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US Senator Ted Cruz Proposes SANDBOX Act to Waive Federal Regulations for AI Developers

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US Senator Ted Cruz (R-TX), chairman of the Senate Commerce Committee, at a hearing titled “AI’ve Got a Plan: America’s AI Action Plan” on Wednesday, September 10, 2025.

On Wednesday, United States Senator Ted Cruz (R-TX) unveiled the “Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation Act,” or the SANDBOX Act. The 41-page bill would direct the director of the White House Office of Science and Technology Policy (OSTP) to establish a federal “regulatory sandbox” for AI developers to apply for waivers or modifications on compliance with federal regulations in order to test, experiment with, or temporarily offer AI products and services.

In a statement, Cruz said the legislation is consistent with the goals of the Trump administration’s AI Action Plan, which was released in July, and is the first step toward a “new AI framework” that can “turbocharge economic activity, cut through bureaucratic red tape, and empower American AI developers while protecting human flourishing.”

The bill would create a mechanism for companies to apply to the OSTP director for a waiver or modification to rules or regulations under any federal agency “that has jurisdiction over the enforcement or implementation of a covered provision for which an applicant is seeking a waiver or modification” under the sandbox program. Waivers or modifications would be granted for a two-year period, with four potential renewals totaling up to a decade.

Applicants under the program must demonstrate that “how potential benefits of the product or service or development method outweigh the risks, taking into account any mitigation measures,” including descriptions of “foreseeable risks” such as “health and safety,” “economic damage,” and “unfair or deceptive trade practices.” Applicants that receive a waiver are not immune to civil or criminal liability that may result from the deployment of their AI product or service. The bill requires mandatory incident reporting under a public disclosure mechanism.

Federal agencies are given 90 days to review applications. If an agency does not submit a decision or seek an extension by the deadline, the OSTP director is permitted to presume that the agency does not object. If an application is denied, it can be appealed.

The bill also includes a provision for Congressional review of rules and regulations that “should be amended or repealed as a result of persons being able to operate safely without those covered provisions” under the sandbox program. The OSTP director is tapped to identify any such provisions in a “special message” to Congress submitted each year.

The bill also contemplates coordination with “State programs that are similar or comparable to the Program,” including to “accept joint applications for projects benefitting from both Federal and State regulatory relief” and to harmonize other aspects of the program.

The Senate Commerce Committee’s announcement said the bill is backed by groups including the Abundance Institute, the US Chamber of Commerce, and the Information Technology Council (ITI). Public Citizen, a watchdog group, said in a statement that the bill puts public safety on the “chopping block” in favor of “corporate immunity.”

The announcement of the bill was timed alongside a Senate Commerce hearing titled “AI’ve Got a Plan: America’s AI Action Plan,” which featured testimony from OSTP director Michael Kratsios. During the hearing, Cruz laid out a legislative agenda on AI, including reducing the regulatory burden on AI developers. But, he said, AI developers should still face consequences if they create harm.

“A regulatory sandbox is not a free pass,” said Cruz. “People creating or using AI still have to follow the same laws as everyone else. Our laws are adapting to this new technology.”

In response to a question from Cruz, Kratsios said he would support the approach described by the SANDBOX Act.

The new legislation follows a failed effort by Cruz and other Republicans to impose a sweeping moratorium on the enforcement of state laws regulating artificial intelligence. Earlier this year, the House passed the moratorium as part of the so-called “One Big, Beautiful” bill, or HR 1. After efforts by Cruz to move the measure through the Senate by tying it to the allocation of $42 billion in funding for the Broadband Equity and Access Deployment (BEAD) program, the chamber voted 99-1 to strip it out of the budget bill prior to passage. Still, some experts remain concerned that the administration may try to use other federal levers to restrict state AI laws.



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OpenAI’s ‘Critterz’ will be a full-length generative AI film

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Generative AI has sunk its claws into just about everything. Work, hobbies, daily life, and more. It’s even starting to eat Microsoft from the inside, cannibalising jobs to fuel its never-ending push for bigger AI infrastructure, all in the name of “progress,” and all at the cost of real people’s livelihoods. And now, it wants the big screen too.

OpenAI is making a full-blown animated film called Critterz, roping in some surprising talent — including writers who worked on Paddington in Peru (via Wall Street Journal). As someone who adores the charm of Paddington Bear, that’s unsettling.



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Charity Digital – Topics – The best AI grant writers for charities

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Much has been heralded around the ability of artificial intelligence (AI) to make short work out of writing large swathes of text. It can provide lengthy answers to questions in mere moments, generating copy with little effort and time required to do so. For the time-poor charity sector, it is perhaps not surprising then that such technology has been touted as game-changing, not least in the area of grant writing. 

Generally speaking, there are a few key reasons why grant writing is a prime target for AI usage. AI models typically start out by writing a decent first draft, including basic research, structure, and analysis. The research provided is a time saver. AI models help with literature reviews, citations, and some even identify potential grant opportunities.  

To unlock these myriad benefits, we’ll explore some of the AI grant writers available, and how charities can make the most out of them to boost their funds and support vital services.

 

 

AI tools for grant writing

Charity Excellence’s grant writer takes aim at levelling the playing field. Targeted at smaller charities this grant writer uses AI to coach charities through their applications. Users log into the dashboard and start running through the questionnaire. Next, the AI Bunny processes the request and out pops out generated text based on responses. Applicants then have the choice to download or email themselves the draft.  

Recently launched, nonprofit technology expert Kindsight’s Grant Writer is a comprehensive solution to proposal drafting. The AI draws from a proprietary database from fully awarded grants, meaning that charities are learning from a bank of known winning proposals. The data has been tested and vetted by professional grant writers.  

Other features of this platform are also time-savers. Authors can click and drop an executive summary, needs, research, budget and capacity statements, but leave out other fillers or sections. Each proposal can be tailored exactly to the request.  

Pro tip: Check out the free trial.  

Plinth takes a slightly different perspective. The AI-driven platform is helping small and large organisations manage their applications. The AI-powered features help with grant management, service delivery, case management, and fundraising. Plinth says it saves time by using tech to vet applications against Charity Commission data. It then comes up with feedback that is customised to the applicant.  

Plinth’s main benefits are two-fold. The platform uses previous applications to pre-populate questionnaires and can build evidence from your existing work. Then the AI can do some professional editing. The technology adjusts for tone and language to suit the application.  

Pro tip: Consider using the entire platform to maximise benefits.  

GrantWrite AI is a dedicated platform which scans the internet for possible funding opportunities and makes recommendations. Then the application process is made easier. The editing tool enables better writing, so that the proposal is tailored to the grant criteria. The platform also acknowledges that grant writing isn’t done by a single person. The Collaborative Workflow function includes other inputters and reviewers in the process. Next, the grant process itself is tracked. GrantWrite AI monitors progress and shares updates.  

Pro tip: The best feature here is the Snippet Library – lift your best work and phrases into new applications.  

Another specialised platform, Autogen AI works in two ways. First, the platform can smartly identify funding opportunities. Second, it helps with the request-for-proposal (RFP) process.  

The process Autogen AI uses is intuitive. First, AI can ‘read’ the RFP and extract the relevant requirements for your organisation. Then the platform can separate each section and users assign responsibilities and due dates. In addition to streamlining the process, AI can help adjust form and language to meet RFP expectations.  

Pro tip: This platform works best for complicated, professional RFP processes – ideally government bids and other major projects.  

For many charities, testing out new tech is the way to go ahead of a larger investment. Grant Finder Pro helps by dedicating most of their services to smaller organisations. Once registered, the platform sends alerts to charities on which grants might be suitable. When a grant is identified, Grant Finder Pro then uses AI to help draft the proposal using registration information, website, grant, and project details. For an added cost, applicants can add a human editor to the process.  

Pro tip: UK Grant Finder Pro works well on a shoestring budget without any other features.  

Another pared back service, Grant Boost requires users to share information about the charity and grant. AI is used across three processes. First, the tech checks out the charity information and parses it out to product a draft. AI also can edit the responses, providing better writing and compelling answers.  

Pro tip: Use for basic applications.  



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Perplexity Valuation Hits $20 Billion Following New Funding Round

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Artificial intelligence (AI) search startup Perplexity AI has reportedly secured $200 million in new funding.

The new funding values the company at $20 billion, according to multiple media accounts late Wednesday (Sept 10). The company’s financing was initially reported by The Information, which cited sources familiar with the matter.

That report noted that Perplexity has raised funds approximately once every two months in the last year, with its total funding exceeding $1 billion.

Perplexity was valued at $14 billion following a funding round in March, with its valuation jumping to $18 billion after it raised another $100 million in July.

This latest funding happened in the wake of Perplexity’s bid last month to purchase Google’s Chrome browser for $34.5 billion, a move that would have allowed its Comet browser to better compete with the likes of OpenAI.

The company’s offer came after the Justice Department proposed that Google sell Chrome as a remedy in its antitrust case. A federal judge recently ruled that Google did not need to break up its search business, meaning it will keep Chrome.

The rise of AI-driven search tools like Perplexity’s, or OpenAI’s ChatGPT and Google’s AI Overviews, has birthed the concept of generative engine optimization, or GEO. As PYMNTS wrote last week, this is the emerging discipline of making a brand remain visible in searches.

“Businesses now face a two-front battle: keep their place in traditional search while ensuring AI systems recognize and cite them as authoritative answers,” that report said. “Whether one calls it SEO, GEO, or simply good content, the playbook for staying visible is changing fast, and the cost of sitting out is invisibility.”

As companies watch their click-through rates decline, they have no choice but to embrace an era where AI offers up complete answers to user queries, the report added.

“AI search isn’t coming, it’s already reshaping the web,” Rich Pleeth, former Google marketing executive who is now co-founder and CEO of Finmile, said in an interview with PYMNTS. 

“Traditional SEO was about keywords and backlinks. But with AI search engines like ChatGPT and Gemini, discoverability is now about authority, clarity and context. It’s not just about ranking, it’s about being the answer.”

He added that this means online businesses must “rethink their entire content strategy: Speak like a human, show domain expertise, and design for machine readability.”



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