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25 April 2025

AI Legal Watch: April 14, 2025

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In an unprecedented test of courtroom technology boundaries, the New York State Supreme Court Appellate Division recently halted proceedings when it discovered pro se litigant Jerome Dewald had submitted an AI-generated digital avatar to present his oral arguments in an employment dispute.
United States Technology

In an unprecedented test of courtroom technology boundaries, the New York State Supreme Court Appellate Division recently halted proceedings when it discovered pro se litigant Jerome Dewald had submitted an AI-generated digital avatar to present his oral arguments in an employment dispute. Justice Manzanet-Daniels quickly terminated the presentation upon learning the well-dressed man on screen was entirely artificial, admonishing Dewald for misleading the court. Dewald later apologized, explaining he had created the digital stand-in to avoid his tendency to stumble when delivering legal arguments—a justification that failed to persuade the bench. This incident represents an example of artificial intelligence's complicated integration into legal proceedings, following other concerning developments where attorneys have inadvertently cited non-existent case law generated by AI tools.

European Union Moves to Bolster its AI Infrastructure
Coleman Strine
Recently, the European Commission announced plans to advance Europe's position in the global AI race. Primarily, the Commission seeks to develop a 20 billion euro fund to build a network of AI gigafactories in Europe. This announcement builds off the EU's recent pledge of 200 billion euros for AI industry development. The Commission also stated that it plans to create labs to provide large-scale data sets that comply with the GDPR and EU AI Act. Additionally, EU lawmakers have announced plans to introduce the Cloud and AI Development Act, which seeks to lower regulatory barriers and stimulate private investment in AI data center infrastructure. These developments seek to put Europe on-par with global AI leaders, such as the United States and China.

Virginia Governor Vetoes High-Risk AI Regulation Bill
Joe Cahill
Virginia Governor Glenn Youngkin has vetoed the "High-Risk Artificial Intelligence Developer and Deployer Act" (HB 2094). The bill, which narrowly passed both chambers of the Virginia Legislature in February 2025, would have established regulatory frameworks for AI systems making consequential decisions in education, employment, financial services, health care, and legal services.

In his March 24th veto statement, Governor Youngkin cited concerns that the bill would create "a burdensome artificial intelligence regulatory framework" that could undermine growth. "The regulatory framework called for by HB 2094 would undermine this progress, and risks turning back the clock on Virginia's economic growth, stifling the AI industry as it is taking off," Youngkin stated.

The Virginia veto illustrates how state public officials are grappling with competing concerns over AI regulation and innovation. Colorado Governor Jared Polis communicated similar concerns when signing Collado's AI Act (SB 24-205) last year.

Quick Links
For additional insights on AI, check out Baker Botts' thought leadership in this area:

  1. AI Counsel Code: In the latest episode, "Legal Challenges in AI Partnerships," Maggie Welsh and Steve Mann explore the legal challenges in AI partnerships. They discuss best practices for engaging with AI vendors, focusing on data protection, ownership of AI-generated outputs, and the importance of clear, enforceable contracts. They emphasize proactive measures to protect data and intellectual property in the evolving AI landscape.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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