➤ California Enacts the Transparency in Frontier Artificial Intelligence Act (SB 53): Governor Newsom signed SB 53 into law, imposing new transparency and reporting obligations on “frontier” AI developers. Companies must publish a framework describing how national and international standards are incorporated into their safety practices, report updates to safety and security measures within 30 days, and release transparency reports when launching new AI systems. The statute also requires reporting of “critical safety incidents” to the Office of Emergency Services. There is no private right of action, except for whistleblower retaliation claims.

➤ $24,000 Sanction for Hallucinated Citations: A federal judge in the District of Puerto Rico imposed the largest sanction to date for reliance on hallucinated case law, ordering attorneys to pay $24,000 in fees. The order exhibits courts’ increasing intolerance for unverified AI-generated legal research.

➤ Deepfake Evidence Leads to Dismissal: A California court dismissed a case with prejudice after finding that the plaintiff submitted AI-generated deepfake images, videos, and messages in support of a summary judgment motion. The court held that the fabricated evidence undermined the integrity of the proceedings and warranted dismissal.

➤ Arrest for AI-Generated Child Sexual Abuse Material: A man in Alabama was arrested under a recently enacted state law that treats AI-generated child sexual abuse material the same as actual CSAM. Alabama’s statute, along with similar laws emerging in other states, reflects a growing effort to close gaps in criminal liability involving AI-generated imagery.

➤ Court Approves $1.5 Billion Anthropic Settlement: The court has approved the $1.5 billion settlement between Anthropic and a class of authors alleging copyright infringement related to AI training. Final approval followed enhancements to the notice program for affected authors.