Navigating the Risk Associated with AI-Fueled CAPEX and Energy Development:
This article summarizes a presentation by Kilpatrick partner John Pierce and Secretariat's Neil Gaudion at Kilpatrick's Annual In-House Counsel Summit in Houston, focusing on the risks associated with AI-driven capital expenditure and energy development. Key takeaways highlight that AI and data center energy demand represents the largest increase in U.S. energy demand since the steel and automotive industries, with existing grid infrastructure proving insufficient to meet current and future needs—driving a shift toward behind-the-fence energy developments, particularly gas-fired generation.
The Governance of Innovation: Managing New AI, IP, and Regulatory Frameworks:
Starling Underwood of Kilpatrick recently presented on "The Governance of Innovation: Managing New AI, IP, and Regulatory Frameworks" at the firm's annual ethics and technology seminar, alongside Wake Forest professor Keith Robinson. His key takeaways emphasized that AI systems require systemic management rather than routine control, present diverse risks that must be carefully mapped and managed, demand non-negotiable human oversight and accountability, and ultimately depend on organizational culture as a safeguard for responsible use.
The Current AI Landscape in Trademarks and Copyright:
As AI reshapes legal practice and intellectual property strategy, attorneys must navigate a rapidly evolving landscape of opportunities, risks, and regulatory developments. At Kilpatrick's recent Advanced Trademark Law Seminar, Joe Petersen and Briggs Wright offered practical guidance on integrating AI responsibly while protecting client interests and preserving IP rights.
AI Data Centers and the Looming Energy Crisis in the United States:
Artificial intelligence has become an infrastructure-intensive industrial force whose rapid deployment is reshaping electricity demand, land use, water consumption, and public utility regulation across the United States. The most advanced AI systems now rely on highly specialized data centers that consume extraordinary amounts of power — often rivaling or exceeding the electricity demand of traditional heavy industry.
From Transparency to Oversight: New York’s RAISE Act Raises the Bar for Frontier AI Developers:
The RAISE Act, signed into law by New York Governor Kathy Hochul on December 19, 2025, establishes safety, documentation, audit, and incident-reporting requirements for large developers of frontier AI models, with a focus on preventing catastrophic harm. While the statute applies to a narrower group of developers than California's SB 53, it imposes more demanding obligations, including mandatory annual third-party audits and a 72-hour safety-incident reporting timeline.
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