AI Regulation & Policy

Today's Stories

1. 1

   Google courts Hollywood with AI licensing deals

   Google has reportedly approached major studios such as Disney, Warner Bros. Discovery, and Universal to license their copyrighted content for AI training, offering hundreds of millions of dollars. A single character from a studio like Disney/Pixar could fetch around $40 million, with potential payouts reaching into the billions. These deals could give Google's Gemini a boost by generating approved images of iconic characters, potentially improving public perception of AI. However, studios risk alienating workers and audiences, especially after negative reactions to AI use in films like Spider-Man: Brand New Day, which still grossed $2 billion.

   Whether any major studio will accept Google's offer, as Lionsgate's 2024 deal with Runway has yet to produce tangible results. The potential for AI to cut production costs while risking jobs remains a key consideration.

2. 2

   Kashima City launches AI chatbot for citizen inquiries

   Kashima City officially launched an AI chatbot on its website in April 2026 to answer citizen inquiries. The pilot ran from December 18, 2025 to February 28, 2026, and used Anthropic's Claude Sonnet. With a shrinking population and fewer workers, the city needs to maintain services. The chatbot could save about 590 hours of work per year, freeing staff for more complex tasks, according to the city.

   The city will continue testing in full operation and plans to expand the AI's use. It also used Claude Code for in-house development, aiming to build internal skills.

3. 3

   Protect Democracy sues to reveal Trump's secret AI safety framework

   Protect Democracy sued four federal agencies to force disclosure of the Trump administration's classified review framework for frontier AI models. The group alleges 'almost no details' have been shared with the public or Congress, and seeks all unclassified information by September 30. The group says the secret process raises corruption risks, with officials potentially favoring AI firms Trump likes and retaliating against others, as seen in Trump's blacklist of Anthropic. If the 'covered frontier model' definition is unclear, dangerous AI could slip through or agencies could be overstretched by DOGE cuts.

   Congress must decide by September 30 (earliest) or December 11 (latest) whether to extend CISA provisions that sustain GOLD EAGLE, the administration's industry-partner program. Protect Democracy says it will post all obtained documents publicly if successful.

4. 4

   US DOJ backs fair use for AI training

   The US Department of Justice has sided with AI companies in a copyright lawsuit brought by the New York Times, arguing that training AI models on copyrighted material qualifies as fair use. The DOJ argues that copyrighted text used for training does not amount to infringement because outputs "often if not always lack substantial similarity" to originals. This is a landmark case seen as a bellwether for how courts will handle copyright and AI training.

   The DOJ's position conflicts with a US Copyright Office report that rejected blanket fair use. The Copyright Office argued that commercial applications competing with original works exceed what fair use allows.

5. 5

   NYC mayor bans AI for young students for one year

   Mayor Zohran Mamdani and Schools Chancellor Kamar Samuels announced a one-year moratorium on student-facing generative AI for children in 2-K through eighth grade, covering nearly 600,000 students, and banning companion chatbots across every grade. The mayor said he has yet to see a study showing AI benefits elementary and middle school students, except research sponsored by corporations that profit. Education advocates had asked for a two-year pause, while more than 250 CEOs—including heads of Microsoft, Adobe, Dell, AMD, and IBM—signed a letter calling for mandatory AI education in every U.S. high school.

   The policy still allows AI for high schoolers, with Mamdani saying the city will teach students about AI's opportunities and pitfalls. Tech:NYC's Julie Samuels cited a CBRE report showing New York has more tech jobs than the Bay Area, suggesting the city should expand AI access beyond one hour per week for high schoolers.

6. 6

   Trump Administration Sides With OpenAI in NYT Copyright Case

   The Trump Administration submitted a letter to the court, arguing that OpenAI's training on copyrighted works is "fair use" and that the Times' definition is "inconsistent" with current copyright law. The government says a win for the Times could "thwart" AI progress and hinder "American prosperity." Courts consider fair use conditions, and the administration argues AI training is "extraordinarily transformative" and doesn't compete with the Times' articles.

   The judge, Sidney H. Stein, is not obliged to follow the letter, but a lawyer says it "carries a lot of weight" because it comes from the Department of Justice. Other lawsuits, including ones by Sony and Warner Music against Anthropic, are ongoing.