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ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Regulatory Insights

• Patchwork of AI Regulations: With more than 800 bills introduced in 48 states so far in the 2025 legislative session, anticipate increasing regulatory divergence and complexity.
• Interplay Between AI Regulations, Privacy and Energy: Expect regulatory changes to focus on the interplay between AI laws and regulations and energy infrastructure, with state-level regulation shifting to AI systems safety and privacy.
• Existing Regulations Apply: Despite the trend toward deregulation, existing regulations still apply to AI technology and applications.

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March 2025

Shifts in AI regulation have occurred at different levels of government, encompassing executive orders emphasizing national security, agency adjustments to export controls and patent processes, and the enactment of state-level consumer protection laws. Regulations may impact the future of AI regardless of whether AI is the explicit target of the regulation, e.g., energy regulations that impact AI data centers.

1. Federal Actions/Directions, including issuances of Executive Orders, directives and agency actions. Recent executive orders have directed federal agencies to prioritize AI innovation and national security. This includes rescinding previous orders and replacing them with directives that emphasize both national security concerns and the elimination of barriers to technological advancement, including alignment with increasing energy production.
2. State laws, in the absence of an overarching federal regulation, advancing on both broad consumer protection frameworks and specific AI issues, creating a patchwork of regulatory requirements. State focus on broad AI law includes consumer protections (e.g., Colorado’s law on AI interactions) while more targeted regulations may focus on a topic (e.g., advertising, deepfakes) or sector (e.g., healthcare, insurance).