The Wild Frontier of AI Regulation

Counsel for Code, Contract & Consciousness

Why You Need Counsel When the Law Still Isn’t Wearing a Helmet

Artificial Intelligence is rattling old legal cages—but much of the law hasn’t caught up. For businesses building or using AI, regulatory uncertainty isn't just a nuisance—it’s a strategic risk.

The Regulatory Terrain in the U.S.

• No federal guardrails—yet
  As of 2025, the U.S. still lacks a comprehensive AI regulatory framework. The federal government relies on fragmented executive orders and targeted legislation, not sweeping mandates

• A patchwork quilt of state laws

• Over 45 states have introduced more than 550 AI-related bills addressing issues like bias, transparency, deepfakes, and algorithmic decision-making.

• Regulatory showdown: federal moratorium vs. state innovation
  A proposed federal law would freeze state-level AI regulation for 10 years—risking public protections in the absence of federal standards.

• Switching executive gears
  A recent executive order from January 2025 leans heavily toward deregulation, revoking prior guidelines aimed at AI safety and urging agencies to remove perceived barriers to innovation.

Global Developments & International Patchwork

• European Union steps up the rule-making game
  The EU’s sweeping Artificial Intelligence Act (effective August 2024) applies a risk-based model: bans high-risk AI, imposes strict oversight, and mandates transparency—even beyond the EU’s borders.

• New international norms emerging
  The Council of Europe’s Framework Convention on Artificial Intelligence (signed in September 2024) promotes the alignment of AI with democracy, human rights, and rule of law principles.

Why the Current Legal Framework Falls Short

• Speed vs. scrutiny
  AI is advancing at Red Queen pace—legislation struggles to keep up, regulating yesterday’s problems while tomorrow’s emerge.

• Loopholes and evasion
  Without enforcement muscle or technical depth, some companies sidestep compliance, leaving protections uneven and competition distorted.

• Inconsistent state standards
  Businesses operating across states face a maze of obligations—sometimes contradictory—raising costs and raising the stakes for missteps.

• Privacy laws not tailored for AI
  Existing data protection frameworks like GDPR and CCPA weren’t built for opaque algorithmic decisions, leaving gaps in accountability and consumer rights.