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Applied AI·September 15, 2026·1 min read

OpenAI’s top strategist calls the state-by-state route reverse federalism. Its president helps fund a super PAC trying to preempt the states.

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The largest labs are now openly running a two-track strategy—engage with state rulemaking while funding federal preemption to avoid a 50-state compliance maze. If you’re building on frontier models, assume your risk posture will be set in DC, but your operational headaches will still come from the most aggressive states over the next 12–24 months.

Applied AI

Medicare is using AI to approve claims. The result has been ‘alarmingly high denial rates.’

An AI claims pilot that drives “alarmingly high” denial rates and vendor warnings about unreadiness is a case study in what happens when you automate adjudication faster than you harden policy and appeals. Any operator deploying AI into rights- or benefits-determining workflows should slow down, add human-in-the-loop checkpoints, and assume legal discovery will surface every design decision you make.

Applied AI

'Nowhere in the world, including the UK, has a current legislative and regulatory approach to AI that is fit for purpose' — Britain’s lawmakers have started calling for AI regulation, and they should refuse to settle for half-measures

UK lawmakers publicly aligning with labs that say voluntary safeguards are no longer enough raises the odds of enforceable AI rules with real teeth. If you operate in or sell into the UK, start inventorying where your AI systems touch consumers, workers, and critical infrastructure — those are the zones most likely to see early, binding obligations.