Largest AI Copyright Class Action Certified, Anthropic Appeals; California Enacts Generative AI, Hiring, and Underwriting Rules

The AI industry is confronting major legal and regulatory challenges as the largest copyright class-action lawsuit against AI companies has been certified. This development has alarmed industry stakeholders, with some tech groups supporting Anthropic's appeal against the court ruling that permitted the class action, citing concerns that large settlements could deter AI investment. In parallel, California has finalized pioneering regulations governing the use of generative AI, including risk assessments and cybersecurity measures, which businesses must now navigate. Within the tech sector, there is a notable divide regarding AI copyright approaches: companies like OpenAI have secured licensing agreements with publishers, while others, such as Google, rely on the fair use doctrine. Additionally, new state-level regulations in California address AI use in hiring and employment, and target biased AI underwriting models. These developments underscore the evolving legal landscape for AI technology in the United States.