AI Week in Review - 5/31/25

Public Sector

The Details

Federal

NIST creating new ‘cyber AI profile,’ looking at AI overlays
NIST is launching a “Cyber AI Profile” to guide secure AI adoption and development, emphasizing transparency, community input, and tailored risk management strategies under its Cybersecurity Framework.

Palantir teams up with Fannie Mae in AI push to sniff out mortgage fraud
Fannie Mae is partnering with Palantir to deploy AI-driven tools to detect mortgage fraud faster, signaling deeper federal ties with the defense tech firm and potential expansion to Freddie Mac.

Legacy government systems enter the AI era
AI-powered tools can help federal agencies modernize legacy systems like COBOL, reducing costs and risks while accelerating secure, compliant software development for a more resilient digital government.

Energy Dept. unveils supercomputer that merges with AI
The Department of Energy’s new Doudna supercomputer merges AI and scientific computing using Nvidia chips, marking a shift toward commercial AI tech to power national research and innovation.

Washington and Silicon Valley merge in high-stakes AI race
A deepening alliance between U.S. tech giants and the federal government is reshaping AI, energy, and defense policy, accelerating deployment while raising concerns about regulation, dependency, and global risk.

SSA looks to AI to slash call wait times
SSA Commissioner Frank Bisignano plans to cut call wait times to single digits and tackle massive backlogs using AI and IT modernization, aiming to transform SSA into a digital-first agency.

State / Local

AI helps school districts bus kids
AI-powered tools are helping school districts optimize bus routes, cut inefficiencies, and address driver shortages, enabling more effective and adaptive student transportation in an era of school choice.

CA county sheriff’s office starts using AI software to redact documents
Riverside County’s sheriff’s office is using AI tool to automate redaction of sensitive information in digital evidence, boosting efficiency, transparency, and compliance with public records laws.

Michigan’s AI Workforce Plan targets jobs, growth, and innovation
Michigan’s new AI and Workforce Plan aims to create 130,000 jobs and generate $70 billion in economic impact by embedding AI into education, upskilling workers, and supporting business adoption.

Bar exam backlash: AI missteps trigger legal and licensing turmoil
After a chaotic AI-assisted bar exam marred by tech failures, California’s State Bar faces lawsuits, a return to in-person testing, and scrutiny over its ability to fairly license attorneys.

CA to use GenAI for legislative cost analysis
CA will use GenAI to streamline legislative cost analysis, aiming to boost efficiency and transparency in bill evaluation as part of a broader initiative to modernize state government operations.

How Trump AI law could spark a constitutional crisis
Trump’s sweeping bill banning state AI regulations faces likely court challenges, as legal experts argue it oversteps constitutional limits without establishing a comprehensive federal AI framework.

Arkansas deploys AI to transform inspections and strengthen public safety
Arkansas’ Department of Labor and Licensing launched an AI-powered inspection system to streamline field operations, cut inspection times, and boost safety, accountability, and efficiency through data-driven tools.

International

UK Government releases AI Knowledge Hub
The AI Knowledge Hub offers UK public sector teams practical tools, real use cases, and evolving guidance to adopt AI responsibly and effectively across government services.

AI-powered “Humphrey” helps councils cut red tape and build homes faster
25 councils are trialing "Humphrey," a government-built AI suite, to reduce admin tasks like note-taking in planning and social care, aiming to boost productivity and housing delivery.

Largest ever UK defense AI trial conducted across land, sea and air
The UK’s biggest defense AI trial tested advanced systems across land, sea, and air to enhance surveillance, targeting, and decision-making, supporting frontline personnel and strengthening international defense ties.

New research program will study potential of AI to enhance Arctic security
The Alan Turing Institute is using £554k in UK funding to explore AI-driven surveillance and environmental monitoring to boost maritime security and strategic stability in the rapidly changing Arctic.

Fresh UK-EU collaboration on AI to unlock innovation
The UK launched a new AI partnership with the EU, aiming to link British researchers to European supercomputers and accelerate breakthroughs in health, energy, and innovation through shared computing power.

Macron in Singapore to advance AI cooperation
During his state visit to Singapore, French President Macron will formalize agreements on AI, defense, and transport, highlighting deepening bilateral ties and marking 60 years of diplomatic relations.

UK announces new action to detect hostile state activity using AI
The UK is deploying AI to monitor hostile activity in the Arctic, strengthening security ties with Norway and Iceland amid rising geopolitical tensions and climate-driven competition in the High North.

Japan enacts bill to promote AI development and address its risks
Japan passed a new law to promote AI development while addressing risks like misinformation and deepfakes, emphasizing oversight without penalties to avoid hindering innovation.

China unveils world’s first AI nuke inspector
China has unveiled the world’s first AI-based nuclear warhead inspector, using advanced deep learning and cryptographic protocols to verify authenticity while safeguarding classified weapon designs—raising global security and transparency stakes.

Everything Else

Reed Hastings appointed to Anthropic’s board of directors
Netflix co-founder Reed Hastings joins Anthropic’s board, bringing tech leadership and philanthropic experience to support responsible AI development aligned with societal and ethical priorities.

We made a film with AI. You’ll be blown away—and freaked out.
Using AI tools like Google’s Veo and Runway, WSJ producers created an impressive short film entirely with AI, revealing both the magic and madness of today’s video generation technology.

Jim Cramer: AI might be ‘the most important force’ when it comes to future employment
Jim Cramer warns that AI will be a transformative force in employment, with potential to boost productivity—but also displace millions of jobs across public and private sectors.

Top AI CEO foresees white-collar bloodbath
Anthropic CEO Dario Amodei warns AI could eliminate up to half of all entry-level white-collar jobs within five years, urging government and industry to stop downplaying the coming disruption.

Open-sourcing circuit tracing tools
Anthropic has open-sourced a tool to generate and explore attribution graphs, enabling researchers to trace and visualize how language models internally reason through prompts and produce outputs.

AI is keeping recent college grads out of work
AI is eliminating entry-level white-collar jobs, contributing to rising unemployment among recent college grads, according to Oxford Economics, signaling a shift in how technology impacts early career prospects.

NYT reaches AI licensing deal with Amazon
The New York Times signed its first AI licensing deal with Amazon, granting access to content for Alexa and AI model training, amid ongoing lawsuits with other tech firms over copyright.

AI cheating surge pushes schools into chaos
AI-driven cheating is disrupting schools as educators struggle with inconsistent policies, unreliable detectors, and unclear norms—prompting a shift toward in-class assessments and calls for AI literacy over prohibition.