Winston’s AI Monthly Recap - May 2025

Winston’s AI Top 10 summarizes the latest AI developments in the legal industry. 

Top 10 - May 15

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1. AI CASH ADVANCE CO. CLEO FACES SERVICE MEMBER CLASS ACTION 

   The AI-powered finance app Cleo is facing a proposed class action lawsuit for allegedly violating the Military Lending Act by providing high-interest loans to active-duty service members. | Read More

2. U.S. JUDICIAL PANEL ADVANCES PROPOSAL TO REGULATE AI-GENERATED EVIDENCE

   A federal judicial panel has advanced a draft rule to regulate the use of AI-generated evidence in court, aiming to ensure it meets the same reliability standards as expert witness testimony under Rule 702 of the Federal Rules of Evidence. | Read More

3. AI TRAINING MAY NEED LICENSING, COPYRIGHT OFFICE SAYS

   The U.S. Copyright Office has suggested that using copyrighted material to train generative AI systems may require licensing in some cases, as fair use may not always apply. | Read More

4. MYPILLOW CEO CAN'T DELAY DEFAMATION TRIAL OVER ATTY AI ERRORS 

   A Colorado federal judge denied MyPillow CEO Mike Lindell's request to delay a defamation trial, despite claims that AI errors in legal filings caused significant distractions. Read More

5. POLIS CALLS ON COLORADO LAWMAKERS TO DELAY IMPLEMENTATION OF FIRST-IN-THE-NATION ARTIFICIAL INTELLIGENCE LAW

   Colorado, the first U.S. state to pass a law regulating AI use in business decision-making, may delay its implementation from February 2026 to January 2027 due to concerns from state leaders and stakeholders. Read More

6. U.S. TO OVERHAUL CURBS ON AI CHIP EXPORTS AFTER INDUSTRY BACKLASH

   The U.S. Commerce Department is set to revise its AI chip export rules, softening restrictions that previously limited shipments to countries like India, Switzerland, Mexico, and Israel. | Read More

7. JUDICIARY TO SHARE PROS, CONS OF AI FOR COURTS WITH CONGRESS

   The federal judiciary is evaluating the benefits and risks of AI in the court system and will share its findings with Congress. | Read More

8. DUOLINGO GOES AI-FIRST, RESTRUCTURES WORKFORCE

   Duolingo is transitioning to an “AI-first” model, significantly reducing its reliance on contractors as it integrates artificial intelligence across its operations. | Read More

9. CONGRESS APPROVES A REVENGE PORN BILL BACKED BY FIRST LADY MELANIA TRUMP

   The TAKE IT DOWN Act, championed by Melania Trump and introduced by Sen. Ted Cruz, has passed both chambers of Congress with overwhelming bipartisan support and is now headed to President Trump’s desk. Read More

10. NO INSTANT RELIEF FOR YALE STUDENT ACCUSED OF AI CHEATING

    A Connecticut federal judge has denied Yale student Thierry Rignol's request for a preliminary injunction to reinstate him after being suspended for allegedly using AI to cheat on a final exam. Read More 

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Top 10 - May 29

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1. STATE AI REGULATION BAN CLEARS U.S. HOUSE OF REPRESENTATIVES

   The U.S. House passed a budget bill containing a controversial 10-year ban on state and local regulation of artificial intelligence, sparking backlash from experts and 40 state attorneys general who argue it undermines state authority and public safety. | Read More

2. TRUMP ADMINISTRATION RESCINDS RULE LIMITING AI CHIP EXPORTS TO FOREIGN MARKETS
   

   The U.S. Department of Commerce has rescinded a Biden-era rule that would have imposed broad export restrictions on AI chips to over 100 countries, following backlash from tech companies and international partners. | Read More

3. SAUDI ARABIA UNVEILS $10 BILLION VC FUND IN RACE FOR MIDDLE EAST’S AI CROWN

   Saudi Arabia’s state-backed AI company, Humain, is launching a $10 billion venture capital fund to invest in AI startups across the U.S., Europe, and Asia, while also planning a massive data center buildout requiring $77 billion. Read More 

4. CALIFORNIA AI BILLS FACE LAWMAKER TRIMS IN CASH-STRAPPED STATE

   California lawmakers are advancing significant artificial intelligence (AI) legislation, but many bills are being scaled back due to the state's projected $31.5 billion budget deficit. | Read More

5. MILITARY USE OF AI TECHNOLOGY NEEDS URGENT REGULATION, UN WARNS

   The United Nations is intensifying efforts to regulate autonomous weapons systems, with 96 countries recently convening for the first-ever international meeting dedicated to this issue. | Read More

6. TEXAS LAWMAKERS PUSH TO REGULATE AI IN GOVERNMENT AND THE TECH INDUSTRY

   Texas House Bill 149 aims to regulate AI by requiring transparency from government agencies, prohibiting harmful or manipulative uses of AI, and establishing civil penalties for violations, with enforcement led by the Attorney General. | Read More

7. YALE WANTS STUDENT'S AI CHEATING CHALLENGE TOSSED

   Yale University has requested the dismissal of a lawsuit filed by Executive MBA student Thierry Rignol, who was suspended for allegedly using AI to cheat on a take-home exam. | Read More

8. AI-GENERATED EVIDENCE RULE MAKING WAY TO PUBLIC COMMENT

   A Judicial Conference committee is set to decide on June 10 whether to release a proposed Rule 707 for public comment, which would regulate the admissibility of machine-learning-generated evidence submitted without expert testimony. | Read More

9. LAWMAKERS FLOAT FAST PATENT PROGRAM FOR AI, SEMICONDUCTORS

   Bipartisan lawmakers have introduced the Leadership in Critical and Emergency Technology (CET) Act, directing the USPTO to launch a pilot program that fast-tracks patent applications for emerging technologies like AI, semiconductors, and quantum computing. | Read More

10. NJ LAWMAKERS ADVANCE LEGISLATION TO ADDRESS AI DATA CENTERS' PULL ON ELECTRIC GRID

    Three bills addressing the energy and environmental impact of AI data centers in New Jersey advanced through state Senate committees amid rising utility costs for residents. | Read More