Labels, Lawsuits, and Last-Minute Guides

AI Rules Tighten Across Industries

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

Malaysia is racing to curb deepfakes and scams: under a draft Online Safety Act, platforms may have to stamp “AI-generated” labels on content by year-end, with full enforcement due in 2025 and potential ASEAN coordination to follow.

In New York, voice actors Paul Skye Lehrman and Linnea Sage cleared the first legal hurdle against startup Lovo. A judge dismissed their copyright claim over cloned voices but let breach-of-contract and deception charges proceed, spotlighting the murky line between consent and exploitation in synthetic media.

EU, undeterred by industry pleas for more time, published a voluntary code of practice to steer companies through the EU AI Act before obligations start on 2 August. Transparency, copyright safeguards, and safety checks for general-purpose models headline the guide, non-compliance with the binding Act could cost up to 7 percent of global revenue.

Meanwhile, Australia’s Bombora Advice warns that slow-moving financial-advice reforms, and a shortage of qualified advisers, are blocking investment. The firm is pushing Canberra to accelerate rule changes and pledges tech upgrades, including AI triage tools, to keep insurance costs down and guidance affordable.

This week’s Highlights:

  • Industry News and Updates

  • AI Meets Process: Inside BRYTER’s End-to-End Legal Automation

  • AI Regulation Updates

  • AI Tools to Supercharge your producivity

  • Legal prompt of the week

  • Latest AI Incidents & Legal Tech Map

Headlines from The Legal Industry You Shouldn't Miss

➡️ Malaysia May Require ‘AI-Generated’ Labels by Year-End, Minister Says | Malaysia could soon mandate labels on AI-generated content under the upcoming Online Safety Act 2024, Communications Minister Fahmi Fadzil said Saturday. The goal is to combat scams, deepfakes, and defamation, with the law expected to come into force by end-2025. Fahmi emphasized the need for platforms to proactively label such content and hinted at broader regional cooperation through ASEAN. He also highlighted the lack of global regulatory standards and said discussions are ongoing at the UN and ITU levels.
Jul 13, 2025, Source: Malaymail

➡️ Judge Lets Voice Actors' AI Lawsuit Move Forward | Reported by BBC: A federal judge in New York ruled that voice actors Paul Skye Lehrman and Linnea Sage can proceed with parts of their lawsuit against AI startup Lovo, alleging their voices were misused to train and power synthetic voice models. While the judge dismissed their claim that voices are protected by federal copyright, claims of deceptive practices and breach of contract will move forward. The actors allege they were misled into recording for "academic research," only to later hear their cloned voices used in ads and online videos.
Jul 12, 2025, Source: BBC News

➡️ EU Launches AI Code of Practice Ahead of New Regulations | Reported by AP: The EU has released a voluntary code of practice to help businesses comply with its upcoming AI Act, which begins phasing in August 2. The code focuses on transparency, copyright protection, and safety for general-purpose AI systems like ChatGPT. Despite industry pushback and calls to delay the rules, Brussels is moving forward. Violations of the AI Act could result in fines up to €35 million or 7% of global revenue.
Jul 10, 2025, Source: AP News

➡️ Bombora Urges Faster Action on Financial Advice Reforms | Reported by Professional Planner: Bombora Advice chair Wayne Handley is calling on the government to fast-track changes to financial advice laws, warning delays are deterring investment and limiting access to affordable advice. Incoming CEO Niall McConville said Bombora plans to back firms with tech upgrades, including AI, to counter adviser shortages and rising insurance costs.
Jul 8, 2025, Source: Professional Planner

Will this be the Next Big Thing in A.I?

Legal Technology

AI Meets Process: Inside BRYTER’s End-to-End Legal Automation

What does it mean for AI to be useful in legal practice, and not just impressive? It’s a question The Legal Wire has asked more than once. In our recent conversations with platforms like Harvey and Uncover, we’ve heard founders describe tools that assist with research, summarize complex documents, and support the early stages of drafting. But BRYTER offers a slightly different response, one that begins not with output, but with workflow.

Founded with a focus on automating legal and compliance operations, BRYTER describes itself as a platform for “end-to-end” legal work. That term is often used loosely in legal tech, but here, it has specific implications: BRYTER combines its no-code automation engine with BEAMON AI, a suite of AI-powered legal tools launched in 2025 that includes intelligent drafting, clause comparison, redlining, contract extraction, and legal research tied directly to publisher databases like Otto Schmidt.

This isn’t AI in isolation. It’s part of a structure designed to help legal professionals move from analysis to decision, from document to outcome.

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:

📋 14 July 2025 | Malaysia tightens export controls on US-origin AI chips: Malaysia's Ministry of Investment, Trade and Industry has released a statement stating that the export, transshipment and transit of high-performance AI chips of US origin will be subject to a trade permit, effective immediately. Individuals or companies are required to notify authorities at least 30 days in advance when exporting, transhipping, or bringing in transit any item that is not expressly listed on Malaysia's strategic items list. The move serves to close regulatory gaps while Malaysia reviews the inclusion of high-performance AI chips of US origin in its list of strategic items. Malaysia has also been investigating if local laws were breached in the shipment of servers linked to a Singapore fraud case, as they may have contained advanced chips subject to US export controls.

📋 10 July Final version of the GPAI Code of Practice released: The European Commission has released the final version of the General Purpose AI (GPAI) Code of Practice. The Code is a voluntary tool developed by 13 independent experts, with input from over 1,000 stakeholders, including model providers, small and medium-sized enterprises, academics, AI safety experts, rightsholders, and civil society organisations. The Code is designed to help industry comply with the AI Act’s rules on GPAI, which will enter into application on 2 August 2025. The rules become enforceable by the AI Office of the Commission one year later as regards new models and two years later as regards existing models. The Code consists of three chapters: Transparency and Copyright, both addressing all providers of GPAI models, and Safety and Security, relevant only to a limited number of providers of the most advanced models. The Code will be complemented by Commission guidelines on GPAI to be published ahead of the entry into force of the GPAI obligations. The guidelines will clarify who is in and out of scope of the AI Act’s GPAI rules.

📋 9 July 2025 | Turkey court blocks Grok content, becoming first country to ‘censor’ the AI chatbot: It is reported that a Turkish court – the Ankara 7th Criminal Court of Peace – has ordered the blocking and removal of about 50 posts shared by Grok (i.e. an AI chatbot developed by Elon Musk-founded company xAI) after authorities said the chatbot generated responses insulting President Tayyip Erdogan, modern Turkey’s founder Mustafa Kemal Ataturk and religious values. The ban was justified under Article 8/A of Türkiye’s Internet Law, aimed at “protecting public order.”

AI Tools that will supercharge your productivity

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The weekly ChatGPT prompt that will boost your productivity

This prompt transforms scattered names and notes into a clear, actionable conflict report in minutes, shaving hours off manual review, reducing ethics risk, and speeding up client onboarding.

Instructions:
Supply three inputs:
- New matter details – client name, adverse parties, and a one-sentence case description.
- Existing client list – names (with affiliates, if known).
- Any related subject-matter areas (e.g., “real-estate litigation,” “patent prosecution”).

Ask your local private LLM to return:
- A table grouping potential conflicts as Direct, Positional, or Subject-Matter.

- A short note on the severity of each conflict (waivable / non-waivable / further review).

- Draft waiver or engagement-letter language where waivers appear feasible.

- A concise “next-steps” checklist (e.g., internal approvals, client notices).

Collecting Data to make Artificial Intelligence Safer

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:

⚠️ 2025-07-07 | xAI Allegedly Operates Unpermitted Methane Turbines in Memphis to Power Supercomputer Colossus to Train Grok | View Incident

⚠️ 2025-07-07 | Chicago Veteran Reportedly Loses $10,000 in Purported Deepfake Cryptocurrency Fraud Posing as Elon Musk | View Incident

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