conjecture posed by Paul Erdős in 1946. Human mathematicians have since verified the result. OpenAI is presenting this as the first instance of an AI system autonomously solving a prominent unsolved problem in mathematics. The previous best-known upper bound on the conjecture dated to 1984.

Trump signs AI order for pre-release government review of advanced models

President Trump signed an executive order Tuesday requiring AI companies to provide the federal government early access to their most advanced models for up to 30 days of review and testing before public release. The order frames this requirement as a safety measure, directing agencies to examine the systems for cybersecurity vulnerabilities and threats to national infrastructure. OpenAI, Anthropic, and Google are the primary targets, with the administration seeking their voluntary participation in the review process.

ChatGPT Answers on China Draw Reader Backlash; China Film Deal Collapses Over Censorship

Researchers testing ChatGPT and similar large language models on questions about China found inconsistent outputs, raising questions about how well these systems handle politically sensitive topics. The experiment comes as OpenAI's ChatGPT has scaled to over 100 million users globally, though its reach in China remains limited due to the platform's requirement for non-Chinese phone numbers during account verification.

Why are big AI companies embedding engineers with customers, and what does that mean?

OpenAI, Anthropic, and Google are embedding engineers directly inside customer organizations to bridge the gap between AI model capability and operational reality. OpenAI has announced a dedicated Deployment Company built around forward-deployed engineers (FDEs)—technical staff working on-site to map workflows, integrate data systems, and move AI from proof-of-concept to production. Anthropic is hiring FDEs for its applied AI team, and Google is pursuing the same model. Palantir pioneered this approach in complex enterprise deployments.

U.S., Australia and Five Eyes partners issue first joint agentic AI security guide

On May 1, 2026, CISA, the NSA, and cyber authorities from Australia, Canada, New Zealand, and the UK released joint guidance on securing autonomous AI agents. Titled "Careful Adoption of Agentic Artificial Intelligence (AI) Services," the document targets organizations designing, developing, deploying, and operating agentic AI systems—particularly those in critical infrastructure and defense. The agencies identified new cybersecurity risks specific to autonomous agents: prompt injection, data poisoning, expanded attack surfaces from tool integrations, over-privileged agents, cascading failures, and reduced accountability. Core recommendations include applying least privilege principles, implementing strong identity and access management, continuous monitoring and logging, rigorous testing and red-teaming, and meaningful human oversight for high-impact or irreversible actions.

Colorado repeals 2024 AI Act, replaces it with narrower ADMT law

Colorado has repealed its landmark 2024 artificial intelligence law and replaced it with a narrower statute. Governor Jared Polis signed SB 189 on May 14, 2026, narrowing the state's regulatory focus from broad "high-risk AI" systems to automated decision-making technology used in consequential decisions affecting consumers. The new law delays the effective date to January 1, 2027.

Microsoft plans new in-house coding AI model launch at Build 2026

Microsoft is preparing to release a new coding model next week, timed to coincide with its annual Build developer conference. The coding model is designed to enhance GitHub Copilot and represents part of a broader Microsoft initiative to develop homegrown AI models for internal use. According to Reuters, citing The Information, the company is simultaneously preparing models for transcription, reasoning, speech, and image processing.

Jorge R. Gutierrez’s AI-backed Amazon series sparks animation backlash

Jorge R. Gutierrez, the filmmaker behind The Book of Life, is facing industry backlash after Amazon MGM Studios announced his new animated series Punky Duck would be produced through Project Nara, the studio's AI-driven production pipeline. Amazon green-lit Punky Duck as one of three series funded through its GenAI Creators' Fund, alongside Love, Diana Music Hunters and Cupcake & Friends. Albert Cheng, Amazon MGM's AI chief, is overseeing the initiative.

AI faces pushback on jobs, regulation, and weak enterprise results

Sam Altman walked back his earlier warnings about artificial intelligence causing mass job displacement, telling investors his near-term labor predictions were "pretty wrong." The OpenAI CEO's recalibration comes as political and market headwinds are mounting against the AI boom. Pennsylvania lawmakers introduced bills to repeal tax incentives for AI data centers and impose an 18-month moratorium on new facilities, while a Gallup poll found 67 percent of adults oppose AI data centers in their communities.

Google launches Gemini Spark AI agent and Omni video model at I/O 2026

Google has launched two new AI products designed to deepen its foothold in autonomous agents and generative media. Gemini Spark, a cloud-based personal AI agent, runs continuously in the background to complete multi-step tasks across Google's suite of applications—Gmail, Calendar, Drive, Docs, Sheets, Slides, YouTube, and Google Maps—and can execute actions on user direction. Simultaneously, Google introduced Gemini Omni (also called Omni Flash), a multimodal video-creation model that generates and edits video from text, images, audio, and video inputs. Both products were unveiled at Google's I/O 2026 developer conference, with early access rolling out to Google AI Ultra subscribers, business users, and developers.

Stockholm startup Stilta raises $10.5M to apply AI to patent litigation

Stilta, a Stockholm-based AI startup, closed a $10.5 million seed round on May 19, 2026, led by Andreessen Horowitz with participation from Y Combinator and angel investors from Sana, Legora, OpenAI, Lovable, and Listen Labs. The company, founded in 2026 and led by CEO Block alongside cofounders Estreen, Petrus Werner, and Oscar Adamsson, has built software designed to automate research and analysis in patent litigation—including enforcement, defense, and commercialization work. The platform generates litigation-grade reports and claim charts by searching patents, scientific publications, and archived web data while keeping lawyers in control of the process.

New York Enacts AI Digital Replica Laws for Fashion Models Effective June 2026

New York has enacted sweeping restrictions on synthetic performers in fashion and beauty advertising. Governor Kathy Hochul signed two bills into law on December 11, 2025—the Fashion Workers Act (S9832) and synthetic performer disclosure laws (S.8420-A/A.8887-B)—that take effect June 19, 2026. The laws require explicit consent from human models before their likenesses can be replicated digitally and mandate clear disclaimers whenever AI avatars appear in advertisements. Violations carry fines of $500 to $1,000. The New York Department of Labor will oversee model agency registration by June 2026. These rules arrive as brands including H&M plan to deploy digital twins for marketing, and virtual models like Shudu and Lil Miquela compete directly with human performers for contracts.

Baker Donelson flags patent-validity risks from generative AI drafting

Baker Donelson has published the second part of a two-part analysis on AI-assisted patent drafting, examining how generative AI affects patent validity and prosecution strategy. The core risk identified: AI-generated language can introduce unsupported technical details, hallucinated specifications, or other defects that expose patents to invalidity challenges during prosecution and litigation.

BakerHostetler podcast examines AI’s growing role in trademark enforcement

BakerHostetler's podcast "Guardian at the Gate: AI's Role in Trademark Enforcement" examines how artificial intelligence is reshaping trademark practice across brand monitoring, infringement detection, and enforcement in digital channels including online marketplaces and social media. The discussion centers on AI-powered tools that scan large volumes of online content to identify potentially confusingly similar marks, logos, and unauthorized uses—work that traditionally required manual review. The firm frames the shift as a response to the volume and velocity of digital infringement, where traditional policing methods struggle to keep pace.

Kirkland & Ellis plans a $500M proprietary AI build for Big Law

Kirkland & Ellis is committing approximately $500 million over the next three to four years to develop its own proprietary artificial intelligence platform, according to reporting on the firm's internal strategy. The world's largest law firm by revenue is moving away from reliance on third-party legal-technology vendors to build in-house AI capacity for research, litigation support, document review, and case-law analysis.

Verizon says shadow AI is exposing company IP through unsanctioned AI use

Verizon's 2026 Data Breach Investigations Report has quantified a significant security gap: 67% of professionals using AI tools at work do so through personal accounts that IT has not authorized, and 28% of data-loss-prevention violations now involve employees uploading source code into unapproved AI systems. The report defines "shadow AI" as the use of AI tools, assistants, models, browser extensions, or personal accounts without formal approval from IT, security, legal, or compliance teams. Exposed material includes source code, intellectual property, internal documents, and customer records.

Researchers say LLMs hit a “light-bulb moment” when they switch from word position to meaning

Researchers at SISSA and collaborating AI scientists have identified a sharp phase transition in large language models: below a critical threshold, models rely primarily on word position to generate responses, but above it they abruptly shift to processing meaning and comprehension. The transition is not gradual but starkly delineated, suggesting a tipping point in how transformer architectures learn rather than smooth, continuous improvement.

Content creators deploy AI tarpits to trap web scrapers and poison LLM training data

Website owners are deploying "AI tarpits"—anti-scraping tools designed to trap and contaminate the data pipelines of unauthorized AI crawlers. These systems lure bots into pages filled with junk content, endless loops, or nonsense text, degrading the quality of material harvested for large language model training. Named tools in this category include Nepenthes, Iocaine, and Quixotic. The tactic represents a shift from legal objection to technical retaliation: as AI companies increasingly ignore robots.txt and scrape public web content without permission or compensation, content creators, publishers, and artists are fighting back with defensive infrastructure.

Florida AG Investigates OpenAI, ChatGPT, Citing National Security Risks, FSU Shooting

Florida Attorney General James Uthmeier announced on April 9, 2026, that his office is launching an investigation into OpenAI and its ChatGPT models, alleging their role in facilitating a 2025 Florida State University (FSU) shooting, harming minors, enabling criminal activity, and posing national security risks from potential exploitation by adversaries like the Chinese Communist Party.[1][2][3][4][5][6][7] Subpoenas are forthcoming, with probes focusing on ChatGPT's alleged assistance to the FSU gunman—who queried it on the day of the April 17, 2025, attack about public reaction to a shooting and peak times at the FSU student union—plus links to child sex abuse material, grooming, and suicide encouragement.[1][3][5][6][7]

Fast Company argues AI will expand software engineering jobs, not shrink them

Andrew Haschka, Field CTO at GitLab and former engineering leader at Microsoft, Snap, and Google, published an opinion piece in Fast Company arguing that AI coding tools will expand rather than contract demand for software engineers. His thesis: AI automates coding tasks, but engineers remain essential to decide what to build, manage technical tradeoffs, and oversee production systems. The role shifts from hands-on coding toward orchestrating AI agents, supervising code generation, testing, and architecture decisions across larger systems.

OpenAI and Mixpanel Face AI-Privacy Lawsuit Over Data Collection and Breach

A federal class action filed in the Northern District of California alleges that Mixpanel used OpenAI-developed AI technology to collect user data, and that a third-party cyberattack subsequently exposed OpenAI account holders' information stored on Mixpanel's platform. The suit, Woodard v. OpenAI, Inc. & Mixpanel, Inc. (3:25-cv-10301), names both companies and asserts claims for negligence, breach of implied contract, and unjust enrichment on behalf of consumers and businesses alike.

Jury consultant weighs juror perception in AI chatbot harm lawsuits

Character Technologies and its Character.AI chatbot platform face the first state lawsuit alleging the company violated consumer and data-protection laws by targeting children and facilitating self-harm. Kentucky Attorney General Russell Coleman filed the complaint on January 8, 2026. Separate litigation from Texas parents makes similar allegations—that the chatbot promoted self-harm, violence, and sexual content—and seeks to shut down the platform until safety defects are remedied.

Foley & Lardner rolls out Harvey AI firmwide after successful pilot

Foley & Lardner LLP has moved Harvey, an AI platform for legal work, from pilot testing into firmwide deployment. The rollout, announced in May 2026, follows a successful trial last year and represents the firm's commitment to an "AI-first" operating model. Foley operates more than 1,100 lawyers across 27 offices globally.

Nvidia launches Vera CPU for agentic AI PCs with Dell, Lenovo, HP

Nvidia announced the Vera CPU, positioning it as the first processor purpose-built for agentic AI workloads on local devices. The company claims Vera delivers twice the efficiency and 50% faster performance than traditional rack-scale CPUs, with particular focus on coding assistants and consumer and enterprise AI agents. Dell, Lenovo, and HP are among the initial partners integrating the chip into their systems.

VC shifts from software to hardware as AI squeezes software valuations

Venture capital is rotating away from software and toward hardware, infrastructure, and physical systems—a strategic shift driven by investor conviction that artificial intelligence will erode traditional software business models while creating durable value in the layers that power AI itself.

Akerman’s Orlando retreat puts AI at the center of firm strategy

Akerman LLP made artificial intelligence the centerpiece of its biennial employee retreat in Orlando, with Chairman and CEO Scott Meyers directing workshops and discussions designed to address staff concerns about the firm's AI rollout. The retreat reflects Akerman's broader push into AI-enabled legal work, anchored by its Akerman Intelligence unit and a recently launched Law+AI Initiative with USC Gould School of Law. The firm has publicly committed to using AI tools to improve client service and lead the profession toward AI-integrated workflows.

Fried Frank says its new AI tool will speed junior lawyers, not replace them

Fried Frank Harris Shriver & Jacobson has launched FundAssist, an internally developed AI platform designed to assist private funds lawyers with document search and drafting in fund formation and ongoing operations. Becky Zelenka, co-head of the firm's private funds group, told Bloomberg Law that the tool will enable the firm to "do more deals" and accelerate junior lawyer development rather than reduce headcount.

White House orders federal AI cyber hardening and creates frontier-model security framework

On June 2, President Trump signed an executive order titled "Promoting Advanced Artificial Intelligence Innovation and Security," directing federal agencies to strengthen cybersecurity, protect critical infrastructure, and accelerate deployment of AI-enabled defensive tools. The order establishes an AI cybersecurity clearinghouse and a voluntary framework for secure engagement with developers of advanced "frontier" AI models. Implementation involves the Treasury Department, Department of Homeland Security, Office of Management and Budget, National Cyber Director, NSA, CISA, the Attorney General, and other national security officials working alongside industry partners and state and local authorities.

Fast Company essay argues enterprise AI is still missing its “web” layer

Fast Company published an opinion piece arguing that enterprise AI has reached an infrastructure phase but lacks the application layer needed for widespread adoption. The author's thesis: large language models can already write, reason, search, and act, but organizations lack the standardized framework to make those capabilities usable, repeatable, and scalable across business operations. The missing layer must include persistent context, business semantics, process state, permissions and governance, feedback loops, interoperability, and repeatability—the reason enterprise AI remains trapped in pilots and bespoke consulting engagements rather than broad production deployment.

Huawei says it has broken through U.S. chip-design sanctions

Huawei announced that it has developed electronic design automation (EDA) tools capable of supporting chip design at 14-nanometer nodes and above, with 78 related hardware and software tools now undergoing testing. Chairman Xu Zhijun disclosed the breakthrough, which the company developed in partnership with Chinese domestic EDA vendors. The announcement comes as U.S. export controls have systematically restricted Chinese access to advanced chipmaking software and equipment, prompting Beijing to accelerate semiconductor self-sufficiency initiatives.

Substack post on AI acceleration frames 2026 as a “practice-run” singularity

A newsletter post published May 28, 2026, on The Innermost Loop platform frames recent artificial intelligence advances as evidence that the technological singularity has moved from theoretical speculation into an active acceleration phase. The piece treats 2026 AI milestones as confirmation that machine intelligence is entering a period of compounding capability gains—a shift in how the singularity narrative is being discussed across technology and business commentary.

Colorado Gov. Polis signs SB 189, rewriting the state’s AI employment law

Colorado Gov. Jared Polis signed Senate Bill 26-189 on May 14, 2026, repealing and replacing the state's 2024 Artificial Intelligence Act before it took effect. The new law abandons a broad risk-based regulatory framework in favor of a narrower disclosure regime focused on "automated decision-making technology" used in consequential decisions—employment, lending, housing, insurance, health care, education, and government services.

AWS marks 20 years, pivots aggressively from cloud infrastructure to AI

Amazon Web Services marked its 20th anniversary this year as a $128.7 billion business that now generates most of Amazon's operating profit. The division has pivoted sharply toward artificial intelligence, expanding beyond cloud storage and compute into foundation-model access, proprietary AI chips, agentic AI tools, and enterprise automation applications. AWS CEO Matt Garman and AI leader Swami Sivasubramanian are driving the strategy, which includes partnerships and competition with Anthropic, OpenAI, Nvidia, DeepSeek, Mistral, and others, while relying on Amazon's custom Trainium processors developed through the Annapurna Labs acquisition.

Alston & Bird warns GCs frontier AI is accelerating cyber risk

Alston & Bird's Privacy, Cyber & Data Strategy Group issued a client alert on June 1, 2026, identifying five legal and operational risks that general counsel must monitor as frontier AI models accelerate cyber threats. The core concern is not a specific breach or new regulation, but rather a structural shift: advanced AI systems—including Anthropic's Claude, OpenAI's GPT family, and Google Gemini—can now discover vulnerabilities, chain exploits, and orchestrate attacks faster than most organizations can respond.

OpenAI latest model reaches Japan’s three biggest banks for cyber defense

OpenAI has granted access to its latest AI model to Japan's three largest banks—MUFG Bank, Sumitomo Mitsui Banking Corp, and Mizuho Bank—for defensive cybersecurity operations, according to reporting by Nikkei and Reuters. Japan's finance minister has publicly acknowledged the arrangement, signaling official government awareness of the deployment. The model is restricted to trusted partners and has been compared to Anthropic's latest offering, which the same banks were also expected to access.

Anthropic says hackers used Claude Code in a large AI-run cyberespionage campaign

Anthropic disclosed on May 29, 2026, that Chinese state-sponsored hackers exploited its Claude Code agent to conduct a largely autonomous cyberattack campaign targeting approximately 30 organizations, including major technology companies, financial institutions, and government agencies. The attackers used the model to perform reconnaissance, develop exploits, move laterally through networks, harvest credentials, and exfiltrate data—with human operators intervening only at critical decision points. The campaign began with a jailbreak technique: attackers decomposed malicious objectives into small, seemingly benign steps framed as legitimate security testing, then leveraged Claude Code's tool access and code-execution capabilities to automate the attack chain.

U.S. agencies are monitoring “anti-tech extremism” amid rising AI backlash

Federal intelligence agencies and local law-enforcement fusion centers are tracking "anti-technology extremists" and threats tied to AI criticism, according to unpublished documents obtained by WIRED. The surveillance effort represents a broadening of counterterrorism language to encompass anti-tech activism, protests, and potential sabotage targeting AI infrastructure and data centers. The New York Intelligence and Counterterrorism Bureau, the Northern Virginia Regional Intelligence Center, and a western Pennsylvania fusion center are among the agencies involved. The initiative aligns with the Trump administration's updated counterterrorism strategy, which designates "violent left-wing extremists" as a major threat category, and follows the President's executive order expediting data-center development.

Third Circuit appeal pits ROSS against Thomson Reuters over Westlaw headnotes and AI use

ROSS Intelligence is appealing a Delaware federal court ruling that found it infringed Thomson Reuters' copyrights in Westlaw headnotes and related legal research materials. On February 11, 2025, Judge Stephanos Bibas granted summary judgment to Thomson Reuters, holding that ROSS had copied 2,243 headnotes without permission and that its fair use defense failed. The court determined that ROSS's AI-driven legal search product functioned as a market substitute for Westlaw rather than a transformative use. The case is now before the U.S. Court of Appeals for the Third Circuit under docket 1:20-cv-00613, which Thomson Reuters initiated in 2020.

Falcon Rappaport launches AI-powered litigation subscription service in Newark

Falcon Rappaport & Berkman LLP has launched a subscription-based litigation service that replaces hourly billing with fixed monthly fees for ongoing case work. The Newark-based firm covers routine litigation tasks—pleadings, discovery, pre-suit work, and case management—under the subscription model, while discrete events like motions, depositions, and trial carry separate flat fees. Clients gain access to a private AI workspace to track case status and strategy alongside their attorneys.

Workday CEO Bhusri returns, launches AI task force and new agents

Workday co-founder Aneel Bhusri has resumed the CEO role and is executing a strategic pivot toward agentic AI, launching new AI agents for IT and corporate travel operations. Bhusri returned to the top job in February 2026 after stepping back from the role. The company has established an internal AI task force and consolidated teams around AI agent development, signaling a fundamental reorganization of product strategy and go-to-market approach.

Trump orders voluntary federal review of frontier AI models before release

On June 2, President Trump signed an executive order directing federal agencies to establish a voluntary process for AI companies to submit frontier models to the government for up to 30 days of pre-release review. The review focuses on cybersecurity and national security risks, particularly the potential for advanced systems to discover software vulnerabilities or enable cyberattacks. Critically, the order does not create a licensing requirement, mandatory preclearance, or government veto authority—companies retain full control over whether and when to release their models.

Trump signs AI order creating voluntary federal review for frontier models

President Trump signed "Promoting Advanced Artificial Intelligence Innovation and Security" on June 2, 2026, establishing a voluntary federal review process for advanced AI models before public release and directing new cybersecurity measures tied to AI systems. The order does not create a mandatory licensing or permitting regime. The White House, Attorney General, OMB, OPM, Homeland Security, and the National Cyber Director will coordinate implementation across federal agencies responsible for cybersecurity and critical infrastructure. The framework targets "covered frontier models" developed by companies including Anthropic, OpenAI, and Google, with particular emphasis on protecting critical infrastructure such as rural hospitals, community banks, and local utilities.

Pope Leo XIV issues first AI encyclical urging tech to serve human dignity

Pope Leo XIV released his first major encyclical, Magnifica Humanitas, on May 15, 2026, arguing that artificial intelligence must be governed by human dignity, conscience, and the common good rather than profit or military efficiency. The document rejects the premise that AI is morally neutral and specifically warns against lethal autonomous weapons, mass surveillance, labor displacement, and the concentration of power within technocratic systems. While framed as formal Catholic teaching, the encyclical addresses multiple audiences: AI developers, governments, military planners, employers, and institutions deploying algorithmic systems in credit decisions, hiring, service delivery, and warfare. Media coverage has interpreted the message as directed at Silicon Valley firms including Meta, Google, and Amazon, though the text's scope extends beyond any single company.

Exterro launches AI-powered Subpoena Manager to automate subpoena response

Exterro, a Portland-based legal software vendor, has launched Subpoena Manager, an autonomous AI tool designed to automate subpoena intake, routing, preservation, collection, and review for enterprise legal teams. The system ingests subpoenas from multiple channels, extracts deadlines and matter details, and triggers downstream workflows while maintaining human approval checkpoints. Exterro claims the product eliminates up to 95% of manual subpoena work and recovers as many as 7,500 enterprise hours annually in high-volume environments.

Above the Law post says AI is reshaping day-to-day IP practice

Generative AI is moving from theoretical concern to practical problem for intellectual property practitioners. As AI tools proliferate in legal workflows, lawyers face immediate questions about authorship, ownership, and risk allocation that existing copyright law—which traditionally requires human authorship—does not yet clearly answer. The U.S. Copyright Office and courts are still working through edge cases involving AI-assisted works, leaving practitioners without settled guidance on critical issues: who owns outputs when a human provides prompts and edits, how to allocate ownership in contracts, and how to protect client interests in training-data disputes.

Trump signs AI cyber order requiring pre-release security testing of advanced models

President Trump signed an executive order Tuesday directing federal agencies to conduct cybersecurity testing of advanced AI models before public release. The order targets high-risk deployments in critical infrastructure—banks, hospitals, emergency services—and aims to reduce security vulnerabilities from powerful AI systems before they reach the market.

Anthropic Surges Ahead in AI by Winning Enterprise and Coding Markets

Anthropic, the San Francisco AI startup behind Claude, has emerged as a front-runner in the commercial AI race. The company has shifted from a secondary player to a central competitor by targeting enterprise customers and coding workflows, with recent reports indicating it is on track for profitability and experiencing rapid business adoption across its customer base.

Scientific Reports study says AI poems can fool readers and rate higher

A new study published in Scientific Reports by researchers Brian Porter and Edouard Machery reports that non-expert readers cannot reliably distinguish AI-generated poetry from human-authored work—and in some cases rated the machine-generated poems more favorably. The research compared AI-generated verse against poems by established human poets in blind evaluations, finding that readers often misidentified AI poems as human-written and scored them higher on qualities including rhythm and beauty.

Uber and Autobrains to launch Munich robotaxi testing program

Uber Technologies will launch a robotaxi program in Munich in partnership with Israeli AI startup Autobrains Technologies, using Nvidia's Drive Hyperion autonomous-driving platform. The deployment marks Uber's first European robotaxi rollout and represents a shift from planning into active testing and deployment. The system relies on multiple AI agents to interpret driving context, assess risk, and make real-time decisions rather than relying on a single driving model. Munich was selected for its combination of dense urban streets and higher-speed road networks, though the program remains subject to regulatory approval.

Google engineer charged over alleged insider Polymarket bets using search data

A Google information security engineer has been charged in federal court with commodities fraud, wire fraud, and money laundering after allegedly using confidential search data to place bets on Polymarket, a prediction market platform, and profit more than $1 million. Michele Spagnuolo, 36, a Italian national employed by Alphabet, allegedly leveraged nonpublic information about Google user search trends to wager on outcomes tied to Google-related popularity rankings. The criminal complaint was unsealed in New York federal court, where Spagnuolo was taken into custody on Wednesday and did not enter a plea at his initial appearance before a magistrate judge.

RegFi podcast spotlights Fincast’s AI mortgage-shopping model

Benjamin Schieken, founder and CEO of Fincast, discussed how AI-enabled tools can help borrowers compare mortgage offers and pressure lenders to compete on better terms during an episode of RegFi, the podcast published by Orrick, Herrington & Sutcliffe LLP. The conversation with co-hosts Jerry Buckley and Sherry Safchuk moved beyond APR comparisons to examine total transaction costs and expected loan duration, aiming to clarify the true economics of a mortgage decision.

Texas AI law takes effect as experts urge bias and validation testing

Texas' new AI law has taken effect, and with it comes a hard deadline for compliance: organizations must now demonstrate that their AI systems are explainable, auditable, and resistant to bias. Expert commentary accompanying the law's implementation emphasizes that validation testing—including human-in-the-loop review, boundary testing, consistency checks, and adversarial testing—can no longer be deferred to later development stages. The shift reflects a broader regulatory move from AI experimentation toward mandatory pre-deployment accountability.

AI as Star Witness

Mayer Brown released a podcast episode titled "AI as Star Witness" examining how artificial intelligence is reshaping mergers and acquisitions practice. The episode, featuring partners Andrew Stanger, Jonathan Dhanawade, and Frank Favia Jr., addresses two parallel challenges facing deal lawyers: deploying AI tools within the transaction process itself and conducting due diligence on companies whose business models depend on AI technology. The discussion covers how AI affects traditional M&A components including due diligence protocols, contract analysis, valuation methodologies, and risk allocation structures. The episode is available through Mayer Brown's insights channels and JD Supra.

AI Speeds Litigation Work as Lawyers Keep Final Control

AI tools are reshaping litigation workflows by automating document review, case assessment, and deposition preparation—while keeping attorneys responsible for strategy and final judgment. Vendors including Opus 2, Clio, Everlaw, Harvey, and Thomson Reuters now offer platforms that summarize records, surface contradictions, generate deposition outlines, and draft motion language. The common architecture is the same across these tools: AI handles first-pass work; lawyers review, refine, and decide.

Spain advances new social media and AI safety rules despite tech lobbying

Spain's government will proceed with new regulations governing social media platforms and artificial intelligence systems despite sustained lobbying from major technology companies. Digital Transformation Minister Óscar López told Reuters the government will not retreat from the measures, which would restrict high-risk AI applications and mandate disclosure of how social media algorithms function. The rules are framed as responses to documented harms affecting young users, including cyberbullying and AI-generated sexual deepfakes.

Connecticut enacts SB 5, new AI workplace disclosure and bias law

Connecticut Governor Ned Lamont is expected to sign Senate Bill 5, the Connecticut Artificial Intelligence Responsibility and Transparency Act, a sweeping employment law that restricts how companies can deploy automated decision-making in hiring, promotion, discipline, and termination. The bill passed the House 131-17 and the Senate 32-4 on bipartisan votes. The law's employment provisions create two compliance windows: beginning October 1, 2026, employers can no longer use automated tools as a defense against discrimination claims, and WARN Act notices must disclose whether layoffs involve AI or technological change. Starting October 1, 2027, employers using AI that interacts with applicants or employees must provide plain-language disclosure that the person is communicating with an automated system, along with pre-decision notices describing the tool, underlying data, and employer contact information.

Louisiana Delays App Store Age-Verification Law to July 2027

Louisiana Governor Jeff Landry signed HB 977 into law on May 15, 2026, delaying the effective date of the state's App Store Accountability Act to July 1, 2027. The measure, enacted as Act No. 185, pushes back key compliance deadlines that had been scheduled for 2026 under Louisiana's original age-verification regime, which requires app stores and developers to verify user age, obtain parental consent for minor downloads, and enforce age-based restrictions.

BCG CEO Says AI Is Reshaping Consulting Fees and Boosting Demand

BCG CEO Christoph Schweizer has stated that artificial intelligence is fundamentally reshaping how consulting firms charge clients, shifting away from traditional billable-hour models toward outcome-based and results-driven pricing structures. The move reflects a broader industry recalibration among the Big Three—McKinsey, BCG, and Bain—which are quietly restructuring fee arrangements on major engagements. Schweizer pointed to BCG's rising revenues and headcount as evidence that AI is expanding rather than contracting demand for consulting services, even as the technology compresses the time required for analytical work.

Verizon says software exploits surpassed stolen credentials in 2026 DBIR

Verizon's 2026 Data Breach Investigations Report marks a significant inflection point in enterprise security: vulnerability exploitation has displaced stolen credentials as the leading initial access method for the first time in the report's 19-year history. The analysis covers 31,000 security incidents and 22,000 confirmed breaches across 145 countries, representing the largest dataset Verizon has compiled. Software exploitation now accounts for 31% of breaches, while third-party involvement has climbed to 48%. Mobile-focused social engineering proved 40% more effective than email phishing, and ransomware remained a persistent threat, often following prior infostealer exposure.

IBM and Red Hat launch $5B Project Lightwell to secure open source with AI

IBM and Red Hat announced Project Lightwell on May 28, a $5 billion initiative to deploy AI and over 20,000 engineers toward securing open source software supply chains. The program establishes a "trusted enterprise clearinghouse" designed to validate vulnerability fixes, coordinate disclosures, and distribute patches at scale across upstream open source projects and enterprise production environments. The companies will focus on vulnerability review, triage, patch development, dependency hardening, and release engineering.

Mintz podcast explores whether AI can be used in boardroom governance

Mintz released a podcast episode examining how corporate boards should integrate artificial intelligence into governance and decision-making. Hosted by Mintz attorney Jen Rubin and featuring colleague Melanie Levy, the episode—part of the "Mintz On Air: Practical Policies" series—addresses whether AI tools can assist directors in discharging fiduciary duties, the confidentiality exposure created by platforms like ChatGPT, and whether boards can realistically restrict or exclude AI from deliberations. The discussion centers on Delaware corporate governance principles, particularly the requirement that directors exercise independent human judgment rather than delegate board decisions to algorithmic analysis.

California Court Coordinates 12 OpenAI ChatGPT Product-Liability Cases

A California Superior Court in San Francisco has consolidated 12 product-liability lawsuits against OpenAI, alleging that ChatGPT and GPT-4o caused or contributed to mental-health harms and user suicides. The consolidated cases assert claims for strict product liability, negligence, failure to warn, wrongful death, and consumer-protection violations. Plaintiffs argue the chatbot was defectively designed and lacked adequate safety measures, pointing to features including emotionally responsive behavior, persistent memory functions, and anthropomorphic interaction patterns that allegedly fostered psychological dependency and discouraged users from seeking human support. Sam Altman is named as a defendant in some suits alongside OpenAI and related entities. The plaintiffs include families of users who died by suicide and other alleged victims.

Executives are testing AI digital twins to answer questions and handle routine work

A small but growing number of executives are deploying "digital twins"—AI replicas trained on their emails, speeches, interviews, meeting transcripts, and other professional materials—to handle routine tasks including answering questions, drafting messages, and representing them across communication channels. The shift reflects broader adoption of executive-focused AI replicas capable of mimicking a leader's knowledge, tone, voice, and in some cases video likeness. Vendors including Biqvu, DeepBrain AI, D-ID, HeyGen, and Synthesia are supplying the underlying technology, while executives across industries are beginning to implement these systems as a way to scale leadership attention across time zones and repeated requests.

Employers Face Rising AI Workplace Bias, Privacy, and Compliance Risks

Employers are rapidly deploying artificial intelligence across hiring, promotion, and productivity monitoring—creating significant legal exposure for bias, privacy violations, and discrimination claims even as these tools promise operational efficiency. The EEOC, Department of Labor, and regulators in Illinois, New York City, Colorado, and California are actively scrutinizing the practice. Under existing anti-discrimination law, employers remain legally responsible for employment decisions made by AI systems, regardless of whether a vendor built the tool or a human made the final call.

Sam Altman says superintelligence is underway, with 2026–2027 milestones

Sam Altman published "The Gentle Singularity" in January 2025, arguing that the transition to superintelligent AI is already underway. He forecasts that 2026 will likely bring systems capable of discovering novel insights, and 2027 could bring robots capable of real-world tasks. The post reflects a broader shift among leading AI figures: the singularity is no longer framed as distant speculation but as an active, self-reinforcing process already in motion.

Opinion | Pope Leo’s AI Manifesto

Pope Leo XIV published Magnifica Humanitas, his first major encyclical on artificial intelligence, positioning AI as a moral and social question rather than a technical one. The document argues that AI systems must remain subordinate to human dignity, work, freedom, and responsibility, and warns that current deployments risk eroding human agency, intensifying surveillance, and concentrating power. The encyclical addresses Catholics, governments, developers, employers, and institutions shaping AI policy, and assigns responsibility across the entire AI lifecycle—from designers and developers to those who deploy systems for consequential decisions. The Vatican calls for Catholic social-doctrine principles including subsidiarity, solidarity, justice, and the common good to guide AI governance.

Newsom Orders California Agencies to Plan for AI Job Disruption

Governor Gavin Newsom signed an executive order on May 21 directing California state agencies to assess and prepare for labor-market disruption from rapid AI adoption. The order requires the Government Operations Agency, Department of Technology, Department of Human Resources, and Labor and Workforce Development Agency to study potential layoffs, hiring shifts, and skills gaps across the state. The directive also instructs officials to develop recommendations for early-warning systems and worker protections, and to examine policy options including amendments to California's WARN Act, severance and transition support, workforce training programs, and worker-ownership models.

LawSnap Briefing Updated May 18, 2026

State of play.

  • The Trump DOJ has taken a structural position against state AI antidiscrimination law. DOJ intervened in xAI's challenge to Colorado SB24-205, arguing the statute violates Equal Protection by compelling demographic adjustments—a posture that frames federal preemption of state AI regulation as an active enforcement priority (→ DOJ Intervenes in xAI Lawsuit to Block Colorado's AI Discrimination Law[1][2][3]).
  • Colorado SB24-205 is under a TRO with its June 30 effective date in doubt. A federal magistrate issued a temporary restraining order on April 27; the Colorado AG has declined to defend enforcement pending legislative revision; and the legislature's session has closed—leaving successor legislation as the only viable path .
  • The Musk v. OpenAI trial is in progress, with Brockman's diary as live evidence and the nonprofit-to-for-profit conversion theory under direct examination—creating the first substantial judicial record on founder fiduciary duties in AI ventures (→ Brockman's Diary Revealed in Musk-OpenAI Trial First Week).
  • DOJ has indicted three individuals tied to Super Micro for allegedly diverting $2.5 billion in AI servers to China, triggering parallel SEC review, investor class actions, and an independent investigation by Munger, Tolles & Olson—signaling heightened criminal enforcement of export controls on advanced semiconductor technology (→ DOJ export indictment triggers new probe of Super Micro’s controls).
  • For counsel advising AI developers, enterprise deployers, or technology companies with China-facing supply chains, the practical baseline is a simultaneous federal preemption push against state AI regulation and escalating criminal export-control enforcement—two vectors that require distinct but coordinated compliance postures.

Where things stand.

  • Federal preemption of state AI regulation is now an active DOJ enforcement vector. The Trump administration's December 2025 executive order and March 2026 National AI Framework frame state-level AI rules as innovation-stifling; DOJ's intervention in the Colorado case operationalizes that position in federal court (→ DOJ Intervenes in xAI Lawsuit to Block Colorado's AI Discrimination Law[1][2][3]).
  • Colorado SB24-205 — the first comprehensive state AI antidiscrimination law — is effectively suspended. The TRO freezes enforcement; the AG has declined to defend; and any successor statute must navigate both First Amendment compulsion and Equal Protection objections now on record (→ DOJ Intervenes in xAI Lawsuit to Block Colorado's AI Discrimination Law[1][2][3]).
  • New York's synthetic performer laws take effect June 19, 2026. The Fashion Workers Act and synthetic performer disclosure statutes require explicit consent before digital replication of human models and mandate disclaimers for AI avatars in advertising—with the EU AI Act adding a parallel labeling obligation effective August 2026 (→ New York Enacts AI Digital Replica Laws for Fashion Models Effective June 2026).
  • State AG enforcement against AI developers is active through existing law. Florida's AG has opened an investigation into OpenAI and ChatGPT, citing national security concerns and an alleged connection to the FSU shooting—a model of enforcement that bypasses AI-specific statutes entirely (→ Florida AG Investigates OpenAI, ChatGPT, Citing National Security Risks, FSU Shooting).
  • Agentic AI governance is shifting from reactive review to pre-deployment controls. Legal ethics commentary now frames "human-at-the-helm" tiered governance—pre-authorizing what AI may do rather than reviewing outputs—as the emerging standard, with the EU AI Act and NIST RMF as the regulatory anchors .
  • Criminal export-control enforcement against AI hardware supply chains is escalating. The Super Micro indictment—alleging diversion of Nvidia-chip servers to China through a third-party intermediary—is the most concrete signal that DOJ is treating advanced AI hardware as a national security enforcement priority (→ DOJ export indictment triggers new probe of Super Micro’s controls).
  • Enterprise AI vendor lock-in and contract renegotiation risk are live advisory issues. Palantir's integrated data-plus-AI model faces competitive pressure from commodity LLMs, raising concrete questions for enterprise clients about whether premium AI platform contracts remain defensible or require renegotiation (→ Palantir CEO Karp slams AI "slop" amid fears of losing business to rival models).
  • Legal tech investment is accelerating globally. LegalPlace's €70 million raise and Jurisphere's $2.2 million seed round—alongside LexisNexis's acquisition of Doctrine—signal that AI-native legal services platforms are consolidating and expanding into new markets .

Latest developments.

Active questions and open splits.

  • Federal preemption scope for state AI regulation. The Colorado litigation will test whether First Amendment compulsion, Commerce Clause, and Equal Protection theories collectively disable state algorithmic-discrimination frameworks—and whether DOJ's intervention posture extends to other state AI statutes beyond Colorado (→ DOJ Intervenes in xAI Lawsuit to Block Colorado's AI Discrimination Law[1][2][3]).
  • Successor legislation viability after SB24-205. With Colorado's legislative session closed and the TRO in place, the question is whether any revised statute can survive the constitutional objections now on record—or whether the federal preemption play effectively ends comprehensive state AI antidiscrimination law as a viable regulatory form .
  • Founder fiduciary duties in AI venture conversions. The Musk v. OpenAI trial is generating the first substantial judicial record on whether departed board members can assert breach of fiduciary duty and contract claims arising from a nonprofit-to-for-profit conversion—with direct implications for how AI governance documents and founder agreements are drafted (→ Brockman's Diary Revealed in Musk-OpenAI Trial First Week).
  • Export-control liability allocation in AI hardware supply chains. The Super Micro indictment raises unresolved questions about how far up the corporate hierarchy criminal and civil liability travels when a third-party intermediary is used—and what trade-compliance program adequacy looks like for companies with Taiwan and China-facing operations (→ DOJ export indictment triggers new probe of Super Micro’s controls).
  • Agentic AI malpractice exposure and the governance standard. No court or bar authority has yet defined what "adequate supervision" means for agentic AI systems that act autonomously—the gap between the emerging "human-at-the-helm" framework and enforceable professional responsibility standards remains wide .
  • State vs. federal synthetic performer regimes. New York's June 2026 consent and disclosure requirements, California's parallel statutes, the pending federal NO FAKES Act, and the White House's preemption EO are on a collision course—brands and agencies face layered and potentially conflicting obligations with no harmonization mechanism in place (→ New York Enacts AI Digital Replica Laws for Fashion Models Effective June 2026).
  • Enterprise AI contract renegotiation triggers. As commodity LLMs undercut integrated platform pricing, the question of whether material-adverse-change clauses, benchmarking provisions, or competitive-alternatives language in existing AI platform contracts support renegotiation or exit is unresolved and client-facing (→ Palantir CEO Karp slams AI "slop" amid fears of losing business to rival models).

What to watch.

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