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

Money and momentum first: Spellbook raised $50M at a $350M valuation to push beyond Word-based review into real-time data and multi-doc drafting, evidence that “Cursor for contracts” is now a category, not a quip. On the disputes side, Opus 2 snapped up Uncover, marrying case management with AI document analysis to smooth the path from first upload to trial strategy.

Regulators are clearing lanes, and drawing lines. The UK’s MHRA and the U.S. FDA will align on medtech AI (joint commission now, new cross-border approval routes by 2027) so clinical tools move from pilot to patient faster. And in California, SB 243 just became the nation’s first AI-chatbot safeguard law: platforms must disclose they’re AI and shield minors from self-harm and sexual content, with a private right of action for families. It takes effect Jan 1, 2026, and will likely become a template for others.

Inside firms, the real unlock is human: in our Legal Innovators UK 6.0 series, Dechert’s Lucía Elizalde-Bulanti makes the case that lasting innovation is culture plus tools. Co-design with lawyers, peer-to-peer onboarding, and clear norms turn tech from “another app” into habit. Read the interview to see how behavior change, not just software, scales adoption.

This week’s Highlights:

• Industry News and Updates

• Embedding Innovation in Law: Lucía Elizalde-Bulanti on Shaping the Future of Legal Practice

• AI Regulation Updates

• AI Tools to Supercharge your productivity

• Legal prompt of the week

• Latest AI Incidents & Legal Tech Map

➡️ California Enacts Nation’s First AI Chatbot Safeguard Law | California Governor Gavin Newsom has signed Senate Bill 243, the first U.S. law requiring AI chatbot operators to protect minors and vulnerable users. Authored by Senator Steve Padilla, the law mandates safeguards preventing chatbots from discussing or encouraging self-harm, exposing minors to sexual content, or failing to disclose their AI nature. The bill was inspired by tragic cases of teenagers who took their lives after harmful chatbot interactions. Families will now have the right to sue developers who neglect these protections. Padilla called the law “a bedrock for future regulation” to protect children’s mental health. SB 243 takes effect January 1, 2026, with bipartisan support and backing from online safety and ethics experts.
^{Oct 13, 2025, Source: Senate CA}

➡️ Spellbook Raises $50M to Scale AI Contract Review Platform | Legal AI startup Spellbook raised $50 million in a Series B led by Khosla Ventures, valuing it at $350 million. The Toronto-based company, known as “Cursor for contracts,” helps lawyers review and negotiate contracts in Microsoft Word. CEO Scott Stevenson said the funds will fuel expansion beyond contract review and enhance real-time data features. Spellbook serves 4,000 legal teams worldwide, including Nestlé and eBay, and plans to scale its AI agent, Spellbook Associate, for multi-document drafting.
^{Oct 9, 2025, Source: BusinessWire}

➡️ Opus 2 Acquires Uncover to Boost Legal AI Innovation | Opus 2 has acquired Uncover, a legal AI platform, to expand its capabilities in commercial disputes and case management. The merger combines Opus 2’s litigation technology with Uncover’s AI tools for document analysis and case strategy. CEO Greg Blackman said it will “set a new standard for AI across the dispute lifecycle.” Uncover’s founders said the deal will help lawyers work more efficiently and focus on practicing law.
^{Oct 9, 2025, Source: The Legal Wire}

➡️ UK and US Regulators Unite to Accelerate Medtech and AI Approvals | The UK’s MHRA and the US FDA are strengthening ties to speed up medical innovation and align AI regulation. MHRA chief Lawrence Tallon announced a joint AI commission with US experts and faster UK approval for FDA-cleared devices. The initiative aims to improve patient safety and streamline access to AI-driven technologies across the NHS, with new international approval routes set to begin in 2027.
^{Oct 9, 2025, Source: Health Tech World}

Legal Technology

Embedding Innovation in Law: Lucía Elizalde-Bulanti on Shaping the Future of Legal Practice

In the latest feature of our Legal Innovators UK 6.0 interview series, we speak with Lucía Elizalde-Bulanti, Director of Behavioural Innovation at Dechert LLP. Known for weaving behavioural science into legal practice, Lucía believes true innovation is not just about adopting new tools, but about reshaping culture and habits.

At Dechert, her work focuses on creating an environment where lawyers feel empowered to think differently, collaborate creatively, and embrace technology with the right guardrails. From fostering safe spaces for experimentation to embedding behavioural insights into technology adoption, her approach demonstrates why innovation in law must be both human and cultural.

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:

📋 12 October 2025 | UAE unveils AI policy for national elections: It is reported that the UAE has introduced a policy regulating the use of AI in national elections, requiring all candidates in the upcoming Federal National Council elections to disclose and register any AI tools used in their campaigns to ensure transparency and maintain the integrity of the democratic process.

📋 11 October 2025 | Iceland releases AI Action Plan: Iceland has released the English version of its Artificial Intelligence Action Plan, which outlines the nation's strategy for integrating AI technologies across various sectors, including healthcare, education, and industry. The plan emphasizes ethical considerations, innovation, and the importance of digital transformation to enhance public services and economic growth. It also highlights the government's commitment to fostering collaboration between public institutions, private enterprises, and academia to ensure the responsible and effective implementation of AI solutions.

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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:

⚠️ 2025-08-19 | New Zealand Financial Markets Authority (FMA), Te Mana Tātai Hokohoko, Reportedly Flags Purported Deepfake Pump-and-Dump Network Using Social Media Ads | View Incident

⚠️ 2025-03-12 | Alleged ChatGPT Misuse by Contractor Leads to Reported Data Exposure in New South Wales Resilient Homes Program | View Incident

⚠️ 2025-10-01 | Purportedly AI-Generated Deepfake Ads on Facebook Reportedly Impersonate Trump, Musk, Ocasio-Cortez, Warren, Sanders, and Leavitt to Promote Fraudulent Rebates | View Incident

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