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

AI stumbled in a Georgia courtroom when attorney Diana Lynch was fined the maximum $2,500 for citing bogus, AI-invented cases in a divorce brief, echoing Chief Justice Roberts’s 2023 warning about “hallucinations” in legal filings.

In Washington, the Senate yanked a proposed 10-year freeze on state AI rules from President Trump’s spending bill, handing Big Tech a rare loss. Texas seized the opening, enacting its own Responsible Artificial Intelligence Governance Act the very same day to set disclosure and accountability standards.

Across the Atlantic, Brussels isn’t budging: the European Commission rebuffed pleas from Alphabet, Meta, and others to delay the AI Act. General-purpose model requirements start this August, with high-risk rules locked in for 2026, only minor tweaks for small businesses are on the table.

This week’s Highlights:

• Industry News and Updates

• Uncovering Legal AI: How Two Lawyers Reimagined What Legal Work Could Be

• AI Regulation Updates

• Senate Removes AI-Moratorium from Trump’s “One Big Beautiful Bill”

• AI Tools to Supercharge your producivity

• Legal prompt of the week

• Latest AI Incidents & Legal Tech Map

➡️ EU Dismisses Industry Calls to Delay AI Act Rollout | Reported by Reuters.
The European Commission said Friday it will stick to its legal timeline for implementing the AI Act, rejecting calls from firms like Alphabet, Meta, and Mistral to delay the rules. “There is no pause,” said Commission spokesperson Thomas Regnier, affirming that obligations for general-purpose AI begin this August, with high-risk AI rules taking effect in 2026. Some companies had urged delays due to compliance costs, but the Commission plans only minor simplifications for small businesses later this year.
^{July 4, 2025, Source: Reuters}

➡️ Georgia Lawyer Fined for Using Fake AI-Generated Cases in Divorce Filing | The Georgia Court of Appeals fined Atlanta attorney Diana Lynch $2,500—the maximum allowed—after discovering she submitted fake legal citations, apparently generated by AI, in a divorce case. Judge Jeff Watkins said half the cited cases were AI “hallucinations,” while others were irrelevant. The court also voided the original order and remanded the case. Judges called the incident “troubling,” echoing Chief Justice Roberts’ 2023 warning on AI misuse in legal filings.
^{July 4, 2025, Source: FOX 5}

➡️ Senators Reject 10-Year Ban on State-Level AI Regulation | Senators voted early Tuesday to remove a controversial 10-year moratorium on state regulation of artificial intelligence from President Trump’s “One Big Beautiful Bill,” marking a significant defeat for a tech industry that had lobbied hard to keep the provision in the sweeping tax and spending package.
^{July 2, 2025, Source: MSN}

➡️ Texas Takes a Shot at AI Regulation With ‘Responsible Artificial Intelligence Governance Act’ | Texas became the latest state to enact comprehensive AI legislation with a uniquely Texan twist through the passage of the Texas Responsible Artificial Intelligence Governance Act.
^{July 2, 2025, Source: National Law Review}

Legal Technology

Uncovering Legal AI: How Two Lawyers Reimagined What Legal Work Could Be

AI in law is not new, but it’s rarely this personal. Uncover Legal, founded by Dutch lawyers Caroline and Ingrid, isn’t just another productivity tool layered onto the legal workflow. It’s a rethinking of how lawyers work with information, how they allocate their time, and what they can accomplish when the right kind of automation is placed at the heart of their practice.

Uncover is a female-led, AI-driven legal platform built from the ground up to help lawyers move faster, with more accuracy, and less friction. By combining proprietary tools with large language models from OpenAI and Anthropic, the platform is designed to remove the repetitive, administrative drag that slows legal teams down, and prevents lawyers from doing more meaningful things, without compromising the insight or care that clients expect from human counsel.

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:

📋 7 July 2025 | BRICS statement on AI governance: Following the 17th BRICS Summit in Rio, Brazil, leaders of the BRICS nations have signed a joint statement, which among other things, calls for global AI governance to mitigate potential risks and meet the needs of all countries, including those in the Global South – “A collective global effort is needed to establish AI governance that upholds our shared values, addresses risks, builds trust, and ensures broad and inclusive international collaboration and access.”

📋 3 July 2025 | Filipino senator files bill to regulate AI, create ‘National AI Commission’: It is reported that Senator Pia Cayetano has filed a bill titled “An Act Regulating the Development and Use of Artificial Intelligence Systems in the Philippines, Promoting Ethical and Responsible Artificial Intelligence Innovation, and Integrating Sustainability and Futures Thinking in National Policy Making”, aimed at regulating the development and use of AI systems in the Philippines. Inspired by the EU AI Act, the bill mandates safeguards such as transparency, human oversight, and accountability for high-risk systems and prohibits uses of AI that manipulate human behaviour or violate fundamental rights.

📋 1 July 2025 | US Senate strikes AI regulation ban from Budget Reconciliation Bill: It is reported that the US Senate voted overwhelmingly (99-1) to remove a 10-year federal moratorium on state regulation of AI from the Budget Reconciliation Bill (aka Trump’s “Big Beautiful Bill”). Senator Marsha Blackburn (R.-Tenn) initially proposed an amendment that would reduce the moratorium to 5 years and allow states to regulate issues like protecting artists’ voices or child online safety if they do not impose an “undue or disproportionate burden” on AI. However, senator Blackburn withdrew her support for the amendment before the vote.

Compliance and regulations

Senate Removes AI-Moratorium from Trump’s “One Big Beautiful Bill”

It was a late-night drama, but the result is crystal clear: the U.S. Senate voted 99–1 on July 1, 2025 to remove the AI moratorium from the sweeping tax and spending package informally known as the “One Big Beautiful Bill.” That provision, which would have blocked states from regulating AI for a full 10 years, is now gone.

Senators Marsha Blackburn (R‑TN) and Maria Cantwell (D‑WA) introduced the amendment to strike the ban after earlier proposals (even a weakened five-year version) failed to secure consensus. The lone dissenter was Senator Thom Tillis (R‑NC).

Click here to continue reading the full article

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

This prompt provides an instant, location-tailored diagnostic, pinpointing missing pieces, backing advice with jurisdiction-specific authorities, and offering ready drafting fixes, all in minutes instead of hours of research and redlining.

Instructions:
- Enter your jurisdiction (state or country).
- Paste the draft or existing force-majeure clause from your commercial contract.

Then ask ChatGPT to:
- List the critical elements a force-majeure clause should include under that jurisdiction’s law (e.g., covered events, causation standard, notice, mitigation, duration, termination rights, governing law).

- Compare those elements to your clause and flag any gaps, ambiguities, or overbroad language.

- Cite the leading statutes or precedents that govern force-majeure in the chosen jurisdiction, each in one sentence.

- Suggest clear, practice-tested language to strengthen weak spots and minimize litigation risk.

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:

⚠️ 2025-06-30 | Reported AI-Generated Audio of Ukrainian Commander Andriy Biletsky Used in Russian Disinformation Campaign | View Incident

⚠️ 2025-04-21 | Alleged Deepfake Identity Scam Uses Miami Beach Realtor's Likeness to Defraud Victim in the United Kingdom in Purported Romance Scam | View Incident

⚠️ 2025-03-13 | Docomo Pacific CEO Reports Mother Targeted by Purported AI-Enabled Scam in Guam | View Incident

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