Connecticut’s sweeping AI law imposes broad transparency, safety and compliance obligations across multiple use cases with phased deadlines.
NYDFS Warns of Cybersecurity Risks from Frontier AI Models
On May 21, 2026, the New York Department of Financial Services issued an industry letter warning regulated entities that emerging frontier AI models may significantly increase cyber risk by enabling threat actors to identify and exploit vulnerabilities with greater speed, scale, and sophistication.Continue Reading ›
NYDFS issues guidance “in a heightened cybersecurity environment”
On May 21, 2026, the New York Department of Financial Services (NYDFS) issued industry guidance to licensees regarding security measures they should consider taking “in a heightened cybersecurity threat environment.” Even organizations not subject to NYDFS regulation may want to consider these steps that the NYDFS characterizes as “best practices.”
Background
Many regulators, including NYDFS,
Financial Services AI Risk Management Framework: Expanded Controls for the Financial Services Industry
In February 2026, a public-private partnership headed by the U.S. Department of the Treasury concluded an investigative process aimed at strengthening cybersecurity and risk mitigation for AI in the financial services sector.
The partnership consisted of executives from over 100 financial institutions, U.S. and international agencies, federal and state financial regulators, and other key stakeholders.
UK and Australia Announce Memorandum of Understanding on AI Security
On May 25, 2026, a new Memorandum of Understanding between the UK AI Security Institute and the Australian AI Safety Institute was announced, aimed at strengthening bilateral cooperation on AI security and safety.Continue Reading ›
AI Hallucinations in Court Filings Continue: Florida Supreme Court Responds with a New Certification Requirement
Artificial intelligence has quickly become part of the modern lawyer’s toolkit. Attorneys are using generative AI platforms to assist with legal research, drafting, editing, and document review. While these technologies can improve efficiency, a growing number of court filings across the country demonstrate a significant risk: AI-generated hallucinations, including fabricated case citations, nonexistent authorities, and
“Shadow AI” Triggers First SEC Form 8-K for Unauthorized AI Use: What Financial Institutions and Public Companies Need to Know
Key Takeaways
- CB Financial Services, Inc. filed the first SEC Form 8-K under Item 1.05 triggered by an unauthorized use of an artificial intelligence (AI) tool, not an external cyberattack.
- A cybersecurity incident caused by insider misuse of AI (known as Shadow AI) should be assessed for disclosure under SEC rules.
- The four-business-day disclosure clock
Bipartisan Coalition of State Attorneys General Opposes House Children’s Online Safety Bill
A bipartisan coalition of 44 state attorneys general has formally objected to the House version of the Kids Internet and Digital Safety Act (H.R. 7757), urging congressional leaders to reject the legislation in favor of its Senate counterpart. The coalition sent a letter to key lawmakers arguing that the House bill undermines state
CISA Releases Guidance on the Careful Adoption of Agentic AI Services
Earlier this month, the Cybersecurity & Infrastructure Security Agency (CISA), in collaboration with the National Security Agency and other international partners, released guidance for organizations on adopting agentic artificial intelligence systems (i.e., systems composed of one or more agents that fundamentally rely on an AI model, such as an LLM, to interpret and reason about
Colorado Repeals and Replaces the Colorado AI Act
Colorado’s newly signed AI Act replaces the state’s 2024 comprehensive AI regulation with a more targeted framework governing automated decision-making technologies used in high-stakes decisions involving employment, healthcare, and financial services, with a compliance deadline of January 1, 2027.