Sezzle applies for U.S. OCC bank charter amid state rule changes
Sezzle, a buy now, pay later provider, is seeking a U.S. bank charter from the OCC. The move comes as new state rules affect the sector. Regulated industry leaders should watch for shifts in compliance and competition.
BitGo sees rising bank interest after unconditional OCC charter
BitGo reports more banks have approached since it received an unconditional OCC charter. This may signal increasing regulatory comfort with digital asset custodians. Bank and payments executives should monitor how this affects partner and competitor strategies.
AI misuse in trade secrets case prompts new legal risks for IP protection
A US court found that using stolen trade secrets to train an AI agent posed an existential threat, granting an injunction. Regulated firms must update security and legal strategies to address AI-related IP risks. Forensic analysis and rapid response are now essential.
OpenAI restricts AI model training to cached data after security incidents
OpenAI will stop training its AI models on the live internet, citing security risks after a model accessed the web through a misconfiguration. For regulated-industry leaders, this shows the operational and reputational risks of AI systems with live web access. Watch for further policy shifts as rivals follow suit.
Meta reports slower ad revenue after EU limits on personalisation
Meta says ad revenue growth has slowed since the EU allowed users to opt for less personalised ads. This matters for regulated-sector marketers who rely on digital targeting to reach customers. Watch for further changes in digital ad strategies and regulatory responses.
Meta shifts AI ad risk to brands as new terms take effect
Meta has updated its ad terms, making advertisers fully responsible for AI-generated changes to their ads from 30 October. This move means brands must monitor and control AI features to avoid unwanted content. Legal and reputational risks may increase for regulated firms.
Chubb CEO says insurers must address AI liability risk in underwriting
Chubb CEO Evan Greenberg said insurers should apply past experience with emerging risks to AI liability, which casualty underwriting does not yet fully address. Coverage terms and standards for insurers and businesses using AI are likely to change. Watch for new exclusions, coverages and certification standards.
Publishers in US and UK seek laws to force AI bots to reveal themselves
US and UK publishers are urging new laws to require AI bots to identify themselves, after bot scraping accounted for 70.9% of malicious traffic, according to DataDome. Senior executives in regulated sectors should note the push for greater control over AI access to proprietary content. Watch for possible regulatory changes affecting data use and licensing.
US regulators allow crypto exchanges to pay interest-like rewards on stablecoins
US federal regulators said crypto exchanges can keep paying interest-like rewards to customers, while stablecoin issuers remain barred from doing so. This move addresses concerns from banks about deposit outflows. Regulated firms should monitor further regulatory clarifications.
Meta ordered to pay $25B penalty in New Mexico privacy and hate speech case
A New Mexico judge ordered Meta to pay $25B for misleading Facebook users on privacy and hate speech, after 43 million violations were found. This is one of the largest US verdicts and raises the stakes for global tech firms on compliance. Meta plans to appeal.
EU weighs stricter rules for insurers in unfunded SRT deals to curb systemic risk
EU officials propose new solvency and risk criteria for insurers in unfunded significant risk transfers. The move aims to limit systemic risk as banks and insurers expand in SRT markets. Regulated firms should watch for new legal and capital requirements.
US orders agencies to remove DeepSeek AI over national security concerns
US federal agencies must remove China’s DeepSeek AI from IT systems, citing national security risks. The order covers both direct and third-party use of DeepSeek technology. Executives in regulated sectors face increased compliance demands and supply chain scrutiny.
Meta halts Muse sharing after 6,800 AI chat links found online
Meta stopped Muse sharing after a security firm found over 6,800 AI chat links online, exposing sensitive business data. Senior leaders in regulated sectors face renewed scrutiny of AI data handling. Review internal AI sharing features for privacy risks.
French riots test insurers as new state-backed regime nears launch
Recent riots in France are set to cost insurers under €1.2 billion, DBRS Morningstar says. The event will test current insurance structures before a new state-backed regime starts. Insurers and business leaders should review risk exposure and reporting processes.
When Compliance Workarounds Fail: Lessons from Algorithmic Business Models
This article examines how minimal compliance workarounds in algorithmic businesses, like Glovo’s response to Spain’s Rider Law, can fail and lead to costly redesigns. It identifies four warning signs—tightening legal rules, visible harm, increased scrutiny, and rising complexity—that signal when limited fixes are insufficient. Drawing on cases including Deliveroo, Airbnb, Uber, and Meta, it highlights the need for durable compliance through product integration, meaningful human oversight, and continuous monitoring. Leaders should carefully evaluate regulatory demands, test impacts, and prepare for potential redesigns to maintain strategic control and avoid escalating costs.
Crunchbase Data Reveals AI Startups Embrace Serial Acquisitions to Accelerate Growth
Crunchbase data shows AI startups are increasingly using serial acquisitions to accelerate growth and expand capabilities. Leading buyers like OpenAI and specialized startups in legal tech and customer service are actively purchasing smaller companies to fill gaps and enter new markets. This strategic use of M&A highlights a shift toward faster scaling in a competitive AI landscape.
Lina Khan Warns AI Firms Against Self-Regulation, Echoing Big Tech's Past Missteps
Lina Khan, former FTC chair, warned that AI companies attempting to self-regulate are repeating the same mistakes that caused regulatory issues for Big Tech. She emphasized the need for external oversight to prevent similar problems as AI technologies continue to evolve.
California Enacts Groundbreaking Laws to Shield Workers from AI Job Risks
California has introduced progressive laws to protect workers from AI-driven job risks, banning exclusive AI use in layoffs, emotional monitoring, and neural data collection. These rules also require transparency on AI's role in layoffs and restrict AI surveillance in bathrooms, marking a significant step in workplace AI regulation.
OpenAI Ends Collaboration with Three Safety Researchers Amid Data Handling Concerns
OpenAI has severed ties with three safety researchers after an internal investigation uncovered mishandling of sensitive information. This move highlights the company's commitment to safeguarding confidential data.
Judge Rejects Antitrust Claims Against Google Over AI Content Use
A federal judge dismissed antitrust lawsuits from Chegg and Penske Media Corporation accusing Google of abusing market power by coercing publishers to provide free content for AI search features, ruling the claims do not meet legal standards. This highlights ongoing tensions between tech giants and content creators over AI-driven content use.