Here’s a quick look at the biggest AI news from the past week. We’ve pulled together the headlines shaping technology, business, and policy.
1. Trump signs executive order limiting state AI rules
President Trump and major tech companies are pushing for federal control of AI regulation, arguing that a patchwork of state laws would slow innovation and weaken U.S. competitiveness. Critics, including state leaders and consumer advocates, counter that state-level action is necessary to address regulatory gaps. That divide is playing out in California, where Governor Gavin Newsom recently signed targeted AI bills addressing issues like AI-generated content labeling and chatbot protections for minors. For legal and legal ops teams, the split signals ongoing regulatory uncertainty and the likelihood of navigating overlapping federal and state AI requirements for the foreseeable future. [Politico]
2. AI spending surge prompts ROI scrutiny
As organizations invest heavily in AI, legal operations leaders are increasingly asked to demonstrate measurable value. Legal ops professionals are now expected to apply their software vetting and value-justification skills to AI adoption, showing not just cost savings but improvements in lawyer engagement, workflow efficiency, and experience. Metrics like “return on experience” may become as important as traditional ROI in securing ongoing budget support. [Bloomberg Law]
3. Lawyers fight AI hallucinations with new tools
Law firms are adopting specialized AI tools to combat hallucinations. After a sanction involving fabricated legal citations, law firm Cozen O’Connor is trialing a tool that flags inaccurate legal references, functioning like a “spell-checker” for briefs. For legal teams, this highlights the growing need for AI validation and audit workflows before external filing or submission. [Business Insider]
4. Big law structure may shift as AI adoption grows
Reuters reports that large law firms are rethinking traditional “pyramid” staffing models in response to AI tools handling many routine tasks once performed by junior lawyers. Firms may shift toward a flatter structure that emphasizes mid- and senior-level lawyers while using AI for basic work. Legal ops should prepare for role evolution and new training needs as AI changes staffing and talent strategies. [Reuters]
