AI Dispatch | SC Cracks Down On Fake AI Citations

News

1. TCS AI Revenue Run Rate Hits $2.6 Billion as Enterprise Deals Widen

2. AI Dispatch | SC Cracks Down On Fake AI Citations

3. CEA Nageswaran Pushes GCCs On AI Skills

4. European Banking Regulators Warn on Frontier AI Risks

5. Meta Explores AI Glasses That Remember What Users See, Hear

6. Mistral Launches Robotics AI Model for Factories

The Supreme Court has warned that unverified AI-generated legal material can undermine judicial decision-making, after setting aside NCLT and NCLAT orders that relied on fabricated precedents. The week also saw India move closer to a risk-based AI law, HCLTech win a $1.14 billion AI-led contract, Google Cloud signal more AI infrastructure investment in India, and global regulators and companies confront the costs and risks of faster AI deployment.

 

SC Warns On Fake AI Citations

The Supreme Court last Thursday set aside orders passed by the National Company Law Tribunal and the National Company Law Appellate Tribunal after finding that fabricated legal precedents had entered the record and gone uncorrected on appeal. The case arose from insolvency proceedings involving Essel Infraprojects Ltd. The NCLT’s Mumbai Bench had admitted Jammu and Kashmir Bank Ltd’s insolvency plea on August 28, 2024.

A bench of Justices P.S. Narasimha and Alok Aradhe warned that unchecked use of AI in judicial proceedings could have serious consequences for the justice system. The court said unverified AI-generated material cannot form the basis of a judicial decision, and that a decision based on such material is no decision in the eyes of law.

 

HCLTech Wins $1.14 Billion AI Deal

HCLTech has secured a $1.14 billion contract from an unnamed Europe-based Fortune Global 50 company to transform and manage its global digital workplace and enterprise network operations, with Reuters reporting that the agreement runs from July 2026 to December 2031 and includes a five-year extension option. The Times of India, citing people familiar with the matter, identified the client as Mercedes-Benz, though HCLTech has not disclosed the customer. The company said the deal is entirely new business and will use an AI-driven operating model.

 

India Weighs Risk-Based AI Law

India may introduce a risk-based regulatory framework for artificial intelligence under a proposed law, The Economic Times reported. The framework is expected to place stricter obligations on AI systems used in sensitive sectors such as banking, finance, healthcare and critical infrastructure, while low-risk tools such as chatbots and productivity software would face lighter oversight. The proposed law is also expected to set safety-testing standards and sector-specific obligations for AI models and systems.

 

Google Cloud Plans More India AI Data Centers

Google Cloud plans to build more AI-ready data centers in India beyond its planned Visakhapatnam campus, The Economic Times reported, citing Google Cloud Chief Executive Officer Thomas Kurian. Kurian said the company’s $15 billion investment in a 1 GW AI-ready data center campus in Visakhapatnam, announced in October 2025, would not be its last investment in the country. The project, being developed with Adani Group and Bharti Airtel, is expected to become Google’s largest AI hub outside the US.

 

Global

UN Panel Warns On AI Oversight Gap

A United Nations-backed scientific panel has warned that artificial intelligence is advancing faster than the world’s ability to measure, control or govern it, raising risks across cybersecurity, biotechnology, disinformation, financial systems and democratic institutions. The warning appears in a preliminary report by the Independent International Scientific Panel on Artificial Intelligence, a 40-member body created by the UN General Assembly in 2025 to give governments evidence-based assessments of AI’s opportunities, risks and impacts. The report also says AI could support progress in health, education, agriculture, science and productivity if deployed carefully.

 

OpenAI Floats US Stake Plan

OpenAI has discussed giving the US government a 5% stake in the company as part of a broader proposal to share the financial gains from artificial intelligence with the public, the Financial Times reported. The plan comes as AI developers face closer scrutiny in Washington over national security, misuse of advanced models and whether ordinary Americans will benefit from the sector’s profits. OpenAI has also suggested that other leading US AI companies give the government similar stakes, though it is unclear whether rivals would agree.

 

Microsoft Launches Frontier AI Unit

Microsoft has launched Microsoft Frontier Company, a new AI business backed by a $2.5 billion investment to help enterprise customers build, deploy and improve AI systems at scale. Judson Althoff, Chief Executive Officer of Microsoft Commercial Business, said in a blog post that the unit will embed 6,000 industry and engineering experts with customers to co-design AI systems tied to measurable business outcomes. Rodrigo Kede Lima, most recently president of Microsoft Asia, will lead the business.

 

Tesla Caps Employee AI Spend

Tesla has capped employee spending on third-party AI tools at $200 per week from July 6, The Information reported, citing an internal memo. Employees will need manager approval to exceed the limit, though the policy reportedly excludes beta versions of xAI products, steering staff toward Elon Musk’s separate AI company. The move reflects a broader corporate push to control AI-tool costs as usage spreads across workplaces.