The European Union’s AI Act continues to shape global standards by requiring high-risk AI systems (like those used in hiring or banking) to undergo strict testing and transparency checks. Companies must show how their AI makes decisions and fix any unfair biases. This law is expected to influence other countries, similar to how EU privacy rules spread worldwide.

In the United States, states are taking the lead on AI regulation. California now requires AI-generated images and videos to include invisible watermarks showing they were made by machines. This latent disclosure must include details like the AI’s name and creation date. Meanwhile, Colorado’s AI Act mandates risk assessments for AI used in important decisions like jobs or loans, aiming to prevent discrimination.

At the federal level, President Trump’s new executive order replaces previous AI rules with a focus on cutting regulations to boost innovation. The order directs agencies to help companies develop AI without what it calls “unnecessary limits”. However, critics worry this could weaken protections against biased or unsafe AI systems.

China updated its AI rules to combat misinformation, requiring providers of generative AI services (like chatbots) to verify user identities and block illegal content. This aligns with China’s stricter internet controls compared to Western countries.

Businesses worldwide are adapting by setting up AI governance teams and updating contracts to meet new laws. For example, companies using AI for hiring in Colorado must now tell applicants when AI is involved and let them correct data errors. Lawyers advise conducting AI audits and training staff to avoid penalties.

Looking ahead, experts predict more states will copy the EU’s risk-based approach, but disagreements over how to define “high-risk” AI could slow progress. Texas is debating a bill that would ban AI for social scoring, while Illinois and New York are considering laws to protect workers from AI surveillance. International cooperation remains limited, with the U.S. and EU pursuing different strategies on privacy and innovation.