Campaigns and PACs have spent more than $137 million on AI-generated or AI-enhanced midterm ads, and about 70% of them carry no AI label, the New York Times reported. The biggest pro-AI super PAC network paid about $20 million to a Nevada company that exists only as a post office box. A new report found 81 of 134 AI models failed a test built from terrorist-style questions. A video game reverse engineering site is closing because AI made the work too easy. Some companies that rushed into AI are now limiting it, and a JAMA study counted 270 million questions doctors asked one AI tool. In the middle: police in Michigan used an AI-generated photo of a teenager to catch a suspect.

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The Year Governments Got Serious

AI Supply Chain Under Siege

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Police are posing as AI-generated people to catch suspects

Police in Livonia, Michigan, used an AI-generated photo of a teenage boy to catch a man suspected of seeking sex with minors, according to an affidavit reported by 404 Media on October 16. An FBI task force officer made a profile named "Caleb" on the dating app Taimi with the AI image and no age listed. The man messaged "Caleb," the chat moved to WhatsApp, and when the officer said Caleb was 15, the man allegedly sent sexually explicit messages. Investigators then used Clearview AI, Thomson Reuters CLEAR and Flock to identify him and track his car to the meeting place, where he was arrested.

Companies already sell AI personas to police. In April 2025, 404 Media reported that New York company Massive Blue sells a product called Overwatch that runs lifelike AI personas over text messages and social media. Its targets included "college protesters," "radicalized" political activists and suspected traffickers, and departments near the US-Mexico border were paying hundreds of thousands of dollars for it.

The Livonia affidavit shows how one department used the method in one case. It does not show how often police use AI personas or what rules apply to them. Livonia police did not respond to 404 Media.

Key Takeaways

  • Ask whether a political ad used AI. About 70% of AI-made midterm ads in the Wesleyan and AdImpact review carried no label.
  • Assume any open-weight model can be stripped of its safety limits within days. Tech Against Terrorism found stripped copies now appear online in under three days on average.
  • Count the cleanup time before cutting staff for AI. Meta scaled back AI-driven staff cuts after employees spent growing time cleaning up errors.
  • Check who supplied the data behind an AI study. The JAMA study of 270 million doctor questions used data from the company that makes the tool.

Found First

Primary research AI Weekly published before the press covered it.

  • Baidu says a new attention design shrinks the memory cache 4x and keeps quality. Baidu's Virtual Head Attention paper, accepted to NeurIPS 2026, reports a 4x smaller KV cache than GQA-8 at dense scale. On a 30B MoE model it scored 2.60 points above GQA-4 across 12 benchmarks, and it runs on a standard GQA-2 inference path with no new kernels. The largest test was 30B parameters. Read our page on the paper.
  • Frontier models complete at most 55% of rule tasks when the rules sit in separate files. RuleTrek tested 11 frontier models on rules for tax, PostgreSQL, cybersecurity, software governance, procurement and games. End-to-end scores ranged from 27% to 55%. A model that finds the right rule often still fails to apply it. Read our page on the benchmark.

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This week's poll

Should AI-made political ads have to say they use AI?

Last week, 56 of you voted:

**Should regulators be able to see AI labs' internal safety incident records?**

  • Yes, all of them29%
  • Yes, but kept confidential23%
  • Only after a consumer is harmed20%
  • No, labs should report on their own29%

See full results →

Until next time,

Alexis