A group of consumers filed a class action in the U.S. against Microsoft, alleging that its exclusive cloud deal with OpenAI restrained competition and inflated AI subscription prices. Reuters
In California, Governor Newsom vetoed a proposed bill restricting minors’ access to AI chatbots, but signed SB 243, which mandates clear disclosures that users are talking to bots, plus mental‑health safeguards. GovTech+3AP News+3The Verge+3
He also approved SB 53 (Transparency in Frontier Artificial Intelligence Act), introducing oversight and safety rules for powerful AI models. CCIA
The International Monetary Fund warned that although current AI investment is booming, it could collapse like previous tech bubbles — though not likely to cause a systemic economic crash. Reuters+1
Regulation
The EU launched its Apply AI Strategy in October 2025 to support SME adoption of AI, aligned with the “AI Continent” initiative. Digital Strategy
Some Member States still lag in designating national authorities required under the EU AI Act, despite the August 2025 deadline for reporting resource commitments. Eversheds Sutherland
In the UK, the Intellectual Property Office is consulting on major updates to design law, including how to treat AI‐generated designs under protection. Katten
The European Commission continues reviewing guidelines and codes of practice for transparency under the AI Act; recent deadlines include consultations on system reporting and simplification of EU legislation. Kemp IT Law
Academia
Adoption of Watermarking for Generative AI Systems analyses 50 image models and finds that only few currently meet the watermarking requirements anticipated under the EU AI Act. arXiv
Business
Europe is pushing for AI independence: firms like SAP and ASML are investing in regional AI startups to avoid overreliance on U.S. or Chinese technologies. Bloomberg
Legal and compliance startups are seeing demand increase as regulation tightens: toolkits, transparency modules, and auditing services are in greater supply.
Adoption of AI
The California bot‑disclosure law signals that interface design must now embed legal safeguards by default.
Application of watermarking and other passive technical measures is still patchy, suggesting many generative systems lag regulatory readiness.
AI agents are being conceptualised as actors with legal constraints rather than passive tools — shifting the design focus toward built‑in compliance.
Takeaway
Regulation is now shaping how AI is built, not just how it is used. As legal theory catches up, the question is not only “what AI can do”, but “how AI should do it” — transparently, lawfully, and with accountability mechanisms woven in from the start.
Sources: Reuters, AP News+2The Verge+2, Reuters+1, Digital Strategy, Eversheds Sutherland, Katten, Kemp IT Law, arXiv, Bloomberg