AI Regulation & Policy

Today's Stories

1. 1

   Meta AI glasses lawsuit: footage used to train AI

   A new lawsuit alleges Meta turned footage captured through its AI-powered Meta Glasses into training data for its AI systems without adequately disclosing how the data was handled. An amended complaint, filed on August 31, expands the case to include bystanders who never bought or wore the glasses but were recorded without their knowledge. The complaint challenges Meta's marketing of the glasses as "designed for privacy, controlled by you," arguing that when AI features are active, imagery and audio can be transmitted to Meta's servers and used to train AI models. The allegations gained traction after a February 2026 investigation by Swedish newspapers, based on interviews with workers at Sama, a Kenya-based outsourcing company that performed data-annotation work for Meta, describing footage containing highly intimate material.

   The case is still in litigation, and the allegations have not been proven in court. The outcome hinges on whether Meta's privacy assurances are found to conceal a human-review pipeline, as the original complaint alleged recordings were routed to Sama workers in Kenya.

2. 2

   Texas governor pitches AI data center rules, property tax caps in Lubbock

   Governor Greg Abbott visited Lubbock on Friday, hosting a roundtable with local business owners, House Speaker Dustin Burrows, and State Senator Charles Perry. He outlined strict guidelines for AI data centers, saying Texas has the most stringent requirements to protect rural communities, barring construction in neighborhoods or rural communities that don't want them. Abbott linked these rules to affordability, which was the main subject. He proposed capping property tax increases, requiring a two-thirds vote for any rise, lowering the annual cap on property value increases, and reducing appraisals to once every five years. Cities and school districts face budget shortfalls, which they attribute to previous property tax cuts, despite Abbott noting an $8 billion investment in public education last year, which schools say is not enough.

   The next legislative session, starting in January, will focus on affordability, according to Speaker Burrows. A key concern is whether state decisions can balance growth and affordability, as cities like Wolfforth depend on property and sales tax to fund police, fire, and public works, so the outcome hinges on how new limits affect municipal budgets.

3. 3

   Publishers seek share of Anthropic settlement

   Some authors expecting payments from Anthropic's $1.5 billion copyright settlement received emails saying others are claiming their shares. Publishers and literary agencies are making claims on works, including those where rights reverted long ago. Authors who self-published or had rights revert should receive the full $3,000 per pirated work, but publishers are sometimes claiming 100% when they're only entitled to 50%. This could delay or reduce payments to authors.

   Whether these claims are systematic errors or malice. The Authors Guild believes it's from poor recordkeeping, but the volume of similar complaints suggests a wider issue. Authors can dispute allocations, but 100% claims require rights reversion before August 10, 2022.

4. 4

   OpenAI's Pachocki Calls for Stronger AI Safeguards

   Jakub Pachocki, in a post on OpenAI's blog, reflects on increasingly capable AI and the challenge of keeping it aligned, calling for stronger safeguards and international coordination. As AI systems become more capable, ensuring they remain aligned with human intentions is a growing challenge. Pachocki's remarks highlight the need for proactive measures to manage advanced AI responsibly.

   The effectiveness of proposed safeguards and international coordination will be key in addressing alignment challenges. Progress in this area may influence future AI development and policy.

5. 5

   AI food ads spark backlash; restaurants say they're temporary

   Restaurants are using generative AI to create food ads instead of photographing real meals. Examples in New York City and San Francisco have drawn criticism online, with one X post gaining 2.8 million views and a Reddit post about a "trypophobia burrito" earning over 670 upvotes. Professional-looking food ads no longer require professional photography, which helps small businesses save time and money. However, AI can depict meals that never existed, raising questions about when an ad becomes deceptive—a concern experts like Harvard Law professor Rebecca Tushnet and advertising lawyer Libby O'Neill say depends on whether the image makes specific claims about the product.

   The test is whether customers accept imperfect real photos over polished fake ones, and whether regulators or courts clarify the line for AI-generated food imagery. The 1965 Supreme Court case FTC v. Colgate-Palmolive Co. shows the issue isn't new, but AI's ability to create photorealistic fakes may push the boundary further.

6. 6

   UN Report: States, Humans Responsible for AI Weapons Use

   A UN official expert meeting on Lethal Autonomous Weapons Systems (LAWS) has finalized a report stating that responsibility for their use lies with states and individuals, and confirming that existing international humanitarian law applies. The report, though non-binding, sets a foundation for future regulation and marks a rare consensus among major powers like the US and Russia. It could revive stalled discussions, especially with a CCW review conference in November.

   The report's adoption was difficult, with the US and Russia demanding amendments. Whether binding rules emerge may hinge on the November CCW conference and progress after the report's official release.