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AI & Copyright: Federal Judges Address “Fair Use” Issue

by John Jenkins

June 30, 2025

Last week, California federal district court judges issued two opinions addressing the critical issue of whether the use of copyrighted materials to train AI models constituted a “fair use” of those materials.  This intro to Sullivan & Cromwell’s memo on the decisions summarizes the judges’ rulings: On June 23, 2025, the U.S. District Court for […]

AI Call-Monitoring Poses More Legal Risks

by Zachary Barlow

June 26, 2025

Previously, I wrote about Gladstone v. Amazon Web Servs. and Turner v. Nuance Commc’ns, two pending cases challenging the ability of third parties to use AI to evaluate consumer calls. Now, another California case joins the list. Galanter v. Cresta Intelligence is a new class action filed earlier this month in California. The Plaintiff in Galanter […]

States Move to Regulate AI in Financial Services

by Zachary Barlow

June 25, 2025

The financial services industry increasingly uses AI in its operations, including utilizing AI to assist in core decision-making and essential functions. This has raised concern among lawmakers who are seeking to regulate the sector’s use of AI and mitigate potential risks to customers and the industry. While federal efforts to promulgate regulations have fizzled out, […]

New EO Seeks to Bolster AI Cybersecurity

by Zachary Barlow

June 24, 2025

Federal policy on AI has shifted since January with the revocation of the previous administration’s Executive Order (EO) on AI and the new administration ordering a new AI policy plan. However, despite rollbacks and pivots in other areas, there is some continuity between administrations on cybersecurity. The new “Sustaining Select Efforts to Strengthen the Nation’s […]

Reddit Sues Anthropic, but Not for Copyright Infringement

by Zachary Barlow

June 23, 2025

Earlier this month, I wrote about the Disney and Universal lawsuit against Midjourney, alleging that the AI developer violated their copyrights in its AI training and outputs. This style of copyright case against AI developers has become more common as rights holders seek to stop AI developers from using their works without permission. However, a […]

AI Risk Management: Best Practices for “Humans in the Loop”

by John Jenkins

June 18, 2025

Last month, Zach blogged about a Debevoise article on the role of human oversight in AI risk management – a.k.a. having a “human in the loop.” One of the insights in that article that I thought made it worth revisiting was its advice that in some cases, it’s best to have a human “over the […]

Guidance on Securing AI Training & Operating Data

by John Jenkins

June 17, 2025

An alphabet soup of international governmental agencies that includes the NSA, CISA, and FBI have come up with best practices guidance on securing AI training and operating data.  Here’s an excerpt from the executive summary: This Cybersecurity Information Sheet (CSI) provides essential guidance on securing data used in artificial intelligence (AI) and machine learning (ML) […]

Risk Management for Use of GenAI in the Workplace

by John Jenkins

June 16, 2025

This McDermott Will blog addresses the increasing use of GenAI tools by human resources professionals and identifies areas of focus for employers, relevant legal developments, and potential compliance approaches.  It also offers guidance on how to avoid legal risks when implementing GenAI-based GenAI-based HR and employment management software. Here are some specific recommendations on how […]

Disney and Universal Sue Midjourney Alleging Copyright Infringement

by Zachary Barlow

June 12, 2025

AI copyright litigation is heating up as cases work their way through the legal system. We’ve previously covered copyright cases and discussed the copyright implications of AI training. Now we’re seeing another major case arise as Disney and Universal have banded together to take on Midjourney. Midjourney is an AI developer that focuses on creating […]

Will Agency Law Apply to Agentic AI?

by Zachary Barlow

June 11, 2025

Agentic AI, or AI that acts semi-autonomously to accomplish tasks, is the next frontier in the AI world. While exciting and potentially groundbreaking, agentic AI it is the most risk-laden AI implementation to date. John previously talked about the possibility of AI agents reporting out rather than up, and gave some tips on keeping AI […]