US States Lead AI Regulation Amidst Federal Stalemate
Data Privacy Landscape Intensifies as States Forge Ahead
As 2025 progresses, the United States sees a surge in state-level artificial intelligence (AI) governance, with companies facing an increasingly complex web of regulations. The dissolution of a proposed federal AI moratorium has amplified this shift, placing the onus on individual states to define the future of AI compliance.
Texas and Colorado Set Precedents
Cynthia Cole, a partner in Baker McKenzie’s data and cyber practice, highlighted the critical developments in this sector during a recent discussion. She noted that states like Texas and Colorado are spearheading comprehensive AI governance frameworks. This state-driven approach demands significant attention from businesses navigating the evolving legal terrain.
Cole emphasized the importance of vigilance:
“The significance of Texas’ Responsible Artificial Intelligence Governance Act, which introduces transparency requirements and prohibits harmful uses of AI. The broader challenge companies face in navigating a rapidly expanding web of state and federal privacy regulations. The importance of tracking emerging enforcement patterns, as regulators ramp up staffing and resources to pursue data privacy violations more aggressively.”
—Cynthia Cole, Partner, Baker McKenzie
Companies must now diligently track these emerging patterns as regulatory bodies bolster their resources for enforcement, particularly concerning data privacy violations. A recent report by the International Association of Privacy Professionals indicates a 30% increase in data privacy enforcement actions globally in the first half of 2025 compared to the same period last year (IAPP 2025 Report).
Navigating a Patchwork of Rules
The recent focus on Texas’ Responsible Artificial Intelligence Governance Act underscores a key trend. This legislation introduces crucial transparency mandates and establishes prohibitions against the misuse of AI technologies. This move by Texas, alongside similar initiatives in Colorado, signals a proactive stance by states to govern AI development and deployment.
For businesses, this means adapting to a decentralized regulatory environment. The ongoing evolution of AI capabilities requires continuous monitoring of both state and federal legislative efforts to ensure comprehensive compliance.
Discover more insights into these crucial midyear trends: Top Data Privacy & AI Developments Of 2025: Midyear Report – Law360.
