Artificial Intelligence (AI)

Late last month, the Federal Trade Center (“FTC”) announced that it reached a settlement with a company called Workado to resolve allegations that it made false or misleading representations about the efficacy of its “AI Content Detector” product in violation of Section 5 of the FTC Act.

According to the FTC’s complaint, Workado advertised its AI Content Detector as trained on a number of mediums, including blog posts, Wikipedia entries, and AI-generated text, when it fact it was trained only on academic abstracts and content generated by ChatGPT and was not adequately fine-tuned or tested.  The complaint alleges that, based on independent testing, the AI Content Detector is less accurate than Workado advertised and is accurate only around half the time when evaluating non-academic AI-generated content.Continue Reading AI Content Detection Company Settles FTC Allegations of Misrepresentations

On April 28, the House of Representatives voted 409-2 to pass the Tools to Address Known Exploitation by Immobilizing Technological Deepfakes on Websites and Networks Act (“TAKE IT DOWN Act”), which criminalizes the publication of nonconsensual intimate visual depictions (“NCII”), and requires online platforms to establish a notice and takedown process for NCII.  The Act…

Continue Reading U.S. Congress Passes Bill Establishing Notice and Takedown Regime for Publication of Nonconsensual Intimate Visual Depictions

This quarterly update highlights key legislative, regulatory, and litigation developments in the first quarter of 2025 related to artificial intelligence (“AI”), connected and automated vehicles (“CAVs”), and cryptocurrencies and blockchain. 

I. Artificial Intelligence

A. Federal Legislative Developments

In the first quarter, members of Congress introduced several AI bills addressing national security, including bills that would encourage the use of AI for border security and drug enforcement purposes.  Other AI legislative proposes focused on workforce skills, international investment in critical industries, U.S. AI supply chain resilience, and AI-enabled fraud.  Notably, members of Congress from both parties advanced legislation to regulate AI deepfakes and codify the National AI Research Resource, as discussed below.

  • CREATE AI Act:  In March, Reps. Jay Obernolte (R-CA) and Don Beyer (D-VA) re-introduced the Creating Resources for Every American To Experiment with Artificial Intelligence (“CREATE AI”) Act (H.R. 2385), following its introduction and near passage in the Senate last year.  The CREATE AI Act would codify the National AI Research Resource (“NAIRR”), with the goal of advancing AI development and innovation by offering AI computational resources, common datasets and repositories, educational tools and services, and AI testbeds to individuals, private entities, and federal agencies.  The CREATE AI Act builds on the work of the NAIRR Task Force, established by the National AI Initiative Act of 2020, which issued a final report in January 2023 recommending the establishment of NAIRR.

Continue Reading U.S. Tech Legislative & Regulatory Update – First Quarter 2025

This is part of an ongoing series of Covington blogs on the AI policies, executive orders, and other actions of the Trump Administration.  This blog describes AI actions taken by the Trump Administration in March 2025, and prior articles in this series are available here.

White House Receives Public Comments on AI Action Plan

On March 15, the White House Office of Science & Technology Policy and the Networking and Information Technology Research and Development National Coordination Office within the National Science Foundation closed the comment period for public input on the White House’s AI Action Plan, following their issuance of a Request for Information (“RFI”) on the AI Action Plan on February 6.  As required by President Trump’s AI EO, the RFI called on stakeholders to submit comments on the highest priority policy actions that should be in the new AI Action Plan, centered around 20 broad and non-exclusive topics for potential input, including data centers, data privacy and security, technical and safety standards, intellectual property, and procurement, to inform an AI Action Plan to achieve the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.”

The RFI resulted in 8,755 submitted comments, including submissions from nonprofit organizations, think tanks, trade associations, industry groups, academia, and AI companies.  The final AI Action Plan is expected by July of 2025.

NIST Launches New AI Standards InitiativesContinue Reading March 2025 AI Developments Under the Trump Administration

In a new post on Cov Africa, our colleagues discuss the release of Kenya’s National Artificial Intelligence Strategy (2025–2030), a landmark document on the continent that sets out a government-led vision for ethical, inclusive, and innovation-driven AI adoption.

Continue Reading Kenya’s AI Strategy 2025–2030: Signals for Global Companies Operating in Africa

On April 3, the White House Office of Management and Budget (“OMB”) released two memoranda with AI guidance and requirements for federal agencies, Memorandum M-25-21 on Accelerating Federal Use of AI through Innovation, Governance, and Public Trust (“OMB AI Use Memo“) and Memorandum M-25-22 on Driving Efficient Acquisition of Artificial Intelligence in Government (“OMB AI Procurement Memo”).  According to the White House’s fact sheet, the OMB AI Use and AI Procurement Memos (collectively, the “new OMB AI Memos”), which rescind and replace OMB memos on AI use and procurement issued under President Biden’s Executive Order 14110 (“Biden OMB AI Memos”), shift U.S. AI policy to a “forward-leaning, pro-innovation, and pro-competition mindset” that will make agencies “more agile, cost-effective, and efficient.”  The new OMB AI Memos implement President Trump’s January 23 Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence” (the “AI EO”), which directs the OMB to revise the Biden OMB AI Memos to make them consistent with the AI EO’s policy of “sustain[ing] and enhance[ing] America’s global AI dominance.” 

Overall, the new OMB AI Memos build on the frameworks established under President Trump’s 2020 Executive Order 13960 on “Promoting the Use of Trustworthy Artificial Intelligence in the Federal Government” and the Biden OMB AI Memos.  This is consistent with the AI EO, which noted that the Administration would “revise” the Biden AI Memos “as necessary.”  At the same time, the new OMB AI Memos include some significant differences from the Biden OMB’s approach in the areas discussed below (as well as other areas).Continue Reading OMB Issues First Trump 2.0-Era Requirements for AI Use and Procurement by Federal Agencies

The “market” for AI contracting terms continues to evolve, and whilst there is no standardised approach (as much will depend on the use cases, technical features and commercial terms), a number of attempts have been made to put forward contracting models. One of the latest being from the EU’s Community of Practice on Public Procurement of AI, which published an updated version of its non-binding EU AI Model Contractual Clauses (“MCC-AI”) on March 5, 2025. The MCC-AI are template contractual clauses intended to be used by public organizations that procure AI systems developed by external suppliers.  An initial draft had been published in September 2023.  This latest version has been updated to align with the EU AI Act, which entered into force on August 1, 2024 but whose terms apply gradually in a staggered manner.  Two templates are available: one for public procurement of “high-risk” AI systems, and another for non-high-risk AI systems. A commentary, which provides guidance on how to use the MCC-AI, is also available.Continue Reading EU’s Community of Practice Publishes Updated AI Model Contractual Clauses

On March 18, the Joint California Policy Working Group on AI Frontier Models (the “Working Group”) released its draft report on the regulation of foundation models, with the aim of providing an “evidence-based foundation for AI policy decisions” in California that “ensure[s] these powerful technologies benefit society globally while reasonably managing emerging risks.”  The Working Group was established by California Governor Gavin Newsom (D) in September 2024, following his veto of California State Senator Scott Wiener (D-San Francisco)’s Safe & Secure Innovation for Frontier AI Models Act (SB 1047).  The Working Group builds on California’s partnership with Stanford University and the University of California, Berkeley, established by Governor Newsom’s 2023 Executive Order on generative AI.

Noting that “foundation model capabilities have rapidly improved” since the veto of SB 1047 and that California’s “unique opportunity” to shape AI governance “may not remain open indefinitely,” the report assesses transparency, third-party risk assessment, and adverse event reporting requirements as key components for foundation model regulation.Continue Reading California Frontier AI Working Group Issues Report on Foundation Model Regulation

On March 12, the U.S. Senate Committee on Commerce, Science, and Transportation advanced two nominations key to the Trump Administration’s technology policy: Mark Meador as a Commissioner for the Federal Trade Commission (“FTC”), and Michael Kratsios as Director of the White House Office of Science and Technology Policy (“OSTP”).  Both nominees previously had their nomination hearings in front of the Committee on February 25, described below.

Mark Meador

Meador started his career in the healthcare division of the FTC.  In his opening statement, he discussed the importance of the FTC in protecting consumers and free market competition. He specifically referenced the need to protect children in the digital environment and stated that the FTC should use its consumer protection powers to safeguard families.

During the nomination hearing, Meador faced questions about consumer protection enforcement mechanisms, “Big Tech” regulation, pharmacracy benefit managers (“PBMs”), antitrust concerns, and the agency’s direction under the new administration.Continue Reading Senate Commerce Committee Questions Trump Tech Nominees