ABA's comprehensive legal analysis covers the busiest year in AI legal history, examining copyright battles between algorithmic infringement allegations and fair use defenses while tracking bias, transparency, and privacy litigation trends. The report details landmark cases including USA v. Michel, where criminal convictions involved experimental GenAI program usage, and emphasizes how trial courts are creating de facto AI legal rules absent comprehensive congressional regulation. This authoritative judicial overview demonstrates that judges and bar regulators are increasingly focused on ethical GenAI use rules as litigation shapes AI law development through case-by-case precedent.