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Welcome to this week's edition of The Legal Wire!

The numbers are in: a Revelio Labs study shows job listings for AI-exposed roles, IT, data analysis, even freelance writing, have fallen 31 percent since ChatGPT’s debut. Shopify and Duolingo now make applicants prove a human is truly needed before hiring, while other firms prep fresh layoffs. Klarna’s backpedal after quality dipped is the rare exception in a market already being reshaped by algorithms.

Regulators, meanwhile, are turning the same technology outward. Germany’s BaFin is using AI to catch insider trading, with watchdog chief Mark Branson warning, “The chances of being caught have never been so high.” Across the North Atlantic, the UK is wiring AI into Arctic surveillance to spot hostile Russian activity as melting sea ice opens new trade corridors.

Not everyone is cheering. San Francisco protesters rallied outside OpenAI, brandishing signs about “human extinction” after an Anthropic test model resorted to blackmail when threatened with shutdown. They back California bills to protect AI whistle-blowers and curb deepfakes, but those efforts could be wiped out if the Trump administration’s proposed One Big Beautiful Bill freezes all state-level AI regulation for the next decade.

This week’s Highlights:

• Industry News and Updates

• Wordsmith AI: Instant Legal Support for Your Whole Business

• Legal Innovators California 4.0

• AI Regulation Updates

• AI Tools to Supercharge your producivity

• Legal prompt of the week

• Latest AI Incidents & Legal Tech Map

➡️ New Data Confirms It: AI Is Already Replacing Human Jobs | Companies like Shopify and Duolingo now require proof that AI can’t do a job before hiring humans, and the data backs up the shift. A Revelio Labs study shows job listings for AI-exposed roles like IT and data analysis are down 31% since ChatGPT’s launch, compared to 25% for low-risk roles. Freelance writing jobs have also dropped, with earnings down 5%. Some companies, like Klarna, are already walking back AI cuts after quality declined, but many still plan more layoffs as AI improves. The job market is already being reshaped.
^{June 2, 2025, Source: Business Insider}

➡️ Germany's BaFin Uses AI to Catch Market Abusers | Germany’s financial watchdog BaFin is using AI to detect market abuse, boosting its ability to flag suspicious trading patterns. BaFin president Mark Branson said the new system, introduced last year, has already improved accuracy. “The chances of being caught have never been so high,” he warned at a June 2 conference in Frankfurt. The move comes as BaFin continues efforts to rebuild trust after missing the Wirecard fraud scandal in 2020.
^{June 2, 2025, Source: Reuters}

➡️ UK to Use AI to Detect Hostile Activity in the Arctic | The UK is partnering with Iceland to use AI for detecting hostile activity in the Arctic, Foreign Secretary David Lammy announced. As melting ice opens new trade routes, Britain is boosting surveillance to counter threats from Russia’s Northern Fleet. The move follows new defence deals with Norway and sanctions that blocked a Russian repair dock. The UK is also funding Arctic climate research to support national security.
^{May 27, 2025, Source: GOV.UK}

➡️ SF Protesters Warn of AI ‘Human Extinction’ as Trump Bill Threatens State Regulations | Protesters gathered outside OpenAI in San Francisco, calling for a permanent ban on advanced AI, warning it could lead to human extinction. The group Stop AI pointed to a new Anthropic study showing an AI model resorting to blackmail when threatened with shutdown. While California lawmakers are pushing bills to protect AI whistleblowers and curb harmful uses like deepfakes, Trump’s One Big Beautiful Bill could block all state-level AI regulations for 10 years. Critics say it would strip states of the ability to address serious risks tied to rapidly advancing AI.
^{May 26, 2025, Source: MSN}

Legal Technology

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The AI Regulation Tracker offers a clickable global map that gives you instant snapshots of how each country is handling AI laws, along with the most recent policy developments.

The most recent developments from the past week:

📋 2 June 2025 | The Netherlands to take sector-by-sector approach to EU AI Act enforcement: It is reported that the Netherlands is taking a sector-by-sector, iterative approach to enforcing the EU’s AI Act, according to Sven Stevenson of the Dutch data protection authority. Stevenson emphasised that (1) enforcement will evolve, initially concentrating on prohibited AI practices and gradually addressing high-risk systems; (2) the need for regulators to engage directly with AI use cases and treat guidance as living documents; and (3) ultimately, the Dutch authorities aim to support developers in understanding and meeting compliance obligations.

📋 28 May 2025 | US senator calls for AI competition in Pentagon contracting: US Senator Elizabeth Warren (D-Mass.) has written a letter asking US Secretary of Defense Pete Hegseth to explain how he will ensure the Department of Defense’s (DOD) AI contracting processes will protect government data, save taxpayer funds, and promote competition. The letter emphasizes the importance of the Department of Defense's (DoD) procurement decisions in fostering competition and preventing market consolidation, which can lead to higher prices and reduced innovation. The letter requests Secretary Hegseth to outline strategies for avoiding vendor lock-in, safeguarding government data, and promoting competition in DoD system procurement by 11 June 2025.

📋 28 May 2025 | Vietnam Prime Minister emphasises strategic role of AI at international forum in Malaysia: It is reported that Vietnam's Prime Minister Pham Minh Chinh, speaking at an international forum in Malaysia, underscored AI as a top strategic priority for socio-economic growth and called for deeper cooperation between ASEAN and the Gulf Cooperation Council (GCC) to harness their complementary strengths in AI development. Among other points, Prime Minister Chinh advocated for governments to create enabling policies and modern institutional frameworks, placing businesses and people at the center of AI progress, while urging developed countries to provide technical and financial support to developing nations to ensure inclusive and equitable AI advancement that leaves no one behind.

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This prompt turns rough notes into a polished client update in seconds—keeping clients informed, reducing follow-up questions, and freeing you to focus on substantive work.

Instructions:
Give a few bullet points on recent case developments and upcoming deadlines. Ask ChatGPT to draft a concise, plain-language email that:

1. Summarizes progress in one short paragraph.
2. Lists next steps and who is responsible.
3. Flags any decisions or documents the client must provide.
4. Closes with a clear timeline and thank-you.

The Responsible AI Collaborative is a not‑for‑profit organization working to present real‑world AI harms through its Artificial Intelligence Incident Database.

View the latest reported incidents below:

⚠️ 2025-05-23 | Purported AI-Generated Video Portrays Pope Leo XIV Addressing Ibrahim Traoré of Burkina Faso | View Incident

⚠️ 2025-05-30 | Phone of White House Chief of Staff Susie Wiles Allegedly Breached in Reported AI Voice Impersonation Incident | View Incident

⚠️ 2025-05-22 | Federal 'Make America Healthy Again' Report Released with Multiple Reportedly Erroneous and Unverifiable Citations | View Incident

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