AI × Law

The EU published the Digital Omnibus on AI in the Official Journal and the Commission issued guidelines on AI transparency obligations. The update also sets new timelines for AI Act compliance and adds bans on certain nudifier apps and AI-generated child sexual abuse material, making this a significant regulatory shift for AI deployers and providers.

HaystackID’s webcast recap says generative AI is quickly changing how legal teams handle document review, privilege review, and early case assessment. The article is notable for its concrete claims that hundreds of customers are using AI for review and privilege, with over 100 million documents analyzed on Relativity’s platform, plus a discussion of governance and the need for purpose-built tools.

Plaintiffs allege Wix.com overstated the expected commercial and financial benefits of its AI strategy. The case matters because it turns on whether investors were misled about AI-related business prospects, a theme likely to recur as companies market AI growth stories.

A federal judge dismissed a proposed class-action lawsuit alleging that Heartland Dental’s use of AI violated the Federal Wiretap Act. It’s a concrete litigation outcome involving AI, and the dismissal may be relevant to other companies facing privacy and interception claims over AI tools.

Meta and Mark Zuckerberg were sued over claims that Meta used millions of copyrighted books, academic texts, and journal articles to train its Llama AI models without permission. The plaintiffs, including major publishers and author Scott Turow, say the company relied on pirated or unauthorized copies and that Zuckerberg personally approved key decisions. The case is another major test of how copyright law applies to AI training.

An Illinois federal judge transferred a class-action lawsuit against AI music startup Udio to the Southern District of New York. The musicians allege Udio illegally collected and exploited their voiceprints and also brings claims under Illinois’ Biometric Information Privacy Act, making it a notable twist on the wave of AI copyright litigation.

Minnesota’s new AI nudification law took effect after a federal judge refused to block it on procedural grounds, and xAI has restricted Grok Imagine for Minnesota users. In the same week, three new lawsuits or amended complaints were filed or expanded against Grok over alleged nonconsensual deepfake and child sexual abuse imagery, signaling a widening litigation front around AI image tools.

Courts in the US and UK issued several notable AI-IP decisions, including approval of Anthropic’s $1.5 billion class-action settlement with authors and publishers and a UK High Court ruling that largely favored Stability AI in Getty Images’ case. The article also highlights the Thomson Reuters v. Ross Intelligence ruling, where a US court found training on Westlaw headnotes was not fair use. These decisions matter because they are shaping the legal boundaries around AI training data, model outputs, and licensing risk.

Vable says a survey of 160 legal professionals in the US and UK found 87% are using or experimenting with AI, but only 14.4% are very confident it is delivering real value. The report suggests firms have adopted tools faster than they have built the governance and knowledge infrastructure needed to use them safely at scale.

A policy memo argues courts should adopt immediate safeguards against AI-generated fake citations and legal hallucinations, including mandatory hyperlinks, randomized citation audits, and extra screening of pro se filings. The piece highlights that major legal AI tools and general-purpose LLMs still produce hallucinations, making the issue a live litigation risk rather than a theoretical one.

Enterprise agentic AI company Yellow.ai said it will go public through a merger with Bluerock Acquisition Corp. The deal values the combined company at about $550 million, making it a notable legal-tech-adjacent AI market move for lawyers tracking AI company exits and capital markets activity.

Wordsmith AI posted a job for a Head of Sales Enablement in New York, signaling it is building out go-to-market infrastructure as it scales its legal operations platform for in-house teams. The posting says the company has more than 500 customers and is backed by $100 million from Index Ventures, General Catalyst, Highland Europe and others.

Debevoise says it has launched a new AI@Debevoise page explaining how the firm uses AI across the practice, along with its governance and oversight approach. For legal professionals, it’s a concrete example of a Big Law firm publicly documenting its AI adoption and controls.

Venture-backed AI law firm Crosby says it will buy professional liability insurance for its AI agents so they can do “autonomous legal work.” The move pushes the legal-tech industry toward a sharper question: how much lawyering can software do before regulators decide a lawyer must still be in the loop.

Align has launched Align Research, a new legal research product that returns only court opinions and highlighted passages — no memo, summary, or synthesized answer. The company says the design is meant to reduce hallucinations and help litigators quickly gather the initial set of cases, with pricing at three free searches per month and $100 per job after that.

The UK has opened applications for a new AI Growth Lab focused first on legal services. It gives AI developers, law firms, conveyancers and other innovators coordinated access to regulators, aiming to clarify how existing rules apply and speed safe AI adoption in the sector.

Wilson Sonsini’s profile for partner Sam K. Obenhaus says he has handled venture financings and M&A for technology companies, including AI-related deals for Luma AI and Elyos AI. The page also cites recent client work on InstaLILY AI’s $60 million Series B, underscoring continued legal work around AI startup funding.

Plaintiff-law-firm AI startup Eve is hiring a Head of Legal to build its legal function from scratch. The posting says Eve serves 1,000+ law firms, has raised over $160 million, and is working with OpenAI and Anthropic on legal workflows—signals of a company scaling fast in the legal-tech market.

Ontra founder Troy Pospisil says the legal-workflows startup has raised $250 million, including backing from Blackstone. The piece is framed as a founder profile, but the funding figure and institutional support make it a notable legal-tech financing update.

Harvey’s internship program now includes both software engineering and legal tracks, according to this guide. The article also says the AI legal startup is valued at $11 billion after raising more than $1 billion across seven funding rounds, underscoring how fast the company is scaling in legal AI.