News
The U.S. Commerce Department introduced a “50 % rule” extending export licence obligations to subsidiaries more than half-owned by entities on restricted lists, a move expected to affect AI firms operating globally. Axios
In the U.S., a proposal is gaining ground for independent AI safety panels to certify models; companies meeting standards might receive limited legal immunity. Axios
Regulation
California’s SB 53, requiring large AI firms to publish safety disclosures and report critical incidents, will take effect 1 January 2026, placing new burdens on employers. HR Dive+2Vox+2
Connecticut amended its data privacy law to require businesses to disclose whether they use personal data to train large language models, effective 1 July 2026. BCLP
The European Commission opened consultation on serious-incident reporting under the AI Act, including a reporting template, with feedback due by 7 November 2025 (European Commission).
Cases
A proposed class action targets employers’ use of AI in hiring, alleging algorithmic bias and lack of transparency in automated decision-making. JD Supra
Events
A podcast episode on Scaling Laws: AI Safety Meet Trust & Safety aired today, analysing how trust & safety frameworks intersect with evolving AI regulation. Lawfare
Business
AI legal assistants are gaining adoption in corporate practice: e.g. CoCounsel is marketed for helping boards, compliance, and litigation response. Thomson Reuters Legal
Pressure on AI firms increases as the export control changes and state‑level regulation expand; managing cross‑jurisdiction compliance will be more complex.
Adoption of AI
The expanding regulatory patchwork, from state laws to export rules, is catalysing demand for governance tools that track legal compliance, model risk, and cross‑border obligations.
Trust & safety frameworks are being more widely discussed in conjunction with technical safeguards, especially in content platforms and moderation systems.
Takeaway
The regulatory noose is tightening. Between export control changes, state AI safety mandates, and litigation over hiring AI, firms must coordinate legal, technical and governance strategies. Embedding compliance in AI is not only a design challenge but a competitive necessity.
Sources: Axios, Axios, The Times, HR Dive, Reuters+1, BCLP, JD Supra, Lawfare, Thomson Reuters Legal, European Commission.