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Sidley AI Monitor

Latest AI Developments

Jurisdictions and Industries:

On June 2, 2026, President Trump signed an Executive Order directing federal agencies to strengthen the cyber defenses of government and critical-infrastructure information systems against AI-enabled threats. Agencies are directed to collaborate with industry to establish (1) a voluntary AI cybersecurity clearinghouse to coordinate the detection, validation, and remediation of software vulnerabilities and (2) a voluntary framework through which AI developers can seek a "covered frontier model" designation for their models and grant the government pre-release access. The Order also directs prioritized prosecution of those who use AI to unlawfully access or damage computer systems.June 2, 2026

North America

On May 26, 2026, Pennsylvania State Rep. Jason Ortitay (R) introduced H.B. 2534, the Artificial Intelligence Transparency Act. Covered generative AI providers would have to offer a free AI detection tool, give users the option to add a visible AI-generated label to their content, and embed a machine-readable disclosure identifying the AI system. Large online platforms would have to detect such machine-readable data and display it to users.May 26, 2026

North America

On May 21, 2026, the New York State Department of Financial Services issued Guidance on measures regulated entities should consider when cybersecurity risks become elevated, such as upon the release of frontier AI models. It recommends practices to reduce the attack surface, improve threat detection, and strengthen resilience, including by remediating known exploited vulnerabilities, employing phishing-resistant multifactor authentication, validating AI-generated code, and working with third-party providers.May 21, 2026

North America

On May 21, 2026, New Jersey State Sen. Joseph Cryan (D) introduced S.B. 4314, which would amend the New Jersey Consumer Fraud Act to prohibit online retailers, airlines, ticket brokers, and transportation network companies from using personalized algorithmic pricing, surveillance-based pricing, or other strategies that vary the price of merchandise or services based on a consumer’s personal data, including biometric or protected class data.May 21, 2026

North America

On May 20, 2026, Michigan State Sen. Mallory McMorrow (D) introduced S.B. 991, which would amend the Michigan Consumer Protection Act to prohibit any person engaged in online trade or commerce from using personalized algorithmic pricing to offer a consumer a price based on the consumer’s online device hardware or software state, the device’s geolocation data when used to make inferences about the consumer, or the consumer’s protected class data. Insurers are exempt.May 20, 2026

North America

On May 15, 2026, New York State Sen. Andrew Gounardes (D) introduced S.B. 10373, which would require large frontier AI developers to annually engage an independent third-party verifier to assess the developer’s compliance with its frontier AI framework and the consistency of its public statements about catastrophic risk. Verifier reports would be retained for five years, and a summary would be published.May 15, 2026

North America

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