This month’s Digital Risk Report covers a range of timely and important topics impacting organizations today. We take a closer look at Texas’ recent lawsuit involving WhatsApp and the implications for privacy and digital communications; examine the growing trend of states enacting new employment laws, including Connecticut’s latest updates; and provide insight into the evolving regulatory landscape with a piece on OCR.

Our coverage includes an analysis of the Federal Wiretap Act and how it is increasingly being used as a tool in litigation, as well as a discussion of the recent pause by Anthropic on its AI development and what that means for the industry. You’ll also find articles on the risks posed by AI agents, unique vulnerabilities identified in Claude, and the collection of information in the automotive industry, with a focus on the FTC’s actions involving General Motors and OnStar.

We hope you find this edition informative and helpful as you navigate the rapidly changing world of digital risk.

Legislative

Connecticut's New AI Employment Law: What Business Leaders Need to Know

On May 27, 2026, Connecticut enacted the Connecticut Artificial Intelligence Responsibility and Transparency Act (SB 5), one of the most comprehensive state AI laws to date. The law covers frontier models, chatbots, employment, and provenance. It passed with strong bipartisan support (131-17 in the House, 32-4 in the Senate), signaling broad consensus on the need for AI regulation.

This...

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