By Lauren Berg

Baltimore on Tuesday became one of the first municipalities to sue Elon Musk's xAI over the Grok artificial intelligence platform's ability to transform ordinary photographs into nonconsensual sexualized deepfake images, including creating child sexual abuse material, saying it's exposing city residents to degrading content, harassment and psychological harm.

By Emilie Ruscoe

The leaders of a now-bankrupt artificial intelligence company and its former accounting firm have escaped a lawsuit brought by investors alleging the AI company used so-called round-trip transactions with a business partner to generate false revenue, after a Maryland federal judge found the shareholders have not shown the transactions or the business relationship were improper.

By Ivan Moreno

Music publishers have asked a California federal judge to rule that Anthropic infringed their copyrighted song lyrics through its Claude large language model, arguing in a motion for partial summary judgment that fair use does not excuse the AI developer's conduct because it used those lyrics to build a competing commercial product.

By Andrea Keckley

An Oregon federal judge sanctioned an attorney about $14,000 after he failed to catch fake citations in a motion filed by out-of-state counsel he had associated with, saying Monday that the attorney "failed to meaningfully participate in the case."

By Rachel Riley

Washington Gov. Bob Ferguson signed a pair of bills on Tuesday requiring large artificial intelligence companies to embed data that distinguishes deepfakes as AI-generated and forcing companion chatbot developers to take steps to protect minor users from suicide and self-harm.

By Natalie Olivo

Tax administrations in member countries of the Organization for Economic Cooperation and Development are using artificial intelligence mainly to detect tax evasion and fraud, the OECD reported Tuesday, saying this is because of the technology's ability to identify patterns and outliers.