On September 10, 2026, the New York State Department of Financial Services (“NYDFS”) published an Industry Letter (the “Letter”) to regulated entities (“Covered Entities”) addressing what is probably the most frequently asked Part 500 question: “How to Conduct and Use Risk Assessments Required by the DFS Cybersecurity Regulation.” The risk assessment is, by all accounts, […]
Produce the Prompts: A Court Says Expert AI Inputs Are Fair Game in Discovery
A federal court just delivered one of the clearest messages yet on AI in litigation: if an expert used AI to do the work, the prompts may be discoverable. In Conservation Law Foundation, Inc. v. Shell Oil Company et al., Magistrate Judge Thomas O. Farrish ordered the Plaintiff to produce the prompts its expert used […]
NYDFS Issues Frontier AI Advisory and Guidance for Heightened Cyber Threat Environment
On May 21, 2026, the New York Department of Financial Services (“NYDFS”) issued two Industry Letters to the organizations it regulates (“Regulated Entities”): “Heightened Cybersecurity Risks Associated with Frontier AI Models” (the “Advisory”) and “Guidance on Measures Regulated Entities Should Consider in a Heightened Cybersecurity Threat Environment” (the “Guidance”) (collectively, the “Letters”). The Letters discuss […]
The Era of AI-Driven Data Breaches Has Arrived
A recent lawsuit signals the rapid convergence of issues relating to artificial intelligence, vendor‑managed platforms, and individual arbitration in the data breach ecosystem. In Woodard v. OpenAI, Inc. & Mixpanel, Inc., Case No. 3:25-cv-10301 in the Northern District of California, Plaintiffs alleged that Mixpanel uses artificial intelligence technologies developed by OpenAI to collect user data. […]
NYDFS Revises Prescriptive FAQs on Multifactor Authentication
Two months after the New York Department of Financial Services (“NYDFS”) updated its Frequently Asked Questions (“FAQs”), which we wrote about here, NYDFS has released updated FAQs on multifactor authentication (“MFA”) that further clarify 23 NYCRR § 500.12. As we previously reported, the FAQs from December 2025 provided prescriptive guidance, including clarifications on technical requirements […]