The 2025 is a time when the US policy regarding artificial intelligence (AI) is likely to change greatly. This change opens up new prospects to companies, as well as introduces complicated compliance issues. As an alternative to the implementation of one and centralized law, such as the European Union AI Act, the US has embraced the multi-layered model of regulations, which includes federal executive orders alongside state legislations. As an example, legislations such as the Colorado AI Act and the California AI Transparency Act can be regarded as the first steps in this regard.
It is estimated that about 40 percent of the jobs might be substituted or affected by AI in the next few years, and today, about 40 percent of the US citizens have been using AI in their daily life. Therefore, AI regulation has not only appeared as a legal concern but has become an essential aspect of business strategy.
Multi-Layered Regulatory Framework: A “Patchwork” System
In the US, there is no single and universal federal law regulating the creation and application of AI in all industries. Instead, regulation is done on different levels such as federal executive orders, guidelines by different agencies, state laws and industry standards.
The National Institute of Standards and Technology has created the AI Risk Management Framework (AI RMF) which are voluntary guidelines highlighting risk identification, measurement, and management. Though not legally binding, it is a standard that is followed by many companies.
Secondarily, Federal Trade Commission (FTC) is targeting false claims of AI and algorithmic discrimination, and the Equal Employment Opportunity Commission (EEOC) is examining how AI might be used to discriminate against employees during the hiring process. The Consumer Financial Protection Bureau (CFPB) is concerned with just lending and consumer protection in the financial sector.
Such patchwork structure poses problems to companies, with various requirements in various states and industries.
Key Developments in 2025
In early 2025, the policy on AI took a new course with the executive order Removing Barriers to American Leadership in Artificial Intelligence by Donald Trump. This order was to encourage innovation and eliminate certain tendencies of strict protection of the past.
The AI law of Colorado became effective in February 2025 and required that high-risk AI systems applied to employment and consumer decision-making be impact assessed. In July 2025, the White House published its action plan on AI, which focused on training and infrastructure and world leadership.
This set of developments led to the realization that the US desires to remain globally competitive in the fields of AI, yet a realization that it must regulate risks.
The Growing Role of State-Level Laws
About 38 states had passed close to 100 new provisions in respect to AI in 2025. Such states as California and Colorado have paid special attention to the issues of transparency, consumer rights, and anti-discrimination procedures.
The AI Transparency Act in California mandates the companies to clarify whether they are dealing with AI systems or not. Biometric data, as well as deepfake technology, regulations, have also been enacted in some states.
The multi-state companies in this fast evolving environment have to adjust their strategy according to the different laws of the states.
Compliance Imperatives for Businesses
Today, the use of AI is not just a technical decision, but also a legal and ethical responsibility. Organizations should—
- Conduct risk assessments for AI systems,
- Ensure transparency,
- Conduct regular bias testing and audits,
- And develop internal policies for AI governance.
Those companies which implement robust AI governance approach at the right time can prevent legal risks, but win the trust of customers.
Finally, the US regulatory system of AI, which has been adopted by 2025, conveys the idea that innovation and responsibility can be inseparable. Those organizations that know this balance will be the ones that will be successful in the future digital economy in a sustainable manner.
FAQs
1. Does the United States have a single federal AI law?
No, the U.S. does not have one comprehensive federal AI law. It uses executive orders, agency guidance, and state-level regulations.
2. What is the Colorado AI Act?
The Colorado AI Act regulates high-risk AI systems and requires impact assessments, transparency, and anti-discrimination measures.
3. Which federal agencies oversee AI-related issues?
Agencies such as the FTC, EEOC, and CFPB enforce existing laws related to AI, especially in consumer protection, employment, and finance.
4. What is the NIST AI Risk Management Framework?
It is a voluntary framework that helps organizations identify, assess, and manage AI-related risks.
5. Why is AI compliance important for businesses?
AI compliance helps companies avoid legal risks, ensure transparency, prevent discrimination, and build consumer trust.
