The first state attorney general settlement with a company accused of deceptively marketing generative AI software serves as a warning that federal regulators aren't the only cops willing to slap cuffs on the nascent technology.

The Sept. 18 Texas attorney general settlement with Irving, Texas-based Pieces Technologies is also "an important reminder that states do not need new legislation to regulate the use of AI," Manatt Phelps & Phillips warned in a recent client alert.