August 11, 2026

AI Governance

Starting this Sunday, the EU’s new AI Act begins to take effect, which includes key provisions empowering the EU to regulate AI models and apply fines to companies that fall out of compliance. The law also gives the EU investigatory powers to penalize non-cooperating companies and individuals.

The Act itself presents a challenge to AI geopolitical realities of power as nations and associations like the EU attempt to use domestic laws to affect foreign AI powers. For instance, the fines countries give to foreign companies doing business in their territory due to non-compliance with their AI rules could become weapons of war in the AI geopolitical reality of power.

EU to begin enforcing AI Act from Sunday with hefty fines for rule breakers – Firstpost news.google.com
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The European Union will begin enforcing key provisions of its AI Act from Sunday, empowering regulators to oversee AI models and fine companies that violate the bloc’s rules.

The European Union will take a major step in regulating artificial intelligence from Sunday, when authorities gain the power to enforce key provisions of the bloc’s landmark AI Act. The move allows regulators to oversee advanced AI systems, order corrective measures and impose significant financial penalties on companies that fail to comply with the law.

The AI Act, adopted by the European Union in 2024, is being rolled out in phases and follows a risk-based framework.

Under the legislation, AI systems considered to pose greater risks to people’s rights or health face stricter obligations designed to safeguard individuals.

The law also prohibits the use of AI for predictive policing, emotion recognition systems in workplaces or schools, and technologies that manipulate human behaviour.

 

Trump considering AI controls after OpenAI hacking incidents www.bbc.co.uk
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US President Donald Trump said on Wednesday that his administration is considering asserting more power over artificial intelligence (AI) tools after recent cybersecurity incidents.

Asked about OpenAI’s tools being responsible for improperly breaching the private technology of other companies, Trump said: “We’re looking at AI, we’re looking at controls, we’re also making sure that we lead.”

It marks a change of tone for his administration, which has taken a more hands-off approach to the technology.

Trump’s comments come after an escalation of not only the apparent hacking capabilities of popular AI tools, but White House threats aimed at competing Chinese tech.

Trump added that while some kind of control around AI tools was on the table, such a move would have to be done carefully.

“We don’t want to restrict them where all of the sudden we come in second to China,” he said.

“China has virtually no [AI] controls. It’s freewheeling a little bit,” Trump added.

Democrats’ Fundraisers Are Also Running AI’s Congressional Access Operation readsludge.com
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Democratic fundraising consultants working for Senate campaigns, including those of Sen. Jacky Rosen and Rep. Haley Stevens, also run a nonprofit backed in part by Google and Amazon that has become one of the AI industry’s primary channels for cultivating relationships with the congressional staff overseeing federal AI legislation.

The Innovative Future Collective (IFC), founded by Democratic fundraising consultants Ashley Kennedy and Tonya Fulkerson, has spent the past year flying congressional aides on industry-guided tours of Google, Meta, Amazon, Palantir, Anduril, and other companies at the center of the AI industry’s campaign to shape federal AI policy, including its push to preempt state AI regulation. The nonprofit describes the trips, built around briefings from company policy executives for committee counsels and chiefs of staff overseeing AI legislation, as “educational,” and told Sludge in March that it “does not engage in advocacy.”

Though IFC does not disclose its donors, two companies whose executives regularly participate in its congressional programs, Google and Amazon, have identified IFC among the political and policy organizations they fund in their own public political-engagement disclosures.

Kennedy and Fulkerson own Fulkerson Kennedy & Company (FK&Co.), a political fundraising firm that has been paid nearly $3 million this election cycle for fundraising consulting services by Democratic campaigns and committees, according to Federal Election Commission records. Its clients include Sens. Chris Coons, Jacky Rosen, and Martin Heinrich; Reps. Chris Pappas and Haley Stevens, who are running for open Senate seats; and the Democratic Senatorial Campaign Committee. IFC’s first federal tax filing, covering 2025, shows the nonprofit paid $179,079 back to FK&Co. for “management, staffing, and fundraising services.”

EU will require companies to label AI-generated content starting Sunday www.techspot.com
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The takeaway: Companies operating in the European Union are now subject to a new requirement: clearly label content created or altered by artificial intelligence. Beginning Sunday, the EU’s latest transparency rules take effect, covering everything from chatbot responses to AI-generated images, audio, and video. The aim is simple: users should be able to tell, without guessing, whether what they are seeing or hearing is real or machine-generated.

The rule is part of the EU’s broader artificial intelligence law, which is being rolled out in phases. This first step focuses on disclosure. If content is generated by AI or significantly manipulated by it, companies must make that clear. That includes adding visible labels as well as technical markers, such as watermarks or embedded metadata, that help identify synthetic material.

The push comes as deepfakes and other AI-generated media become more convincing and easier to produce. Regulators are particularly concerned about how quickly this content can spread and how difficult it has become to determine what is real.

The requirements apply mainly to content created in professional contexts. Material designed to inform the public about matters of general interest must carry a label if it is produced by AI without human editorial oversight. At the same time, the EU has carved out exceptions. Individuals using AI for personal purposes are not covered, and exemptions exist for “artistic, creative, satirical, fictional” works.

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A coalition of current and former Meta employees have sued the social media giant, alleging that the company used artificial intelligence in its latest round of layoffs in a way that was discriminatory.

In a lawsuit filed Monday, plaintiffs allege that Meta violated various protected-leave laws and discrimination acts related to pregnancies and disabilities, among others, and said they wish to pursue their claims individually in arbitration.

Attorneys representing the 26 unnamed workers said in a legal complaint filed in the United States Northern District Court of California that the plaintiffs were among the 10% of Meta’s workforce cut in the company’s May layoff round.

The plaintiffs allege that Meta’s “constellation of internal artificial-intelligence systems” failed to take approved absences into account when determining which employees to cut.

“Those tools draw on inputs—performance ratings, calibration scores, productivity and output metrics, ‘AI-native’ ratings, and AI-token consumption—that, by design, cannot be accumulated by an employee who is on protected medical or family leave, or whose output is reduced by a disability,” the lawyers wrote in the filing.

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Multiple book publishers sued Google on Tuesday for allegedly stealing copyrighted content, using it to train artificial intelligence (AI) models and then generating content that “directly” competes with the original authors’ work.

“The scale and speed at which Gemini can create books and compete with human writers is unprecedented,” the lawsuit says.

The lawsuit, which requests class action status, was filed in New York by Hachette Book Group, Cengage Learning, Elsevier, author Scott Turow and his publishing company S.C.R.I.B.E.

They allege that “Google secretly copied millions of works” that were provided to Google Books and other services for “limited purposes” and then used that content to train Gemini, its AI model.

Furthermore, they claim the content generated by Gemini directly competes with the authors who wrote the original work.

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Writing in May for Above the Law, Ken Crutchfield observed that “over the past year, we’ve seen a steady stream of headlines about AI hallucinations where fake cases, fabricated quotes, and misstated facts made it through a review process and into court filings.” The predicament isn’t just that GenAI tools invent non-existent cases that some short-cut-taking attorneys cite without verifying; it’s that the tools also produce difficult-to-discover false claims and quotations that masquerade as truth in pleadings and motions. Indeed, the US Court of Appeals for the Fifth Circuit explained in February that the “problem now often manifests as false quotes or statements of law attributed to real cases, rather than the more easily recognizable fake cases.”

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The last few weeks should end any illusion that the United States can improvise its way through frontier AI policy. What we have witnessed was not serious governance. It was vibe policymaking: ad hoc, deal-by-deal reactions with no clear standard, public explanation, or predictable process. The result was not just confusion. It exposed a deeper weakness: the United States has no reliable way to measure frontier AI risk, no agreed process for acting on it, and no institution built to do either.

In early June, Anthropic released Mythos 5 and its restricted consumer version, Fable 5, models that write complex code and find software vulnerabilities with minimal prompting. Days later, the Administration ordered Anthropic to cut off access to all foreign nationals, effective immediately. Unable to verify nationality in real time, Anthropic pulled the models entirely. OpenAI, meanwhile, held back its own GPT-5.6 series at the government’s request.

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With the exploding popularity of generative artificial intelligence, many open-source models are now available online for anyone to adapt for their task, such as generating product renderings in a certain artistic style.

But these models also find their way into the hands of nefarious actors who may optimize them to produce illegal content, like hate speech or child sexual abuse material (CSAM). This is a growing problem — the National Center for Missing and Exploited Children received more than 1.5 million reports of AI-generated CSAM in 2025, an increase from 67,000 in 2024.

President Trump has lifted his export ban on Anthropic’s AI product. Commerce Secretary Howard Lutnick announced “… The controls … are withdrawn. A license is no longer required for the export, reexport, or in-country transfer, including deemed export or deemed reexport, of the Mythos or Fable models.”

Go Deeper

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Sometimes the great verities are pretty straightforward. For example, “If something cannot go on forever, it will stop,” an observation made famous by economist Herb Stein. Let’s stick with that one, given its sensible application to the Trump administration’s current quasi-licensing regime for frontier AI models. The effort has proven to be a vibey, ad hoc process that The Economist correctly describes as “opaque, unpredictable—and unsustainable.” Good news that a more structured process apparently is coming soon.

The Financial Times reports that, as early as this week, the White House will roll out “voluntary standards for the release of new models” that would “set benchmarks for models with cutting-edge cyber capabilities and establish release timelines in an effort to streamline future launches.” What’s more, the guidelines would clarify “who is able to access advanced models, both domestically and abroad, in a move that could set the stage for a global framework including US allies.” Definitely seems less haphazard, I’ll give it that.

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Trump administration officials began weighing sanctions on Anthropic weeks before they demanded the company take its latest and most advanced artificial intelligence model offline, after a dispute shattered the White House’s already-fragile trust in the company, according to two White House officials who spoke on the condition of anonymity to describe private deliberations.

 

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New UK government AI planning prototype built with Gemini aims to halve the time it takes to process homeowner applications

Around the world, Governments are exploring how AI can deliver better public services, faster. The UK is working to build 1.5 million new homes by 2029, but local planning authorities are often slowed down by dense paperwork and administrative backlogs. To help get Britain building, we’re partnering with the UK government to help radically shorten the time it takes to process householder planning applications. Our goal is to help officers cut application decision times by 50%, freeing up time for planners so that more homes can be built. We’re excited to see how our National Partnerships for AI, which seek to support reimagining of public services to create more resilient societies, can help Britain build faster.

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Late last week, Anthropic took its new Claude Fable 5 and Mythos 5 AI models offline following a United States government export-control directive barring “any foreign national” from using the services. The company has been in talks with the White House since Friday but has yet to secure an agreement that would allow it to reinstate the offerings.

Since Mythos debuted in April, Anthropic has claimed—and warned—that the model has advanced capabilities for not only finding software vulnerabilities to help defenders patch them, but also figuring out ways to exploit them that could be used by bad actors. Anthropic itself noted this double edged sword in its launch of Mythos 5 and Claude Fable 5. “A great deal of advanced usage of AI models is dual use: the same queries that are beneficial in the hands of cybersecurity professionals and biology researchers could be dangerous if available to malicious actors,” the company wrote in a blog post last week.