Check out our summary of significant Internal Revenue Service (IRS) guidance and relevant tax matters for March 9, 2026 – March 25, 2026. AI controversy developments March 20, 2026: The US Tax Court is considering developing a disciplinary framework for the misuse of artificial intelligence (AI) in litigation following concerns raised by Judge Mark V.
McDermott Will & Emery Blogs
Latest from McDermott Will & Emery
AI platforms and privilege: Tax departments should be wary about what they share
Today’s artificial intelligence (AI) platforms have shown impressive capabilities that keep evolving. As those capabilities improve, tax departments may be inclined to leverage AI’s analytical power. While this technology has led to incredible efficiencies, we’ve been warning in-house tax departments about which platforms they use and what information they share to avoid waiving privilege or…
TRAIN Act targets transparency in generative AI training practices
Representatives Madeleine Dean (D-PA) and Nathaniel Moran (R-TX) introduced a bipartisan bill entitled the Transparency and Responsibility for Artificial Intelligence Networks (TRAIN) Act in the US House of Representatives. The legislative objective is to provide a mechanism to help musicians, artists, writers, and other creators determine if their copyrighted work was used to train generative…
Precedential shift: USPTO clarifies patentability of AI training methods
On November 4, 2025, the Director of the United States Patent and Trademark Office (USPTO) designated as precedential an appeals review panel (ARP) decision vacating the Patent Trial & Appeal Board’s § 101 rejection of claims directed to training machine learning models. Ex parte Desjardins, Appeal No. 24-000567 (ARP Sept. 26, 2025) (precedential). The Board…
Layoffs and rightsizing for unionized or unionizing workforces
As economic shifts and advancements in artificial intelligence reshape workforce needs, executive teams and boards are reevaluating their strategies. Unionized workforces – or those in the process of unionizing – present unique challenges, particularly in light of National Labor Relations Board developments. Careful planning is essential to navigating these uncharted waters. To help address these…
California’s new AI rules under FEHA took effect October 1, 2025
Beginning October 1, 2025, California employers must comply with new Fair Employment and Housing Act (FEHA) regulations on the use of artificial intelligence (AI) and automated decision systems in hiring and employment. The rules primarily pertain to three compliance areas: bias testing, recordkeeping, and vendor liability. Employers should start preparing now to avoid exposure once…
AI in employer-sponsored group health plans: Legal, ethical, and fiduciary considerations
Artificial intelligence (AI) has increasingly been integrated into the tools used by and for employer-sponsored group health plans, prompting a multitude of concerns. In this article, we discuss key issues that require immediate attention from both plan sponsors and plan administrators. Find out the legal, ethical, and fiduciary considerations employer-sponsored group health plans should keep…
Generative AI chatbot service not subject to Indiana sales tax
In one of the first pieces of administrative guidance addressing the sales tax treatment of generative artificial intelligence (AI) services, the Indiana Department of Revenue (DOR) recently issued a revenue ruling confirming that charges for a generative AI chatbot service are not subject to Indiana sales tax. In reaching its conclusion, the Indiana DOR used…
Fair use or foul play? The AI fair use copyright line
By Jodi Benassi
The US District Court for the Northern District of California granted summary judgment in favor of an artificial intelligence (AI) company, finding that its use of lawfully acquired copyrighted materials for training and its digitization of acquired print works fell within the bounds of fair use. However, the district court explicitly rejected the AI company’s…
Partnering with Legal at the Critical AI/Healthcare Crossroads
The intersection of AI and healthcare is outpacing the development of laws and regulations governing the technology. Even in the early days of AI transformation, this is creating uncertainty for healthcare organizations. Leveraging existing frameworks and creating a culture of collaborative compliance can help organizations navigate these challenges without stifling innovation. Sumaya Noush, partner at…