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Cybersecurity & Tech
Cybersecurity & Tech
Is it illegal to put trackers on people?
Pennsylvania Legislature is considering making it a criminal offense to use a tracking device to track someone. HB 407 (2025 | PA) Similar laws have been enacted in Ohio; Florida; and according to NCSL 11 states have created criminal offense for tracking devises.
Route Fifty } PA House passes bill creating criminal offense for tracking device-based stalking
Another social media law bites the dust
An Arkansas judge struck down the state’s social media law that restricts kids social media use and verifies the ages of all account holders. The judge found the law unconstitutional as it violates residents’ First Amendment rights by restricting speech without being tailored narrowly to serve a “compelling government interest.”
cryptocurrency key words for policy makers
Let’s take a look at some fresh words that are used to describe crypto mining or data center needs:
proofing — the solving of math problems in crypto mining
currency mining — a rebrand that could sound prettier
Route Fifty | Legislators propose bills to back data centers, legislate blockchain technology
Prohibiting AI in healthcare decisions
Add Ohio to the list of states seeking to prohibit the use of AI in healthcare decisions. SB 164 (2025 | OH) ” would provide transparency for patients on the use of AI by health insurers by making sure there is human oversight on whether or not someone receives health coverage.” The bill author wants accountability for healthcare insurance.
WFMJ | Cutrona introduces legislation addressing usage of AI in healthcare authorization
Viriginia & Texas leading on supporting AI innovation
R Street says that if we want to look for a way to regulate AI without impeding innovation look to Virginia and Texas. 900 bills regulating AI have been proposed in 2025. Virginia Governor vetoed HB 2094 because its “rigid framework fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments.”
They also say that Texas’ HB 149 (2025 | TX) removed problematic issues that mirrored Virginia’s vetoed legislation.
The other side: Agentic AI
Last week we talked about agentic AI. Let’s peruse what the CEO of Signal (yeah… that Signal), Meredith Whittaker, says about agentic AI. She says we should be concerned about privacy. To do what it says it can do, it will need access to all aspects of your data- your contacts, your credit cards, your calendar… yeah, it will know you better than you know yourself. @growthforgeai
Selling DNA data
23 and Me DNA database of 7 million individuals will be sold off during its bankruptcy proceedings. Odds on legislation to protect DNA data? @techcrunch
AI for public benefits
A recent survey by Salesforce shows that 87% support AI as a tool to access public benefits. We’re talking everything from SBA loans to Medicare. It’s not generative AI but rather agenicAI which is an adaptable form of AI that learns from its interactions with customers/clients/applicants.
Route Fifty | Majority of applicants say they’d use AI agent to navigate public benefits processes
Legislating magic money (AKA Cryptocurrency)
22 states are passing legislation to legitimize cryptocurrency. State strategies range from bitcoin reserves to permitting institutional investment in cryptocurrency. Arizona is allowing state funds to be invested in crypto through their pension system in proposed Senate Bill 1373.
Route Fifty | ‘Magic money’: Arizona Republicans advance bills to legitimize cryptocurrency
AI and Labor Law
SB 7 (2025 | CA), known as the “No Robo Bosses Act,” would prohibit employment decisions from being made by AI. Specifically, employers could not make decisions solely by using artificial intelligence tools to make hiring, promotion, discipline, or termination decisions without human oversight.
AI legislation: state oversight committee
Illinois lawmakers are considering AI reforms that would create statewide committee to establish guidance for the use of AI in public education. HB2503 and SB1556 (2025 | IL). School districts would have to include AI use in their annual reports to the state board of education.
25 states have guidance on AI use in public education.
Route Fifty | Illinois lawmakers weigh new proposal to set guardrails around AI
Data privacy bill: tech v. community groups
New Mexico is considering competing data privacy bills. HB 410 (2025 | NM) came from the state Attorney General and is supported by tech companies while SB 420 (2025 | NM) is supported by community groups. The House author of HB 410 says the bill will “specifically empowers New Mexicans to take legal action if their information is unlawfully transferred to third parties by the likes of Elon Musk and his DOGE employees.”
Route Fifty | Big Tech lobbies New Mexico for AG-backed bill
AI preemptively hacking
Meet Armur AI , a company that proactively simulates attacks using AI-driven penetration testing to identify vulnerabilities before hackers do. They call it AI driven offense. “In the future of cybersecurity, the most vigorous defense will belong to those who hack first.”
Entrepreneur | Cybersecurity’s New Frontier: AI That Thinks Like a Hacker
82% of schools have been hacked
The Center for Internet Security “found that 82% of K-12 organizations suffered what it called a “cyber incident,” based on an 18-month study of 5,000 institutions.” 45% of these cyber incidents involve humans through phishing or other social engineering methods. A friendly reminder to educate your people about phishing techniques.
Route Fifty | 82% of schools suffered recent cyber breaches, report says
Open AI: Define fair use
Open AI’s contribution to the U.S. government’s “AI Action Plan,” is to push for a definition of fair use. Open AI likens the best fair use definition to the U.S. copyright strategy that “[preserves] American AI models’ ability to learn from copyrighted material.”
Tech Crunch | OpenAI calls for US government to codify ‘fair use’ for AI training
U.S. governmental entities hack back
The Administration is open to proactively hacking back at hackers. This will be one to watch. States are keen to parrot the federal government in 2025.
AI startup. product manufacturing.
Google co-founder, Larry Page, is all in on Ai startup focused on manufacturing. How will Ai impact manufacturing? The startup looks to craft AI that can create “highly optimized” designs for objects and then have a factory build them.
Tech Crunch | Google co-founder Larry Page reportedly has a new AI startup
Investors are smitten with Generative AI
In fall 2024, PwC surveyed 345 investors across geographies, asset classes and investment approaches to learn more about their expectations, concerns and outlook for the future. The resulting analysis, PwC’s Global Investor Survey 2024: Cautiously optimistic, investors expect growth, identifies four key themes:
- Reinvention imperative: Innovation and new ways of doing business are top of mind for investors.
- Generative AI optimism: The promise of GenAI is high for a large majority of investors.
- Climate investment opportunities: Climate actions are important investment drivers.
- Trust through communication: Most investors trust companies to make decisions for the long term.
Harvard Law School Forum on Governance | What is Top of Mind for US Investors in 2025?
AI fail
A federal court in Wyoming has fined 3 lawyers for multiple “hallucinated” AI citations in a legal brief. Do we all need to be reminded of Ronald Regan’s “trust, but verify? ” Or, am I the only paranoid lawyer out there that verifies everything?
Bloomberg Law | Morgan & Morgan Lawyers Fined for ‘Hallucinated’ AI Citations
Crypto fraud bills are popular in 2025
15 states are seeking ways to limit crypto fraud by placing limitations on crypto ATMs. The trend is that the bills would limit transactions to $1,000 a day per customer, and cap fees at $5 or between 3%- 15% of a transaction’s cost. Crypto fraud increased 45% according to an annual report by the FBI.
Governing | Lawmakers Seek Crypto ATM Regulations to Fight Fraud
Protecting investor information
Protecting Investors’ Personally Identifiable Information Act would protect investors’ names, addresses, and years of birth from disclosure. Currently investor personally identifiable information is held in the Consolidated Audit Trail. “In September 2024, Senator Britt, alongside Senator Tom Cotton (R-Ark.) and 12 other Republican lawmakers, sent a letter to then-SEC Chair Gary Gensler, urging the immediate suspension of rule filings tied to the CAT.”
How did AI fare in state of the state speeches?
AI wasn’t a hot topic for the nation’s governors in their state of the state speeches. 5 governors discussed cybersecurity. AI was a trusty sidekick to energy use and generation in speeches.
Data center transparency
Should data centers have to disclose how much power they use? AB 222 (2025 | CA) says yes, yes they should disclose power usage. Data centers could also have their choice of power generation determined by the state utility regulator under this measure.
Hello, Quantum computing chip production
Microsoft has reveled its first quantum computing chip. It took 2 decades of research. And just think states are just beginning to invest in quantum computing and establish frameworks for the industry to thrive. @cnbc
AI and firearm detection
A Florida lawmaker wants to ban the use of AI to detect firearms in public spaces. HB 491 (2025 | FL) would apply to the use of AI by governmental entities and private entities that use AI for firearm detection.
Florida Today | Rep. Miller files bill to limit use of artificial intelligence in gun surveillance
Ever increasing AI spending
Tech companies are spending more than ever on AI. This year alone big tech is projecting spending additional tens of billions on AI. This is up from the record AI spending in 2024. It also includes spending for data centers that support AI. Looking to Microsoft, it plans to spend $80 billion on AI data centers during its fiscal year that ends in June 2025.
Disclosing police use of AI
Utah is considering SB 180 (2025 | UT) that will require law enforcement agencies to create an AI policy. Disclosure of AI use would be required if AI is used in police reports. An actual human would be required to review the AI output.
Route Fifty | Utah lawmaker wants police to disclose when they use artificial intelligence
New State investment in quantum computing
Maryland is putting $1 billion toward growing quantum computing in the state and declared a “Capital of Quantum” public-private partnership. New Mexico announced that Quantinuum would build a new research and development center in the state.
Route Fifty | Jockeying intensifies for state quantum leadership
Quantum & AI focus at DOE
The new Department of Energy Secretary announced that the agency will focus on quantum computing and AI to “maintain America’s global competitiveness.” We’ve talked about state initiatives in quantum computing in Illinois, Indiana, Colorado’s quantum tax incentives, and the anticipated growth rate of quantum computing.
1st U.S. cybersecurity law program
The University of Indiana is offering a graduate certificate in cybersecurity law and policy. It began as a collaboration between the law school, Luddy School of Informatics, Computing and Engineering and Kelley School of Business. It eventually grew into the Center for Applied Cybersecurity Research.
UI | Students in nation’s first cybersecurity law program provide legal advice on evolving tech
U.S.’S 1st algorithm disclosure rule
Missouri Attorney General has instituted, by rule, the nation’s first requirement that social media companies offer algorithmic choice. The rule requires platforms to be transparent about the algorithms used and offer users the option to select alternatives.
Route Fifty | Missouri rule would require algorithm ‘transparency’ on social media
Crypto Executive Order
New Administration. New Executive Order on crypto currency. Strengthening American Leadership in digital financial technology establishes the Presidential Working Group on Digital Asset Markets which is designed to strengthen U.S. leadership in digital finance.
AI Executive Order 2025
New Presidential Administration. New AI Executive Order. “Removing Barriers to American Leadership in Artificial Intelligence,” calls for the development of a plan for the administration’s approach to AI.
AI mitigation of lithium battery fires
On January 16th, a fire broke out at a lithium battery storage facility south of San Francisco. ” A study from the National Institute of Standards and Technology suggests that researchers have developed an artificial intelligence model that can identify the early stages of a lithium-ion battery fire — the moment when a safety valve in the battery’s hard casing breaks to release pressure from the swelling battery cell. ”
As a result of this battery storage facility fire, the California Public Utility Commission adopted a general order on battery storage safety.
Route Fifty | AI could help mitigate lithium battery fires, study finds
MULTISTATE AI POLICYMAKER WORKING GROUP
Let’s meet the MultiState AI Policy Working Group. Steering Committee members include
Alaska Senator Shelley Hughes (R)
California Privacy Protection Agency Deputy Director of Policy and Legislation Maureen Mahoney
Maryland Representative Katie Frye-Hester (D)
Minnesota Representative Steve Elkins (D)
Minnesota Representative Kristin Bahner (D)
Connecticut Senator James Maroney (D)
Colorado Senator Robert Rodriguez (D)
Florida Representative Fiona McFarland (R)
New York Senator Kristen Gonzalez (D)
Texas Representative Giovanni Capriglione (R)
Virginia Delegate Michelle Maldonado (D)
10% growth in global tech spending
It is forecasted that there will be a nearly 10% increase in global tech spending, largely driven by AI, according to this study by Gartner. Total tech spending is expected to be $5.61 trillion in 2025. Data center system spending is expected to increase by more than 23%.
CIO Dive | CIOs brace for price hikes this year as IT budgets grow
AI liability risk
Fortune 500 company CEOs were asked about the risk of AI. 281 companies of the Fortune 500 cite AI as a risk in their 2024 annual reports. That’s a 473.5% increase from 2022. @MITSloan
TikTok alternative rooted in Texas
TechCrunch says Mark Cuban is looking to fund a TikTok alternative built off BlueSky, the twitter alternative.
Regulating AI. Virginia Style.
Under Virginia’s House Bill 2121, AI developers would be required to document their technology’s origin and history of development and make that information publicly accessible.
Other Virginia AI bills include HB 2094, that creates requirements for developing, deploying and using high-risk artificial intelligence systems and civil penalties for noncompliance, and HB2250 that would allow consumers to authorize a company to opt out of allowing others to use their personal information.
Route Fifty | These bills would regulate high-risk artificial intelligence use in Virginia
Drumroll…the largest data breach in U.S. history
The largest data breach in U.S. history occurred at the end of 2024 and was of an education software company. According to TechCrunch, hackers were able to access student addresses, Social Security numbers, grades and medical information on the platform.
AI use in health insurance
California has enacted a law that prohibits the use of AI in health insurance decisions. SB 1120 (2024 | CA) prohibits health insurers from making determinations based solely by AI. State health insurers were denying coverage about 25% of the time before this law was enacted. This bill grants state regulators the discretion to fine insurance companies and determine the amounts owed for violations, such as missed deadlines or improper use of AI.
Governing | California Law Blocks Health Insurers From Denying Claims Through AI
Warning labels for social media
Legislation in California proposes warning labels for social media. Surgeon General has also called for warning labels on social media because of the risk to mental health. AB 56 (2025 | CA)
LOADinG AI Act
During the holiday season, New York Governor signed SB7543B (2024 | NY). The bill known as the LOADinG Act, creative capitalization included, covers AI use by governmental entities in NY. The big picture is that NY is calling for disclosure of AI use by governmental entities and requires human review of any AI generated information.
BIOMetric Update | New York governor signs legislation addressing AI, consumer data protection
AI recommendations in Georgia, the state not the sovereign nation
Georgia’s Senate Study Committee on Artificial Intelligence recommends:
Comprehensive AI Policies for Public Entities: The committee recommends every state agency and local government develop policies addressing ethical use, data privacy, and human oversight in AI applications.
Support for Education and Workforce Development: Initiatives include AI-focused pathways in K-12 schools, expanded upskilling programs for Georgia’s workforce, and the development of AI integration plans for higher education systems.
Public Safety and Healthcare Enhancements: The report emphasizes AI’s role in improving emergency response efficiency and healthcare outcomes, particularly in underserved areas.
Promoting Responsible Innovation: Measures include encouraging transparency in AI systems, establishing liability standards for AI products, and ensuring protections against the misuse of deepfake technology.
The Georgia Virtue | Committee on AI unanimously approves recommendations, encourages use
hacker for hire + the lobbyist
” The FBI has been investigating a longtime Exxon Mobil consultant over the contractor’s alleged role in a hack-and-leak operation that targeted hundreds of the oil company’s biggest critics, according to three people familiar with the matter.”
What is happening? This story begins way back in 2015 and the hacked materials are still being used in litigation. Reuters
License plate readers + data privacy
18 states regulate the use of license plate readers. New Hampshire allows the data to be retained for 3 hours while Alabama allows the data to be retained for 5 years. That’s a lot of variety in data privacy.
Extending data center tax beaks
Michigan Legislature passed HB4906 (2024 | MI) that extends until 2050 the exemption from the state sales and use tax for data centers. Opponents say that the tax exemption will cost the state $90 million in revenue and that the data centers only achieved 2.6% of their jobs goals.
CapCon | Legislature extends tax breaks for data center that brought only 2.6% of promised jobs
Bitcoin & Blooms
A Dutch tulip farm is using excess heat from a bitcoin operation for their tulip greenhouse. Sustainable tulip farming in the modern era. @design1future
Farmland + datacenter + new gas generation
A $5 billion data center in rural NE Louisiana will be powered by a new 1,500-megawatt natural gas plant. Both will be built on state owned farmland. The data center is estimated to employ 300 to 500 people with an average salary of $82,000.
Route Fifty | Huge gas plant eyed to power mystery $5B Louisiana data center
Tax incentives for hyper scale data centers
Michigan lawmakers approved tax breaks for hyper scale data centers. HB4906 (2024 | MI) The bill applies to data centers located on either brownfields or on property that was once an industrial site used primarily as a power plant to generate electricity for sale.
Strategic bitcoin reserve
A bill to create a strategic bitcoin reserve was introduced in the Pennsylvania Legislature this week. The bill would allocate up to 10% of its roughly $7 billion state funds into bitcoin. HB2664 (2025 | PA)
Pro-crypto Republican Sen. Cynthia Lummis of Wyoming says she’s hoping to push through her own bitcoin reserve bill on the national level during the first 100 days of Trump’s presidency.
Funding for state information security officers
According to the National Association of State Chief Information Officers 40% of their members say they don’t have the budgets to handle the security threats. Insurance premiums are often out of budget. The average cost of a ransomware attack on state and local governments so far this year is $2.83 million. For those keeping up that is more than doubled 2023’s costs. Sophos’ State of Ransomware in State and Local Government 2024 report.
Route Fifty | State and local security adjusting to shifting cyber threats, insurance requirements
Alaska, Texas, Virginia & Oregon on Data centers
Alaska Governor is working to lure data centers to the state. The Governor looks to rely on building the trans-Alaska gas pipeline to feed the energy-intensive data centers.
Lt. Governor Dan Patrick of Texas has stated that “Texans will ultimately pay the price.” for data centers electric usage.
In Oregon, their property tax breaks for data centers date back to the 1980s. The tax breaks are being called an example of what not to do. The tax break will soon cost the state billions while residential electricity costs are up 50% in two years.
Locals in Northern Virginia are suing to stop a data center. The law suit focuses on land use, historical designations, and the administrative process.
Social media laws targeting kids
The Computer & Communications Industry Association and NetChoice are asking a federal court to find Florida’s HB3 unconstitutional. The bill restricts social media for children. The lawsuit argues that the bill violates the First Amendment, that its definition of a social media platform is too vague, and that it contradicts federal statute.
Route Fifty | Tech associations sue over Florida’s social media restrictions for kids under 16
What is AI hallucination?
AI hallucination is when AI system generates misleading or false information. This can be because the AI model lacks enough data or makes incorrect assumptions.
Route Fifty | A top state official used AI to draft public policy. The AI hallucinated.
Epic AI rule making fail
“Alaska’s top education official relied on generative artificial intelligence to draft a proposed policy on cellphone use in Alaska schools, which resulted in a state document citing supposed academic studies that don’t exist.”
Route Fifty | A top state official used AI to draft public policy. The AI hallucinated.
Quantum computing investment in Illinois
Illinois has proposed $500 million in public and private funds for a quantum campus and other research facilities.
Quantum investment in Indiana
Indiana has been investing in quantum computing. yeah, everyone keeps talking about AI, but quantum computing is the sleeper issue to watch. Indiana has put in $4 million in seed money to Quantum Corridor; fostered public private partnerships between tech and universities; supported a collaborative quantum computing ecosystem; and developed a quantum-savvy workforce.
Route Fifty | What other states can learn from Indiana’s investment in quantum technology
Crypto & Texas Commercial Law
Texas A&M Mosbaucher Institute paper argues for adopting “UCC Article 12 would therefore make Texas an attractive jurisdiction for this kind of claims trading in the digital asset economy.”
Data is gold for AI
Publishers and artists are pushing back against their material being used to train AI. Reddit CEO described AI’s need for data as, ““The source of artificial intelligence is actual intelligence, and that’s what you find on Reddit.” This is ripe for regulation.
Social Media Today | Data Is the New Gold in the Generative AI Era
AI Spending Growth
2024 spending growth in IT is estimated at $5.26 trillion, an increase of 7.5% from 2023. Gartner forecasts the growth to be tied to generative AI-related purchases. Interestingly, the June 2024 Deloitte Global Boardroom Program survey of nearly 500 board members and C-suite executives across 57 countries showed that 45% of boards haven’t had AI on their agenda. At all. No talk of AI. What?!
Policy drafters: AI differentiation
A letter by tech vendors to the House of Representatives’ AI task force is calling on policy that distinguishes between integrators and developers of AI models. An integrator doesn’t create AI but rather out retrains, modifies, and fine-tunes AI models into other products and services.
CIO Dive | Tech vendors ask US lawmakers for regulatory clarity on AI
Training AI on your social media posts
TechCrunch reports that X is now permitting 3rd parties to train AI on your posts. Other companies are considering whether to license data to AI companies as a potential new revenue stream.
AI policy prohibits sensitive data
The City of Pittsburgh has an AI policy that prohibits AI use that includes sensitive data of its residents. Allegheny County has banned the use of generative AI by county employees while a task force determines parameters for AI use.
AI water use by 2027
By 2027 global AI use is estimated to consume 4.2 – 6.6 billion cubic meters of water. This begs the question of whether AI and data centers should publicly report water use. @thetimes
States coordinating AI policy
A consortium of state legislators has been assembled by Connecticut State Sen. James Maroney, D- Milford. The group meets twice a month. The goal is a coordinated state response that doesn’t inhibit AI.
Governing | One Connecticut Lawmaker Leads National Effort on AI Policy
State Chief Information Officers and disaster recovery
NASCIO’s annual State CIO Survey found 94% of state CIOs are responsible for maintaining a “robust, reliable and secure infrastructure” and 92% coordinate with other state officials during disasters. 72% said their state “generally takes a federated approach to technology disaster recovery and business continuity, meaning responsibilities are shared across state agencies and among leadership.”
Route Fifty | State CIOs take on bigger role in natural disasters
AI for 5% of U.S. work
An economist at MIT this week shared that 5% of U.S. jobs could be done by AI. Beyond that, the economist said AI will not live up to its hype. @bloombergbusiness
Artificial Intelligence: Thought Partner
Here’s some new messaging on AI. Santa Fe, New Mexico public schools are talking about AI as a “thought partner.” Students are being told to consider AI as a “co-pilot to enhance human creativity.” This verbage is similar to North Carolina that created an acceptable use AI scale from 0 to 4. 4 is use AI as much as you’d like. 0 is no way, now how to AI.
Governing | Santa Fe Schools Embrace AI as ‘Thought Partner’
Legislative trend: online subscriptions
Tennessee Governor signed SB1894 (2024 | TN) that seeks to make it easier to cancel your subscriptions. You know those $1.99/mo apps that renew for $15/mo. Opposition in Tennessee included cable companies and streaming services. The bill that passed would require clear and conspicuous notices on renewals.
Route Fifty | Some states want to make it easier to cancel subscriptions
Anatomy of an AI veto
California’s Governor vetoed SB1074 (2024 | CA), a bill that would have required Artificial Intelligence testing on the costliest AI. His veto statement said that the bill “could give the public a false sense of security about controlling this fast-moving technology.” The statement concludes, “protecting against actual threats without unnecessarily thwarting the promise of this technology to advance the public good – we must get this right.”
Cal Matters | Why Gavin Newsom vetoed California’s bold bid to regulate AI
AI Risk mitigation strategies
@MITSloan researchers developed an AI risk mitigation guide. Included is that you should first do your work without AI. Later, bring in AI for a subtask to verify AI’s accuracy. The full guide for AI risk mitigation.
AI energy infrastructure investment
“Microsoft, Blackrock, “BlackRock, Microsoft, Global Infrastructure Partners and United Arab Emirates-based technology investment firm MGX announced a partnership to invest in new and expanded data center infrastructure to meet artificial intelligence computing needs and the energy supply needed to support these facilities.” They seek to raise $30 billion in private equity capital and up to $100 billion with debt financing.
Utility Dive | BlackRock, Microsoft, others form AI and energy infrastructure investment partnership
Digital IDs for voting
North Carolina has approved the use of digital student IDs for voting. North Carolina doing something that many say makes it easier for young people to vote- not on my bingo card for 2024. State GOP has pledged to stop implementation- naturally, the state GOP tweeted about it.
Route Fifty | North Carolina OKs the use of student digital IDs to vote
Local Government AI policies
Sonoma County has adopted an AI policy that would allow AI use by the local government if the AI is on an approved list, and can only be used for tasks including writing emails, reports, policies and job descriptions, completing spreadsheet calculations and data analysis and developing or debugging code. Santa Cruz, San Benito, and San Francisco counties have also local approved AI policies. This begs the question about statewide policies and the role of the California State Association of Counties and National Association of Counties.
Governing | California County AI Policy Could Be Instructive for Other Localities
Ai research seed funding
Penn State’s Center for Socially Responsible Artificial Intelligence (CSRAI) is opening its annual seed funding program. Short proposals will be accepted through Nov. 1, with projects expected to start in spring 2024 and last up to two years. The application.
Artificial Intelligence polling
Polling of California Latinos shows that 56% view AI as just another tool and 44% think AI is bad for jobs. 80% want regulation to ensure AI is safe and trustworthy.
A 2023 poll by Microsoft showed that 53% of Latinos see AI as a threat to jobs.
Social Media warning from 41 bipartisan states
Attorneys General from 42 states, both red and blue states, are calling on the U.S. surgeon general to issue a warning for young people on social media platforms. Notable states not signed onto the request: Texas and Arizona.
$5.6 Billion: Cost of crypto scams
The cost of crypto scams on U.S. consumers in 2023 was $5.6 billion according to the FBI. That’s a 45% increase from 2022.
WVTM | Americans lost $5.6 billion last year in cryptocurrency fraud scams, the FBI says
New AI laws in Illinois
Illinois has enacted 2 new AI laws. The bills will protect the likeness of artists and allow for private causes of action when someone’s likeness is used without authorization. The Right of Publicity Act prohibits unauthorized digital replicas by defining a replica as “a newly created, electronic representation of the voice, image or likeness of an actual individual created using a computer, algorithm, software, tool, artificial intelligence or other technology.”
Route Fifty | States move to protect recording artists from AI-generated likenesses
What happens when a mayoral candidate runs on AI?
The mayor’s race in Cheyenne, Wyoming included a candidate that sought to make the city run on AI. He met his match with voters. He lost handily. Turns out voters want decisions made by humans. Who knew?!
Increased online fraud enforcement in the U.S.
The FBI announced its increased enforcement efforts for online scams and fraud. The program is called, “Take a Beat.” Is this a lyric from an 80s pop song? From January to May 2024 there have been $1.6 billion in losses due to online fraud which is a $300 million increase from 2023.
Government Technology | FBI Says Stopping Online Fraud and Scams Requires New Focus
Amending AI regulation in California
California’s SB1047 (2024 | CA), which we talked about last week, has been amended to address opponent concerns about stifling innovation.
Removed from this bill is a provision that would have allowed California’s attorney general to sue AI companies for negligent safety practices before a catastrophic event has occurred. Also removed from the legislation is the creation of a new state agency, the Frontier Model Division (FMD). The bill also removed criminal penalties for AI companies, but the bill still does require AI companies to submit public “statements” concerning their safety practices.
AI in print journalism
A newspaper in Wyoming printed an article that included AI generated quotes including from the state’s governor. The quotes were not real. As one tech analysts said, AI is programmed to provide an answer, not that the answer be correct.
This week the paper ran an editorial which states, “AI was allowed to put words that were never spoken into stories.” Last year, Sports Illustrated was critiqued for “publishing AI-generated online product reviews that were presented as having been written by reporters who didn’t actually exist.”
AP | Wyoming reporter caught using artificial intelligence to create fake quotes and stories
AI projects cancelled
Great Britain has canceled 1.3 billion pounds worth of taxpayer funded AI projects that would have supported the UK’s AI Research Resource. In explaining the cuts, the new government leadership spokesperson said, “This is essential to restore economic stability and deliver our national mission for growth.”
CNBC | Britain cancels $1.7 billion of computing projects in setback for global AI ambitions
North Kansas City Free Internet Program
KC Fiber is high-speed gigabit internet that took a $10 million investment from the city and offers its residents high speed internet with no monthly bill. The City determined that internet is a public necessity. The city owns the fiber network, and contracts with DataShack to run the operation under the name KC Fiber.
Anatomy of the opposition to AI regulation in California
California Legislature is considering SB1074 (2024 | CA) that establishes safety framework for AI. The bill requires safety tests for AI to reduce the risks of “catastrophic harm.” SB1074 defines “catastrophic harm” as cyberattacks that cause at least $500 million in damage or mass casualties. The bill also requires that AI can be shut down by humans. The opposition says the bill, “If it were to go into effect as written, it would have a chilling effect on innovation in California.” The bill has passed the Senate and 2 House Committees. The bill’s supporters say the safety measures in the bill mirror safety-testing framework that OpenAI, Anthropic and other AI companies voluntarily adopted last year.
Veto of a AI political ban bill
Louisiana Governor vetoed HB 154 (2024 | LA) because the bill “creates serious First Amendment concerns as it relates to emerging technologies.” The state will follow the U.S. House Speaker’s lead and study the issue.
What do AI lobbying efforts look like?
Thus far in 2024, the number of groups registering to lobby federal officials on AI has increased to 556, up from 459 in 2023. ChatGPT maker OpenAI has spent $800,000 thus far in 2024 which more than doubles all of its spending in 2023. OpenAI rival Anthropic has also increased its lobbying expenditures.
Generative AI ROI
A report from Gartner this week suggests that more than 1/3 of Generative AI projects will be abandoned in 2025 after proof of concept. “After last year’s hype, executives are impatient to see returns on GenAI investments, yet organizations are struggling to prove and realize value. As the scope of initiatives widen, the financial burden of developing and deploying GenAI models is increasingly felt.”
Tech Crunch | This Week in AI: Companies are growing skeptical of AI’s ROI
First Digital Media Friendly Texas Certified Community
Everyone let’s congratulate Cedar Park for being the 1st Digital Media Friendly Texas Certified Community. How do communities achieve this? By completing the multi-step certification process and approval by the Texas Film Commission. The designation is intended to “spur digital media production across the state and grow local jobs in animation, visual effects (VFX), video games, and extended reality (XR).”
Block Chain Bill of Rights
Oklahoma Legislature is considering HB3594 that protects the right to mine block chain at home free from licenses, no additional taxes on cryptocurrency transactions, no capital gains on crypto currency in Oklahoma, and allows for cryptocurrency as a form of payment for goods and services in the state.
Opposition to surveillance pricing
George Slover, senior counsel for competition policy at the Center for Democracy & Technology, says that surveillance pricing, or bespoke pricing, ” inverts, or you might say perverts, the assumptions at the very foundation of the justification for the free market.”
Governing | What Is ‘Surveillance Pricing’ and Is It Causing Increased Prices?
Legislative trend: Curbing surveillance pricing
Did you know that online retailers have the ability to cull data and determine a personalize price for you based on how much their algorithm thinks you will pay for an item? Yep, hello surveillance pricing. An FTC order this week is looking into the situation, and is expected to take action with states are sure to follow.
Utah AI office focusing on mental health care
Utah created an AI Office this year when it enacted SB 149 (UT | 2024). Utah’s AI Office is housed inside the state’s Department of Commerce. The state has a lack of accessible mental health care providers. The office will work to create a framework for what AI chatbots are and are not allowed to do in mental health care.
KUER | Utah’s new Office of Artificial Intelligence will first focus on mental health care and AI
Generative AI in Education
Los Angeles School district has an AI project that is said to allow for chat functions in 100 languages. The goal of the AI chatbot is to improve student English and math proficiency, attendance, and graduation rates while improving communication between students, parents, teachers, and administrators. Sound too good to be true? Maybe. The AI chat messaging collapsed and all of the AI company’s employees have been furloughed.
Industry analysts say that this is par for the course based on where AI is today. They point to McDonalds which attempted generative AI chatbot for its menus at 100 locations. The pilot program was pulled due to chat challenges.
Route Fifty | Was Los Angeles schools’ $6 million AI venture a disaster waiting to happen?
Quantum Computing: Quantum Economic Advantage
We’ve been talking about how quantum computing is the next big thing that is going to occupy policymakers time. To that end, a group of MIT researchers partnered with Accenture to develop an AI decision-making toolkit. “The framework asks leaders to consider two conditions: feasibility (meaning whether a quantum computer exists that is sufficiently powerful to solve their particular problem) and algorithmic advantage. The overlap between the two is the quantum economic advantage.” @MIT Sloan School
AI policy issues
Politico calls California State Senator Thomas Umberg, California’a Chief AI Gatekeeper. Policy issues that are at the forefront for the AI Gatekeeper: developing clear definitions for terms like “artificial intelligence,” “transparency,” “bias” and “privacy” to craft effective policies; ensuring that policymakers have “extensive consultation with experts across various sectors to ensure regulations are well-informed and effective;” and “Continuous dialog with academics, AI enterprises and other stakeholders is crucial for developing robust regulations. Policymakers aim to find a “sweet spot,” where regulations foster AI’s positive potential while minimizing its risks.”
State AI use to identify wildfires before 911
California is using AI enabled cameras to detect wildfires before the 911 wildfire calls begin. California uses a system of cameras to monitor backcountry land 24 hours a day. The cameras are part of an “interlinked technology network that is redefining the scope of fire prediction, prevention and response.” According to Science.org wildfires have tripled in frequency and are 4 times the size.
Governing | California’s High Tech Approach to Preventing Wildfires
AI and “woke” according to TPPF
Texas Public Policy Foundation believes Texas should avoid woke AI use, including AI programs that use DEI in their analysis. “So a big part is making sure the information that is training these systems is reflective of truth, and that’s something that Texas will promote,” says David Dunmoyer, Director of the Better Tech Campaign at the Texas Public Policy Foundation (TPPF).
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