New AI Regulations in the U.S. (2025)

Artificial Intelligence (AI) has rapidly transformed various sectors, from healthcare and finance to defense and entertainment. As AI technologies become increasingly integral to daily life and national infrastructure, the United States has been actively shaping its regulatory framework to address the multifaceted challenges and opportunities they present. This article delves into the recent developments in AI regulations in the U.S., offering insights into what businesses, policymakers, and the public need to know.

U.S. Executive Order: Advancing American Leadership in Artificial Intelligence (AI)

Purpose

The United States is committed to maintaining global leadership in artificial intelligence (AI) through innovation, free-market principles, and cutting-edge research. This executive order removes outdated AI regulations that hinder progress, ensuring the U.S. remains the world’s top AI powerhouse.

Policy Focus

The U.S. government aims to strengthen AI leadership to promote economic growth, national security, and human advancement. By eliminating unnecessary barriers, the nation can foster AI innovation while ensuring systems remain fair, unbiased, and free from engineered agendas.

Key Definitions

For the purpose of this order, “artificial intelligence” (AI) is defined as per 15 U.S.C. 9401(3), aligning with established federal standards.

AI Action Plan

Within 180 days, top White House advisors, including the Assistant to the President for Science and Technology (APST), the Special Advisor for AI and Crypto, and the National Security Advisor (APNSA), will develop a comprehensive AI strategy. This plan will promote AI-driven economic competitiveness, job growth, and national defense.

Revoking Previous AI Policies:

This order revokes Executive Order 14110 (October 30, 2023), which focused on AI safety and trust. Federal agencies must immediately identify and revise any policies that conflict with the new AI leadership agenda. The Office of Management and Budget (OMB) will update OMB Memoranda M-24-10 and M-24-18 within 60 days to align with this new direction.

General Provisions

This order respects existing agency authority and budgetary guidelines, ensuring implementation follows applicable laws. It does not create any new legal rights but provides a framework for advancing responsible AI innovation across government and industry.

New AI regulations in the US 2025 list

On January 1, 2025, California began enforcing three significant AI laws affecting enterprises handling AI-processed personal data, healthcare services, and healthcare facilities. These regulations underscore the state’s leadership in AI governance and data privacy.

1. California Consumer Privacy Protection (AB 1008)

Applies to: All enterprises using AI that process personal information subject to the California Consumer Privacy Act (CCPA).

AB 1008 amends the CCPA, clarifying that AI-generated personal information falls under existing privacy protections. Key requirements include:

• Extending CCPA rights to AI-processed personal data.
• Updating privacy policies to reflect AI’s role in data processing.
• Implementing consumer access and control mechanisms for AI-handled information.
• Preparing for penalties and potential legal actions for non-compliance.

2. California Healthcare Utilization Review (SB 1120)

Applies to: Healthcare service providers and insurers.

SB 1120 amends California’s Health and Safety Code and Insurance Code, regulating AI-driven utilization review (UR) and utilization management (UM) processes. Key mandates include:

• Supervision of AI-driven decisions by licensed physicians.
• Individualized patient assessments based on specific medical histories.
• Fair and unbiased application of AI-driven decisions.
• Transparent policies and procedures available upon request.
• Compliance with stringent oversight to avoid penalties.

3. California Patient Communications (AB 3030)

Applies to: Healthcare facilities using generative AI for patient communications.

AB 3030 introduces new standards for AI-generated patient communications, requiring healthcare providers to:

• Include clear disclaimers for AI-generated communications.
• Provide instructions for contacting human healthcare providers.
• Exempt communications reviewed by licensed healthcare professionals.

U.S. AI Regulatory Landscape in 2025

California leads AI governance, but other U.S. states are advancing their own AI regulations:

• California Privacy Protection Agency (CPPA): Ongoing rulemaking on automated decision-making technology.
• Multistate AI Policymaker Working Group: A coalition of 45 states collaborating on consistent AI regulations.
• Texas AI Governance Act (TRAIGA): Expected to pass in 2025, with the Texas legislature meeting biennially.
• New Jersey & Illinois: Considering AI legislation for employment and insurance.

Global AI Regulation Milestones in 2025

AI governance is expanding worldwide, with key developments including:

• EU AI Act:
  • February 2, 2025: AI literacy requirements (Article 4) and prohibited practices enforcement (Article 5).
  • May 2, 2025: Codes of Practice for General-Purpose AI (GPAI) models (Article 56).
  • August 2, 2025: GPAI obligations, including technical documentation, training data transparency, and copyright compliance (Articles 53 and 55).
• South Korea: Enacted the Framework Act on the Development of AI and Establishment of a Foundation of Truston January 10, 2025.
• United Kingdom: Released the AI Opportunities Action Plan on January 13, 2025, emphasizing safe and trustworthy AI development.

AI Compliance Best Practices for Enterprises

To navigate emerging AI regulations in 2025 and beyond, enterprises should prioritize three key governance areas:

1. Inventory AI Systems:
   • Identify all AI systems within the organization.
   • Document how personal information is processed by AI.
2. Establish Risk Management Processes:
   • Develop AI risk assessment frameworks.
   • Implement documentation for AI-driven decisions.
   • Ensure human oversight for high-risk AI activities.
3. Promote AI Literacy:
   • Educate teams about AI policies and procedures.
   • Define clear roles and responsibilities for AI governance.

A Shift in Regulatory Approach Under the New Administration

In January 2025, President Donald Trump signed Executive Order 14179, titled “Removing Barriers to American Leadership in Artificial Intelligence.” This order marked a significant shift in the U.S. AI policy, aiming to enhance the nation’s global dominance in AI by promoting development free from ideological biases and revising previous policies that were perceived as obstacles to innovation. The executive order mandated the creation of an action plan within 180 days to sustain U.S. AI leadership, focusing on human flourishing, economic competitiveness, and national security. Additionally, it required a review of existing policies, directives, and regulations related to AI to identify and amend actions conflicting with the new policy goals.

Deregulation and Industry Implications

The new administration’s approach has been characterized by a series of deregulatory moves, particularly benefiting major tech industries. Notably, federal agencies have dropped legal actions against prominent tech figures and companies, such as Elon Musk’s SpaceX and the cryptocurrency exchange Coinbase. These actions reflect a broader initiative to reduce regulations on AI and other tech sectors, aiming to cut federal spending and enhance innovation.

However, this deregulatory stance has raised concerns among consumer protection groups and legal experts. The rapid rollback of regulations without comprehensive safeguards may lead to unchecked AI applications, potentially exacerbating issues like bias, discrimination, and privacy violations.

State-Level Initiatives: Pioneering AI Legislation

While federal policies have leaned towards deregulation, several states have proactively introduced their own AI regulations to address specific concerns:

• Colorado: Enacted the Colorado AI Act, adopting a risk-based approach similar to the European Union’s AI Act. This legislation focuses on developers and deployers of high-risk AI systems, mandating transparency, risk assessments, and mitigation strategies to prevent algorithmic discrimination.
• Illinois: The Illinois Supreme Court implemented a policy on artificial intelligence effective January 1, 2025. This policy outlines guidelines for integrating AI into judicial and legal systems, emphasizing ethical standards, authorized use in legal proceedings, accountability, and education to ensure responsible AI integration while safeguarding the integrity of court processes.

These state-level initiatives underscore a growing recognition of the need for tailored AI regulations that address local concerns and contexts.

Federal Agencies and AI Oversight

Despite the overarching federal deregulatory trend, specific agencies continue to play crucial roles in AI oversight:

• National Institute of Standards and Technology (NIST): Tasked with developing guidelines and standards to promote trustworthy AI systems. NIST’s efforts include creating frameworks for managing AI risks and establishing testbeds to support robust AI development.
• Federal Trade Commission (FTC): Oversees AI use in consumer protection, aiming to prevent deceptive practices and ensure data privacy. The FTC’s jurisdiction covers a wide range of AI applications, from customer service chatbots to facial recognition technologies.
• Food and Drug Administration (FDA): Regulates AI applications in medical devices and healthcare, ensuring that AI-enabled medical devices meet safety and efficacy standards.

These agencies’ roles highlight the multifaceted approach to AI regulation in the U.S., balancing innovation with consumer protection and ethical considerations.

Industry Response and International Implications

The tech industry’s response to the evolving regulatory landscape has been mixed. Companies like Nvidia have criticized certain regulatory proposals, arguing that overly restrictive measures could hinder innovation and global competitiveness. For instance, Nvidia expressed concerns over the previous administration’s AI chip export restrictions, suggesting that such policies might undermine America’s leadership in AI.

Internationally, the U.S. approach to AI regulation influences global standards and practices. Collaborative efforts with allies and participation in international forums are essential to harmonize AI regulations, address cross-border challenges, and promote the responsible development and use of AI technologies.

Conclusion

The landscape of AI regulation in the United States is dynamic and multifaceted, reflecting a balance between fostering innovation and addressing ethical, legal, and societal concerns. As federal and state governments, along with various agencies, continue to shape AI policies, proactive engagement and compliance by businesses and stakeholders are crucial. 

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