Cybersecurity & Tech

The Colorado Legislature is considering 2 competing data center regulation bills.  House Bill 1030 is a bill backed by data centers that would incentivize compliancee with state regulations in exchange for tax breaks.

In contrast, Senate Bill 102 is backed by local community groups and contains no incentives, instead imposing regulations including complying with local water rules, renewable energy sources, backup generator requirements, and local impact assessments.

Daily Camera | Colorado lawmakers duel over data centers: Grant millions in tax breaks or regulate them without incentives?

Yesterday the Dallas Federal Reserve announced that “Even a modest data center boom could substantially raise retail electricity prices and hence annual inflation. For example, under plausible assumptions about the data center build-out and utilization, annual PCE inflation in 2030 would increase by between 0.04 and 0.13 percentage points. Slower-than-expected growth of renewable energy sources—wind and solar—could nearly double the inflationary effect.”

Bitcoin value has a lot in common with my pug puppy who has really big feelings that change every minute.  A recent paper from the Dallas Federal Reserve tracks bitcoin sentiments. 

Specifically, the Dallas Fed used a social-sentiment contagion methodology to track “influences both individual trading decisions and overall market dynamics.” This novel measure of “contagion intensity significantly forecasts Bitcoin volatility, trading volume and market crashes.”

An AI agent was given permission to make changes. It did. That’s the root of the AWS 13 hour outage. Ai decided to re-write code and crash….@therundownai

A panel discussion at the National Association of Counties’ Legislative Conference discussed data centers, calling data centers the race to the bottom for local communities. 

Why? They say tech companies have not been good partners because tech companies fight against transparency and accountability. Is this the government affairs version of ‘Mean Girls

Route Fifty | Localities bemoan apparent ‘race to the bottom’ on data centers

The federal Executive Order for AI preemption reincarnated states rights. It’s like the early 2000s all over again. Time travel is real, folks.

At the Politico Governors Summit, Utah’s Republican Governor argued that state laws should ensure safety and that the U.S. Supreme Court will back him up on this.

Next Gov |Republican governor asserts states’ right to legislate AI

Apple has positioned itself as an alternative to tech stocks that are dependent on AI and its boom.

Bloomberg reports that Apple stock is distancing itself from other stocks. Apple’s correlation has dropped to 0.21, which is down from 0.92 in May 2025, and this distinguishes Apple stock from Ai dependent tech stocks. @gizmodo

@Gizmodo  (tech news) reports that Oxford researchers managed to jailbreak ChatGPT and discovered that Mississippi & Kentucky are said by ChatGPT to be the mentally laziest. 

South Carolina Legislature is taking a multiple prong approach to data centers regulation in the state.

S784 will remove tax incentives for development of and electricity by data centers.

S867 will remove local development authority and provide for state data center permitting. The bill will also prohibit rate payers from pay increased electric costs.

SC Policy Council | A trio of data center bills filed in the Senate

Wisconsin’s S.B. 130 / A.B. 105 is an age verification bill that bans certain VPN use. VPNs are used for all sorts of normal things, like say you’re a Swedish person who wants to be able to access more Swedish language tv and film. VPNs hide your location and are commonly used by abuse survivors, journalists, normal humans, universities, and businesses.

Since VPNs are not detectable by websites, it also makes Wisconsin’s legislation unworkable.

EFF | EFF to Wisconsin Legislature: VPN Bans Are Still a Terrible Idea

Arizona Legislature is considering requiring disclosures for digital purchases, e.g. books, that clarify for the consumer that the purchase isn’t permanent.

Sound weird? I read a lot of obscure authors and sometimes those e-book purchases are no longer available due to legalities and details of the publishing industry. HB 2010

AZ Mirror | Arizona bill would force companies to disclose that digital ‘purchases’ aren’t permanent

Pennsylvania Governor has bipartisan interest in his 4 tier data center standards. The Governor is calling for data centers to bring their own power generation projects, strict transparency with direct community engagement, hiring & training local workers, and high standards for environmental and water protection.

City & State PA | PA lawmakers show bipartisan interest in standards for data centers

India has set new rules for taking down deepfakes on the internet. A 3 hour deadline applies to orders to take down deepfakes and a 2 hour deadline for urgent user complaints. The new rules will also require labeling of AI images and sounds.

Tech Crunch | India orders social media platforms to take down deepfakes faster

The US Conference of Mayors, in partnership with Google, announced an AI playbook for cities.

An AI chatbot used by NYC to assist New Yorkers was found to be instructing businesses to break the law. There is also a revenue shortfall that can be eased by eliminating the AI chatbot.

The MarkUp | Mamdani to kill the NYC AI chatbot we caught telling businesses to break the law

We’ve talked about a variety of ways companies are pursuing data centers in space. This past Friday, SpaceX filed plans with the FCC for a million-satellite data center network. Well that escalated quickly.

 “Five years from now, my prediction is we will launch and be operating every year more AI in space than the cumulative total on Earth,” Musk said.

Tech Crunch | Elon Musk is getting serious about orbital data centers

We’ve been talking about Florida’s proposed AI bill of rights. It’s out of committee unanimously.

The 23 page bill bans companion chatbots from communicating its children, requires chatbot disclosures, bans foreign owned AI, stops the sale of data, & prohibits AI images without express permission.

Florida Phoenix | ‘I think about Jurassic Park’: DeSantis-backed AI Bill of Rights clears first committee hurdle

Remember how a bipartisan group of Texas legislators came forward opposing the Federal Excutive Order concerning federal AI preemption?

Well, there is also a letter from NCSL, the Council on State Governments, the National League of Cities, Conference of Mayors, and the National Association of State CIOs.

This letter states “We urge the President to reconsider this approach and work with states and local governments to build a strong, unified framework. An Intergovernmental AI Working Group would allow us to identify areas where state innovation can inform national policy while respecting states’ rights and leveraging the expertise of state and local leaders.”

Route Fifty | AI preemption ‘top of mind’ for state, local tech leaders

States are starting to form volunteer cyber civilian corps to protect themselves from cyber attacks. In Virginia this looks like HB 83 that allows the state’s technology agency to designate Virginians that will serve.

The cyber corp would provide rapid-response assistance under the direction of the state technology agency upon request from a client, or government agency, affected by a cybersecurity incident. 

Virginia Mercury | Virginia to consider joining states creating volunteer cyber civilian corps

First came mobile phone bans in schools, and now in 2026 lawmakers are looking to prevent kids from being exposed to predatory AI.

For Michigan this looks like a bill package that includes privacy protections SB 757, preventing tech companies from profiting from kids’ data SB758, protections from Chatbots SB 760 , & adding children to consumer protection legislation SB 759.

Michigan Advance | Predatory AI, social media addiction targeted by new legislation from Michigan Senate Democrats

Governing | Phone-Free Schools Are Working. Now We Must Tackle AI Safety

Florida’s proposed AI Bill of Rights includes limitations on data centers/AI site selection. The proposal seeks to “Protect Natural Florida— Prevent the construction, siting, or operation of a data center by foreign principals or on land classified as agricultural and/or lands under a greenbelt exemption, and require setbacks and vegetative buffers. Requires FDOT to complete noise abatement reviews to protect natural Florida from noise pollution”

New benchmark called APEX-Agents shows that every AI lab is failing in the workplace. “Faced with queries from real professionals, even the best models struggled to get more than a quarter of the questions right. The vast majority of the time, the model came back with a wrong answer or no answer at all.”

TechCrunch | Are AI agents ready for the workplace? A new benchmark raises doubts.

Start-up Humans& sees AI’s flaws in its analysis, collaboration, and long term decision making as an opportunity. They call it the second wave of AI adoption. 

“We are building a product and a model that is centered on communication and collaboration,” Eric Zelikman, co-founder and CEO of Humans& and former xAI researcher, told TechCrunch.

TechCrunch | Humans& thinks coordination is the next frontier for AI, and they’re building a model to prove it

SEC Investment Management Division Director supports using AI for proxy voting. This would be an alternative to traditional third-party advisory services.

Symbolic.ai  signed a major deal with News Corp. Symbolic.ai says it can make the process of journalism more efficient.

TechCrunch | AI journalism startup Symbolic.ai signs deal with Rupert Murdoch’s News Corp

California legislature is considering SB 574 that will codify the State Bar’s AI policies. Limits include not providing public information to public generative AI platforms and to verify all AI information.

Folks, bar licenses are on the line.

New Jersey has statutorily established the 1st ever state Digital Innovation Office. 18 states have a Digital Office.  Only New Jersey has codified  the office so that it will continue without interruption in changes in Governorship.

Governing | New Jersey Becomes First State to Put a Digital Innovation Office Into Law

Denver Public Schools has blocked access to ChaptGPT “on school-issued devices and the district’s Wi-Fi network because of concerns about the artificial intelligence chatbot’s new features.”

What new features? the ability to start a 20-person group chat & the addition of adult content to ChatGPT

ChalkBeat Colorado | Denver schools blocking students’ access to ChatGPT over concerns about group chats, adult content

After the Executive Order seeking to preempt state AI regulation, Texas State Senator Angela Paxton led a bipartisan group of 16 Texas State Senators that informed Texas U.S> Senators that “If an AI moratorium is put in place, our important work on preventing child pornography, protecting data privacy, preventing discrimination, and holding Big Tech accountable in Texas will be rendered moot.”

California is ready to act to protect children from AI with SB 867 (2026). This bill establishes a 4 year moratorium on the sale and manufacture of toys with AI chatbot capabilities for kids under 18. 

TechCrunch | California lawmaker proposes a four-year ban on AI chatbots in kids’ toys

A new report from the Center for Democracy and Technology warns that 2025 was just the beginning for the impact that AI will have on elections. Fun times ahead for 2026 elections.

Remember how we talked about a candidate debating an AI version of their opponent last fall? That was just the tip of the iceberg. We might also recall that the candidate that staged the AI debate lost. 26 states have banned or require disclosure of deepfake AI use in elections.

Is the cost of AI enforcement just a campaign budget item?

Route Fifty | AI’s elections impact likely to grow next year, report warns

California law gives AI companies 15 days to report a critical safety incident. A new law signed in New York requires reporting within 72 hours. Reporting of a critical safety incident in California is only required if there is certainty that the incident occurred while reporting is required in New York if a threat is imminent.

City & State NY | Hochul signs watered down AI regs, but lawmakers still got some wins

Americans for Responsible Innovation Are talking about the legal implications for the Mid-December 2025 Executive Order that preempts state AI laws. They say the executive order relies on “flimsy and overly broad interpretation of the Constitution’s Interstate Commerce Clause cooked up by venture capitalists.” They also point to several failed federal attempts of AI preemption.

Route Fifty | Trump AI preemption order likely to face legal challenges

According to the Data Center Watch organization, $98 B in data center development was delayed in Q2 of 2025 due to community opposition.

@perfectunion

Start up Tavus has an AI Santa that people can talk to, and people talk. They talk to AI Santa a lot, as in for hours a day. How do people have time for this? Or is it kids? I don’t think Swedish tomte (Santa) would do this, Swedes are too practical. Tomte would be too busy making sure his goats are fed.

Tech Crunch | AI startup Tavus founder says users talk to its AI Santa ‘for hours’ per day

Remember that talk about an AI executive order just before Thanksgiving. It’s here and seeks federal preemption with all caps screaming.  ENSURING A NATIONAL POLICY FRAMEWORK FOR ARTIFICIAL INTELLIGENCE

A privacy expert is working on phone service that protects your identity. Anonymous phone service, eh? Talk about an issue screaming for legislative action. @wired

Nividia is backing a space data center start up from Starcloud. Starcloud’s tagline: As launch costs fall, data centers in space will leverage 24/7 solar energy and radiative cooling, rapidly deploying to gigawatt-scale, avoiding permitting constraints on Earth. @cnbc

“MIT Sloan professor and 2024 Nobel laureate Simon Johnson has been appointed as an AI Ambassador to the United Kingdom, alongside business and government leaders, under the U.K. government’s new plan to harness artificial intelligence to drive economic growth and innovation.” @mitsloan

Name the first state to buy bitcoin. I’ll give you a hint. It starts with T and ends in “exas.” At the end of November, the state purchased $5 million in bitcoin, valued at $87,000 per coin at purchase, through a Blackrock administered exchange. The state has allocated a total of $10 million for its bitcoin reserve.  

Governing | Texas Becomes First State to Buy Bitcoin

Louisiana is home to a Hyperion data center project by Meta. The project is located in a rural portion of the state and since it began “has coincided with” a 600% spike in truck crashes on the two lane rural roads.

A highway safety researcher at LSU sums it up as “I think it’s incumbent of them to be a good steward of the public trust.”

Louisiana Illuminator | Construction on Meta’s largest data center brings 600% crash spike, chaos to rural Louisiana

The country’s first quantum powered telecom system will be in New Mexico. The state is positioning itself to be a leader in quantum technologies. Fast Company says quantum is the key to energy efficient AI. 

NextGov | New Mexico unveils quantum telecom network

Let’s learn a new phrase: task reallocation. Basically, it is when AI is used for its best use and humans are used for their best use.

In @mitsloan words, “ when only a small number of tasks within a role can be reallocated to AI, workers can actually benefit: They gain the capacity to focus on work at which humans excel, such as critical thinking and ideation, and hiring for their role may increase.“

@wired says that the President is considering an executive order to limit state AI laws. Working title: Eliminating State Law Obstruction of National AI Policy.

“A draft of the order viewed by WIRED directs US Attorney General Pam Bondi to create an “AI Litigation Task Force,” whose purpose is to sue states in court for passing AI regulations that allegedly violate federal laws governing things like free speech and interstate commerce”

Ohio Legislature is considering HB469 that “bars AI systems from getting married, but it also prohibits them from holding a decision-making role within a company or owning property.”

How did we get here? A person in Japan allegedly wed an AI spouse. The Ohio author of the bill fears that criminal liability may be passed onto AI.

Industry is opposed. According to TechNet, “Existing product liability law already covers negligent or defective design. And HB 469’s new, AI-specific liability structure would only increase uncertainty and litigation risk.”

Ohio Capital Journal | What’s in Ohio’s proposal banning AI personhood

New Mexico’s Economic Development Department division Director said that data centers have been an economic boon for the state. The economic benefit directly stems from the population growth, increased tax revenue and brought benefits to other businesses near data centers.

Gov Tech | New Mexico Lawmakers Consider Impacts of Data Centers

Everyone in the U.S. will likely see browser settings that will allow users to protect their privacy by opting out of selling their data. Why? Assembly Bill 566 amends the California Consumer Privacy Act of 2018 by requiring all browsers to allow users to opt out of having their data sold. Common thought is that it will be easier for tech companies to allow for opting out nationwide rather than only in California.

Cal matters | Why a new California law could change the way all Americans browse the internet

Anthropic is proposing a $50 billion plan for building data centers in the U.S. They are partnering with U.K.-based neocloud provider Fluidstack. 

These data centers will come online in Texas and New York in 2026.

Tech Crunch | Anthropic announces $50 billion data center plan

California was the first state to require disclosure of AI use.

Add Utah to this list. Utah is requiring businesses regulated by the state to disclose when we interact with AI.

Did Utah accomplish this with a bill? No. Utah’s Department of Commerce accomplished it by rule.

@official_cybernews

Can a tech company use the same rating system as we see on films? Here’s a hint on how this is going:

“The Motion Picture Association (MPA) has sent Meta a cease-and-desist letter demanding that it stop using the term “PG-13,” as first reported by The Wall Street Journal.”

Tech Crunch | Motion Picture Association hits Meta with cease-and-desist over use of ‘PG-13’ label

You know how last week we talked about a city pulling the plug on surveillance cameras? This week we learned that hackers can access these types of cameras because of a lack of multi factor log-ins by police departments. 

This is sounding a lot like how the Louvre’s security password was allegedly “Louvre.”

Tech Crunch | Lawmakers say stolen police logins are exposing Flock surveillance cameras to hackers

Sun Run Investor Relations found that 80% of consumers fear that AI and data centers will drive up electric costs.

68% are concerned that their utility provider can’t keep up with the growing energy demand in their area.

71% are concerned that their home will experience an outage in the next year due to high electricity demand or extreme weather.

I hear LLM and I think a lawyer earned a post-J.D. in a specialized area of the law. In 2025, LLM means AI that uses large language models. Guess the fun surprise that comes with LLMs? They turn evil and no one knows why. Need a spooky Halloween read? Check out @wired

I can’t believe we need to clarify that a human candidate is running for office, but here we are. In Virginia, the Republican lieutenant governor candidate staged a debate against an AI version of his challenger.

The Virginia State Legislature passed a bill prohibiting certain uses of AI in politics. The measure was vetoed. The veto statement read “However, this legislation imposes an impractical enforcement structure that lacks clear, workable mechanisms and raises significant constitutional and logistical concerns.”

Governing | A Fake Debate in Virginia Raises Real Questions About AI in Politics

We read a half dozen articles this week about how nondisclosure agreements with data center developments are causing waves with local communities It’s going to be an ongoing issue. 

Jane Kirtley, a professor of media law and ethics at the University of Minnesota, said “ In smaller communities where there’s often less oversight, where fewer media are paying attention to it and fewer citizens participating, councils can get away with an awful lot of secrecy for a very long time without anybody complaining about it.”

Minnesota Reformer | Want an AI data center in your city? Sure, but first sign this non-disclosure agreement

New term for AI: artificial adversarial intelligence. This phrase means using AI to model the behavior of expert attackers, including how they learn and adapt in response to a target’s cyber defenses. @MITSloan

A Dutch regulator is warning voters not to ask AI for voting recommendations. Why? Because AI advice is unreliable. How many U.S. voters do you think have asked AI for recommendations since early voting began this fall?

Reuters | Dutch watchdog warns voters against using AI chatbots ahead of election

Coming to a Legislature near you- AI superintelligence guidance. Over 850 people, including tech leaders like Virgin Group founder Richard Branson and Apple cofounder Steve Wozniak, signed a statement published Wednesday calling for a pause in the development of superintelligence. @cnbc

A new poll by Pew found 53% say that AI stifles creativity. 16% say AI improves creative thinking. 50% say AI will harm the ability to have meaningful relationships. All in all more people say AI is a threat and not a benefit.

A bitcoin mine came online in Dafter Township, MI. Locals are displeased.

This is what has locals concerned: (1) Noise that is so loud students don’t go outside, and it is impacting their education. (2) Migratory bird patterns have changed. (3) Energy and water use rates being impacted,  including the increase to local electric rates. (4) Documents filed by the company described the facility as a storage facility, not a bitcoin mining operation. 

Neighboring communities are passing prohibitions to protect them from similar fates.

Michigan Advance | A Bitcoin mine came to Michigan’s Upper Peninsula, and Dafter Township isn’t happy

Inside Climate News | A Bitcoin Mine Came to Michigan’s Upper Peninsula, and Dafter Township Isn’t Happy

Florida Governor’s social media posts criticize AI use in insurance. The industry says current law already places restraints on the use of AI by the insurance industry in Florida.

At a recent press conference, he said “It basically means we’re going to be at the beck and call of Silicon Valley tech overlords.”

Florida Phoenix | DeSantis wants AI regulation; insurance lobby says Florida has it under control

In 2025, Texas passed legislation supporting quantum computing. Before that states like Colorado and Illinois invested in quantum computing. Quantum computing is in the news this week for its Nobel prize. It’s the future.

“There is no advanced technology today that does not rely on quantum mechanics,” Olle Eriksson, chairman of the Nobel Committee for Physics

New York Times | Nobel Prize in Physics Is Awarded for Work in Quantum Mechanics

As Americans lose billions to large foreign networks of fraudsters, Congress members are calling for cyber fraud to be declared a national security threat. They’ve created a STOP Scams Caucus with bipartisan participation.

Shreve Passes Historic Anti-Scam Legislation Through Committee

Politico | Weekly Cybersecurity

It is now illegal to replace an actor with AI in California. The prohibition applies to both likenesses and voices. California also increased its investment in film and television tax credits recently.

California Governor | Governor Newsom signs bills to protect digital likeness of performers

An attorney in California relied on AI. It did not go well. The usual mix of 21 fake quotes, fake cases, and no human review. The judge is the first to levy the most costly penalty on the attorney, $10,000. @calmatters

We know that some AI engines make your AI inquiries public. Meta is said to be selling how & why you use AI. Fun times monetizing your user data- to give you ads. Yay! More ads.

TechCrunch | Meta plans to sell targeted ads based on data in your AI chats

St. Louis, Missouri City Council has been considering a local ordinance to pause data center development. Before this could happen, the mayor acted. An executive order has been issued that requires  data center developments to disclose both water and energy use,  job creation numbers, and distance from nearby neighborhoods, and noise pollution.  

Data Center Dynamics | Plans for data center paused in St. Louis amid regulatory changes and local pushback

OpenAI, Oracle, and SoftBank have announced 5 new AI data center projects this week. This in addition to its flagship site in Abilene, Texas. The new locations include two additional Texas locations: Milam County and locations in Shackelford County, Texas. 

The 3 additional location are Doña Ana County, New Mexico; and a site in the Midwest. These sites are included in the $500 AI investment these partners announced in January. 

Open AI | OpenAI, Oracle, and SoftBank expand Stargate with five new AI data center sites

Meta has pledged tens of millions to support the company’s efforts in state legislatures.

Bonjour, to the new super PAC— the American Technology Excellence Project. A goal is to champion stateside tech future. NYTimes says Meta is likely to be one the largest spenders in the 2026 midterm elections

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A biweekly update from the US Census Bureau found that of the 1.2 million businesses surveyed,  AI use among large businesses has dropped from 14% to under 12% from June to August. 

Futurism | Data Shows That AI Use Is Now Declining at Large Companies

Fairfax County, Virginia’s support of quantum computing is being called a blue ocean opportunity. Harvard Business Review tells us blue ocean opportunities are defined as “demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid.” This means the industries aren’t fully evolved yet. 

Virginia says the only states that are also competing for quantum computing are Illinois and Colorado. You all know this because we started talking about Illinois and Colorado way back in January 2024.

Route Fifty | How quantum became a ‘blue ocean’ opportunity for a Virginia county

Ah…the Information Age, a time when you publicly do not oppose a data privacy bill, but organize the opposition and believe that all this will remain hidden. A tech company organized opposition to AB566 which amends California’s Privacy Act.  All the while publicly in California the company did not publicly oppose the bill. However, behind the scenes, it emailed business owners across the country alleging that the bill will  “hurt your ability to use online ads to reach customers.” The MarkUp

Legislation to curb catastrophic AI harm is moving through NY and CA Legislatures. California’s SB 53 is headed to the Governor’s desk, S6953B. Is awaiting action by New York’s Governor.

The bills seek to “establish rules aiming to prevent the most advanced, large-scale artificial intelligence models — known as frontier AI models — from causing catastrophic harm involving dozens of casualties or billion-dollar damages.”

Arguments calling for a veto include the usual- stifle innovation, patchwork of state laws, liability, and free speech. The NetChoice veto request letter.

California Legislature is close to final enactment of SB 243 that will protect vulnerable users of AI chatbots. California would be the first state to regulate AI chatbots and hold them accountable. We’ve all seen the slew of media on the negative impact of AI chatbots on vulnerable users. This bill would specifically address Ai chatbots engaging in suicidal ideation, self-harm, or sexually explicit content.

TechCrunch | A California bill that would regulate AI companion chatbots is close to becoming law

The American Psychological Association suggests that AI regulations need age controls and chatbot tailoring for children. AI development is moving so fast, and AI is learning largely on adult information which does not align with the developing brains of children.

NextGov | Psychology experts call for AI age controls and chatbot tailoring

In a rural area outside Grandbury, TX residents are petitioning to form the town of Mitchell Bend so as to address what they see as nuisance issues and property value declines related to a bitcoin operation. 

Fast Company

@MITSLOAN  released its 2025 Quantum Index Report. It found that quantum processor performance is improving. We talked recently about Microsoft launching a quantum chip. It is moving fast. The number of quantum patents have increased 5 fold in the last decade. 91% of patents are from research institutions. The U.S. is 2nd to China in the number of patents. Only 1% of VC funding worldwide is for quantum computing. Businesses are talking more and more about quantum publicly and it is snow balling with each quarter.  The demand for a quantum ready workforce has tripled since 2018.

Virginia’s Governor signed an Executive order that will require the state to use agentic AI to streamline regulations. To make this happen, the state has contracted with Vulcan Technologies, which plans to expand into other states. Details about the company which incorporated in April 2025 at the link below.

The project began in July and the Virginia Office of Regulatory management says it has already streamlined by 26.8% regulatory requirements.

Route Fifty | Inside Virginia’s AI-driven streamlining of regulations

We talked about Illinois new law prohibiting AI for mental health. Now we need to add Nevada’s AB 406, Utah’s HB 452, Pennsylvania’s proposed SB 631, New Jersey’s proposed HB 5603, and California’s proposed SB 579.

Association of Health Care Journalists | States crack down on AI for behavioral health care

In 2024, Colorado became the first state to establish a regulatory framework for AI. Now the Colorado Legislature is in a special session to revise its 2024 laws. The competing interests are consumer protections; the cost to public and higher education to implement regulations; and the business community’s concern that regulations will stifle innovation.

CPR | Competing visions of how — and how much — to regulate AI decision-making, as Colorado lawmakers return for their special session

A new report from MIT found that companies are reporting a 95% failure rate with generative AI. In total these companies spent $30 billion on generative AI. The report found that to achieve success, generative AI needs to achieve contextual adaptation and autonomous operation.

The Hill | Companies have invested billions into AI, 95 percent getting zero return

37 Attorneys General sent a letter to Instagram about its early August new location sharing feature. The letter calls on Instagram to revise its feature. They wrote, “Unrestricted location-sharing features pose a particular risk for minors as they can be readily used by sexual predators to identify and geographically target children in the real world. We know that dangerous individuals are already present on Instagram, and we have serious concerns that this feature will increase the likelihood of hands-on abuse and exploitation.”

Source NM | Attorneys general call on Meta to place privacy limits on new Instagram location feature

The Information Technology Industry Council has advice for the new national cyber director: focus on “results-driven action.” Their report lists recommendations that include advance national cyber security priorities (bye,bye state cyber laws); prepare for quantum threats; modernize cryptography; and harden the software supply chain to raise the cost for adversaries.

AI psychosis is explained by @time as “people developing delusions or distorted beliefs that appear to be triggered or reinforced by conversations with AI.” 

Seems like a good time to mention that Illinois became the first state to prohibit AI from offering mental health care or therapy. @morningbrew

According to the Conference of State Bank Supervisors, 40+ states seek to regulate cryptocurrency. The main objectives of state regulation are “identifying and managing risks and nurturing innovative developments.”

Examples include a bill in Illinois to have crypto currencies register with the state’s  Department of Financial and Professional Regulation while exempting technology companies that provide no financial services to customers.

Route Fifty | States have been ‘at the forefront’ of efforts to regulate cryptocurrency, experts say

@mitsmr reminds us that AI can’t read people or a room, which means when your organization utilizes “real human communication” then your organization is ahead of the game.

Meet the new Commission on Cyber Force Generation, which sprouts from the Center for Strategic and International Studies and the Foundation for Defense of Democracies’ Cyber Solarium Commission 2.0. Because, you know, efficiency.

Who will be on this new commission? Cyber leaders in the private and public sectors, which will include former officials from U.S. Cyber Command, the NSA and the National Security Council.

What will it do? Report to the Trump administration “on the foundational details of organizing a new military service focused on the U.S.’ security in cyberspace.”

Who has been opposed? the Pentagon, bipartisan lawmakers, and the private sector. No biggie.

Politico | Wo is who at Blackhat

Kansas joins the list of states that are protecting personal data from being disclosed to the federal government. Kansas is refusing to send SNAP personal data to the USDA. Multiple states have sued to protect their residents’ data.  

Kansas Reflector | State officials again refuse to release Kansans’ personal data to USDA

In an interview Sam Altman of ChatGPT explains that the company is required to retain a record of everything you say to ChatGPT. Unsurprisingly, everything you say is not legally protected and thus can be used against you in court. Much like Facebook was a goldmine for lawyers, now it will be ChaGPT. @PCMag

In 2025, laws regulating crypto ATMs passed in Arizona, Arkansas, Colorado, Iowa, Maine, Maryland, Nebraska, North Dakota, Oklahoma and Rhode Island. 65% of fraud at crypto kiosks is perpetrated against people over 60.

Additional crypto kiosk legislation includes Spokane, Wash., which implemented a ban crypto ATMs. Vermont’s 2024 law imposes both new regulations and a one-year moratorium on new crypto ATMs.

Governing | Fearing Scams, States Add Regulations to Crypto ATMs

A federal judge in Alabama removed 3 attorneys from a matter because “a fine would not rectify the egregious misconduct in this case.” The federal judge removed the attorneys from the case and referred the issue to the state bar for reliance on imaginary AI case law.  The weirdest part in here for lawyers will be when the attorney team leader explains that he doesn’t ask his team to verify citations/research.

Alabama Reflector | Federal judge removes attorneys from Alabama DOC lawsuit after AI fabricated citations

A brief from the Open Technology Institute supports the use of zero-knowledge proofs to verify users’ ages. This verification process is said to have better protection for personal privacy. 

How does this work? Remember when liquor stores were given permission to scan your id for age verification but they retain no information? Similar process here in that the “user can prove their information to the verifying party without revealing that information itself, just its validity.”  

Route Fifty | Age verification needs better privacy protections, report says

This is a fun term (hello, sarcasm. Nice to see you today). Intellectual leveling means that technology (Chat bots & AI) can funnel users with similar personalities and chat histories toward similar conclusions, a process that threatens to homogenize human intellect. @nautilusmag

Daron Acemoglu, an @mit Institute professor and Nobel laureate, says AI hype isn’t the same as when the internet was hyped. He’s of the opinion that “hype is an enemy of business success.”

The internet had “clear transformative potential for communication, commerce, and networking.” He adds, “While it works well for repetitive cognitive tasks, it’s unclear how AI will benefit workers in roles as diverse as entertainment, custodial work, and leadership.” @MITSloan

@financialtimes says that “McKinsey has stopped its China business from undertaking consultancy work related to generative artificial intelligence amid geopolitical tensions.⁠”
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@cnbc Tells us that Goldman Sachs and Bank of New York Mellon are offering institutional investors the ability to purchase tokenized money market funds.

A report by the Neurorights Foundation found that 29 of 30 neurotechnology products offer no meaningful protections for your neurological data. States are stepping in to protect neurological data beyond conventional medical settings. These states include Colorado, California, and Montana. KFF Health News

KFF Health News | States Pass Privacy Laws To Protect Brain Data Collected by Devices

In 2024, crypto thefts totaled $1.87 billion. So far in 2025, a total of $2.17 billion of crypto has been stolen, and we’ re barely halfway through the year. Blockchain analysis firm Chainalysis estimates that by the end of the year crypto thefts will top $5 billion. @cnbc

Texas, Utah, and Louisiana are the only 3 states that have passed App Store accountability bills. What do these bills do again? They require app stores like Apple’s and Google’s to identify when users are children and obtain parental consent before apps can be downloaded. There’s some lingering constitutional issues- surprise! legislatures passing bills that could be unconstitutional. Color me astonished.

Route Fifty | Louisiana becomes third state to pass app store accountability law

The Government AI Landscape Assessment, developed by the civic tech nonprofit Code for America, measured states’ readiness in adopting AI based on three core areas: Leadership and Governance, AI Capacity Building and Technical Infrastructure & Capabilities. 3 states are ready: PA, NJ & UT. TX is ranked established along with CA and NY.

City & State Pennsylvania | Pennsylvania is a Top 3 state for government AI readiness

Denmark is allowing the Danish to copyright their identity, face, voice, image to protect it from AI use. @culturiety_