States set up clash over AI regulation

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By Sara Merken

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U.S. President Donald Trump holds an executive order related to artificial intelligence after signing it during the "Winning the AI Race" Summit in Washington D.C., U.S., July 23, 2025. REUTERS/Kent Nishimura/File Photo

Republican and Democratic attorneys general from 35 states and D.C. urged congressional leaders not to block state laws governing artificial intelligence, warning of "disastrous consequences" if the technology is left unregulated.

The letter sets up a clash between the states and the Trump administration over AI regulation, as the industry seeks to avoid new laws scheduled to take effect in 2026 and states worry about injuries and deaths attributed to chatbot use.

"Every state should be able to enact and enforce its own AI regulations to protect its residents," said New York Attorney General Letitia James, who led the effort with attorneys general in North Carolina, Utah and New Hampshire. Read more from Jody Godoy.

In recent months, plaintiffs' firms have filed nine lawsuits accusing major class action settlement administrators of engaging in a kickback scheme with banks. The litigation has already set up a clash between two of the most prominent figures in the plaintiffs' bar, David Boies and Christopher Seeger. They'll face off next week when a federal judicial panel will decide whether to consolidate the cases into multidistrict litigation, and if so, which claims to include and where the cases should be heard, Jenna Greene writes in On the Case.

A record number of Americans had been expected to fly during Thanksgiving, but a 43-day government shutdown dampened demand for one of the year's busiest travel seasons … President Trump's battle with the BBC could threaten its global reach … Germany's Christmas markets are grappling with unprecedented security costs following a series of attacks … U.S. Treasury Secretary Scott Bessent said he was concluding a second round of interviews for a new U.S. Federal Reserve leader. Plus, a look at how a U.S. home insurance fix is becoming a problem.

sara.merken@thomsonreuters.com

@saramerken

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