Regulatory Update: Q2 2025 AI Regulations in the U.S.
This year is shaping up to be a breakpoint year in AI regulation, marked by bold federal initiatives, intense bipartisan legislative efforts, assertive state-level experimentation, and increasingly proactive federal agency oversight. As we move deeper into 2025, lawmakers and regulatory agencies, from the White House and Capitol Hill to the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) are scrambling to establish frameworks that can both harness AI’s extraordinary potential and address its profound risks. Artificial intelligence is reshaping industries, redefining economies, and transforming daily life faster than regulators can respond.
At LegisLogiq, we recognize the critical crossroads at which AI policy now stands: the delicate balance between promoting groundbreaking innovation and ensuring robust consumer protection. Our quarterly regulatory updates will provide clarity on current regulatory movements, highlighting recent executive actions, significant federal bills, crucial agency initiatives, and pivotal state-level laws. As we approach what promises to be a defining year for AI governance, stakeholders must remain informed, engaged, and strategic. Read our analysis on the current state of the AI industry and it’s effects on the workforce here.
Executive Branch
President Trump’s AI Pivot: Rolling Back Regulations and Accelerating Innovation
On January 31, 2025, President Trump signed Executive Order (EO) 14179 (“Removing Barriers to American Leadership in Artificial Intelligence“), which sets an overarching U.S. policy to “sustain and enhance America’s global AI dominance to promote human flourishing, economic competitiveness, and national security.” This EO rescinds President Biden’s October 30, 2023, EO 14110 (“Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”), which had established principles like AI watermarking, civil rights protections, and AI safety frameworks. The roll-back of Biden’s executive AI guardrails shifts federal oversight toward a growth-centric model, emphasizing innovation and competitive advantage at the expense of robust consumer protections policies.
The White House’s forthcoming AI Action Plan is due by July 22, 2025 and will be pivotal in shaping federal priorities. Early public notice (via Request for Information) drew over 10,000 responses from companies like Anthropic and Amazon to over 194 non-profit organizations and highlighted industry positions on innovation, transparency, and export controls.
Capitol Hill
Bipartisan Momentum Gathers Steam
On the federal level, 2025 has seen a surge in AI related legislative activity:
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Signed into law by President Trump: The massive budget bill contained a provision that bans states from enforcing legislation regulating artificial intelligence for 10 years and tied compliance to federal broadband funding. The Senate overwhelmingly repealed this provision for state autonomy.
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Referred to House Committee on Science, Space, and Technology: Establishes the National Artificial Intelligence Research Resource (NAIRR) to democratize access to AI computing and datasets
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Referred to House Committee on Energy and Commerce: Requires the National Telecommunications and Information Administration (NTIA) to conduct study and stakeholder meetings on AI systems’ accountability, trustworthiness, and transparency.
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Referred to House Committee on Financial Services: Mandates a cross-agency strategy and annual report on combating AI-facilitated financial crimes (fraud, misinformation, economic security).
Legislogiq anticipates that by next year’s end, Congress will advance a landmark AI governance bill to the President’s desk. This legislation will shape the rules of the road for how AI touches nearly every aspect of American life, from healthcare and education to jobs, civil rights, and set the tone for America’s leadership in the global AI race.
Federal Regulatory Agencies
Federal Trade Commission
The FTC is rapidly preparing itself as a pivotal player in the emerging AI regulatory landscape, using its broad enforcement authority under Section 5(a) of the FTC Act, to shape how businesses implement artificial intelligence in consumer-facing applications. The FTC maintains that the same regulatory and legal principles concerning deception and unfairness apply to modern, advanced technological products such as AI.
“In the United States, the FTC and DOJ are antitrust enforcers, not regulators. We are loathe to create ex ante rules that dictate how firms compete in the marketplace or how markets are structured.”
The FTC has also made clear it does not intend to dictate the structure of the AI market, such as setting prices, mandating features, or limiting the number of competitors, as doing so could stifle innovation and give foreign firms an edge, ultimately undermining consumer benefit.
As AI technologies proliferate, the FTC’s commitment to preventing deception, ensuring fairness, and safeguarding consumer rights is translating into robust actions aimed at maintaining market integrity and consumer trust. Recent initiatives signal a clear message: compliance and transparency are essential for any organization leveraging AI Here’s how the FTC’s recent regulatory moves will impact businesses and consumers alike.
Operation AI Comply, a sweeping enforcement effort, targeting deceptive AI claims and practices, including fake reviews, bogus “AI lawyer” services, and other fraudulent applications of AI.
Artificial Intelligence Compliance Plan Aligned With OMB Guidelines, the FTC released its internal AI compliance framework, ensuring its practices align with OMB Memorandum M-24-10 by emphasizing transparency, accountability, and consumer protection.
Federal Communications Commission
“Supporting these industries of the future requires significant growth
and investment into America’s infrastructure...”
The FCC is boldly stepping into the spotlight of AI regulation, launching a series of groundbreaking initiatives aimed at addressing consumer protection, transparency, and national security concerns tied to artificial intelligence. On July 2nd 2025, FCC Chairman Brenden Carr announced the FCC’s ‘Build America Agenda’ which includes a set of priorities that have support across industries as essential to promoting U.S. artificial intelligence leadership. The impact of AI's transformative potential in telecommunications range from optimizing network traffic; improving spectrum policy and facilitating sharing; fighting against illegal robocalls, and enhancing resiliency through self-healing networks.
The FCC's proactive stance underscores the urgent need for industry engagement and compliance. Here’s how the FCC’s recent regulatory measures will influence the landscape for broadband providers and telecom companies:
CG Docket No. 23-362, Declaratory Ruling (DR), Implications of Artificial Intelligence Technologies on Protecting Consumers from Unwanted Robocalls and Robotexts: The DR clarifies that the Telephone Consumer Protection Act (TCPA) restrictions on the use of an “artificial or prerecorded voice” encompass current AI technologies that generate human voices. AI technologies may be implicated in the use of either “artificial” or “prerecorded” voices as prohibited by the TCPA.
MB Docket: 24-211, Notice of Proposed Rulemaking (NPRM), Disclosure and Transparency of Artificial Intelligence-Generated Content in Political Advertisements: The NPRM proposes that broadcasters must disclose the use of AI-generated content in political ads through on-air announcements and online public files.
Expect the FCC to increase its scrutiny of how broadband providers use AI for network optimization and consumer engagement, particularly in light of digital equity mandates tied to Broad Equity Access and Deployment (BEAD) funding.
State-Level Legislation
Laboratories of A.I. Regulation
“In this era of innovation, state legislatures continue to act as incubators for AI policy.”
While federal agencies and Congress dominate headlines, state legislatures have quietly become powerful laboratories for AI governance, pioneering laws that could shape national standards. From algorithmic accountability to generative AI transparency, states are crafting bold policies that reflect local priorities and public concerns, often outpacing Washington in scope and specificity. As the federal debate over preemption heats up, understanding these state-level efforts is critical for anticipating compliance obligations and identifying emerging trends in AI regulation. State legislatures continue to act as incubators for AI policy. Here are some of the major pieces of AI legislation as of July 2025:
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Passed in 2025, this bill prohibits the development and deployment of AI systems that intentionally discriminate against protected classes under state and federal law.
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Passed in 2025 and awaiting Governor Hochul’s signature, this bill requires the largest AI developers to develop a safety plan to protect against automated crime, bioweapons and other widespread harm and destruction.
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Passed the Assembly, awaiting Senate vote), requires Generative artificial intelligence (GenAI) developers to document copyrighted materials used to train their models and the corresponding copyright owners; AB 1018 (passed Assembly, awaiting Senate vote), aims to regulate the development and deployment of Automated Decision Systems (ADS), which often utilize AI. The bill defines "consequential decisions" and focuses on regulating high-risk AI systems used in making these decisions.
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Passed in 2024, this bill imposes certain disclosure requirements on entities using generative AI tools with their customers, and limits an entity’s ability to blame generative AI for statements or acts that constitute consumer protection violations.
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Passed in 2024, this bill imposes obligations on AI developers and deployers to mitigate algorithmic discrimination of high-risk AI systems, one of the first U.S. laws to directly address algorithmic bias.
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Passed in 2024, this bill mandates that political advertisements using generative AI to depict false actions must include a disclaimer stating “Created in whole or in part with the use of generative artificial intelligence.”
While over 35 states are actively considering or enacting legislation to regulate AI-related bills in 2025, ranging from algorithmic transparency to foundational model safety, a looming congressional debate over a moratorium on state AI laws could dramatically reshape the policy terrain.
The Road Ahead: Legislogiq’s Outlook
Over the next 12 months, we anticipate:
“The next 12 months will determine whether the U.S. leads with a smart national AI strategy or fragments under a patchwork of conflicting rules. Now is the time for industry voices to shape the future of AI governance.”
Passage of a federal bill establishing a baseline AI governance, especially for foundation models.
Increased rulemaking activity from the FTC, focused on enforcement and transparency.
State preemption debates continue to escalate as California and Colorado move ahead with enforceable AI regimes.
New compliance requirements for broadband providers deploying AI in consumer-facing or network-critical applications.
LegisLogiq anticipates that preemption will be one of the most hotly contested elements of any federal AI bill, with industry largely supportive of uniform standards, while consumer advocates and states push back on the loss of localized oversight. Companies should closely monitor this development, as it will define not only the scope of compliance obligations, but also the venues for enforcement and influence.
What Should You Do Now?
Engage in the Process: Now is the time for industry stakeholders to shape legislation, not react to it. Companies should be proactive in submitting comments during rulemakings, joining trade associations, and partnering with advocacy firms like Legislogiq.
Audit Your AI Footprint: Conduct an internal review of where and how you are using AI especially in areas that touch consumers, critical infrastructure, or personal data.
Position Thought Leadership: Share use cases that demonstrate ethical and innovative AI deployment. Lawmakers and regulators are actively seeking models of responsible innovation.
At Legislogiq, we help organizations navigate the fast-moving world of A.I. regulation with clarity, creativity, and foresight. Whether you’re exploring policy compliance, advocacy, or looking to redefine your A.I. strategy, our team is here to help. From messaging guidance to partnership opportunities, contact us and someone from our team will connect with you.
