AI Week in Review - 5/24/25

The Details

Federal

US House passes 10-year moratorium on state AI laws
The U.S. House narrowly passed a budget bill with a 10-year moratorium on state AI laws, sparking fierce debate over federal overreach and consumer protection as it heads to a divided Senate.

Inside GSA’s AI strategy: Using the tech while learning how to buy it
GSA is simultaneously deploying its own AI tools and shaping federal procurement models, aiming to scale responsible AI adoption across government while tackling challenges like pricing and security.

GAO urges stronger oversight as AI use grows in financial services
A new GAO report highlights both the benefits and risks of AI in financial services and urges stronger oversight—especially for credit unions—by updating model risk guidance and granting NCUA authority to examine tech providers.

Federal judge mulls sanctions for attorneys who used AI in court filing
A federal judge is weighing sanctions against Alabama state attorneys who used AI tools to draft court filings that included fake legal citations, highlighting growing concerns over unverified AI use in legal practice.

Trump Signs TAKE IT DOWN Act into Law
President Trump has signed the bipartisan TAKE IT DOWN Act into law, establishing strict penalties for sharing nonconsensual explicit or AI-generated imagery and mandating swift content removal by platforms to better protect victims of digital exploitation.

Cyber agencies release AI data security guidance
A new joint advisory from U.S. and allied cybersecurity agencies outlines best practices to secure AI training and operational data, emphasizing risks from data poisoning, supply chain compromise, and data drift.

NOAA’s AI fire system transforms emergency response
NOAA’s AI-powered Next Generation Fire System is rapidly gaining adoption nationwide for its near-instant wildfire detection, credited with saving hundreds of millions in property and enabling faster firefighting response.

State / Local

Utah AI Policy Office Director: ‘We’re just getting started’
Utah’s AI Policy Office is pioneering regulatory sandboxes to safely advance private-sector AI innovation, focusing on mental health, deepfakes, and trust-building through collaborative governance.

AI-powered governments better positioned to combat AI-driven fraud
A new study finds government agencies increasingly view GenAI as essential to combating rising AI-driven fraud, though most still lack the tools, training, and governance to deploy it effectively.

How AI is reshaping modern policing
AI tools are transforming law enforcement by streamlining investigations, improving situational awareness, and enhancing public trust—provided transparency, oversight, and interoperability are prioritized.

Arizona launches AI steering committee
Arizona has launched an AI steering committee to craft statewide guidelines for ethical AI adoption in government, aiming to balance innovation with public trust and accountability.

Attorneys general urge Congress to reject ‘irresponsible’ state AI law moratorium
Forty state attorneys general have urged Congress to reject a proposed 10-year moratorium on state AI regulations, warning it would eliminate critical consumer protections and undermine bipartisan legislative progress.

Nevada is using AI to prescreen unemployment claims
Nevada is using AI to prescreen unemployment claims, accelerating processing by 30 times while maintaining 99.99% accuracy and ensuring human oversight and data privacy.

Why Colorado's rethinking its burdensome AI regs
Colorado is reconsidering its stringent AI law amid fears it could stifle innovation and harm small businesses, offering a cautionary tale for states pursuing premature regulation.

Pennsylvania turns to AI to speed up hiring
Pennsylvania is using generative AI to cut state hiring times to under 50 days, modernizing processes like job description drafting and interview scheduling.

Connecticut lawmakers push for new AI protection for youth
Connecticut lawmakers are advancing AI and data privacy legislation to protect children from online harms like exploitative chatbots, despite industry opposition and uncertain support from the governor.

International

'Stargate UAE' AI datacenter to begin operation in 2026
The UAE’s Stargate project, backed by major U.S. tech firms and set to launch in 2026, will house 100,000 Nvidia AI chips, forming the world’s largest AI data center complex outside the U.S.

Unleashing AI: Canada’s blueprint for productivity, innovation, and workforce integration
Canada’s new AI blueprint urges a shift from lab-based innovation to workforce-integrated adoption, promoting productivity-enhancing AI while safeguarding jobs and aligning economic policy with long-term prosperity goals.

EU and OECD unveil global framework to teach AI literacy in schools
An international coalition led by the EU and OECD has released a draft AI literacy framework for primary and secondary schools, emphasizing technical, ethical, and human skills to prepare students for an AI-driven world.

Canada now has a minister of artificial intelligence.
Canada’s newly appointed AI Minister, Evan Solomon, is tasked with spearheading national AI adoption, infrastructure, and regulation, with a focus on boosting productivity, public services, and digital sovereignty.

Wuhan pilots China’s embodied AI vision as a fast track to AGI
Wuhan is piloting China’s state-driven approach to embodied AI as a pathway to artificial general intelligence, blending industrial optimization with ideological supervision.

AI set to revolutionize weather forecasting
AI models are showing greater accuracy than traditional supercomputers in predicting extreme weather, suggesting consumer weather forecasts could shift to AI within a few years.

Everything Else

Why GenAI isn’t transforming government (yet)
Despite growing hype, GenAI has yet to meaningfully transform public-sector workflows due to institutional inertia, governance gaps, and a mismatch with bureaucratic structures.

Google launches $250 per month ‘VIP’ AI subscription
Google has launched “AI Ultra,” a $249.99/month subscription offering VIP access to its most advanced AI tools and experimental features as it seeks to monetize cutting-edge innovations.

Anthropic launches Claude 4
Anthropic has released Claude Opus 4 and Sonnet 4, significantly advancing coding, reasoning, and agentic AI capabilities with new tool use, memory, and integration features across development environments.

Agentic AI is already changing the workforce
As AI agents become integral to the workforce, organizations must rethink labor strategies by integrating digital teammates, reshaping operating models, and balancing efficiency with human-centric values and governance.

OpenAI forges deal with iPhone designer Jony Ive to make AI-enabled devices
OpenAI is acquiring Jony Ive’s device startup io for nearly $6.5 billion to develop AI-enabled hardware, marking a bold push into “physical AI” that blends cutting-edge design with advanced intelligence.

Anthropic raises the bar: AI safety level 3 activated to protect against catastrophic risks
Anthropic has activated AI Safety Level 3 protections for Claude Opus 4, implementing advanced deployment and security measures to guard against misuse in CBRN-related threats and safeguard model weights from sophisticated attackers.

Anthropic’s new hybrid AI model can work on tasks autonomously for hours at a time
Anthropic’s new Claude Opus 4 model advances AI autonomy by sustaining multistep tasks for hours, paving the way for more capable, memory-driven AI agents with significantly reduced reward-hacking behavior.

Meet the AI agents defining the new customer experience
AI agents are transforming online shopping into a personalized, streamlined experience, requiring brands to redesign customer journeys and interfaces for a future where digital assistants drive purchasing decisions.

Google launches Veo 3, an AI video generator that incorporates audio
Google has launched Veo 3, an AI video generator with built-in audio creation capabilities, distinguishing it from competitors and making it available through its new Ultra subscription and enterprise platforms.