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

A Melbourne judge just issued a blunt warning to the profession: unchecked AI in court filings won’t fly. Defence lawyers for a 16-year-old submitted documents riddled with fake citations, invented quotes, and even non-existent laws, then had to apologize and refile. The message is simple: verify, or risk undermining justice.

Platforms are tightening guardrails, too. YouTube is piloting AI age verification in the U.S., using behavior signals to spot under-18 users and automatically dial up protections (fewer personalized ads, stricter recs). Anyone wrongly flagged can verify with ID or a card, raising the perennial balance between safety and privacy.

Meanwhile, the arms race in infrastructure rolls on: Google will pour $9B into Oklahoma for new and expanded AI/cloud data centers, part of an $85B capex plan as demand for AI services surges. It follows a $1B pledge to AI education across U.S. institutions.

For a look at focused AI, meet CaseLens: six “AI junior associates” built for international arbitration that build timelines, tag exhibits, and verify citations, turning document piles into tribunal-ready clarity. We asked co-founder/CEO Aram Aghababyan why they chose arbitration and how “reading at scale” beats flashy text generation. Read the full interview below.

This week’s Highlights:

• Industry News and Updates

• CaseLens: Meet the AI Junior Associates Rewriting Arbitration Prep

• AI Regulation Updates

• AI Tools to Supercharge your producivity

• Legal prompt of the week

• Latest AI Incidents & Legal Tech Map

➡️ UK Science Council Pushes for Sovereign AI Chip Design Industry | The Council for Science and Technology has called for a UK-led AI chip design sector, citing its importance for security and growth. The report urges more chip designers by 2030, expanded training in optoelectronics, clear government goals, and affordable access to advanced facilities for startups and SMEs.
^{Aug 18, 2025, Source: GOV.UK}

➡️ Judge Slams Lawyers for Unchecked AI-Generated Court Filings | A Melbourne judge has rebuked defence lawyers for a 16-year-old murder accused after they filed AI-generated documents containing fake case citations, inaccurate quotes, and even non-existent laws. Justice James Elliott warned that using AI without thorough verification “would seriously undermine” the court’s ability to deliver justice. Both defence and prosecutors admitted they failed to fact-check the submissions, later apologizing and re-filing corrected versions. The teen, found not guilty by reason of mental impairment from schizophrenia, remains under supervision in a youth justice centre until a November hearing.
^{Aug 14, 2025, Source: The Guardian}

➡️ YouTube Tests AI Age Verification in U.S. | YouTube is testing an AI-powered tool in the U.S. that estimates whether a user is under 18, aiming to strengthen protections for younger audiences. The system analyzes viewing habits, search history, and account activity to determine age, applying safeguards like disabling personalized ads and limiting certain recommendations for teens. Users wrongly flagged as under 18 can verify their age via credit card or government ID. YouTube plans a wider rollout after monitoring results.
^{Aug 14, 2025, Source: ABC News}

➡️ Google to Invest $9B in Oklahoma AI and Cloud Expansion | Reported by Reuters: Google will invest $9 billion over two years to expand AI and cloud infrastructure in Oklahoma, including a new data center in Stillwater and an expansion of its Pryor facility. Part of Alphabet’s larger $85 billion 2025 capex plan, the move supports rising demand for AI services amid fierce Big Tech competition. Google also recently pledged $1 billion to AI education and training for U.S. institutions, with over 100 universities signed on.
^{Aug 14, 2025, Source: Reuters}

Legal Technology

CaseLens: Meet the AI Junior Associates Rewriting Arbitration Prep

If you’ve ever prepped for international arbitration, you know the drill: hundreds (if not thousands) of documents, a labyrinth of timelines, and that creeping anxiety that you’ve missed a key fact buried in a scanned PDF. It’s not glamorous work, but it is mission-critical. And while most legal AI tools are busy pitching themselves as general-purpose copilots, CaseLens has taken a very different route.

They’ve hired 6 AI junior associates. And they don’t need sleep.

These AI teammates don’t just skim documents, they also chronologize events, summarize arguments, search and tag key exhibits, and verify citations with what can only be described as near-obsessive precision. It’s case preparation on turbo mode.

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:

📋 17 August 2025 | China mandates more domestic AI chips for data centres to cut reliance on Nvidia: It is reported that China is mandating that publicly owned data centers source over 50% of their computing chips from domestic producers to reduce reliance on foreign technology, particularly amid tightened U.S. export controls. This policy, initially proposed in Shanghai in March 2024, has now been implemented nationwide (i.e. backed by the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT)) to bolster the domestic semiconductor sector. The move reflects China's accelerated efforts to achieve technological self-sufficiency in critical areas like AI and data processing.

📋 15 August 2025 | NIST releases concept paper on control overlays for securing AI systems: The National Institute of Standards and Technology (NIST) has released a concept paper and proposed action plan for developing a series of NIST SP 800-53 Control Overlays for Securing AI Systems, as well as a launching a Slack channel for this community of interest. The concept paper outlines proposed AI use cases for the control overlays to manage cybersecurity risks in the use and development of AI systems, and next steps. The use cases address generative AI, predictive AI, single and multi-agent AI systems, and controls for AI developers.

📋 12 August 2025 | Uzbekistan adopts law regulating AI use: Members of the Legislative Chamber of Uzbekistan’s Oliy Majlis have approved, in a third reading, a new law establishing rules for the use of AI. The legislation introduces fines for the unlawful processing and dissemination of personal data through AI technologies, including via mass media and the internet. It provides an official definition of AI, outlines the objectives of state policy in this area and sets basic requirements for using AI in creating information resources and operating information systems. A key provision states that decisions affecting human rights and freedoms must not be based solely on AI-generated conclusions. The draft law was previously discussed during an 15 April 2025 session.

📋 12 August 2025 | Grace period in South Korea AI law may only have limited impact: It is reported that South Korea’s government appears to be leaning toward suspending some or all of the obligations and penalties under the AI Basic Act for a few years after it takes effect in January 2026. The move is intended to ease business concerns and will be detailed in upcoming enforcement rules.

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This prompt Catches subtle drafting errors in minutes, standardizes terminology, and delivers a cleaned-up definitions block, saving hours of manual line-by-line checking.

Instructions:
Paste your draft contract. Ask ChatGPT to:

1. Extract all defined terms (alphabetical table with definition text and clause of first use).

2. Flag issues:

- Terms defined but never used

- Used but not defined capitalized terms

- Inconsistent capitalization/plural/variant usages

- Circular/obsolete cross-references inside definitions

3. Map references: list all clauses where each term appears.

4. Propose fixes: consolidate duplicates, harmonize wording, and supply a clean revised Definitions section.

5. Summary: one-page change log and a short checklist for final review.

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:

⚠️ 2025-08-05 | ChatGPT Reportedly Suggests Sodium Bromide as Chloride Substitute, Leading to Bromism and Hospitalization | View Incident

⚠️ 2024-05-06 | Google Healthcare AI Model Med‑Gemini Allegedly Produces Non‑Existent 'Basilar Ganglia' Term in Published Output | View Incident

⚠️ 2024-10-15 | Purported Face‑Swap Technology Reportedly Used to Circumvent Financial Platform's Facial Recognition Security in Nanjing, China | View Incident

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