AI News Roundup: Key Developments in AI and Legal Technology
Published on March 5, 2025
In this week’s roundup, we explore significant developments at the intersection of artificial intelligence (AI), legal practice, and data privacy. From regulatory challenges to technological innovations, these stories highlight the evolving landscape of AI in the legal sector.
1. Apple Challenges UK Government’s Encryption Order
Apple has filed a legal complaint against a UK government order requiring the creation of a “back door” in its encrypted iCloud systems. This marks the first court test of the 2016 Investigatory Powers Act provisions for breaking encryption. Apple argues that such measures jeopardize user privacy and has withdrawn its most secure online backup service from the UK in response. The case underscores the ongoing tension between national security interests and individual privacy rights. Data Protection Report+3ft.com+3theaustralian.com.au+3
2. KPMG Enters the US Legal Market
KPMG has become the first of the Big Four accounting firms to enter the US legal market, thanks to a special license granted by the Arizona Supreme Court. Operating as an alternative business structure, KPMG Law US will offer legal managed services, legal operations consulting, and legal technology innovation. This move signifies potential market changes, creating more competition for top talent and legal clients. businessinsider.com
3. Google Introduces AI-Powered Scam Detection
Google Messages has launched an AI-powered scam detection tool to protect users from text message scams. This feature monitors messages in real time for suspicious patterns and alerts users with a warning if a scam is detected. Currently available in English for the US, UK, and Canada, the tool aims to tackle conversational text scams by focusing on detecting and preventing mid-conversation social engineering tactics. The Verge
4. Minnesota Considers Blocking AI ‘Nudify’ Apps
Minnesota is considering legislation to block apps that use AI to create explicit images without consent. The proposed bipartisan bill would penalize companies that allow users to upload and transform photos into explicit content, aiming to prevent such images from being created. This legislation is part of broader efforts across the U.S. to regulate AI and protect individuals from nonconsensual pornography. apnews.com+1Politico+1
5. AI Copyright Law Reforms Face Criticism
Sir Cameron Mackintosh has criticized proposed copyright law reforms designed to attract AI companies by allowing them to use copyrighted works without permission unless the owners opt out. Mackintosh argues that the reforms could severely harm the creative industry, which is valued at £126 billion. Prominent artists such as Elton John, Sting, and Dua Lipa have also opposed the proposals. The Times+1ft.com+1
6. Data Privacy Enforcement Tightens Globally
Data privacy enforcement is tightening globally, with $1.3 billion in GDPR fines issued in 2024 alone. The rise of AI-driven data processing has led to increased regulatory scrutiny, prompting organizations to reassess data collection, encryption, and compliance strategies. The latest Strategic Intelligence: Data Privacy report examines global regulations, key trends, and corporate impacts, with insights on GDPR, the EU AI Act, and major tech firms. globenewswire.com
7. Legal Industry Embraces Generative AI
The legal industry is undergoing a transformative phase driven by advancements in generative artificial intelligence (GenAI). Successful integration of GenAI requires thoughtful adoption, sophisticated training, and effective measurement of its impact. Law firms that manage risks such as data security and ethics while embracing these changes will thrive. fnlondon.com+2reuters.com+2legaldive.com+2
8. Canada Investigates X’s Use of Personal Data in AI
Canada’s privacy watchdog has initiated an investigation into X, the social media platform formerly known as Twitter, to determine if its use of Canadians’ personal data for training AI models violated federal privacy laws. This action follows a complaint received by the Office of the Privacy Commissioner of Canada. reuters.com
9. AI’s Impact on Legal Technology Market
The global legal tech market is experiencing significant growth, driven by the adoption of AI and cloud technology in legal services. The rise in AI adoption is accelerating the growth of the legal tech market, with North America leading due to its well-established legal industry and numerous law firms. The market is characterized by a mix of established companies and emerging startups, each offering innovative solutions to improve efficiency and streamline legal processes. globenewswire.com
10. AI’s Data Appetite Challenges Privacy Laws
Generative AI’s voracious consumption of data is starting to run up against strict rules protecting individuals’ rights to data privacy in Europe and around the world. The development of artificial intelligence has significantly transformed people’s lives but has also posed a significant threat to privacy and security, with numerous instances of personal information being exposed online. Bloomberg Lawarxiv.org
