Expert Analysis

• Trump's AI Order Is Strategic, Not Merely Deregulatory

  

  Although the framework presented in President Donald Trump’s recent executive order on artificial intelligence is styled as voluntary and innovation-friendly, it creates a new soft-power mechanism for bringing the most capable AI systems into closer alignment with federal security priorities, says Jesse Lemon at The Beckage Firm.

• Opinion

  Rule Of Law Requires Gov't Engagement With Bar, Not Retreat

  

  A federal agency's absence from national and local bar conferences, most recently illustrated by the U.S. Department of Justice's withdrawal from a New York City Bar Association white collar conference, disserves the bar, the government lawyers themselves and, ultimately, the administration of justice, says Muhammad Faridi at Linklaters.

• Fannie, Freddie AI Rules Raise Stakes For Mortgage Lenders

  

  Artificial intelligence governance frameworks recently released by Fannie Mae and Freddie Mac impose monitoring and vendor oversight standards on mortgage lenders, potentially reshaping secondary-market eligibility, fair lending reviews and risk management as compliance deadlines approach, says Brendan Palfreyman at Harris Beach.

• The Paradoxical Duty To Adopt AI When You Can't Bill For It

  

  Both billing for hours saved using artificial intelligence and preserving billable time by not adopting AI may violate rules of professional conduct, but until bar associations' ethics rules catch up to this emerging economic dilemma, firms must decide how to adjust fee structures themselves, says Ines Lassalle at Peyrot & Associates.

• UCC Digital Asset Update Is Altering Lender, Obligor Diligence

  

  The rollout of the Uniform Commercial Code's Article 12 is transforming digital asset secured lending, forcing lenders and obligors to rethink diligence, control, custody, monitoring and contract terms, as well as collateral practices and financing structures, as jurisdictions continue to adopt the amendments, say attorneys at Lowenstein Sandler.

• 3 Misconceptions About Justices' FCC Fines Ruling

  

  The U.S. Supreme Court's June 4 Federal Communications Commission v. AT&T decision rejecting AT&T’s and Verizon’s argument that the commission's forfeiture process violates the Seventh Amendment has yielded three common reactions that misunderstand the decision as a matter of law and how the FCC actually operates, says Samuel Feder at Jenner & Block.

• How FCA, FCPA Risks Are Shifting As Feds Pull Back

  

  As the federal government continues its retreat from white collar enforcement, companies should expect False Claims Act risk to grow through private whistleblower suits and Foreign Corrupt Practices Act scrutiny to shift toward foreign prosecutors, requiring more adaptability as accountability becomes less centralized, says Temidayo Aganga-Williams at Selendy Gay.

• New State AI Laws Create Dual Misrepresentation Risk

  

  As artificial intelligence transparency laws are enacted across the country and the volume and specificity of compliance records increase, companies will be required to speak more often, more precisely and to more audiences about the same systems, compounding the risk of litigation, say attorneys at Cooley.

• Series

  Cow Horse Makes Me A Better Lawyer

  

  Moving an unwilling 800-pound cow while riding a horse at high speed is exhilarating, a little unhinged and, at least for me, a surprisingly effective training ground for litigation — both demand focus, preparation over rigid planning and the willingness to act despite fear, says Ashley Zitrin at Glenn Agre.

• Fla. Driver Ruling Shows Renewed Focus On Privacy Standing

  

  A Florida federal court's recent dismissal of a class action alleging that private driving records had been improperly used in violation of the Driver's Privacy Protection Act suggests that companies defending against privacy class actions in Florida may reconsider Article III challenges at the dismissal stage, say attorneys at Sidley.

• PowerSchool Data Breach Ruling Underscores PE Liability

  

  The recent California federal court decision in PowerSchool, where Bain Capital was unable to dismiss claims relating to a data breach based in part on Bain's preinvestment activities, is an important addition to the line of cases addressing investor liability for acts of a portfolio company, says Mark Kelley at MoloLamken.

• Unpacking The Take It Down Act's Compliance Ambiguities

  

  The Federal Trade Commission’s recent guidance concerning the Take It Down Act suggests that covered platforms should build removal systems immediately and prioritize compliance, but until courts or regulators provide additional clarity, companies will be navigating a statutory framework that is urgent and uncertain, says Laura-Kate Bernstein at ZwillGen.

• West Coast Health Cos. Must Brace For Federal Enforcement

  

  In light of the U.S. Department of Justice's newly established West Coast strike force targeting healthcare fraud across Northern California, Arizona and Nevada, health organizations will need to prioritize knowledge, vigilance and operational discipline to reduce exposure from potentially parallel criminal and civil investigations, says Michael Beckwith at Dickinson Wright.

• Operational AI Washing: The Next Frontier Of Fiduciary Risk

  

  While there are still no final Delaware decisions applying Caremark specifically to artificial intelligence governance failures, previous case law provides a blueprint, so the question for boards is whether their governance architectures will satisfy Caremark when the first cases are decided, say attorneys at Akerman.

• Checking For AI Errors Is Now A Two-Way Street

  

  A handful of recent federal and state cases demonstrate the importance of checking for errors generated by artificial intelligence not only in your own court submissions, but also your opponent's, as well as when catching opposing counsel's AI mistakes could result in an award for attorney fees, says Tamara Barago at Hollingsworth.