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

We’re dedicated to keeping you informed on the latest in AI regulations, legal tech developments, and expert insights to help you navigate the evolving landscape of artificial intelligence in the legal profession.

This week’s Highlights:

• Newsom Announces AI Initiatives and Vetoes AI Bill SB 1047

• Headlines From Around the Web You Shouldn't Miss

• Legal-Grade™ AI at the Intersection of Technology and Contracts

• AI Tools to Supercharge your producivity

• Legal prompt of the week

Compliance and regulations

Governor Newsom Vetoes SB 1047 and Pushes for Thoughtful AI Regulation in California

In a press release shared on Sunday by Governor Gavin Newsom’s office, California unveiled a series of initiatives aimed at advancing safe and responsible AI practices while protecting its residents from the potential risks associated with the rapidly evolving technology. The release, originally published on the official California government website, highlighted Governor Newsom’s recent actions, including the signing of numerous bills related to AI regulation and the vetoing of SB 1047, a bill that aimed to impose stricter AI standards. The full press release can be found on the Governor’s official site.

Newsom Announces AI Initiatives and Vetoes AI Bill SB 1047

Governor Gavin Newsom has been proactive in addressing the impact of artificial intelligence on Californians. Over the past month, Newsom signed 17 bills aimed at addressing the growing use of AI technologies while also vetoing SB 1047, a bill that he felt did not fully address the complexities of AI deployment. These new laws include efforts to regulate deepfakes, protect children and workers, require AI watermarking, and combat AI-generated misinformation.

However, when it came to SB 1047, Newsom took a different stance, opting to veto the legislation. He explained, “While well-intentioned, SB 1047 does not take into account whether an AI system is deployed in high-risk environments, involves critical decision-making or the use of sensitive data. Instead, the bill applies stringent standards to even the most basic functions — so long as a large system deploys it. I do not believe this is the best approach to protecting the public from real threats posed by the technology.”

In place of SB 1047, Newsom is advocating for a more adaptable framework that can respond to the rapid advancements in AI while maintaining public safety.

Read the whole article here

🔍 UK clears Amazon's AI partnership with Anthropic (Reuters)

🔍 Blackstone confirms $13 billion investment in Britain for AI data centre (Reuters)

🔍 AI ban ordered after child protection worker used ChatGPT in Victorian court case (The Guardian)

🔍 OpenAI to remove non-profit control and give Sam Altman equity (Reuters)

🔍 FCC Issues $6M Fine for Election Interference Deepfake Robocalls (FCC)

Legal Technology

Luminance: Legal-Grade™ AI at the Intersection of Technology and Contracts

Luminance is redefining how businesses and legal teams manage contracts, offering a platform which brings Legal-Grade™ AI to every touchpoint a business has with its documents —from contract generation and negotiation to post-execution analysis.

Founded by mathematicians from Cambridge University, Luminance’s AI is underpinned by a  proprietary legal Large Language Model which uses a combination analytical and generative AI to streamline legal processes. Operating in over 70 countries, with a clientele that includes each of the Big Four consultancy firms and some of the world’s largest corporations, Luminance is without a doubt at the cutting edge of legal AI.

Its slogan, “Wherever Computer Meets Contract,” aptly captures its mission: to integrate AI at every point where business meets legal documentation.

Wherever Computer Meets Contract

Luminance was developed by some of the brightest minds in AI to serve as a next-generation legal co-pilot. Unlike generalist AI models, Luminance was built specifically for the legal sector. It has been exposed to over 150 million legally verified documents, enabling it to offer precise, legally sound insights that businesses and law firms can trust.

Luminance doesn’t just analyze or produce content; it understands it. Whether it’s reviewing an incoming contract for compliance, flagging anomalies, or assisting with eDiscovery, Luminance provides an end-to-end AI solution that accelerates workflows and reduces risks. This explains why it is trusted by over 700 organizations worldwide, including multinational giants such as Hitachi, AMD, BBC Studios, Yokogawa, and Koch Inc.

Read the full article here

🆕 AI.Law - Technology that reduces the cost of litigation.

🆕 Theo AI - Creating the world’s first legal prediction engine to forecast the outcome of your legal dispute.

🆕 Sparqa - Legal answers and customisable documents written by top UK lawyers and trusted by over 10,000 small businesses.

Want more Legal AI Tools? Check out our
Top AI Tools for Legal Professionals

How to Prompt OpenAI o1 Models: Key Guidelines

1. Avoid "Chain of Thought" Prompts
   OpenAI-o1 models are designed to handle reasoning internally, so you don’t need to guide them step by step. Using your own reasoning in the prompt may actually reduce performance. Let the model do the thinking for you.

2. Keep Prompts Simple
   Simplicity is key! These models work best with clear and straightforward prompts. You don’t need to over-explain or provide too much guidance—they can navigate complex topics on their own.

3. Use Delimiters for Clarity
   For better organization, especially when breaking down parts of your prompt, use delimiters such as “###” or section titles. This helps the model distinguish between different parts of your request and improves the quality of the response.

4. Limit Extra Context in Retrieval Augmented Generation (RAG)
   When using retrieval-augmented generation (RAG) techniques, only include the most relevant information. Providing too much context might overwhelm the model and lead to less accurate or slower results.

The "Quick Contract Summary" prompt helps lawyers save time by generating a concise, clear overview of key terms and obligations in any contract. By simply providing the contract, you’ll receive a streamlined summary that highlights the most important clauses, deadlines, and responsibilities, allowing you to quickly assess the contract’s main components without sifting through lengthy legal text. Perfect for busy lawyers who need to get to the heart of a contract fast!:

Prompt: Provide a concise summary of the key terms and obligations in this contract: [Insert Contract].

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