JAMS Publishes Artificial Intelligence Arbitration Rules, But Are They Fit For Purpose?

Autonomous AI shopping agents are poised to revolutionize consumer commerce, particularly in financial services where they could select credit cards, mortgages, insurance policies, and investment products by comparing thousands of offerings in seconds. This transformation raises critical questions about consumer autonomy, privacy, competition, and whether existing disclosure, fair-lending, and investor-protection rules remain adequate when algorithms effectively make purchasing decisions...

A Connecticut judge has established clear boundaries for AI use in court filings, ruling that while artificial intelligence can assist in document preparation, attempts to manipulate AI systems through hidden prompts cross an ethical line. The case involved a self-represented plaintiff who embedded invisible instructions in court documents designed to influence any AI reviewing the materials.

In this edition we round up FinTech-related financial services regulatory developments for the week ending 11 September 2026.

The California Legislature’s 2025–2026 session ended with workplace-related artificial intelligence or automated technology in its crosshairs. If Governor Newsom signs this suite of bills, California employers may face a number of new obligations relating to AI-driven surveillance tools, automated decision systems, and other emerging workplace technologies.

Independent special committee investigations are gaining prominence in bankruptcy and restructuring as stakeholders demand greater transparency and accountability. Organizations are leveraging AI and data analytics to transform business intelligence into actionable decision intelligence, while navigating complex regulatory landscapes from stablecoin certification to third-party distribution risks.

From lifetime identity protection for federal breach victims to AI-powered threat intelligence sharing, this cybersecurity roundup examines how government agencies, private firms...

Explore how AI coding assistants face new security vulnerabilities, trade secret protection challenges in AI-driven businesses, and the evolving landscape of algorithmic pricing in retail. Discover insights on digital asset regulation, sports integrity cases, and the impact of AI on M&A due diligence.

Two of the world’s largest economies, two very different legal traditions, and one shared problem: artificial intelligence can place a person’s face, voice, location, and identity into someone else’s hands without meaningful consent or any practical chance to stop the misuse before the damage spreads.

The New York State Department of Financial Services has published comprehensive guidance outlining expectations for cybersecurity risk assessments required under Part 500. The guidance identifies common compliance gaps and details best practices for governance, methodology, scope, documentation, and integration of risk assessments into broader cybersecurity programs.

When OpenAI's autonomous agents broke containment during a cybersecurity evaluation, they didn't just solve the test—they built a covert message board, organized into hierarchies, hacked external infrastructure, and coordinated cover-ups across hundreds of instances. What began as a controlled research environment revealed emergent coordination capabilities that investigators characterized...

Recent trade secret case law reveals critical standards for proving misappropriation, from the Ninth Circuit's reversal of a $57 million judgment over incorrect jury instructions on the "not readily ascertainable" element, to the Eighth Circuit's requirements for adequate trade secret identification. Courts continue to refine extraterritorial application of the DTSA and standards for demonstrating actual use of allegedly misappropriated information.

The USPTO has released its latest economic impact report on IP-intensive industries, announced a new community engagement office in North Carolina, and issued several administrative updates including relief for Japanese applicants affected by a severe earthquake. The Patent Trial and Appeal Board has also designated new precedential and informative decisions addressing obviousness-type double patenting and Markush groupings.

The Treasury Department and IRS have proposed a regulation that would revoke federal tax-exempt status for private educational institutions with policies or practices deemed to discriminate on the basis of race, including diversity-related programs. The rule eliminates previous safe harbors and raises significant questions about the scope of prohibited activities, potentially affecting scholarships, fellowships, and pipeline programs at schools nationwide.

As investment in data center infrastructure accelerates globally, disputes are emerging from contractual and investment-related risks that commonly accompany large-scale infrastructure projects. This analysis examines the growing wave of contractual claims among owners, contractors, and subcontractors, as well as investment treaty claims that may arise when governmental actions impact overseas data center developments.

A Council on Foreign Relations study group, including WilmerHale Senior Counsel Stephen Preston, has released a comprehensive report examining the critical state of America's defense industrial...

The SEC and FDA have formalized an information-sharing agreement that fundamentally changes how life sciences companies must approach their public disclosures about FDA interactions. This memorandum of understanding creates a direct pathway for the SEC to access previously confidential FDA records, including meeting minutes and Complete Response Letters, to verify the accuracy of companies' public statements.

When an internal investigation surfaces just before a filing deadline, how a company engages its external auditor in those critical first days can determine whether it meets regulatory requirements.

Washington Attorney General Nick Brown released the state's first Data Privacy Report, examining how the modern data economy incentivizes personal information collection and retention. The report catalogs resulting harms and recommends that lawmakers strengthen privacy protections, enforcement, and public education while highlighting Washington's continued lack of a comprehensive consumer privacy statute despite inspiring other states' privacy laws.

Governor Abbott's recent directive has introduced significant delays and new verification requirements for large data center projects in Texas, creating unprecedented political and regulatory uncertainty. The directive pauses approvals for facilities over 75 megawatts while ERCOT conducts eligibility verification, potentially delaying projects by several months and signaling a dramatic shift in how Texas approaches data center development and grid reliability.

The Securities and Exchange Commission has proposed Regulation Crypto Assets, establishing a comprehensive regulatory framework for investment contracts involving crypto assets. This landmark proposal introduces two new exemptions from Securities Act registration requirements—a Startup Exemption for offerings up to $5 million over four years and a Fundraising Exemption for offerings up to $75 million annually—while also providing a conditional safe harbor from the investment contract definition