This human-curated, AI-generated newsletter from the AAA-ICDR Institute and AAAiLab keeps you up on AI news over the past week that is relevant to alternative dispute resolution (ADR).
AI in ADR and Legal Services
Legal software company Clio drops $1B on law data giant vLex
TechCrunch
Marina Temkin
Clio, a major provider of law firm management software, is acquiring vLex, a legal data intelligence company, for $1 billion. This move positions Clio to integrate vLex's extensive legal document database and AI model, Vincent, into its offerings, enabling more advanced legal practice tools for small and medium law firms. The deal highlights the growing importance of proprietary legal data and AI in the competitive legal tech landscape.
When AI Gets an Email: What Digital Workers in Banking Mean for Courts and Law Firms
judgeschlegel.substack.com
Judge Scott Schlegel
Major banks are now integrating AI agents as full-fledged team members with their own digital identities, allowing them to communicate and perform tasks autonomously. This signals a shift from AI as mere tools to AI as colleagues, raising urgent questions about responsibility, ethics, and workflow in regulated fields like law. As the legal industry watches finance adopt these practices, it must grapple with the profound changes and challenges such digital coworkers will bring.
The Future is Now: Why Trial Lawyers and Judges Should Embrace Generative AI Now and How to Do It Safely and Productively
JD Supra / American Journal of Trial Advocacy
Ralph Artigliere, Ralph C. Losey
Generative AI is rapidly transforming legal practice by enhancing research, drafting, and analysis, allowing lawyers and judges to focus on higher-value work while maintaining ethical standards and oversight. Rather than replacing professionals, AI serves as a co-intelligent partner, demanding human review to ensure accuracy and confidentiality. Embracing AI thoughtfully, mastering prompt engineering, and understanding its limitations are essential for leveraging its benefits and upholding the integrity of the legal profession.
The Perils of Legal Hallucinations and the Need for AI Training for Your In-House Legal Team
Baker Donelson
Justin S. Daniels, Matthew G. White
The rapid adoption of generative AI in law is leading to a surge in court filings containing fake case citations, exposing lawyers and firms to sanctions and reputational harm. The core issue is not the technology itself, but inadequate training and oversight. Effective use of AI in legal practice requires rigorous verification processes, tailored prompt training, and a culture of skepticism toward AI-generated content to ensure accuracy and maintain professional credibility.
Generative AI and LLM Developments
Millions of websites to get 'game-changing' AI bot blocker
bbc.com
Chris Vallance
Cloudflare has introduced technology enabling millions of websites to block AI bots from accessing their content without consent, aiming to help creators and publishers protect their work and potentially seek payment from AI firms that use their material. This move addresses growing tensions over unauthorized data scraping for AI training, but experts note that technical measures alone may not be enough, emphasizing the need for stronger legal safeguards.
TikTok is being flooded with racist AI videos generated by Google’s Veo 3
Ars Technica
Ryan Whitwam
Google's Veo 3 video generator, noted for its advanced realism, has been exploited on TikTok to produce and circulate short, AI-generated videos that perpetuate racist and antisemitic stereotypes. Despite TikTok's explicit ban on hate content, these videos remain widespread, highlighting challenges in enforcing content moderation and raising concerns about the potential misuse of powerful generative AI tools for spreading harmful material.
Amazon launches a new AI foundation model to power its robotic fleet and deploys its 1 millionth robot
Amazon
Scott Dresser
Amazon has developed an advanced AI model that uses vast inventory data and AWS technologies to enhance the efficiency of its robotic fleets. By optimizing how products are stored and managed, this system enables quicker deliveries and cost savings, while its self-improving capabilities promise ongoing advancements in warehouse operations.
China’s AI Leap Forward: Tencent And Alibaba’s New (And Faster) Models
Forbes
Sol Rashidi
China’s tech giants Tencent and Alibaba have launched advanced open-source AI models—Hunyuan-A13B and Qwen-VLo—that rival Western offerings in efficiency and creative capability, signaling China’s shift from imitation to innovation. These models democratize AI access, foster global developer ecosystems, and intensify U.S.-China competition, prompting businesses worldwide to adapt rapidly or risk falling behind as AI becomes central to future growth and industry transformation.
AI Influencers: What the Data Says About Consumer Sentiment and Interest
Meltwater
Ann-Derrick Gaillot, Elena Tarasova
AI-generated influencers are rapidly gaining attention in marketing, with social media discussions about them surging in early 2025. While tech-savvy audiences and brands are embracing AI influencer tools, concerns over transparency, ethics, and authenticity remain high, especially after incidents like the “Liv” controversy. The conversation is polarized but leans positive, highlighting both the promise and risks of virtual influencers in shaping brand-consumer relationships.
AI Regulation and Policymaking
Senate Kills Ban on State and Local AI Laws
Governing
Jule Pattison-Gordon
The U.S. Senate decisively rejected a proposal to block states and localities from regulating artificial intelligence, opting to preserve their authority to address AI-related risks such as deepfakes, discrimination, and algorithmic abuse. While tech companies sought uniform national rules to simplify compliance and promote innovation, lawmakers prioritized consumer protections in the absence of comprehensive federal AI laws, reflecting bipartisan consensus on safeguarding residents as AI adoption accelerates.
Technology Neutrality as a Way to Future-Proof Regulation: The Case of the Artificial Intelligence Act
Cambridge University Press
Atte Ojanen
The EU’s AI Act illustrates both the strengths and limits of technology neutrality as a regulatory principle for artificial intelligence. While a broad, technology-neutral approach helps future-proof regulation by covering emerging systems and enabling flexibility, strict neutrality can obscure value-driven choices, hinder effective risk anticipation, and delegate key decisions to technocratic bodies, potentially undermining democratic oversight. Targeted provisions for general-purpose AI models, though less neutral, actually enhance the Act’s adaptability and relevance amid rapid AI advances.
LLM.co Launches LLM Audit Service for Private and Public Enterprise AI Deployments
AP News / LLM.co
LLM.co has introduced an audit service that evaluates enterprise AI systems for security, transparency, and compliance, addressing growing concerns about data privacy and operational integrity. The service provides detailed assessments and actionable recommendations, helping organizations in regulated sectors ensure their AI models are trustworthy and meet industry standards. This offering aims to support responsible AI adoption and build stakeholder confidence as businesses increasingly rely on large language models.
AI News from Other Fields
How Microsoft’s AI Sets New Standards for Medical Diagnosis
AI Magazine
Kitty Wheeler
Microsoft’s AI Diagnostic Orchestrator (MAI-DxO) diagnoses complex medical cases with 85% accuracy—four times better than physicians. Using multiple LLMs and a “chain of debate” approach, MAI-DxO simulates real-world medical reasoning. It reduces diagnostic costs and outperforms traditional AI methods. CEO Mustafa Suleyman calls it a step toward “medical superintelligence.” Integrated with OpenAI's o3 model, the system may soon power Bing and Copilot. While promising, experts stress the need for real-world validation and robust healthcare governance.
What Happens After A.I. Destroys College Writing?
The New Yorker
Hua Hsu
College students are widely incorporating generative AI tools into their academic routines, using them for everything from writing assignments to personal advice, often blurring lines between productivity and academic dishonesty. While institutions initially tried to regulate or detect AI use, many now accept its inevitability, shifting focus to integrating AI into learning. This shift raises fundamental questions about the value of education and the skills students are actually developing in an AI-saturated environment.
From Forests to Cities: How AI Is Redesigning Land Use to Tackle Climate Change
Medium
Paul Sandhu
Artificial intelligence is transforming land use and climate policy worldwide by enabling precise, data-driven decisions that balance ecological health with economic needs. From optimizing reforestation and urban forestry to real-time carbon credit validation, AI tools help governments, planners, and communities identify high-impact interventions, overcome data and skill barriers, and foster transparency. These advances accelerate progress toward sustainability goals, making environmental stewardship more targeted, inclusive, and effective.
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