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AI Regulation & Policy

Jul 25, 2026

AI Regulation & Policy

The Gist

The U.S. Veterans Affairs Department awarded Salesforce a $1.6 billion contract to integrate AI into veteran healthcare services, while regulators globally are tightening oversight—Canada launched a transparency consultation through 2026, a Brazilian court penalized lawyers for concealing AI use in filings, and Montana is considering privacy protections against AI license-plate cameras at retailers. Meanwhile, cities are exploring ways to make AI procurement more environmentally sustainable through stricter criteria.

Today's Stories

  1. 1

    VA awards Salesforce $1.6B to integrate AI into veteran care

    The Department of Veterans Affairs awarded a contract valued up to $1.6 billion(約2600億円) to Salesforce to develop and integrate artificial intelligence into existing workflows supporting customer communication, patient care coordination, and the claims approval process. The initial agreement is for one year with the option of two one-year renewals. The VA serves more than 9 million veterans enrolled in its health care services, and the AI buildout is designed to reduce administrative friction for staff and speed up critical functions like appointment scheduling, benefits verification, and claims processing. The VA Press Secretary clarified that AI agents will help customer service representatives access information faster for veterans, not replace them.

    The VA will participate in the White House's Genesis Mission—a whole-of-government initiative involving 15 federal agencies—and will contribute its electronic health records and genomic data from the Million Veteran Program to help train AI models to detect disease and health risks earlier.

  2. 2

    Veterans Affairs awards Salesforce $1.6B AI contract

    The US Department of Veterans Affairs signed a three-year, $1.6 billion(約2600億円) agreement with Salesforce to deploy agentic AI (software agents that can act autonomously) across the department, including a virtual contact center that handles live calls and a Slack-based operating system already in use at some VA hospitals. VA employees currently spend time navigating disconnected systems instead of serving veterans; Salesforce's deal is meant to reduce that administrative burden by connecting data and workflows, letting staff access information faster and spend more time delivering care and benefits.

    The contract uses Salesforce's Agentic Enterprise License Agreement (AELA), a flat, seat-based pricing model announced in October last year that sparked concerns from analyst firm Gartner about potential cost overruns if usage is uncapped—though Salesforce has said renewals will remain flexible.

  3. 3

    AI license-plate cameras at retailers spark Montana privacy bill

    Flock Safety cameras are operating in Great Falls retailers like Home Depot, scanning license plates and vehicle details. Montana State Senator Daniel Zolnikov is drafting legislation to require law enforcement to obtain a warrant before accessing that data from private surveillance systems. Montana's 2017 license plate reader law restricted government cameras on public roads, making the state a near-void in national databases. But Flock operates on private property—creating a legal gap. Zolnikov notes this shift: "it's not one government camera. It's 10,000 private cameras," requiring new protections to preserve Montana's strong privacy record.

    Zolnikov says he already has a first draft of the warrant-requirement bill and calls it a bipartisan issue. Montana's constitution explicitly guarantees the right to privacy, one of only a handful of states with that protection in its founding document.

  4. 4

    Canada opens AI transparency consultation through September 2026

    The Government of Canada launched a public consultation on increasing AI transparency, running from July 23 to September 23, 2026. The survey invites Canadians to share views on five areas: detecting AI-generated content, disclosing when people interact with AI systems, improving information availability about AI capabilities and limitations, tracking serious AI incidents, and monitoring AI agent activity. AI systems already power many products and services Canadians use daily. Increased transparency can help the public understand when they interact with AI, help businesses make informed adoption decisions, and give governments the data needed to develop policies and research. The consultation supports Canada's National Artificial Intelligence Strategy goal of ensuring AI adoption is responsible and benefits all Canadians.

    Submissions are anonymous and accepted via survey or email to AIConsultations-ConsultationsIA@ised-isde.gc.ca through September 23, 2026. Following the consultation, the government will review feedback and publish a What We Heard report; AI tools may be used to process the volume of submissions received.

  5. 5

    Brazilian court catches lawyers hiding AI instructions in legal filings

    A labor court in northern Brazil discovered that plaintiff's lawyers had embedded a hidden prompt instruction in white text on a white background in their petition, directing the court's AI system (Galileu) to respond superficially and not challenge filed documents. The AI detected the instruction and the judge sanctioned the lawyers. The incident reveals a new form of legal fraud—"prompt injection"—that exploits AI tools courts are increasingly using to organize case documents and draft rulings. Because legal proceedings involve enormous volumes of text and the full force of the state, the temptation to manipulate AI systems poses a systemic risk to judicial integrity that existing ethics frameworks are not yet equipped to address.

    Other Brazilian courts have already detected similar attempts in recent weeks. Spain's General Council of the Judiciary issued guidance in January regulating how judges may use AI, but countries like Spain do not yet have AI systems in courts comparable to Galileu. Legal experts warn that the line between aggressive client defense and court deception must be established clearly before the practice spreads.

  6. 6

    Cities can green AI procurement through environmental criteria

    A new handbook guides municipal governments on incorporating environmental performance standards into AI procurement decisions, based on 10 months of fieldwork and interviews with city staff and green software experts. As public agencies adopt AI, residents and staff are increasingly concerned about the environmental impact of AI infrastructure on emissions targets and IT costs—creating pressure for more sustainable procurement practices that don't sacrifice service quality.

    The guide is designed for anyone involved in AI adoption in an organization and offers entry-level, low-effort actions that can be added to standard procurement processes.

What to Watch

Watch for the VA's participation in the White House's Genesis Mission to potentially accelerate how federal agencies leverage health data for AI model training, while simultaneously monitoring whether Salesforce's newer pricing model becomes a template or cautionary tale for government procurement of enterprise AI tools. Additionally, expect momentum on bipartisan AI warrant-requirement legislation—particularly from states like Montana with constitutional privacy protections—alongside emerging international court battles over AI use in legal proceedings that will likely shape how democracies regulate AI in the judiciary before systems become widespread.

Sources

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