Want to get this daily news briefing by email? Here's the sign-up.

WHAT WE'RE WATCHING

DO NOT WASH - Federal regulators say they're ready to pounce on companies that seek to add sizzle to a product's marketing by making unsubstantiated artificial intelligence claims, Law.com's Hugo Guzman reports. The practice even has a catchy name, "AI washing," the high-tech equivalent of "greenwashing"— making of unsupported environmental claims, a practice companies have long known could put them in regulators' crosshairs. Speaking at an AI-focused event earlier this month, SEC Chair Gary Gensler warned companies against making bold AI claims unless they're backed by hard evidence. "Don't do it," he said. "One shouldn't greenwash and one shouldn't AI wash." The FTC delivered a similar message back in February, warning companies not to exaggerate what their AI products can do, not to falsely claim their AI-powered products perform better than non-AI alternatives, and not to claim their products use AI when they actually don't.

STILL SCRIMPING - Legal chiefs say they're preparing to face numerous challenges in 2024—from monitoring the growing use of generative AI by workers to complying with ever-growing privacy regulation—but will have to do so under—surprise, surprise—tight budget constraints. "We're in still a bit of an uncertain economic environment. So for every person that's managing any function of a company, your thought process is going to be focused on helping the company grow within an environment that isn't necessarily full of growth," Andy Dale, GC of the advertising platform OpenAP, told Law.com's Trudy Knockless. "Everybody is looking at budgets. Everybody is looking at their forecast for their outside counsel spend, and thinking through what things are going to be possible and what they're going to need help for during the year."

ON THE RADAR - Bristol-Myers Squibb has agreed to acquire Karuna Therapeutics for a total equity value of approximately $14 billion. The transaction, announced Dec. 22, is expected to close in the first half of 2024. New York-based Bristol-Myers was advised by Covington & Burling. Karuna Therapeutics, which is based in Boston, was represented by a Simpson Thacher & Bartlett team led by New York-based partners Eric Swedenburg, Jakob Rendtorff and Alan Klein. Stay up on the latest state and federal litigation, as well as the latest corporate deals, with Law.com Radar.  

EDITOR'S PICKS