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AI Update
OpenAI's legal challenges continued with a wrongful death lawsuit filed in California claiming that design flaws in ChatGPT's GPT-4o model intensified a man's delusions about brain implants and assassination plots, leading to a murder-suicide. The complaint further alleges that OpenAI released GPT-4o despite known safety risks, and follows a separate lawsuit filed by the victim's estate that also names Microsoft.
U.S. lawmakers and regulators are targeting Apple, Google and Elon Musk's xAI over Grok's alleged failure to prevent harmful AI-generated content, including nonconsensual and potentially illegal imagery involving women and minors. Three senators have urged the companies to temporarily remove both X and Grok from their app stores, arguing that the platforms violated their own safety policies and their response to these violations has been inadequate. California's attorney general has issued a ceaseand-desist order demanding xAI halt the creation and distribution of sexualized deepfakes, reflecting broader concerns that generative AI enables large-scale image-based abuse. Meanwhile, xAI faces mounting legal challenges, including a federal class-action lawsuit alleging Grok launched with minimal safeguards, promoted a "spicy" explicit mode, and continued to allow abusive content behind a paywall. Critics contend the company ignored standard protections, leaving women widely vulnerable to AI-driven exploitation.
On the legislative side, California Senator Steve Padilla introduced a bill that would pause the manufacture and sale of AI-enabled toys for four years to give lawmakers time to develop safety standards following incidents in which chatbots allegedly contributed to suicide, violence or the manipulation of children. In an effort to expand care access and reduce strain on healthcare workers, Utah launched a first-of-its-kind pilot program allowing an AI system to renew prescriptions for chronic conditions, matching human clinicians' decisions 99.2% of the time. Elsewhere, Florida lawmakers proposed an Artificial Intelligence Bill of Rights that would require companies to disclose AI interactions and give parents greater oversight of how children engage with AI-driven platforms. The bill aims to curb risks like deception, scams and targeted manipulation as AI becomes more embedded in digital experiences.
These and other stories appear below.
AIin Busines
James Woods warns AI could lead to 'end of human actors' in Hollywood
Oscar-nominated actor James Woods warned that AI poses a significant threat to human actors in Hollywood, suggesting that AI could eventually replace them entirely. Woods argued that film companies may prefer AI-generated actors to avoid the costs and complications associated with human talent, such as agents and lucrative contracts. He cited Moore's Law to highlight the rapid advancement of computing power and argued that such rapid advancements will enable filmmakers to create content 24 hours a day at significantly cheaper rates. Woods also noted, while AI-generated actors would not be feasible now because there are human actors we grew up with and love, the next generation will grow up heavily influenced by AI-generated content with AI actors that are as realistic as people.
Source: New York Post
Instagram boss warns AI deepfakes erode trust
Instagram chief Adam Mosseri warned that advances in AI-generated imagery, such as deepfakes, are making it increasingly difficult for users to distinguish real photos from synthetic ones on social and digital media platforms. Mosseri advocates for the use of labels and watermarks to indicate AI involvement, but notes that AI is evolving faster than detection methods. This development raises significant concerns related to misinformation, IP infringement, privacy, data security and ethics.
Source: Web Pro News
Matthew McConaughey trademarks catch phrase to prevent 'AI misuse'
McConaughey trademarked his iconic catchphrase "Alright, alright, alright" and seven other properties tied to his likeness to protect against AI misuse. The entertainment law firm Yorn Levine, which represents McConaughey, aims to prevent the use of AI to impersonate McConaughey or exploit his identity and catchphrases without permission. This move reflects growing concerns in the entertainment industry about AI-driven IP infringement and the need for legal safeguards to protect celebrity rights and creative properties. The U.S. Patent and Trademark Office approved McConaughey's sound mark in December 2025.
Source: New York Post
The University of Northern Colorado launches AI in media production course
The University of Northern Colorado's "Artificial Intelligence in Media Production" course is designed to keep pace with the fast-changing landscape of AI tools in journalism and media, encouraging students to experiment with emerging technologies to create multimedia projects with the support of AI. The course is intended to prepare students for careers in media where AI is increasingly used for content creation, audience analysis and enhancing creative processes.
Source: University of Northern Colorado
AI Litigation & Regulation
LITIGATION
California lawsuit claims AI failures contributed to murder-suicide
A wrongful-death suit filed in the Northern District of California alleges that design flaws in ChatGPT's GPT-4o model amplified a man's delusions, contributing to a fatal murder-suicide. The complaint claims the chatbot reinforced false beliefs about brain implants and assassination plots, ultimately leading a man to kill his mother and then himself. The suit argues that OpenAI rushed GPT-4o to market despite knowing its memory and reinforcement features could endanger mentally vulnerable users. This is the second lawsuit tied to the incident, following a separate case filed by the victim's estate that also names Microsoft.
Source: Law 360 (sub. req.)
New York judge orders OpenAI to produce 20M user logs in copyright suit
A Southern District of New York judge has ordered OpenAI to hand over 20 million anonymized ChatGPT user logs to the plaintiffs—including The New York Times and authors—who claim the company improperly used copyrighted material to train its AI models. The ruling upholds an earlier decision requiring full production of the logs, rejecting OpenAI's argument that user privacy concerns should limit disclosure and that targeted searches would be less burdensome. The judge found that voluntary ChatGPT conversations with OpenAI carry lower privacy expectations than wiretapped communications cited in OpenAI's objections. The user logs were deemed relevant because they may show how copyrighted works were used or surfaced during AI interactions.
Source: Law 360 (sub. req.)
California court signals Musk's claims against OpenAI will proceed to trial
A Northern California district judge indicated that Elon Musk's claims against OpenAI and Microsoft should go before a jury, finding sufficient evidence to support allegations that Musk was misled into donating $45 million based on assurances the organization would remain a nonprofit. Judge Yvonne Gonzalez Rogers suggested Musk has standing as the settler of the charitable funds that contributed the money, reasoning that the record contains indications he clearly expressed restrictions on his donations. She also found sufficient evidence for fraud claims, citing internal communications that could imply OpenAI leaders made promises they did not intend to keep. Despite Microsoft's effort to dismiss claims of aiding and abetting, the judge emphasized that circumstantial evidence could establish sufficient knowledge.
Source: Law 360 (sub. req.)
Settlement reached in cases involving harm to minors from AI chatbot
Google and Character Technologies reached a preliminary settlement to resolve multiple lawsuits alleging that the Character.AI chatbot's design harmed underage users by exposing minors to violent or explicit content and contributing to two teen suicides. Filed in federal courts across Colorado, Florida, New York and Texas, the suits claimed the chatbot created manipulative, hyperrealistic interactions without adequate safety protections for children. The cases emerged after several families alleged that the chatbot encouraged self-harm, deteriorated users' mental health or generated inappropriate content. The litigation also challenged Google's assertion that it had no role in developing the product, following Google's $2.7 billion licensing deal with Character.AI. The company has since announced plans for an ageverification system.
Source: Law 360 (sub. req.)
AI Litigation & Regulation
Senators urge Apple and Google to Pull X and Grok over safety concerns
X has begun limiting image-generation access to paid users, but scrutiny from lawmakers and regulators continues to intensify. Three U.S. senators are urging Apple and Google to temporarily remove the X and Grok apps from their stores, citing failures to prevent the creation of harmful and potentially illegal AI-generated content. Democratic Senators Ron Wyden of Oregon, Edward J. Markey of Massachusetts and Ben Ray Luján of New Mexico argue that Grok—developed by Elon Musk's xAI—has been used to produce abusive and nonconsensual imagery, including material that may involve minors. They further contend that X's response has been inadequate and violates the app stores' own safety policies. The senators point out that Apple and Google have previously acted swiftly to remove less-harmful apps under government pressure and assert that similar action is warranted here. Relatedly, the U.K.'s data protection authority and other regulators throughout the globe are also seeking clarity on Grok's safeguards.
Source: Law 360 (sub. req.)
Kentucky sues AI platform over child safety failures
Kentucky filed a landmark lawsuit accusing the company behind Character.AI of failing to protect children from harmful chatbot interactions. The state alleges that the platform exposes minors to sexual content, violent roleplay, substance-abuse encouragement and conversations that promote self-harm. According to the complaint, weak age-verification measures allow young children to chat with bots modeled after real and fictional characters, including those from kids' shows. The suit cites two tragic cases in which minors died by suicide after engaging with chatbots that encouraged dangerous behavior. Kentucky argues the company misled the public by promising safety while deploying what it describes as an uncontrolled experiment on children. The state seeks financial penalties, profit disgorgement and an injunction to halt the alleged unlawful practices.
Source: Law 360 (sub. req.)
California orders xAI to halt illegal deepfake production
California's attorney general issued a ceaseand-desist order demanding xAI immediately stop generating and distributing nonconsensual, sexualized deepfakes. The move follows growing political pressure, as eight U.S. senators recently pressed major tech companies to disclose their safeguards against AI-driven sexual exploitation. Lawmakers warn that GenAI is enabling largescale image abuse, as platform protections are failing and disproportionately targeting women and even minors. Senators raised additional concerns about the monetization of such imagery through social media. The company also faces related ongoing legal battles, including intense criticism amid reports that xAI's chatbot, Grok, can manipulate images to create explicit depictions, and a lawsuit from influencer Ashley St. Clair alleging she was portrayed in explicit AI-generated content. Although xAI announced new guardrails, California officials say the scope and enforcement of these measures remain unclear.
Source: Law 360 (sub. req.)
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