On October 21, 2025, the New York State Department of Financial Services (“NYDFS”) issued an industry letter (the “Guidance”) highlighting the cybersecurity risks related to Covered Entities’ use of Third-Party Service Providers (“TPSPs”) and providing strategies to address these risks. The Guidance is addressed to all Covered Entities subject to NYDFS’s cybersecurity regulation codified at
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China Amends Cybersecurity Law and Incident Reporting Regime to Address AI and Infrastructure Risks
By Yan Luo
Over the past few months, Chinese regulators have taken steps to update the country’s cybersecurity framework, with a particular focus on artificial intelligence (AI) safety and clarifying incident reporting obligations for onshore infrastructure. These developments reflect a broader trend toward more proactive AI and cyber governance and could signal priorities for the year ahead.…
Commerce Department Solicits Feedback on AI Exports Program
The Commerce Department today published a Request for Information (RFI) inviting the public to submit comments on U.S. artificial intelligence exports. The RFI asks stakeholders to weigh in on aspects of the Department’s new “American AI Exports Program,” an initiative intended to “promot[e] the export of full-stack American AI technology packages.”
The RFI follows from…
European Commission Publishes Apply AI Strategy to Accelerate Sectoral AI Adoption Across the EU
On 8 October 2025, the European Commission published its Apply AI Strategy (the “Strategy”), a comprehensive policy framework aimed at accelerating the adoption and integration of artificial intelligence (“AI”) across strategic industrial sectors and the public sector in the EU.
The Strategy is structured around three pillars: (1) introducing sectoral flagships to boost AI use…
Data Centers: Emerging Risks and Insurance Coverage Considerations
In a new post by Covington’s Insurance Recovery Group, we discuss the explosive growth of artificial intelligence and cloud computing that has made data centers indispensable to modern business operations, and the complex insurance risks and coverage issues emerging alongside this rapid expansion.
EU Member States Begin Rolling Out New Product Liability Rules
By December 9, 2026, all EU Member States must update their product liability laws to align with the (new) Product Liability Directive (EU) 2024/2853 (“PLD”). The PLD imposes liability on manufacturers of products (and other relevant parties) for harm caused by defective products, regardless of fault. The PLD modernizes the current EU product liability framework…
California Update: New Employment Laws and Compliance Obligations for 2026
California Governor Gavin Newsom has signed several Assembly Bills (AB) and Senate Bills (SB) that expand employee rights and increase workplace compliance obligations for employers. Here is a rundown on the key new laws. Unless otherwise specified, the laws take effect on January 1, 2026.…
EU’s Fifth FDI Annual Report: Five trends in Europe’s screening activities
The figures are fresh off the press: the European Commission published its Fifth Annual Report on the screening of foreign direct investments (“FDI”) into the European Union (“EU”) just a few days ago.[1] Like the previous editions, the Fifth Annual Report offers a statistical overview of the EU FDI framework’s activities in the previous…
California Enacts New Privacy Laws
Recently, California Governor Gavin Newsom signed into law several privacy and related proposals, including new laws governing browser opt-out preference signals, social media account deletion, data brokers, reproductive and health services, age signals for app stores, social media “black box warning” labels for minors, and companion chatbots. This blog summarizes the statutes’ key takeaways.
- Opt-Out
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Harnessing the complementary power of AI and Quantum Computing
By Nira Pandya & Ariel Errar
Artificial Intelligence (“AI”) continues to command attention as today’s prominent technological asset, revolutionizing key markets and sectors. Simultaneously, discussions of another advanced technology known as quantum computing have gained traction. Because both technologies expand the universe of problems that can be tackled by computers, one might wonder, if we have AI, do we also need…