Congress Proposes AI Regulation Pause, UNESCO Hosts Ethics Forum, and Meta Wins AI Training Lawsuit - AI Policy Brief #24

July 01, 2025 - AI Policy Brief
Hi there,

Welcome to this week's edition of the AI Policy Brief, where we bring you the latest updates on AI regulations, safety standards, and government policies from around the world. This week, we're looking at significant developments such as Kazakhstan's upcoming parliamentary hearings on AI, which aim to address the country's approach to AI governance. Meanwhile, in the United States, Congress is considering a proposal for a five-year ban on state-level AI regulations, highlighting the ongoing debate over federal versus state control in AI policy.

On the international front, UNESCO is hosting an AI Ethics Forum in Bangkok, focusing on the ethical implications of AI technologies. Additionally, Malaysia is urging for quick legislative action to combat AI-related fraud, reflecting the growing concern over AI's role in financial crimes. Stay tuned as we delve into these stories and more, providing you with a comprehensive overview of the current AI policy landscape.

National Policy

Sen. Ted Cruz has proposed a five-year ban on state AI regulations, sparking debate over consumer protections. Kazakhstan plans parliamentary hearings on AI development and regulation this fall. The UK government will implement an AI early warning system in the NHS to enhance patient safety. A report from California Governor Gavin Newsom highlights AI's potential dangers, including nuclear threats. US Senators have agreed to pause state AI laws for five years to encourage a unified national strategy.

International Policy

The Malaysian government is developing a legal framework to regulate artificial intelligence across various sectors, aiming to address AI-related crimes and balance oversight with innovation.

Regulatory Actions

Assemblymember Rebecca Bauer-Kahan and Senator Steve Padilla have introduced competing bills to address AI discrimination in sectors such as housing and employment. The California Frontier AI Working Group has released its final report, emphasizing transparency and safety in AI regulation.

Defense & Security

Agile Defense has been awarded a $35 million contract by the Department of Defense to enhance data readiness for AI operations as part of the Data Readiness for Artificial Intelligence Development program.

Innovation & Investment

Kazakhstan will hold parliamentary hearings on AI, while the NHS plans to implement an AI early warning system. The California Governor's report highlights potential AI dangers, and Congress proposes a five-year ban on state AI regulations.

AI Safety

Michigan lawmakers are considering two bills to regulate AI, focusing on safety protocols and criminal penalties to prevent potential harm.

Court Cases, Hearings and Lawsuits

Xockets has initiated legal proceedings against Amazon and Amazon Web Services over alleged patent infringements involving Data Processing Unit technologies. A federal judge ruled in favor of Meta Platforms in a copyright lawsuit concerning AI training, citing insufficient evidence of market harm.

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