artificial intelligence – The Artificial Intelligence Blog

For most broker-dealers, generative AI continues to become more deeply integrated into day-to-day workflows.

On July 13, 2026, Reuters reported that Morgan Stanley will test digital assistants later this summer that will interact with wealth management clients at all hours of the day. The bank already uses AI agents internally to support its financial advisors.

This follows similar moves by Morgan Stanley’s competitors, such as Goldman Sachs, which announced in February its partnership with Anthropic to build agents for trading, transaction accounting, and client onboarding. A KPMG survey conducted this past June found that 51% of banks were already piloting AI agents.

The regulatory framework is struggling to keep up with adoption at such a scale, leaving firms to confront three pressing questions by themselves: Are AI prompts and outputs records that firms should be legally required to retain? What do firms owe customers if their data were to touch a third-party AI model? And what should an AI-use policy actually say?

Here is where regulators and the largest firms currently stand on each.

April 17, 2026April 17, 2026 by Duane Morris

Is AI Quielty Undermining Your Overtime Exemptions?

Alex W. Karasik, a partner and member of the firm’s Class Action Defense Team, was quoted in the 2026 Spring edition of SHRM HR Quarterly in the article “Is AI Quietly Undermining Your Overtime Exemptions?”

Read the full article for Alex’s insights on the SHRM HR Quarterly website.

February 13, 2026February 13, 2026 by Duane Morris

Newsom Under Pressure as California Unions Endorse New AI Bills

California Gov. Gavin Newsom has historically vetoed legislation surrounding automation. However, as he sets his sights on the White House, Newsom has been slow to set new regulations surrounding artificial intelligence while facing mounting pressure from the state’s unions. Duane Morris Partner Alex Karasik discussed the legal risks California employers should keep in mind when implementing the new technology.

Read the full article in International Employment Lawyer.

October 23, 2025 by Duane Morris

Webinar: AI and Wearables

Duane Morris will host the third session of its Wearable Webinars Series, Product Liability and IP Strategies for Wearables, on Tuesday, November 4, 2025, 12:00 p.m. to 12:30 p.m. Eastern.

REGISTER

Agatha Liu, Ph.D., will cover how wearables with diagnostic, monitoring or therapeutic claims fall under the FDA’s software as a medical device framework, including predetermined change control plans, good machine learning practices and real-world performance monitoring of adaptive algorithms.

October 14, 2025October 14, 2025 by Duane Morris

Webinar: Navigating the Future of Finance & AI Regulation

Duane Morris will present a webinar, Navigating the Future of Finance & AI Regulation: A Webinar on Emerging Legal Frameworks for AI and Digital Assets Reform, on Wednesday, November 12, 2025 | 3:00 p.m. to 4:30 p.m. Eastern.

October 7, 2025October 7, 2025 by Duane Morris

Calif. Leads the Way in Consumer-Facing AI Regulation with Automated Decisionmaking Technology Rules

As an important development in U.S. AI regulation, California enacted its automated decisionmaking technology (ADMT) rules in September 2025. These are the first enacted, broadly scoped, consumer-facing AI governance rules in the country. They offer opt-out rights and logic disclosures for AI-driven significant decisions affecting consumers. The rules took effect on October 1, 2025, with compliance required by January 1, 2027, for covered businesses that use ADMT in significant decisions before that date. Read the full Alert on the Duane Morris website.

October 3, 2025October 3, 2025 by Duane Morris

AI Catches Up to California Employers: Regulations for Automated-Decision Systems Now in Effect

With artificial intelligence developing at breakneck speed, California employment regulations are following right behind. Updated regulations issued by the California Civil Rights Council address the use of artificial intelligence, machine learning, algorithms, statistics and other automated-decision systems (ADS) used to make employment-based decisions. The updated rules, which took effect October 1, 2025, amend existing regulations, Cal. Code Regs., tit. 2, and are designed to protect against potential employment discrimination. The regulations apply to all employers with at least five employees working anywhere and at least one located within California. Read the full Alert on the Duane Morris website.

September 30, 2025September 30, 2025 by Duane Morris

AI in the Construction Industry

In a recent Commercial Construction Renovation article, Duane Morris attorneys Robert H. Bell and Michael Ferri write:

Artificial intelligence (“AI”) is rapidly making its way into the construction bidding process. Contractors now use AI-powered estimating software to perform quantity takeoffs and analyze costs with unprecedented speed. According to the drafting and engineering software giant Autodesk, estimating teams are increasingly using AI and automation, particularly for quantity takeoffs, cost forecasting, and speeding up bid creation. Yet as digital tools become routine, legal rules governing bids still rely on traditional principles. This raises a pressing question: if an AI tool makes a costly error in a bid, will the legal system treat that mistake any differently than a human error? Courts are only beginning to grapple with AI-related mishaps, but early indications suggest AI errors will be handled much like any other bidding mistake. In other words, contractors will likely be held responsible for errors made by their AI tools, just as they are responsible for the mistakes of human estimators or means and methods under their control.

September 29, 2025September 29, 2025 by Duane Morris

Joint Commission and Coalition for Health AI Issue Guidance on Provider Use of AI

On September 17, 2025, the Joint Commission and Coalition for Health AI issued a joint guidance document entitled “Responsible Use of AI in Healthcare” to help providers implement AI while mitigating the risks of its use. The guidance provides seven elements that constitute responsible AI use in healthcare and discusses how provider organizations can implement them. Read the full Alert on the Duane Morris website.

September 8, 2025September 8, 2025 by Duane Morris

Ten Design Guidelines to Mitigate the Risk of AI Pricing Tool Noncompliance

Duane Morris special counsel Justin Donoho authored the Journal of Robotics, Artificial Intelligence & Law article, “Ten Design Guidelines to Mitigate the Risk of AI Pricing Tool Noncompliance with the Federal Trade Commission Act, Sherman Act, and Colorado AI Act.” The article is available here and is a must-read for corporate counsel involved with development or deployment of AI pricing tools.