Artificial intelligence is flourishing as it is now frequently included in business operations. They are also facing the challenge of AI regulations. 2025 is turning into a burning year for AI regulation as US state laws and important provisions of the EU Act commence.
But how can you make sure that your efforts with AI are compliant with the AI regulations and laws?
A lot of US states have newly drafted or passed AI regulations and laws, which offer guidance on how businesses need to prepare to use AI from 2025 onwards. Lawmakers are treading carefully for the establishment of AI regulations and laws. We think it is for a good reason too!
Leadership is also being careful as they don’t want to be an obstacle for innovation, however, they know that there’s a need for responsible use of AI too, as this tech is being used at the quickest speed worldwide.
In this blog, we are taking a look at the important regulations commencing in 2025 and how ventures can be compliant with them. Let us discuss the importance of having AI regulations first-
Why Do We Need an AI Regulation Framework?
We all know that technology brings both benefits and drawbacks. Similarly, artificial intelligence has doubtlessly been revolutionary for businesses and individuals. However, it also has certain limitations which need to be considered before its implementation.
Bias, ethical concerns, limited creativity, data exploitation, and privacy issues, are among the key drawbacks that AI can impose. Having definite regulations for AI not only addresses all the above-mentioned limitations but also contributes to enhancing user experience. Alongside that, it also ensures safe or ethical AI integration and its responsible usage. Below are the crucial AI regulations that took place in 2025:
US AI Regulation and Laws Commencing in 2025
California has started enforcing three AI laws appropriate to the ventures which use AI adapted personal information, facilities, and services.
California AB 1008 (CA Consumer Privacy Protection Act)
On Sept. 28, 2024, Governor of California signed assembly bill (AB) 1008, that amended the definition of “personal information” under California Consumer Privacy Act (CCPA), to be effective from January 1.
Who does it apply to?
It applies to any company using AI, where an AI methodology can generate personal information depending on the protection of CCPA.
AB 1008 has amended the CCPA to explain that personal information can be present in various forms, including the AI methods that are able to give personal information.
Key Pointers for the Ventures:
- The current data privacy rights should be expanded to AI adapted personal information.
- Revise the privacy policies to give attention to the role of AI in data handling.
- Consumers should be given access to and control their AI adapted data.
- If there is non-compliance with the law, then potential penalties with legal action await.
California AB 3030 for Healthcare and Patients
The Governor signed into California Assembly Bill AB 3030, which is also known as “Artificial Intelligence in Healthcare Services Bill”. It was effective from January 1, 2025.
Who does it apply to?
This particularly applies to healthcare facilities.
New requirements for the clinics, practices of physicians, and healthcare facilities in California that use Generative AI to create oral or written communications relevant to the clinical information of patients.
Key Pointers for the Healthcare Ventures:
- Clear communication with the patients or their guardians is a must when the details are AI-generated.
- The option of choosing human healthcare providers must be provided.
- Any communication provided or reviewed by licensed healthcare individuals is excluded.
California Healthcare Utilization Review (SB 1120)
Who does it apply to?
It applies to healthcare services.
Section 1367 of the Health and Safety Code and Section 10123 of the Insurance Code is amended by SB 1120.
It introduces regulations for the healthcare plans and disability insurers that exercise AI, or other software tools in utilization review (UR) and utilization management (UM) methods.
Key Pointers for the Healthcare Ventures:
- If the AI is used, then it should be under the stewardship of a licensed physician.
- Upon request, clear procedures of the policies to be made available.
- There should be no discrimination and handling the applications should be fair.
- Everyone should be assessed based on the patient’s history instead of general data.
- Procedures to be carried out strictly under supervision to avoid penalties.
Law & Regulation Scenario Across the Globe & Expectations
Just like the US, Europe has also taken steps in the direction of AI regulation with the EU AI Act. It has also gained traction since 2025 kicked off.
Some of the pivotal around the world policy decisions talked about so far include:
Europe – The restricted practices and commitments to the GPAI (General-Purpose AI) commence.
- Article 4 states that the providers of AI practices must make efforts to have a staff with par literacy on AI. From February 2nd, restricted AI practices (article 5) went into effect.
- Articles 53 and 55 go into effect later this year on August 2nd. They include:
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- Provision for the technical documentation
- Proof of commitment to the EU copyright law.
- The content used for training purposes is to be made available to the public.
UK – “AI Opportunities Action Plan” was announced on January 13th, 2025. It reveals the pledge to help shape the future of AI and enabling secure and trusted development of the AI.
South Korea—An AI law which the UK implemented was also implemented by South Korea on January 10th, 2025.
Concluding Remarks!
Businesses have geared themselves up for AI Regulation and Laws in 2025; understanding the progressing view of AI regulation and laws is central for commitment and strategic planning, ensuring they maneuver possible challenges while using the merits of artificial intelligence. Keeping informed and being proactive will be essential to thriving in this ever-changing environment.
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