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

U.S. lawmakers are taking a hard stance on DeepSeek, urging states to ban the Chinese AI app on government devices over data security fears reminiscent of past Huawei scandals. Meanwhile, China’s AI race intensifies as Zhipu AI raises another $137 million to expand its growing influence. On the corporate side, Ikea is setting an example with robust AI governance, ensuring responsible innovation ahead of Europe’s regulatory curve.

Vals AI’s latest benchmarking study further confirms AI’s huge potential for legal tasks, while also highlighting its weaknesses in nuanced analysis. And in the UK, the Tech Secretary is playing mediator in a heated copyright debate, signaling that balancing AI’s growth with creators’ rights will be a global priority.

This week’s Highlights:

• Industry News and Updates

• The Hype vs. Reality - What Vals AI’s Landmark Study Reveals

• The ROI of Innovation: What’s Your ‘Risk of Inaction’ Strategy?

• KAILA: A Smarter Way to Work With Legal Information

• AI Tools to Supercharge your producivity

• Legal prompt of the week

➡️ Congress Urges States to Ban DeepSeek on Government Devices | Reps. Josh Gottheimer (D-NJ) and Darin LaHood (R-IL) are urging governors to ban DeepSeek on state government devices, citing cybersecurity risks and potential Chinese government data access. The duo has introduced a federal ban bill, mirroring Senate efforts. Texas, New York, and Virginia have already blocked DeepSeek, following reports that its chatbot could transfer user data to China Mobile. The Chinese government denies any misuse, but lawmakers warn against taking the risk, likening it to past security concerns with Huawei and ByteDance.
^{March 3, 2025, Source: NBC News}

➡️ Zhipu AI Secures $137M as China’s AI Race Heats Up | Chinese AI startup Zhipu AI raised over $137 million in fresh funding, backed by state investors like Hangzhou City Investment Group. The funding follows a $420 million round in December and underscores China’s AI push amid DeepSeek’s disruptive rise. Zhipu plans to enhance its GLM large language model and expand AI services in Zhejiang and the Yangtze River Delta. It also announced plans to release new open-source AI models, intensifying competition in China’s rapidly evolving AI sector.
^{March 3, 2025, Source: Yahoo Finance}

➡️ Ikea’s AI Governance Focuses on Responsibility Over Hype | Ikea embeds AI governance into business priorities, emphasizing accuracy, transparency, and human oversight. Led by Francesco Marzoni, its multidisciplinary team ensures compliance with the EU AI Act. An early adopter of OpenAI’s GPT Store and Azure AI, Ikea met EU AI Pact commitments ahead of schedule, making regulatory compliance seamless.
^{February 27, 2025, Source: Retail Dive}

➡️ UK Tech Secretary Stays Neutral in AI Copyright Debate | Technology Secretary Peter Kyle refuses to pick sides in the AI copyright dispute, aiming to balance the interests of the AI sector and creative industries. While artists protest proposals allowing AI training on copyrighted works without compensation, Kyle insists on a solution that ensures both sectors thrive. He acknowledges UK copyright laws are outdated and signals AI will be a key topic in discussions with the US.
^{February 27, 2025, Source: Independent}

Legal Technology

The Hype vs. Reality - What Vals AI’s Landmark Study Reveals

There’s been no shortage of buzz about AI reshaping the legal landscape, but how do these tools really stack up? For the first time, Vals AI has run the biggest names in legal AI through a rigorous benchmarking study, and the results may challenge a lot of assumptions.

Where do these solutions excel, and where do they still struggle? Can today’s AI handle complex legal work, or is it best suited to the routine tasks no one likes doing anyway? Vals AI’s findings shine a light on strengths, blind spots, and what it all means for law firms, legal tech developers, and the future of the profession.

Curious about how each platform fared, or which ones might be worth your investment?

You won’t want to miss the full report: Read Vals AI’s Benchmarking Study Here

The ROI of Innovation: What’s Your ‘Risk of Inaction’ Strategy?

The legal sector faces unprecedented challenges in today’s rapidly evolving world—from AI-powered legal research to blockchain-based smart contracts. Igor Beuker is a futurist and speaker known for coining trends rather than following them; he delivers foresight tailored to the legal and fintech industries.

Exponential technologies vs. our linear minds are a challenge for every industry. Society will change more in the coming 30 years than in the previous 300 years.

From Return on Investment to Risk of Inaction of Innovation to offering foresight into long-term changes, Igor equips legal leaders with actionable strategies to remain competitive in an increasingly complex and tech-driven world.

Prepare your organization for the future. Learn more at Igor Beuker.

Legal Technology

KAILA: A Smarter Way to Work With Legal Information

Legal research has long been about knowing where to look. With vast databases of case law, legislation, and expert commentary, finding the right information is often a process of searching, filtering, and piecing together answers. KAILA, the new AI legal assistant from the Danish Karnov Group, is designed to change that process - not by replacing legal expertise, but by making it easier to access and apply.

From Search Engine to Legal Assistant

For years, Karnov Online has been a go-to resource for legal professionals, offering structured access to Danish legal texts, regulations, and case law. But as legal workflows become more complex, merely searching for information isn’t always enough.

KAILA builds on this foundation by adding AI-driven analysis to Karnov’s extensive database.

Read the full article here

🆕 Etain - The Smarter Way to Handle Investor Onboarding

🆕 Noxtua - Europe’s first sovereign Legal AI

🆕 TrueScreen - Turn digital information into indisputable data

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

This prompt guides you through a focused gap analysis of existing compliance protocols. By systematically comparing your policies to regulatory standards, you’ll quickly pinpoint areas needing improvement, saving time and reducing the risk of non-compliance.

Prompt: Gather the relevant regulations for [specific industry or practice area]. Analyze your current compliance policies to identify any gaps, inconsistencies, or overlooked requirements. Suggest updates to procedures or documentation to ensure full compliance.

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