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
The Higher Stakes of AI Misuse in the Judiciary
judgeschlegel.substack.com
Judge Scott Schlegel
Judges wield significant influence over the justice system, so their misuse of AI—such as promoting deepfakes—can undermine legal integrity, set harmful precedents, and erode public trust in courts. To mitigate these risks, judges must build AI literacy, apply technology cautiously, and adhere to ethical guidelines, starting with simple administrative tasks. Comprehensive training and oversight are essential to ensure AI strengthens, rather than threatens, judicial authority and the rule of law.
Insurers Begin Covering AI Mishap-Related Losses
PYMNTS.com
Lloyd’s of London has introduced insurance coverage for businesses facing lawsuits due to AI system failures, such as chatbots making costly errors or hallucinations. As companies increasingly rely on AI, concerns about accountability and financial risk have grown, prompting insurers to address potential liabilities. Some firms are limiting AI’s customer-facing roles until safeguards are proven, while new policies aim to protect against losses from AI-related mistakes.
Judge admits nearly being persuaded by AI hallucinations in court filing
Ars Technica
Jon Brodkin
A legal team was fined $31,100 after submitting court briefs containing fake case citations produced by AI tools—citations that nearly made it into an official judicial order before being caught. The incident highlights the risks of unchecked AI use in legal work, as even experienced attorneys and judges can be misled.
Lexbe and Legal Outsourcing 2.0 Partner to Deliver eDiscovery with Scalable, Secure Legal Solutions
Morningstar, Inc. / GlobeNewswire
Lexbe and Legal Outsourcing 2.0 have partnered to streamline legal document review by combining advanced generative AI with scalable human expertise. Their integrated platform enables law firms and corporate legal teams to process and analyze vast volumes of documents rapidly, improving efficiency, accuracy, and cost-effectiveness in eDiscovery and litigation support, while maintaining security and flexibility to meet urgent deadlines.
A coalition of technology firms, academic institutions, and top law firms is launching JuriAIring, a non-profit initiative to advance AI in legal services. Their first project, JuriAIindex, will create a standardized benchmark to assess how well AI models perform across various legal specializations. By combining expert legal input and rigorous academic validation, the initiative aims to foster transparency and set new standards for the responsible use of AI in law.
Generative AI and LLM Developments
OpenAI’s flagship GPT-4.1 model is now in ChatGPT
The Verge
Jess Weatherbed
OpenAI is upgrading ChatGPT’s paid tiers with GPT-4.1, offering improved performance in coding and task execution, while introducing the more efficient GPT-4.1 mini as the new default for all users, including those on free accounts. These models feature a dramatically expanded context window and faster speeds, surpassing previous versions. The smallest GPT-4.1 Nano model remains unavailable to general ChatGPT users for now.
When AI Fakes a Brand: Domain Spoofing Is a Crisis of Trust
ADWEEK
Rick Crandon
The rise of AI-generated, convincing fake websites has made domain spoofing a mainstream threat, putting brands at risk of scams, data breaches, and reputational harm. As creating fraudulent domains becomes easier, companies must treat domain security as a core brand protection issue, requiring close collaboration between marketing, legal, and cybersecurity teams to proactively defend against impersonation and preserve consumer trust in the digital age.
How AI could shrink its environmental footprint
NPR
Emily Kwong
As AI's rapid growth drives soaring energy and water use, tech companies are pursuing greener solutions like nuclear power, advanced cooling systems, and smaller, task-specific AI models to reduce their environmental impact. While some progress is being made with innovations such as liquid cooling and district heating, the industry remains focused on large models, and greater transparency is needed to fully assess and manage AI's climate footprint.
Inner workings of AI an enigma - even to its creators
Raw Story / AFP
Thomas Urbain
As generative AI systems become more influential, experts acknowledge a striking lack of understanding about how these models reach their conclusions. Efforts in mechanistic interpretability aim to unravel these digital thought processes, which could enhance trust, safety, and performance. Progress in this field may soon enable detection of biases and harmful intentions, potentially giving companies and nations a crucial edge as AI reshapes society and global competition.
Can AI help you be a better boss?
blog.dropbox.com
Jesse Will
As new managers face the challenges of leadership without formal training, AI-powered tools are emerging as valuable aids, offering on-demand support for coaching, communication, and feedback. This technological shift, highlighted by leadership expert Kelly Monahan, is reshaping how managers develop essential skills, emphasizing adaptability and human connection as key qualities for effective team leadership in a rapidly evolving workplace.
AI Regulation and Policymaking
The Rise and Fall of [AI powered] Nations
antoniomax.substack.com
Antonio Max
AI’s rapid advancement demands a fundamental redesign of government structure—a constitutionally enshrined “Fourth Branch” dedicated to AI governance. This branch, distinct from traditional agencies, would autonomously oversee, regulate, and integrate AI technologies, leveraging novel governance systems to ensure resilience, public trust, and adaptability. Its design aims to insulate AI oversight from political interference, align with global coordination, and future-proof statecraft for an algorithmic era.
House Republicans Push 10-Year Ban on State AI Regulation
Government Technology
Chandler Treon
The House Energy and Commerce Committee has advanced a proposal to prevent states from enacting or enforcing their own AI regulations for ten years, aiming to create a unified national approach. Supporters argue this avoids a patchwork of conflicting state laws, while critics warn it could weaken consumer protections and favor large technology companies. The measure, modeled after past internet regulation moratoriums, still faces hurdles before becoming law.
Senate panel approves bill to ban AI teachers in Illinois colleges
Yahoo News
John Clark
Illinois lawmakers are advancing legislation to prevent community colleges from replacing human instructors with AI-powered teachers, aiming to safeguard teaching jobs and ensure educational quality. While the proposed bill permits teachers to use AI as a supportive tool, it restricts AI from being the primary source of instruction. The move reflects growing concern about setting boundaries for AI use in education as technology becomes more integrated into classrooms.
AI Deregulatory Trends Continue; CPPA Board Proposes Revised Draft Regulations on Automated Decision-Making Technology, Risk Assessments, and Cybersecurity Audits
JD Supra / Kilpatrick
John Brigagliano, Henry Tharpe
California’s privacy agency has proposed revised rules narrowing the definition and scope of automated decision-making technologies, reducing consumer opt-out rights, and streamlining notice, audit, and risk assessment requirements for businesses under the state’s privacy law. These changes aim to ease compliance burdens by aligning more closely with other state laws, clarifying obligations, and providing longer timelines, while inviting further public feedback before final rules are set in late 2025.
(A)Identify Yourself: State Bills Would Require Notification When Interacting with AI
Mayer Brown
Ian Brown, Eric T. Mitzenmacher
Several states are moving to require that businesses clearly inform consumers when they are interacting with AI-powered chatbots or callbots, aiming to prevent confusion and protect sensitive information. Proposed bills in Alabama, Hawaii, Illinois, Maine, and Massachusetts would classify failure to disclose AI use in consumer communications as a deceptive or unfair practice, exposing companies to legal risks and regulatory scrutiny as AI becomes more prevalent in customer service.
AI News from Other Fields
How AI is Remaking Lithium-Ion Battery Recycling
artificialintelligencemadesimple.substack.com
Devansh, Mith Besler
Artificial intelligence is transforming lithium-ion battery recycling by automating dismantling, sorting, and process control, which boosts material recovery, reduces costs, and lowers environmental impact. Digital twins and data-driven tools enable real-time optimization and predictive maintenance, preventing accidents and maximizing efficiency. China leads in deploying these technologies, but Western firms are catching up. This AI-driven shift is essential for scaling sustainable battery recycling globally and supporting a circular economy.
Pope Leo XIV says advancement of AI played a factor in his papal name selection
NBC News
Angela Yang
Pope Leo XIV, newly elected and the first U.S.-born pontiff, explained that his papal name reflects a commitment to addressing social issues in an era shaped by artificial intelligence, drawing parallels to Pope Leo XIII’s response to the Industrial Revolution. He emphasized the Church’s role in safeguarding human dignity and justice as AI transforms labor, spreads misinformation, and deepens inequalities, pledging to build on the social justice legacy of his predecessors.
Goldman is assembling a growing arsenal of AI tools. Here's everything we know about 5.
aol.com
Bianca Chan, Reed Alexander
Goldman Sachs is rapidly integrating generative AI across its operations, deploying tools like an AI assistant, specialized copilots for bankers and engineers, a smart data search platform, and an in-house translation service. These solutions are designed to boost productivity, automate routine tasks, and enhance access to information while safeguarding proprietary data. The firm aims for widespread adoption, expecting nearly all employees to use AI tools in their daily work by year-end.
How we’re approaching AI-generated writing on Medium
Motivation
Md kamrul Islam
Medium is responding to the rise of AI-generated writing by requiring clear labeling of any content created with AI tools, aiming to empower readers through transparency. While the platform welcomes responsible AI use, it will not promote undisclosed AI-generated work. Individual publications on Medium can set stricter rules, with some banning AI-written submissions entirely. The company anticipates evolving its policies as technology and community perspectives develop.
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