Client updates /  AI

On June 12, 2026, Anthropic announced that the US government had ordered it to immediately suspend foreign nationals’ access to its advanced AI models, Fable 5 and Mythos 5, pursuant to an export control directive issued on national security grounds.

On April 15, 2026, the Israel Medical Association’s Ethics Department published a position paper outlining guidelines for the use of artificial intelligence in the healthcare system. Although the position paper addresses physicians and medical institutions, in practice, it has significant implications for healthtech and medtech companies. Since medical institutions will be required to align their activities with these principles, it is reasonable to assume this will directly impact their demands on technology providers.

Israel’s Supreme Court is stepping up its efforts to address AI-generated hallucinations, and recently ordered the Ramat Gan Municipality to pay exceptional court expenses of ILS 30,000. This is due to the municipality’s reliance on fictitious case law and a non-existent Ministry of Education Director-General circular, in a way that violated a special education child’s right to transportation to his school.

Amidst the growing use of artificial intelligence, 2025 was marked by a series of rulings in which courts sharply criticized references to erroneous sources in pleadings – a byproduct of unchecked and unverified use of AI tools.

Following an extensive public consultation process, a final report on the use of AI in the financial sector was published last week. The report was prepared by a committee comprising representatives of the Ministry of Justice, the Ministry of Finance, the Competition Authority, the Israel Securities Authority, the Capital Market, Insurance and Savings Authority, and the Bank of Israel.

A significant development occurred last week at the interface between artificial intelligence and intellectual property following the settlement agreement reached by Anthropic in the class action lawsuit filed against it with the US District Court for the Northern District of California.

Amendment 13 to the Israeli Privacy Protection Law is expected to come into effect in mid-August 2025. The amendment prescribes, inter alia, organizations’ obligation to appoint a data protection officer. The Privacy Protection Authority recently published a draft directive on implementing this obligation. The draft is not final and is open for public comments.

At the end of June 2025, the Northern California District Court issued two precedent-setting rulings addressing the legal question: Is it lawful to use copyrighted works for machine training of AI-based large language models (LLMs)?

Earlier this month, the US Senate voted 99-1 to strike a key clause in a sweeping Republican domestic policy bill that sought to impose a ten-year moratorium on states’ enforcement of artificial intelligence regulations.

The Israeli Privacy Protection Authority (PPA) published a draft directive recently to clarify its position about how businesses and organizations should apply the provisions of the Privacy Protection Law and the privacy regulations to artificial intelligence systems.