AI Law Wiki News for August 18, 2026

August 18, 2026 — The FDA requested public comment on regulation of generative-AI-enabled medical devices, lawyers defending State Farm acknowledged AI-generated false citations in a Los Angeles lawsuit, and OpenAI launched a teen version of ChatGPT with stronger child-safety controls. Four states opened a federal child-safety trial against Meta over Facebook and Instagram, while Pennsylvania imposed binding requirements on proposed AI data centers. A separate class action filed in the Northern District of California represents six children whose images were allegedly used to create AI-generated child sexual abuse material and names three xAI entities as defendants. The Justice Department filed a statement of interest in xAI's federal challenge to Minnesota's AI nudification law.

Contents

1. FDA seeks input on generative-AI-enabled medical devices
2. State Farm defense lawyers acknowledge AI-generated false citations
3. OpenAI launches ChatGPT for Teens with stronger safeguards
4. Meta child-safety trial opens
5. Pennsylvania imposes binding requirements on AI data centers
6. xAI CSAM class action represents six children
7. Justice Department files statement in xAI Minnesota challenge

FDA seeks input on generative-AI-enabled medical devices

The U.S. Food and Drug Administration issued a discussion paper and requested public feedback on how it should regulate medical devices enabled by generative artificial intelligence.

The agency requested input on risk assessment, premarket evaluation, postmarket monitoring, and related oversight questions, and opened docket FDA-2026-N-7874 for submissions.

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State Farm defense lawyers acknowledge AI-generated false citations

Lawyers representing State Farm in a Los Angeles Superior Court dispute over rebuilding a fire-damaged home apologized after opposing counsel identified nonexistent cases, quotations, and holdings in defense filings. One defense lawyer acknowledged that seven citations across eight filings did not exist and said she had used an AI tool that she mistakenly believed was connected to the firm's Westlaw subscription and performed internal citation checking.

Lead trial counsel accepted responsibility for the filings and said the firm had updated its AI-use policy, while State Farm said it was reviewing the incident and expected outside counsel to verify the accuracy of legal filings. California's professional guidance warns lawyers that generative-AI output can contain false or inaccurate information and that attorneys must critically review and validate generated material before using it.

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OpenAI launches ChatGPT for Teens with stronger safeguards

OpenAI launched ChatGPT for Teens for users ages 13 to 17 with stronger restrictions on content involving suicide, self-harm, and romantic or sexual conversations.

The service includes linked-account parental controls, optional quiet hours, limited safety notifications for high-risk situations, and age-assurance measures that can place users estimated to be under 18 into the teen experience. OpenAI also said the teen chatbot is designed not to claim personal feelings or consciousness and to guide students through schoolwork rather than simply produce answers.

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Meta child-safety trial opens

Opening statements began August 18 in a federal trial in California in which four states accused Meta of designing Facebook and Instagram to addict young users and misleading the public about risks to children. Meta rejected the allegations and argued that its platforms include safety controls and age-appropriate protections.

The states are seeking billions of dollars in damages for alleged harms to children. The proceeding is the first trial in the coordinated federal litigation over youth harms allegedly caused by social-media platform design.

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Pennsylvania imposes binding requirements on AI data centers

Governor Josh Shapiro signed an executive order requiring proposed AI data centers in Pennsylvania to give notice of their intent to comply with the Governor’s Responsible Infrastructure Development requirements, submit detailed plans for state environmental review, and enter legally binding consent orders carrying penalties for noncompliance. The requirements direct developers to supply and pay for their power needs, obtain local approval, provide community benefits, hire locally, and meet environmental protections for air and water.

The order also removed data centers from Pennsylvania’s Fast Track permitting program, barred nondisclosure agreements for data-center projects, and directed state work on utility rules intended to keep data-center infrastructure costs from being shifted to households and other businesses.

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xAI CSAM class action represents six children

A class action complaint filed on August 18 in the U.S. District Court for the Northern District of California represents six children—one boy and five girls—and names X.AI Corp., X.AI LLC, and X.AI Holdings LLC as defendants.

The complaint alleges that altered images or videos of all six children were among the child sexual abuse material found on the devices of an Arkansas photographer accused of using Grok to generate explicit content. It seeks a jury trial, damages, injunctive relief, and attorneys’ fees.

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Justice Department files statement in xAI Minnesota challenge

On August 18, the United States filed a statement of interest in X.AI LLC v. Ellison, the federal case challenging Minnesota's AI nudification ban. All Rise News reported that the filing effectively supports xAI's position in its First Amendment challenge.