Market Intelligence

Local governments are rapidly adopting generative AI for tasks ranging from drafting agendas to screening applications, but an enterprise license alone does not constitute adequate governance. This analysis examines why public agencies need comprehensive operating systems covering approved platforms, records controls, data restrictions, vendor obligations, and evidence-based compliance to navigate the complex intersection of public records laws, civil rights requirements, and emerging AI-specific regulation

The U.S. Office of Management and Budget has delayed sweeping revisions to federal grant administration rules until at least December 2026, creating uncertainty for organizations that receive federal financial assistance. What operational changes should grant recipients and pass-through entities prioritize now to prepare for future compliance requirements?

Finland is set to implement sweeping reforms to its foreign direct investment screening regime, expanding mandatory authorisation requirements to all foreign investors including those from EU and EFTA countries. The new legislation will cover a significantly broader range of sectors including critical infrastructure, data centres, energy projects, and strategic raw materials, while introducing mandatory screening for greenfield investments for the first time.

Holland & Knight's Congressional Investigations Team hosted a bipartisan briefing on Capitol Hill examining congressional oversight and investigative priorities in the 120th Congress. Leading members of Congress and senior oversight staff discussed the evolving landscape of congressional investigations, including increased subpoena use, AI regulation as an emerging bipartisan priority, and the accelerating impact of media and social pressure on investigative triggers.

The U.S. Department of Homeland Security has issued an exclusion and removal order targeting DeepSeek AI products from federal civilian agency systems, citing national security concerns over potential data transfers to China and cybersecurity vulnerabilities. Federal contractors must now conduct immediate inquiries to identify and report any DeepSeek products in their systems or contract performance within three business days.

State attorneys general have raised concerns about proposed federal regulations that would modernize accreditation standards for higher education institutions. The public comment warns that implementing these sweeping changes could incentivize lowered oversight and create harm across the higher education sector. Will these regulatory reforms strengthen or weaken the quality control mechanisms that govern American colleges and universities?