AI Regulation Is Here. Not Coming — Here.
Federal agencies are enforcing. States are legislating. If your AI governance isn't audit-ready, the window to prepare is closing.
Key Deadlines & Enforcement Actions
FTC “Operation AI Comply”
The FTC launched enforcement actions against companies making deceptive AI claims. Five cases filed. Signal: the federal government is treating AI misrepresentation as a consumer protection issue.
SEC AI Examination Priority
The SEC designated AI as an examination priority for 2025-26. Investment advisors must disclose AI use in portfolio management and client interactions. Broker-dealers using AI-driven recommendations face heightened scrutiny.
CFPB AI Lending Enforcement
The CFPB is actively investigating AI-driven lending discrimination. Adverse action notices must explain AI-based decisions in plain language. “The algorithm decided” is not a compliant explanation.
California AI Transparency
Extension of CCPA requiring disclosure of AI-driven profiling and automated decision-making. Applies to any company handling California residents' data — which is effectively everyone.
Colorado AI Act (SB24-205)
The most comprehensive state AI law to date. Requires impact assessments for “high-risk” AI systems, mandatory bias testing, consumer notification, and ongoing monitoring. Penalties for non-compliance.
State-by-State Proliferation
Multiple states have AI bills in committee. The patchwork is growing. Companies operating across state lines face an increasingly complex compliance landscape.
The Compliance Gap Is a Business Risk
You're Already Using AI
Most mid-market companies have AI embedded in their operations — through vendors, SaaS tools, or internal experiments. Many don't have a complete inventory. You can't govern what you can't see.
Regulators Don't Care About Intent
Whether you deployed AI deliberately or inherited it through a vendor, you're responsible for its outputs. “We didn't know” is not a defense. Proactive assessment is the only mitigation.
First-Movers Get Leverage
Companies that build AI governance early don't just avoid penalties — they gain competitive advantage. Clients, partners, and investors increasingly ask about AI practices. Having answers builds trust.
Regulations By Industry
Finance & Fintech
SEC AI examination priority, CFPB lending discrimination enforcement, state consumer protection laws. Investment advisors, lenders, and broker-dealers face the most immediate pressure.
Healthcare & Clinical
HIPAA implications for AI processing patient data, FDA AI/ML guidance for diagnostic tools, state health data privacy laws. AI in clinical settings faces the strictest scrutiny.
Insurance
State insurance commissioner oversight of AI underwriting, Colorado AI Act specifically targets insurance decisions, NAIC model bulletin on AI governance.
Manufacturing
OSHA implications for AI-driven safety systems, export control regulations for AI technology, product liability exposure from AI-assisted quality control.
Professional Services
State bar and CPA board guidance on AI use, client confidentiality obligations when using AI tools, professional liability considerations.
Payments & Processing
PCI DSS implications for AI in payment processing, bank regulatory oversight of AI-driven fraud detection, state money transmitter AI requirements.
From Risk to Readiness
Our regulatory readiness services are built into every engagement tier:
Free AI Readiness Audit
Includes a compliance gap scan against regulations relevant to your industry.
Deep AI Readiness Audit
Comprehensive regulatory mapping with specific remediation steps.
AI Strategy & Implementation Roadmap
Builds compliance milestones into your implementation timeline.
Advisory Retainer
Ongoing regulatory monitoring and proactive compliance updates.
Don't Wait for Enforcement
Start with a free AI Readiness Audit. We'll map your current exposure and give you a clear picture of where you stand.