AI Regulation: The Unfolding State vs. Federal Battle and Its Impact on Compliance

The U.S. is experiencing a significant divergence in AI regulation, with federal efforts focused on deregulation and state governments actively legislating. This creates a complex and fragmented compliance landscape for organizations, demanding a continuous and localized approach to risk management and legal adherence. Internal audit and assurance professionals must understand this dynamic to effectively assess AI-related risks and ensure their organizations navigate the evolving regulatory mosaic.