Scott Bessent said at the end of a G20 finance ministers meeting that 19 members agreed to address “cheap exports,” but that China dissented. He also said Trump and Xi would discuss AI policy later this month to add more guardrails for preventing non-state actors from building models. As a result, the G20 remains set on coordinated pressure over trade imbalances and the U.S.-China meeting is expected to include AI governance steps.
The Trump administration filed a 20-page brief supporting OpenAI’s position that it can train its LLMs on copyrighted material without a license in a lawsuit brought by The New York Times. The filing cites a Trump executive order signed last year. The intervention strengthens the argument that fair use should allow AI training without constraining LLM development.
The Johnson County Sheriff’s Office in Texas used Axon’s Draft One AI tool to help draft a police report after using Flock to search over 80,000 cameras for a woman who self-administered an abortion. A spokesperson said Draft One generates a preliminary narrative within about five minutes after uploading and transcribing body-camera audio. The case adds another example of AI being used in sensitive policing work, while the sheriff’s office still refuses to release body-cam footage or redacted evidence.
Bruce Blakeman, the Republican nominee for New York governor, posted an AI-generated video depicting NYC Mayor Zohran Mamdani and Gov. Kathy Hochul in staged activities. The New York State Democratic Party filed a complaint to the Board of Elections on Tuesday. The Board of Elections may require disclosures or other action because the complaint argues the video violates a law that requires labeling “materially deceptive” AI political communication.
A group of UK peers has proposed adding “AI kill switch” powers to the Cyber Security and Resilience Bill so the government can deactivate powerful AI systems and switch off national data centres if there is a national security threat.
The amendment is being considered as one of 65 amendments debated in Parliament this week.
Separately, a UK AI Security Bill is planned for 8 September with support from ControlAI, and both proposals would ultimately require government approval to proceed, moving the UK toward new AI cyber-safety legislation.
Axon says police customers are asking it to redesign its fixed Outpost ALPR cameras so they don’t look like Flock cameras after widespread vandalism of Flock devices. The changes discussed include altering the cameras’ general shape, versus making ALPR locations and city policies more explicit, as raised in a now-deleted August 26 webinar. Axon is now “looking at” design options pending customer feedback rather than keeping the same visual look as Flock.
The Trump administration intervened in The New York Times’ copyright lawsuit against OpenAI, filing a statement that supports OpenAI’s fair-use argument for training AI on copyrighted text.
The lawsuit was filed in December 2023 and seeks billions of dollars in damages from both Microsoft and OpenAI.
The filing adds government support to OpenAI’s position and could influence how the court applies the fair-use doctrine to large language model training.
Anthropic upgraded its Claude Fable and Mythos models to version 5.1, adding fixes and safeguards for more capable agentic software. Fable 5.1 is estimated to cost up to 45% less for agentic work than its predecessor. OpenAI also said it will limit Astra’s most advanced cybersecurity features to a small set of partners, and U.S. lawmakers proposed an excise tax on major AI companies that rises when unemployment increases.
Federal Reserve Bank of Chicago CEO Austan Goolsbee warned that AI-driven data center expansion could soon contribute to “aggregate overheating” by crowding out spending and inputs from other parts of the economy. He said he’s “not far” from that outcome turning into aggregate overheating, with AI-related capex growth expected to peak in Q4 2026. As a result, AI is becoming a larger political and economic wedge issue around resource costs and hiring, even as AI-linked investment continues to boost GDP and certain stock sectors.
Matt Clifford was appointed Anthropic’s managing director for international affairs, leaving UK AI advisory work. He previously advised two UK prime ministers on artificial intelligence for 3 years before moving to the AI company. The appointment is expected to intensify criticism of a “revolving door” as Anthropic prepares for an IPO and expands government-facing work outside North America.
Victims and school staff filed 30 new lawsuits accusing OpenAI and CEO Sam Altman of providing substantial assistance and encouragement in the Tumbler Ridge school shooting. The complaints were filed in a California federal court on Wednesday. The result is additional litigation alleging OpenAI’s review system flagged the suspect’s ChatGPT gun-related conversations but that OpenAI did not take action.
New York City will ban younger students from using AI in classrooms under a new Department of Education policy announced by Mayor Zohran Mamdani. The one-year moratorium starts in the 2026–2027 school year and covers about 600,000 public school students from 2-K through eighth grade. Teachers will not be allowed to use AI tools to grade work, and students will be barred from classroom AI use until high school.
Loudoun County, Virginia, built its economic recovery strategy around attracting data centers after earlier tech booms left behind vacant infrastructure, and it has since become highly visible as “Data Center Alley.” In 2024, data center tax revenue exceeded the county’s operational budget by $35 million. As generative-AI demand expands the US buildout from existing 3,000 operating centers and 1,500 under development, Loudoun and other communities are seeing louder opposition and more political pushback against further expansion.
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