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

During China’s make-or-break gaokao exams, Alibaba and Tencent quietly disabled image recognition in their flagship chatbots to keep 13 million test-takers honest, proof that even AI champions don’t fully trust their own tools in high-stakes settings.

On U.S. soil, Reddit is hauling Anthropic to court for scraping user comments without a license to train Claude, turning platform terms into the next legal battleground for AI training data.

Regulators are expanding their reach: Kazakhstan’s Parliament just advanced an EU-style AI bill that puts transparency and data protection front-and-center, showing the regulation wave is rolling deep into Central Asia.

Closer to home, a Utah law clerk lost his job after ChatGPT hallucinated case citations in a court filing, the state’s first such scandal and a warning shot for firms still scrambling to write AI policies.

And if you’re wondering what responsible AI in the legal world actually looks like, don’t miss our exclusive interview with Legora CEO Max Junestrand. Fresh off an $80 million Series B, he explains how a basement-born platform is now powering 250 legal teams worldwide and what’s next for collaborative AI in law.

This week’s Highlights:

• Industry News and Updates

• An Exclusive Interview With Legora

• AI Regulation Updates

• Last Call: Legal Innovators California

• AI Tools to Supercharge your producivity

• Legal prompt of the week

• Latest AI Incidents & Legal Tech Map

➡️ Bloomberg: Alibaba, Tencent Disable AI Features During Gaokao Exams | China’s top AI chatbots, including Alibaba’s Qwen and Tencent’s Yuanbao, disabled image-recognition tools during the national gaokao exams to prevent cheating, Bloomberg reports. The move follows growing concerns over AI misuse during the high-stakes college entrance tests, taken by over 13 million students.
^{June 9, 2025, Source: Bloomberg}

➡️ Reddit Sues Anthropic Over Alleged Data Scraping for AI Training | Reddit has filed a lawsuit against AI firm Anthropic, claiming the company scraped user content without permission to train its chatbot, Claude. The suit, filed in California, accuses Anthropic of breaching Reddit’s terms of service and using automated tools to extract comments despite being told not to. Reddit says the data was taken without a license, unlike deals it has with OpenAI and Google. Anthropic denies wrongdoing and vows to fight the claims. Rather than copyright infringement, Reddit is suing for breach of contract and unfair competition.
^{June 5, 2025, Source: The New York Times}

➡️ Kazakhstan Advances AI Regulation with New Draft Law | Kazakhstan’s Parliament has approved a draft law to regulate AI, aiming to ensure ethical use and public safety. Inspired by the EU’s AI Act, the bill emphasizes transparency, fairness, and data protection. Officials say the law balances innovation with accountability, applying stricter rules to high-risk AI systems. It also proposes penalties for misuse of personal data and could reshape the country’s tech workforce by driving demand for AI-literate professionals.
^{June 4, 2025, Source: The Astana Times}

➡️ Utah Law Clerk Fired Over Fake ChatGPT Citations | A recent law school grad was fired after using ChatGPT to draft a Utah court filing that included fake legal citations, the first such case discovered in the state. The court sanctioned the attorneys involved, citing a failure to verify the AI-generated content.The law firm admitted it had no AI policy at the time but has since implemented one. Attorney Richard Bednar was ordered to pay legal fees and donate $1,000 to a legal aid group. The case underscores growing concerns about new grads over-relying on AI in professional settings.
^{June 3, 2025, Source: Ars Technica}

Legal Technology

Legora’s Quiet Power: The Collaborative AI Reshaping Legal Work

In a field known for precedent and polish, Legora is betting on something far more radical: reinvention.

From a modest beginning in a Nordic law firm’s basement to powering workflows at over 250 legal teams worldwide, Legora has quietly built a platform that both complements and transforms legal work. And in doing so, it has become a go-to solution for firms navigating the pressure to deliver faster, more cost-effective, and more strategic legal advice in a post-AI world.

You may have noticed the recent buzz surrounding Legora’s $ 80 million Series B funding raise. Today we’re back to find out how Legora became the legal AI everyone’s talking about, and what’s next.

We recently caught up with Max Junestrand, Founder and CEO of Legora, who shared some valuable insights regarding the legal tech environment then and now.

Click here to continue reading the full interview

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:

📋 6 June 2025 | EU could postpone certain parts of EU AI Act, tech chief says: It is reported that the European Commission’s tech chief, Executive Vice President Henna Virkkunen, has indicated that the EU may postpone certain parts of the EU AI Act if the necessary standards and guidelines are not ready on schedule. Speaking in Luxembourg during a meeting with EU digital ministers, Virkkunen emphasized that delaying some aspects of the AI Act remains an option to ensure proper implementation. The EU’s AI regulations, which were finalized in late 2023, are set to be phased in over the next eighteen months to address the risks posed by AI technologies.

📋 4 June 2025 | Lee Jae-myung's win in South Korea's election signals policy shift on platforms, AI: It is reported that the election of South Korea's new president Lee Jae-myung signals a significant shift in AI policy, with the president's policy focus areas being: (1) AI to be focus of industrial policies, with goal of becoming G3 in AI; (2) government’s role in fostering AI innovation to be intensified; (3) fiscal spending on AI to be increased beyond average of advanced countries, more than 100 trillion won in private-sector investment to be targeted, "AI highway" to connect data centers to be built across nation; (4) under "AI for All" initiative, government to invest substantial funds in developing world-class LLM optimised for South Korean context and make it freely available to all citizens; (5) regulatory barriers to be dismantled to spur AI development, adoption; and (6) access to be expanded to public datasets, national platform to be built for high quality training data to support AGI development.

📋 3 June 2025 | European Commission seeks approval to conclude the Council of Europe AI Convention through the EU AI Act: The European Commission has published a proposal for a Council Decision on the conclusion, on behalf of the European Union, of the Council of Europe Framework Convention on Artificial Intelligence, Human Rights, Democracy and the Rule of Law (AI Convention). The proposal seeks approval to conclude (i.e. formally implement) the AI Convention through the EU's existing AI Act, which would give the Convention full legal effect within the EU.

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Explore powerful tools from Harvey, Legora, Gravity Stack LLC, Filevine, and more - this could be exactly what your legal team needs next.

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Back for its second edition, the #StartupGallery is the go-to stage for rising stars in legaltech. Don’t miss pitches and exhibitions from Beagle, SimpleClosure, &AI, AI PDF, Crimson, Riskaway, LegalMed Virtual Urgent Care, Liquid Legal Institute, and LexIQ (Techstars '24).

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

This prompt transforms a time-consuming, line-by-line review into an instant, clear briefing, letting you focus on strategy instead of hunting for edits.

Instructions:
Paste the original clause (or full contract), then paste the revised version. Ask ChatGPT to produce a short summary that:

1. Lists each substantive change in plain language (added, removed, or modified terms).

2. Flags new obligations or risks for your client.

3. Suggests one sentence per change on whether to accept, negotiate, or reject.

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:

⚠️ 2025-05-25 | Purported AI-Generated Video Depicts Ibrahim Traoré of Burkina Faso Delivering Speech on Western Exploitation | View Incident

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