InfoHive – Data Security

@MITSLOAN  released its 2025 Quantum Index Report. It found that quantum processor performance is improving. We talked recently about Microsoft launching a quantum chip. It is moving fast. The number of quantum patents have increased 5 fold in the last decade. 91% of patents are from research institutions. The U.S. is 2nd to China in the number of patents. Only 1% of VC funding worldwide is for quantum computing. Businesses are talking more and more about quantum publicly and it is snow balling with each quarter.  The demand for a quantum ready workforce has tripled since 2018.

Virginia’s Governor signed an Executive order that will require the state to use agentic AI to streamline regulations. To make this happen, the state has contracted with Vulcan Technologies, which plans to expand into other states. Details about the company which incorporated in April 2025 at the link below.

The project began in July and the Virginia Office of Regulatory management says it has already streamlined by 26.8% regulatory requirements.

Route Fifty | Inside Virginia’s AI-driven streamlining of regulations

We talked about Illinois new law prohibiting AI for mental health. Now we need to add Nevada’s AB 406, Utah’s HB 452, Pennsylvania’s proposed SB 631, New Jersey’s proposed HB 5603, and California’s proposed SB 579.

Association of Health Care Journalists | States crack down on AI for behavioral health care

In 2024, Colorado became the first state to establish a regulatory framework for AI. Now the Colorado Legislature is in a special session to revise its 2024 laws. The competing interests are consumer protections; the cost to public and higher education to implement regulations; and the business community’s concern that regulations will stifle innovation.

CPR | Competing visions of how — and how much — to regulate AI decision-making, as Colorado lawmakers return for their special session

A new report from MIT found that companies are reporting a 95% failure rate with generative AI. In total these companies spent $30 billion on generative AI. The report found that to achieve success, generative AI needs to achieve contextual adaptation and autonomous operation.

The Hill | Companies have invested billions into AI, 95 percent getting zero return

37 Attorneys General sent a letter to Instagram about its early August new location sharing feature. The letter calls on Instagram to revise its feature. They wrote, “Unrestricted location-sharing features pose a particular risk for minors as they can be readily used by sexual predators to identify and geographically target children in the real world. We know that dangerous individuals are already present on Instagram, and we have serious concerns that this feature will increase the likelihood of hands-on abuse and exploitation.”

Source NM | Attorneys general call on Meta to place privacy limits on new Instagram location feature

The Information Technology Industry Council has advice for the new national cyber director: focus on “results-driven action.” Their report lists recommendations that include advance national cyber security priorities (bye,bye state cyber laws); prepare for quantum threats; modernize cryptography; and harden the software supply chain to raise the cost for adversaries.

AI psychosis is explained by @time as “people developing delusions or distorted beliefs that appear to be triggered or reinforced by conversations with AI.” 

Seems like a good time to mention that Illinois became the first state to prohibit AI from offering mental health care or therapy. @morningbrew

According to the Conference of State Bank Supervisors, 40+ states seek to regulate cryptocurrency. The main objectives of state regulation are “identifying and managing risks and nurturing innovative developments.”

Examples include a bill in Illinois to have crypto currencies register with the state’s  Department of Financial and Professional Regulation while exempting technology companies that provide no financial services to customers.

Route Fifty | States have been ‘at the forefront’ of efforts to regulate cryptocurrency, experts say

@mitsmr reminds us that AI can’t read people or a room, which means when your organization utilizes “real human communication” then your organization is ahead of the game.