News/Law
New York becomes first state to ban efficient AI rent-pricing algorithms
New York Governor Kathy Hochul signed legislation on Thursday banning landlords from using AI-powered algorithms to set rental prices, making it the first state to outlaw such software. The law addresses what Hochul calls "housing market distortion" during a historic affordability crisis, following similar city-level bans in Jersey City, Philadelphia, San Francisco, and Seattle. What you should know: The legislation targets algorithmic pricing software that companies like RealPage offer to landlords for rent optimization. RealPage's software helps landlords "optimize rents to achieve the overall highest yield, or combination of rent and occupancy, at each property." The algorithms can also determine...
read Oct 16, 2025Novelists sue Salesforce for using copyrighted books to train AI models
Two authors have filed a proposed class action lawsuit against Salesforce, alleging the cloud computing giant used thousands of copyrighted books without permission to train its xGen AI models. The lawsuit highlights growing legal pressure on tech companies over AI training practices, with dozens of similar cases targeting major firms like OpenAI, Microsoft, and Meta. What you should know: Novelists Molly Tanzer and Jennifer Gilmore claim Salesforce infringed their copyrights by using pirated books to train xGen AI models for language processing.• The complaint was filed on Wednesday, with Salesforce declining to comment on the lawsuit Thursday.• Attorney Joseph Saveri,...
read Oct 14, 2025AI drives 25% of major M&A deals worth upwards of 5 billion dollars
Artificial intelligence companies are driving a surge in major M&A activity, accounting for more than a quarter of deals valued at $5 billion or above this year. Latham & Watkins, a global law firm, has emerged as the clear winner in capturing this lucrative legal work, advising on $110.5 billion worth of AI-related transactions—nearly double that of its closest competitor. The big picture: AI's influence on the M&A landscape extends beyond pure-play AI companies to include deals supporting AI infrastructure, security services, and power demands driven by data center expansion. Key details: Of nearly 90 transactions valued at $5 billion...
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Housing expert closes door on return of in-person board meetings, prefers AI safeguards
A Chicago Tribune condo advice column addressed whether artificial intelligence concerns should prompt condominium boards to abandon virtual meetings in favor of in-person gatherings. Legal expert Kim Quillen argued that embracing technological advances with appropriate safeguards is more productive than reverting to older practices out of fear, noting that the full impact of AI on communal living remains uncertain. The big picture: While AI deepfakes and impersonation risks are legitimate concerns for virtual board meetings, housing law experts suggest that proper technological safeguards are preferable to abandoning digital tools entirely. What the expert recommends: Quillen, writing in the Chicago Tribune's...
read Oct 13, 2025Accountability crisis? Healthcare AI adoption surges while liability frameworks lag behind
A new report warns that artificial intelligence in healthcare could create complex legal challenges when determining liability for medical errors or poor patient outcomes. The findings highlight growing concerns about accountability as AI tools rapidly expand across clinical settings without adequate testing or regulatory oversight. What you should know: Legal experts identify multiple barriers that could complicate malpractice cases involving AI systems.• Patients may struggle to prove fault in AI design or implementation due to limited access to information about how these systems work internally.• Multiple parties involved in AI development and deployment could point fingers at each other when...
read Oct 13, 2025ChatGPT logs help convict man in deadly LA Palisades Fire case
Federal prosecutors have charged Jonathan Rinderknecht with starting the Palisades Fire in Los Angeles, citing his ChatGPT conversation history as key evidence in what experts call one of the first US cases where AI chatbot logs carry significant evidentiary weight. The case establishes a new category of digital evidence that could reshape how investigators approach criminal cases involving AI-generated content. What you should know: Prosecutors obtained ChatGPT logs showing Rinderknecht generated images of burning cities and sought advice about fire-related liability during his 911 call. Acting US Attorney Bill Essayli revealed that Rinderknecht created multiple versions of images depicting "a...
read Oct 13, 2025Garbage in(put), garbage out(put): Dallas okays AI cameras on sanitation trucks to detect violations
Dallas City Council has approved over $850,000 to install AI-powered cameras on 50 sanitation trucks, designed to automatically detect code violations like illegal dumping, high weeds, and graffiti throughout the city. The initiative represents a growing trend of municipalities using artificial intelligence for code enforcement, though it faces scrutiny over surveillance concerns and data privacy as similar programs have encountered resident pushback in other cities. What you should know: The cameras will be mounted on brush and bulk collection trucks starting in early to mid-2026, following final contract approval by the City Council. Two cameras per truck will capture still...
read Oct 10, 2025OpenAI subpoenas AI safety advocate with law enforcement visit amid Musk legal battle
OpenAI has subpoenaed AI regulation advocate Nathan Calvin and his organization Encode AI, with a sheriff's deputy serving the legal documents at Calvin's home during dinner. The subpoenas, issued as part of OpenAI's countersuit against Elon Musk, demand personal messages between Calvin and California legislators, college students, and former OpenAI employees—a move that Calvin and critics view as intimidation tactics against regulatory advocates. What you should know: OpenAI used its legal dispute with Musk as a vehicle to investigate organizations advocating for AI regulation. Calvin works for Encode AI, which recently pushed for California's SB 1001 AI safety bill that...
read Oct 10, 2025AI companies use investor funds as insurers refuse risky coverage
OpenAI and Anthropic are turning to investor funds to settle AI-related lawsuits after traditional insurers refuse to fully cover the scale of potential damages these companies face. The insurance gap reveals how traditional risk models are struggling to adapt to the unprecedented liability exposure of AI companies, potentially forcing them to self-insure against billion-dollar copyright and safety claims. The big picture: Major AI companies are discovering that conventional insurance coverage falls dramatically short of their potential legal exposure, forcing them to rely on venture capital to cover massive settlements. Key details: OpenAI faces multiple high-stakes lawsuits that could result in...
read Oct 10, 2025AI TikTok homeless prank wastes police resources across 6 countries
A viral TikTok trend called the "AI homeless man prank" involves users creating fake AI-generated images of homeless individuals appearing to break into homes, then sending these images to family members to simulate false home invasions. The trend has spread across multiple social media platforms and prompted warnings from police departments in the U.S., UK, and Ireland about wasting emergency resources and potentially creating dangerous situations when officers respond to fake burglary calls. The scale of the problem: The trend has gained massive traction across social media platforms, with millions of users participating and law enforcement agencies responding to false...
read Oct 10, 2025Record labels sue evasive AI music generators for billions in copyright damages
Major record labels have filed federal lawsuits against AI music generators Suno and Udio, alleging "mass copyright infringement on an almost unimaginable scale" and seeking billions in damages. The legal battle has sparked development of neural fingerprinting technology that can detect AI-generated music and identify when synthetic tracks derive from copyrighted works, even when no direct copying occurs. The big picture: Traditional audio fingerprinting fails against AI-generated music because it only catches exact matches, while neural networks can learn musical patterns and reproduce them in transformed ways that evade detection. Key details about the lawsuits: The labels built their case...
read Oct 9, 2025Personal injury lawyers use AI to create fake but convincing news ads targeting victims
Personal injury lawyers are using artificial intelligence to create fake newscasts and testimonials in advertisements, blurring the line between legitimate journalism and marketing. The trend has accelerated with the recent launch of powerful AI video tools from Meta and OpenAI, making it easier and cheaper for companies to generate convincing synthetic content that can mislead consumers about legal services and potential payouts. The big picture: AI-generated legal ads are becoming increasingly sophisticated, featuring fake news anchors, fabricated victims holding oversized checks, and synthetic influencers promoting legal services as if they were genuine news stories. Key details: Companies like Case Connect...
read Oct 7, 2025Legal AI startup EvenUp levels up, raises $150M at $2B valuation
EvenUp, an artificial intelligence provider specializing in legal technology, announced Tuesday a $150 million Series E funding round led by Bessemer Venture Partners that values the company at over $2 billion. Why this matters: The substantial funding and valuation highlight the increasing demand for AI solutions in the traditionally conservative legal industry. Legal technology represents a significant market opportunity as law firms seek to modernize operations and improve client outcomes. The $2 billion valuation places EvenUp among the most valuable companies in the legal AI space. This investment reflects broader investor confidence in AI applications beyond consumer technology. What you...
read Oct 6, 2025Sen. Chuck Grassley demands answers from federal judges over AI court ruling errors
U.S. Senate Judiciary Committee Chairman Chuck Grassley is demanding answers from two federal judges about whether they used artificial intelligence to draft court rulings that contained serious errors. The Republican senator from Iowa sent letters Monday to judges who withdrew flawed orders in July, marking the first high-profile congressional inquiry into potential AI misuse by the federal judiciary itself. What you should know: Grassley targeted U.S. District Judge Julien Xavier Neals in New Jersey and U.S. District Judge Henry Wingate in Mississippi, both of whom withdrew written rulings after lawyers identified factual inaccuracies and other serious errors.• The senator asked...
read Oct 3, 2025Dismiss the dis: OpenAI asks court to reject Musk’s xAI trade secret lawsuit
OpenAI has asked a federal judge to dismiss a trade-secret lawsuit filed by Elon Musk's xAI, calling the case part of Musk's "ongoing harassment" of the company. The legal filing represents the latest escalation in a broader battle between Musk and his former company amid Silicon Valley's intensifying competition for AI talent and market dominance. What you should know: OpenAI denied xAI's allegations and argued that employees have the right to choose where they work. "Under Musk's leadership, talented xAI employees are leaving in droves, and some are coming to OpenAI to help advance OpenAI's mission," OpenAI stated in its...
read Oct 1, 2025AI scores 64% on $500K knowledge work benchmark, implicating law, medicine and more
Mercor, an AI data company, has released the AI Productivity Index (APEX), a comprehensive benchmark that tests whether AI models can perform high-value knowledge work across law, medicine, finance, and management consulting. The benchmark represents a paradigm shift from abstract AI testing to directly measuring models' ability to complete economically valuable tasks that professionals typically handle. What you should know: APEX consists of 200 carefully designed tasks created by experienced professionals from top-tier firms, with input from former McKinsey executives, Harvard Business School leadership, and Harvard Law professors. Tasks include diagnosing patients based on multimedia evidence, providing legal advice on...
read Oct 1, 2025Bollywood super couple sues Google over AI-generated deepfakes
Bollywood power couple Abhishek Bachchan and Aishwarya Rai Bachchan have filed a legal petition asking Indian courts to protect their "personality rights" and prevent AI-generated content that uses their likenesses. The case specifically targets YouTube's parent company Google, demanding safeguards to prevent their images from being used to train AI models, potentially setting a significant precedent for celebrity image rights in the AI era. What you should know: The actors are challenging YouTube's policy that allows certain videos to be used as training material for third-party AI generation models.• They argue this practice contributes to the spread of false information...
read Oct 1, 2025Disney forces Character.AI to let it go, removes copyrighted characters after legal threat
Disney has sent a cease-and-desist letter to Character.AI, an AI chatbot platform, demanding the removal of numerous Disney-owned characters and accusing the startup of "blatantly infringing" on Disney's copyrights. The legal action highlights growing tensions between entertainment giants and AI companies over unauthorized use of intellectual property, particularly as AI platforms increasingly feature user-generated content based on popular characters. What you should know: Character.AI complied with Disney's demands by removing all cited characters from its platform following the September 18 legal notice. The affected characters spanned Disney's entire portfolio, including Anna and Elsa from "Frozen," Marvel heroes like Spider-Man and...
read Oct 1, 2025Mac strikes back as Apple files motion to dismiss xAI’s antitrust lawsuit over OpenAI partnership
Apple has filed a motion to dismiss xAI's antitrust lawsuit that alleges the tech giant stifled AI competition through its OpenAI partnership and App Store practices. The legal battle stems from Elon Musk's August accusations that Apple's ChatGPT integration created unfair advantages in app rankings, preventing rival AI companies from reaching the top spot. Apple's defense strategy: The company argues that xAI's lawsuit would require partnerships with "every other generative AI chatbot – regardless of quality, privacy or safety considerations, technical feasibility, stage of development, or commercial terms." Apple's lawyers describe the antitrust claims as "speculation on top of speculation"...
read Sep 30, 2025Swedish legal AI startup Legora seeks $150M at $1.8B valuation
Legora, a Stockholm-based legal AI startup, is in talks to raise $100-150 million at a $1.8 billion valuation, just four months after its Series B round. The funding round, led by Bessemer Venture Partners, reflects the rapid growth in legal AI adoption as law firms increasingly turn to artificial intelligence to automate repetitive tasks and boost efficiency. Key growth metrics: Legora has experienced explosive revenue growth, jumping from $4 million to $23 million in annual recurring revenue, with projections to reach $40 million ARR by year-end.• However, only $1 million of current revenue comes from U.S.-based customers, suggesting significant untapped...
read Sep 30, 2025Two top law schools lean in, now require AI essays for admissions
Two prestigious U.S. law schools are requiring applicants to use artificial intelligence in their admissions essays, marking a significant shift from the typical prohibition against AI assistance in college applications. The University of Michigan and University of Miami law schools have introduced AI-powered essay questions for fall 2026 admissions, reflecting AI's growing integration into legal education and practice. What you should know: These schools are pioneering a new approach to evaluating prospective law students' AI competency alongside traditional metrics. The University of Miami requires applicants to create detailed prompts for generative AI tools like ChatGPT to generate a "comprehensive analysis"...
read Sep 26, 2025Apple faces 69-plaintiff lawsuit over delayed iPhone 16 AI features
Apple has filed a motion to dismiss a class action lawsuit alleging the company misled customers about delayed Apple Intelligence features when marketing the iPhone 16. The case, which consolidated multiple lawsuits and features 69 plaintiffs, centers on Apple's promise of enhanced Siri capabilities that have been delayed until 2026, potentially setting a precedent for how tech companies can market products based on future promises rather than current capabilities. What you should know: The lawsuit, Landsheft v. Apple Inc., specifically targets Apple's marketing of two delayed Siri features: personal context awareness and in-app controls. Apple argues it cannot support the...
read Sep 25, 2025Judge approves $1.5B Anthropic settlement over copyrighted books
A federal judge has approved a $1.5 billion settlement between AI company Anthropic and authors who accused the company of illegally using nearly half a million copyrighted books to train its Claude chatbot. The settlement will pay authors and publishers approximately $3,000 per book covered by the agreement, marking a significant legal precedent for AI companies' use of copyrighted material in training data. What you should know: U.S. District Judge William Alsup approved the settlement in San Francisco federal court after addressing concerns about fair distribution and author notification.• The settlement covers existing books but does not apply to future...
read Sep 25, 2025Legal experts slam Bluebook’s new AI citation rule as confusing
The 22nd edition of The Bluebook, released in May, introduces Rule 18.3 for citing AI-generated content, but legal experts are calling the new citation standard fundamentally flawed and confusing. The Bluebook acts a foundational guide for the legal profession, offering best practices. Critics argue the new rule treats AI as a citable authority rather than a research tool, creating more confusion than clarity for legal professionals navigating AI citations. What the rule requires: Authors must save screenshots of AI output as PDFs when citing generative AI content like ChatGPT conversations or Google search results. The rule has three sections covering...
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