Today's Newsletter Highlights:

• ONE RULE’: Trump says he’ll sign an executive order blocking state AI laws despite bipartisan pushback

• OpenAI says it’s turned off app suggestions that look like ads

• Say Goodbye to the Billable Hour, Thanks to AI

• Best AI Tools

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ONE RULE’: Trump says he’ll sign an executive order blocking state AI laws despite bipartisan pushback

A recent TechCrunch article says Trump plans to sign an executive order. This order will block or override state-level AI laws. He aims to do this if the laws hinder AI development and deployment.

Key Points:

• This announcement comes as several U.S. states and bipartisan groups push for laws on AI use, data privacy, transparency, and safety. These laws focus on sensitive areas like employment, housing, and policing.

• Trump presents this move as a way to protect “innovation, jobs, and competitiveness.” He argues that varying state laws could slow AI industry growth and weaken U.S. global leadership.

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Say Goodbye to the Billable Hour, Thanks to AI

Why AI is Undermining the Billable Hour

⏱ Routine Work Gets a Major Speed-Up

A 2025 survey by Everlaw shows that nearly half of legal professionals believe generative AI saves them about 260 hours each year. That’s around 32.5 working days.

AI now speeds up many standard tasks. These include contract drafting, discovery, document review, and legal research.

Key points:

• Some firms estimate that nearly 44% of tasks for junior associates can be automated. This shift makes the traditional “time = money” model harder to defend.

• 💸 Pressure for Alternative Pricing Models

• Many lawyers and clients now see less value in hourly billing. This is due to faster work and cost savings. More firms think that hourly rates will drop. They expect a shift to flat fees, subscription pricing, or outcome-based pricing.

• For tasks where AI excels, such as standard contracts and basic research, flat fees provide clear costs and great value. This allows firms to remain profitable.

• As AI handles routine tasks, human lawyers can focus on more valuable work. This includes strategy, negotiation, litigation planning, and tailored services.

• This change means that legal work and billing are shifting from being volume-based to being based on value or complexity.

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OpenAI says it’s turned off app suggestions that look like ads

In late November and early December, some ChatGPT users, including paid subscribers, saw promotional suggestions in their chats. These included prompts like “Connect Target” or “install a Peloton app,” even if the chat wasn't about shopping.

Key points:

• Users reacted strongly. Many saw these prompts not as helpful suggestions, but as ads in a paid product. This sparked frustration and trust issues. One widely shared user quote was: “ADS TO SHOP AT TARGET” during a technical question.

• The suggestions came from a new "app-discovery" system. OpenAI launched it in the ChatGPT apps update in October. The aim was to highlight apps built on the ChatGPT platform. OpenAI said these suggestions had no financial part, so there was no ad-buy or paid placement.

• Despite this, the experience damaged trust. OpenAI’s research lead admitted the execution “fell short.” They turned off the "app suggestion" feature. They also made it more relevant, precise, and user-friendly.

• Executives stressed that there are no live ads in ChatGPT.

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