AI law today revealed its practical edge. Regulators are starting to use AI in supervision, while courts are drawing hard lines on careless or misleading use of these tools.
Bank of England leadership said AI could help regulators detect “smoking guns” in supervision, urging greater use of data science in oversight (Reuters).
A US federal court fined lawyers over 24,000 USD for citing non-existent authorities, seen as a warning against unchecked AI tools in litigation (Reuters).
Regulation
The European Commission reaffirmed to MEPs that pausing the AI Act is not under consideration, focusing instead on coherence across digital rules (Euronews, IAPP).
The UK finalised the Data, Use and Access Act 2025, with targeted changes to UK GDPR, the Data Protection Act 2018 and PECR while avoiding major divergence from the EU (GOV.UK, Linklaters).
Ireland appointed fifteen competent authorities to enforce the AI Act, becoming one of the first EU states to set up a supervisory structure (Department of Enterprise, Trade and Employment).
Cases
A US judge in San Francisco preliminarily approved a 1.5 billion USD settlement between Anthropic and authors and publishers over training data, with compensation calculated per book (AP News).
In VP Evans v HMRC, the UK tax tribunal partly granted a disclosure application, and the judge confirmed limited use of AI when drafting the decision (Irish Legal News).
In the FIFA litigation, lawyers were sanctioned after filing defective citations widely attributed to AI misuse, reinforcing judicial scrutiny (Reuters).
Events
Trowers & Hamlins held a practitioner session on UK data and privacy law reforms, reflecting strong demand for compliance guidance (Trowers & Hamlins).
Academia
The OECD published guidance on responsible AI use in the public sector, stressing procurement, accountability and risk management (OECD).
Business
Competition authorities increased focus on AI-related partnerships and vertical integration in cloud and compute markets, raising concerns over interoperability (Global Competition Review).
Adoption of AI
Supervisors are piloting AI tools to strengthen financial oversight, signalling a shift from abstract policy to daily regulatory practice (Reuters).
Legal sector debate suggests the billable hour may not survive as AI tools reshape work and client expectations (Legal Futures).
Takeaway
AI is no longer just a policy problem but a matter of practice. Regulators are adopting it as a tool, while courts are cracking down on its misuse. The challenge is to capture the benefits without eroding trust in evidence, accountability and oversight.
Sources: Reuters, AP News, Euronews, IAPP, GOV.UK, Linklaters, Department of Enterprise, Trade and Employment, Irish Legal News, Trowers & Hamlins, OECD, Global Competition Review, Legal Futures