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ARTICLE · 17 JULY 2026

AI Reporter – July 2026

Benesch, Friedlander, Coplan & Aronoff LLP
Benesch, Friedlander, Coplan & Aronoff LLP
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State attorneys general are emerging as the primary enforcers of AI regulations, filing landmark lawsuits against major AI companies over safety failures, trade secrets, and consumer protection. As federal preemption debates continue, companies face immediate legal challenges from state-level enforcement actions targeting AI deployment, workplace policies, and algorithmic decision-making systems.

United StatesTechnology
Kevin Frankel
Kevin Frankel
Kristopher Chandler
Kristopher Chandler
Yesul (“Kristin”) Lee
Yesul (“Kristin”) Lee
Juan Andrés Mata
Juan Andrés Mata
Steven Selna
Steven Selna
Carlo Lipson
Carlo Lipson
Samantha Lim
Samantha Lim
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AI Update

In another setback for Elon Musk, a California federal judge dismissed xAI’s trade secret lawsuit against OpenAI with prejudice, finding no evidence that OpenAI knowingly obtained confidential information from a former xAI engineer and marking a setback in efforts to pursue claims tied to employee movement in the AI industry. In Texas, a federal court ordered production of Elon Musk’s emails from SpaceX and Tesla, ruling that his cross-company leadership and use of multiple corporate accounts made those communications discoverable, underscoring concerns that AI-related business practices and partnerships could unfairly limit competition while also reinforcing that executives cannot evade legal scrutiny by shifting communications across entities.

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