Anthropic Donates Protocol Alongside OpenAI Projects

Washington politicians are currently grappling with the future of artificial intelligence regulation following President Trump's executive order on December 15, 2025. This order aims to establish a single national framework for AI, intending to prevent individual states from enacting their own laws that the White House believes could stifle innovation and hinder competition with China. However, the move faces significant opposition, with critics from both Democratic and Republican ranks, including Florida Governor Ron DeSantis, raising concerns about states' rights and the appropriate scope of federal power. Florida Governor Ron DeSantis has publicly stated his confidence that President Trump's executive order will not impede Florida's ability to enact its own AI regulations. DeSantis argues that only congressional legislation, not an executive order, can preempt state laws. Florida plans to introduce a "bill of rights" focusing on child safety, data privacy, and protection against deepfakes, with lawmakers already advancing bills like one requiring human review for insurance claim denials. Similarly, Utah leaders, including Herriman Republican Rep. Doug Fiefia and Senate Majority Leader Kirk Cullimore, view the order as overreaching but believe it will not stop Utah from developing its own AI laws, particularly for child safety and consumer protection. In the broader AI landscape, significant developments are unfolding across various sectors. The U.S. Food and Drug Administration (FDA) recently approved dozens of new AI-powered radiology tools, bringing the total to over 1,300 AI-enabled medical devices, with radiology tools making up nearly 80%. Meanwhile, the U.S. Space Force awarded its top prize to the Polaris Onboarding Agent, an AI-powered assistant designed to improve efficiency for new members. New Jersey's Department of Education also committed $1.5 million in grants to fund AI education in K-12 classrooms, reflecting a growing national focus on AI literacy. Major tech players are also making strategic moves. Anthropic is donating its Model Context Protocol (MCP) to the new Linux Foundation Agentic AI Foundation, joining projects like OpenAI's AGENTS.md. This open-source contribution aims to foster a secure AI ecosystem and facilitate collaboration. Conversely, Amazon faces a shareholder resolution concerning its AI contracts with the Israeli government and the Department of Homeland Security (DHS), citing legal and reputational risks, particularly regarding the hosting of a DHS database containing biometric data. Despite the rapid advancements, challenges and concerns persist. The U.S. Public Interest Research Group (PIRG) warns about the dangers of AI-powered toys this holiday season, noting some give inappropriate or dangerous responses, and about 70% track children without parental knowledge. This comes as China's AI toy industry, now valued at $4 billion, continues to grow. In cybersecurity, a SANS survey indicates that while AI has been present for three years, security operators are still learning to use it effectively, with 66% reporting too many false positives. The market also shows a shift towards "workflow-first" AI products, which integrate deeply into existing processes, outperforming standalone tools.

Key Takeaways

• President Trump's executive order on December 15, 2025, aims to create a single national AI regulation framework, but faces strong opposition from Washington politicians and states like Florida and Utah over states' rights.
• Florida Governor Ron DeSantis asserts that only congressional legislation, not an executive order, can preempt state AI laws, and plans to introduce a "Citizen Bill of Rights for Artificial Intelligence" focusing on child safety and data privacy.
• New Jersey's Department of Education awarded $1.5 million in grants to fund K-12 AI education, reflecting growing federal and state efforts in AI advancement.
• The U.S. Food and Drug Administration (FDA) rapidly expanded its approved list to over 1,300 AI-enabled medical devices, with nearly 80% being radiology tools, doubling approvals since late 2023.
• Anthropic donated its Model Context Protocol (MCP) to the new Linux Foundation Agentic AI Foundation, joining projects like OpenAI's AGENTS.md, to foster an open-source and secure AI ecosystem.
• Amazon faces a shareholder resolution regarding its AI contracts with the Israeli government and the Department of Homeland Security (DHS), citing legal and reputational risks, particularly concerning biometric data.
• The U.S. Public Interest Research Group (PIRG) warns about AI-powered toys, noting some give inappropriate responses and about 70% track children, while China's AI toy industry is valued at $4 billion.
• The U.S. Space Force awarded its top prize to the Polaris Onboarding Agent, an AI-powered assistant, to improve efficiency for new members and encourage internal AI skill development.
• A SANS survey reveals only half of organizations use AI for cybersecurity, with 66% reporting too many false positives, despite 81% concern over AI-powered threats.
• "AI" became the most frequently mentioned term in S&P 500 earnings calls this year, appearing in 306 calls, with companies discussing AI seeing higher stock price increases.

Trump's AI Order Divides Washington Politicians

President Trump signed an executive order on December 15, 2025, to create a single national framework for AI regulation. This order aims to stop states from making their own AI laws, which the White House believes would slow down innovation and hurt competition with China. However, the order faces criticism from both Democrats and some Republicans, like Florida Governor Ron DeSantis, who worry about states' rights. Even figures like Steve Bannon and Senator Bernie Sanders agree that AI needs more regulation, highlighting the complex views on this technology. A September Gallup poll shows 80% of Americans want the government to regulate AI.

DeSantis Confident Florida AI Laws Will Stand Against Federal Order

Florida Governor Ron DeSantis stated he is not worried about President Trump's executive order on AI. He believes an executive order cannot stop states from creating their own regulations, only congressional legislation can. DeSantis thinks Florida's planned AI laws, which focus on child safety, data privacy, and protecting against deepfakes, will be consistent with the federal guidance. Trump's order creates an AI Litigation Task Force to challenge state laws, but DeSantis is confident Florida would win any legal battles. He emphasized the state's right to protect citizens from AI risks.

Utah Leaders Respond to Trump's AI Regulation Order

On December 15, 2025, Utah leaders reacted to President Donald Trump's executive order aiming to stop states from regulating AI. Herriman Republican Rep. Doug Fiefia called the order "overreaching" and said a national framework should come from Congress, not a presidential action. However, Senate Majority Leader Kirk Cullimore believes the order will not stop Utah from creating its own AI laws, especially for child safety and consumer protection. He thinks the order mainly targets states that regulate AI models, which could hinder innovation. Cullimore noted the order also encourages federal recommendations that do not preempt state laws on certain AI issues.

Florida Governor DeSantis Pushes State AI Regulations

On December 15, 2025, Florida Governor Ron DeSantis stated that President Trump's executive order will not stop Florida from creating its own AI policies. DeSantis plans to introduce a "bill of rights" to protect consumers and residents, despite potential federal lawsuits or funding cuts. Florida lawmakers are already advancing bills, such as one requiring human review for insurance claim denials. DeSantis also recommends rules for AI interaction transparency, banning AI mental health therapy, and giving parents more control over children's AI use. The state also aims to limit data center growth by ending subsidies and controlling water use.

DeSantis Affirms Florida's Right to Set AI Rules

Florida Governor Ron DeSantis asserted that President Trump's executive order cannot prevent states from regulating artificial intelligence. He explained that only congressional legislation, not an executive order, can preempt state laws. DeSantis introduced a "Citizen Bill of Rights for Artificial Intelligence" last week, which aims to protect individuals from unauthorized use of their image and likeness, deepfakes, and includes child safety measures. He believes Florida's approach aligns with parts of the federal order and is confident the state would win any legal challenges. This issue highlights disagreements among Republicans and AI companies about state versus federal AI regulation.

AI Toys Pose Risks for Children This Holiday Season

The U.S. Public Interest Research Group, or PIRG, released its annual "Trouble in Toyland" report, warning parents about dangers from AI-powered toys this holiday season. Researchers found that some AI toys give unexpected and disturbing answers, even directing children to dangerous items like knives or matches. One AI teddy bear even gave sexually explicit responses. The report also highlights that about 70% of these smart toys can track and surveil children, often without parents knowing.

Chinese AI Toys Offer Fun But Raise Safety Concerns

China's growing AI toy industry, now worth $4 billion, is integrating artificial intelligence into products like plush toys and robot pets. Companies like Haivivi and Chongker create toys that learn user preferences or offer advice, such as the Ultraman CocoMate toy. However, these gadgets come with risks, especially for children. Research by the U.S. Public Interest Research Group found some AI toys shared inappropriate or dangerous information and raised privacy concerns. Manufacturers are adding safety features, like Haivivi allowing parents to view conversation transcripts, but the use of large language models means toys can sometimes give unexpected responses.

Anthropic Donates AI Protocol to Linux Foundation

Anthropic is donating its Model Context Protocol, or MCP, to the new Linux Foundation Agentic AI Foundation. MCP helps manage many tools in AI agent workflows, and it will join other key projects like goose by Block and AGENTS.md by OpenAI. Anthropic believes open-source software is vital for a secure AI ecosystem, ensuring MCP remains a neutral standard for collaborative development. This move will help ERP and enterprise providers connect AI agents to systems more predictably, lowering integration risks and speeding up collaboration among major players in the AI field.

FDA Approves Many New AI Medical Devices

On December 14, 2025, the U.S. Food and Drug Administration, or FDA, added dozens of new AI-powered radiology tools to its approved list. The updated list, from early December, now includes over 1,300 AI-enabled medical devices, with radiology tools making up nearly 80% of them. Companies like GE HealthCare and Siemens Medical Solutions have products on this list. AI approvals have grown rapidly, more than doubling since the end of 2023. This news comes after President Trump issued an order last week to speed up medical AI use by limiting state regulations, though this order may face legal challenges.

Amazon Faces Shareholder Push on AI Contracts

On December 15, 2025, Amazon faced a shareholder resolution targeting its AI work with the Israeli government and the Department of Homeland Security, or DHS. The resolution, which could be voted on at Amazon's annual meeting in May, points to legal and reputational risks from these contracts. It highlights that Amazon Web Services hosts a DHS database containing biometric data, and DHS units face accusations of violating privacy and rights. Thirty investors filed this resolution, signaling concerns about Amazon's policies.

New Jersey Funds AI Education as Federal AI Efforts Grow

New Jersey's Department of Education has awarded $1.5 million in grants to fund artificial intelligence education in K-12 classrooms. This move comes as AI development gains national attention. Since 2019, both President Biden and President Trump have signed nine executive orders to advance AI, and Congress has passed nearly 30 laws to study or regulate the technology. AI is also being used in healthcare to quickly detect critical issues on X-rays and CT scans, and at least nine states are considering laws for autonomous vehicles this year.

Workflow-First AI Products Outperform Standalone Tools

While early AI tools promised great efficiency, the market is now shifting towards "workflow-first" products. Standalone AI tools often fail because they are isolated and only complete single tasks. In contrast, workflow-first products are deeply integrated into existing processes, understand context across multiple steps, and reduce manual handoffs. These products focus on orchestrating actions, making them harder to abandon once they become part of daily operations. This approach leads to better user retention, value that grows over time, and a stronger position in the competitive AI market. Companies should now prioritize designing systems that fit into user workflows rather than just creating new features.

SANS Report Reveals AI's Mixed Role in Cybersecurity

A recent SANS survey shows that while artificial intelligence has been present for three years, security operators are still learning how to use it effectively. Only half of organizations use AI for cybersecurity, and 66% report too many false positives. Despite concerns about AI-powered threats, with 81% worried, AI is underutilized in areas like incident investigation. Most professionals, 75%, expect AI to enhance existing security tools, and 67% believe demand for skilled cybersecurity experts will grow. However, challenges remain, including integrating AI with other tools and concerns about deepfakes and social engineering attacks.

Space Force Boosts AI Use With Onboarding Assistant

The U.S. Space Force's annual AI Challenge awarded its top prize to the Polaris Onboarding Agent, an AI-powered assistant for new members. This digital guide offers interactive answers to common questions about administrative tasks, training, and policies, tailored to each user. Air Force Secretary Troy Meink showcased Polaris at the Spacepower conference on December 11, 2025, emphasizing its role in improving efficiency and reducing confusion. Meink also urged Space Force members to develop their own AI skills and not solely depend on contractors. This initiative supports the Defense Department's goal to use AI for internal operations and readiness.

AI Mentions Soar in S&P 500 Earnings Calls

On December 15, 2025, a FactSet analysis revealed that "AI" became the most frequently mentioned term in S&P 500 earnings calls this year. The term appeared in 306 calls between September 15 and December 4, marking a 10-year high. Companies that discussed AI also saw higher stock price increases. Meanwhile, mentions of "uncertainty" have decreased since Q1 2025. A survey of CFOs shows that while 66% expect significant returns from AI within two years, many face challenges like data trust issues, outdated systems, and a lack of skilled workers.

Sources

• AI is dividing Washington in unexpected ways
• Gov. DeSantis not worried about federal AI executive order, says Florida limits would prevail in legal challenge
• What Utah leaders say about Trump’s preemption on AI state regulations  
• ‘We have a right to do this’: DeSantis wants Florida to move ahead with AI policies
• DeSantis: Florida has ‘right’ to regulate AI rules despite Trump’s order
• Warning offered about toys with Artificial Intelligence this holiday season
• From puppies to superheroes, Chinese AI toys are bringing hugs
• Anthropic Set to Donate MCP to New Linux Foundation Agentic AI Foundation
• Dozens of new AI-powered devices make FDA's list of approvals
• Amazon Shareholder Resolution Targets AI Work With Israel, DHS
• The Pulse of Princeton: What do you think about artificial intelligence (AI)?
• Why AI Tools Are Failing and Workflow-First Products Are Winning in 2025
• 3 Years In: How Is AI Doing? SANS Weighs In
• Space Force uses AI challenge to push everyday use of artificial intelligence
• Earnings calls citing 'AI' surge in 2025 as 'uncertainty' mentions fade