Modern companies are aware that AI technology is something they cannot be without. It makes processes more efficient, reduces costs, and minimizes errors. The technology allows businesses to keep up in a competitive landscape.

However, most companies are aware of the risks AI can pose. It often sources false and biased information. AI has also been known to share private data causing reputational damage.

As a result, federal laws have placed restrictions on AI. They guide the way companies distribute information ensuring ethical handling.

2025 will see even more AI regulations. Here’s how organizations can get prepared.

A Pattern of Increasing AI Regulations

While lawmakers and industry leaders are unsure of what’s to come in 2025, there is no doubt that change will happen. The writing is on the wall based on past legislative activity.

The 2024 State Summary on AI shows that 693 pieces of AI legislation were passed in 45 states as a response to data breaches and privacy issues. This is a substantial increase from the 191 total pieces of legislation passed in 2023.

“…But when you look at 2024, the big takeaway is 2025 has already started, and we can look at what happened in 2024 to give us clues about what might happen in 2025,” says Craig Albright, senior vice president for U.S. government relations at Business Software Alliance (BSA).

What are Common Areas of AI Regulation?

Although we are unsure how AI regulation will play out, it is likely to impact common areas including:

• Videos and Photos: Lawmakers will target malicious actors who use AI to edit photos and videos to spread lies and manipulate consumers.
• Autonomous Vehicles: Laws may be created to restrict how AI-controlled vehicles access public roads.
• Loans and Insurance Applications: AI is often used to process insurance loans and applications. However, many systems will deny applicants based on passed denials leading to issues with racism and biases. New laws may restrict when financial companies can use AI to process applications ensuring a fairer system.
• Privacy: Various industries use AI to access personal information so they can create targeted ads. However, in some instances, they collect information illegally and use it in a manipulative manner. New laws may restrict how AI collects information and how that information is used.
• Criminal Cases: In the past, AI crimes have been viewed as civil injuries. In the future, lawmakers may see them as criminal cases. Hence, individuals will be punished if they inappropriately use AI.

How to Prepare for Changes in the AI Legislature

Here’s how CIOs can prepare for what’s to come:

• Take a Proactive Approach: A proactive approach involves staying on top of possible legislative changes. Companies that are aware of what’s to come can make the appropriate changes before new laws go into effect. This reduces the risk of penalties due to delayed updates. It also prevents downtime that may occur as teams hurry to implement new laws.
• Prioritize Transparency: Companies should maintain a transparent approach in all they do, especially with AI implementation. They should let consumers know when AI is being used to collect information and gain consent beforehand. This approach will prevent reputational damage when AI is integrated into business procedures.
• Promote an Agile Culture: Businesses that promote an agile culture will adapt quickly to new technologies and regulations implemented with AI regulations. CIOs can promote an agile culture by providing emotional support ensuring employees will feel comfortable with organizational changes. Continuous learning, team empowerment, and open communication also support agility.
• Integrate a Human Element: Humans should work alongside AI to ensure the technology doesn’t produce data based on false or biased information. This ensures ethical AI implementation regardless of legislative changes.
• Data Privacy: Adhere to data privacy guidelines to ensure information is used appropriately. Users should have control over their data so they can choose when and how to share it. Privacy should be considered in AI program design.
• Implement AI Training: Organizations should offer AI training for all employees. They should establish a review process, ensure privacy measures are in place, and know how to identify risks. Workers should also be updated on the latest rules and regulations.

Want to learn how to prepare your company for the future? Sign up for our newsletter today.