Latest coverage for Artificial Intelligence

Lawsuit Alleges Insurer Used AI Tool in Denying Patients Medically Necessary CareA proposed class action lawsuit against UnitedHealth Group that claims the company's insurance unit UnitedHealthCare used of artificial intelligence tools to deny Medicare Advantage claims for medically necessary care has the green light to proceed from a federal judge

Emerging Vendors, Consolidation Drive Innovation in Fraud, AML, Scam PreventionAs cybercriminals exploit AI-generated deepfake scams and synthetic identity fraud, financial institutions are investing heavily in fraud detection, anti-money laundering solutions and identity verification to stay ahead. This demand is driving consolidation in the market.

Legal Experts Marian Waldmann Agarwal and Marijn Storm on Impact of AI RegulationsAI regulations are tightening, bringing new compliance challenges, especially for high-risk systems. Morrison Foerster partners Marian Waldmann Agarwal and Marijn Storm explain how EU and Colorado AI regulations are reshaping governance and security requirements for organizations.

Forrester's Thomas Husson on Reactions to DeepSeek, Fears of OverregulationThe AI Action Summit this week came on the heels of the DeepSeek-R1 launch by Chinese AI company, as well as recent enforcement actions of the EU AI Act. A number of leaders from both inside and outside of Europe criticized the EU law, fearing that new regulations will stymie innovation.

Also: Zero-Days Affect Financial Markets, SailPoint IPO Signals Market TrendsIn this week's update, ISMG editors discussed the latest "Modern Bank Heists" report and the evolving threats to financial institutions, fallout from the U.S. Department of Government Efficiency's AI-driven government shake-up, and what SailPoint's IPO signals for the cybersecurity vendor market.

Forrester Report Highlights Generative AI's Influence on Cloud SecuritySecurity leaders are turning to generative AI for intelligence-driven security that can predict, detect and respond to threats in real time. It is poised to boost security for cloud infrastructure-native and third-party security solutions and SaaS, app security, according to a Forrester report.

Acquisition of Startup Adds Modern Identity Governance to CyberArk’s Identity SuiteCyberArk has acquired Zilla Security for up to $175 million, adding modern identity governance and administration capabilities with AI-driven automation for faster deployments, streamlined access reviews, and efficient provisioning to secure human and machine identities.

New CEO Emphasizes Cryptographic Agility, Aims to Simplify Post-Quantum MigrationRebecca Krauthamer steps into the CEO role at QuSecure, leading the company’s efforts in post-quantum cryptography. With fresh funding from Two Bear Capital and Accenture, she focuses on cryptographic agility to help organizations transition to quantum-safe encryption and thwart AI-driven threats.

Workflow Automation Leader Reaches $1.125B Unicorn Valuation, Eyes AI-Driven GrowthSecurity automation firm Tines has secured $125 million in Series C funding, pushing its valuation to $1.125 billion. CEO Eoin Hinchy says the company will invest in AI, expand beyond security into IT and infrastructure, and enhance agentic AI capabilities to drive mission-critical automation.

Europe Must View AI With 'Optimism Rather Than Trepidation,' He Tells Paris CrowdEurope must view developments in artificial intelligence with optimism, rather than trepidation, U.S. Vice President JD Vance told EU leaders during the AI Action Summit. He said the EU's tendency to overregulate technology is costing American businesses billions of dollars.

Offer Comes Amid Legal Battle Between the Former OpenAI Co-FoundersElon Musk has reportedly offered to buy OpenAI's operating assets for $97.4 billion, escalating his legal and business battle with the artificial intelligence company's CEO Sam Altman. Altman dismissed the offer and said he will buy Twitter for $9.74 billion - if Musk is interested.

Official at AI Summit Says Framing AI as a Solution for Every Issue is ProblematicAI poses "profound" privacy risks, Signal President Meredith Whittaker said during the French AI Action Summit. Big tech should refrain from framing AI as the solution for every problem, "where it is a hunger for data, and the companies push for billions of dollars in investment," she said.

Manufacturers May Have to Reassess Product Strategy to Maintain Competitive EdgeDeepSeek's entry into the AI market triggered a ripple effect, with a potential major impact on chipmakers. Shares of Nvidia, AMD and Intel took a hit immediately after the Chinese model's release and is forcing these silicon stalwarts to reassessment of their product strategies.

Lawsuits Mounting Over Elon Musk's Attempts to Slash Federal Government SpendingLawsuits are mounting against President Donald Trump and Elon Musk’s task force for shrinking the federal government as reports indicate the group is feeding sensitive federal data into artificial intelligence systems to target budget cuts, potentially accessing Americans’ sensitive data.

Weak Encryption, Data Transfers to China, Hidden ByteDance Links FoundSecurity researchers found DeepSeek AI has weak encryption, SQL injection flaws and sends user data to Chinese state-linked entities. Its AI model failed jailbreak tests, making it prone to manipulation. Regulators in Europe, South Korea, and Australia are investigating, with bans and warnings issued over security risks.