Introduction
In 2025 [2] [4] [5], the landscape of AI regulation and governance is expected to undergo significant changes. These changes will likely involve the revocation of existing executive orders and guidance, a shift towards innovation and industry collaboration [4], and a more lenient regulatory environment [4]. However, individual states such as California and New York are poised to introduce substantial legislation affecting AI systems, particularly in the workplace.
Description
In 2025 [2] [4] [5], significant changes in AI regulation and governance are anticipated [4], particularly with the potential revocation of existing AI executive orders and guidance by the incoming administration [4]. A focus on innovation and industry collaboration is expected [4], leading to a more lenient regulatory environment [2] [4]. However, states like California and New York are likely to introduce substantial legislation [4], including disclosure and opt-out requirements for workers and applicants regarding AI systems [3] [4]. California has enacted a law mandating that generative AI developers disclose the data used for training their systems [1], applicable to those making such systems available to Californians [1]. Compliance with this regulation is required by early 2026, providing developers with over a year to establish tracking mechanisms for their training data [1].
In 2024 [2] [4], California lawmakers did not finalize a significant AI discrimination bill that would have mandated employers to notify workers when AI is used in hiring or employment processes [2]. Additionally, a proposed law requiring safety tests for high-risk AI models was vetoed by Governor Newsom [2]. Similar attempts in New York to address shortcomings in existing regulations have also stalled, although New York City has implemented Local Law 144 [6], which mandates bias audits for AI used in hiring [6], allowing for human intervention [6]. This is part of a broader trend, as over 30 states are exploring AI-related legislation [6], with Colorado enacting laws to prohibit discriminatory AI practices and Illinois requiring employers to inform employees and applicants when AI influences hiring or operational decisions.
Currently, there is no federal law specifically governing AI in the workplace [2] [5], although the Equal Employment Opportunity Commission (EEOC) has indicated that AI use in hiring may violate the Americans with Disabilities Act (ADA) and Title VII [5]. The EEOC has emphasized that it will apply existing legal principles to potential violations related to AI in employment [2]. Ongoing claims from the ACLU with the EEOC and the FTC concerning AI-driven assessment tools, including personality assessments [3], video interview tools [3], and cognitive ability screening devices [3], may lead to significant legal challenges. A federal court in California is expected to address a discrimination lawsuit against an AI vendor [3], following the rejection of an older disabled Black applicant by over 100 employers utilizing the vendor’s screening tools [3]. As regulatory activity at the federal level is anticipated to decrease [5], there is an expectation of increased litigation and agency actions against employers regarding AI use in hiring and workplace practices in 2025 [5].
Companies will increasingly adopt AI governance frameworks to mitigate liability and risk [4], especially in industrial settings where AI can enhance safety by predicting and preventing workplace injuries [4]. Job seekers may gravitate towards employers that demonstrate a commitment to ethical AI practices while expressing concerns over AI’s role in application assessments [4]. The rise of autonomous AI agents is expected to improve user experiences and streamline administrative tasks [4], allowing employees to concentrate on higher-skilled work [4].
Internationally [1] [5] [6], the EU AI Act [1] [5], effective mid-2026 [1], introduces strict regulations for high-risk AI systems [5], requiring compliance measures from employers by 2025 [5]. Other countries [5] [6], such as Brazil [5], are also developing their own legislative models [6], which may influence global standards [5]. In contrast [6], the US and China are leaning towards more guideline-based approaches [6]. With a Republican-controlled Congress [2] [5], the likelihood of enacting workplace-related AI laws in 2025 or 2026 is low [2], leaving the regulation of AI primarily at the state and local levels [2]. Although Congress has not passed any AI-related workplace laws [2], non-binding reports with recommendations for future action have been issued [2]. The White House has been proactive regarding AI [2], with the appointment of an AI Czar indicating a focus on innovation and less regulation [2].
Conclusion
The anticipated changes in AI regulation and governance in 2025 will have far-reaching implications. While federal oversight may decrease, state-level initiatives are expected to fill the gap, leading to a patchwork of regulations across the United States. Companies will need to navigate these varying requirements while adopting robust AI governance frameworks to mitigate risks. Internationally [1] [5] [6], the EU’s stringent regulations may set a precedent, influencing global standards [5]. As AI continues to evolve, the balance between innovation and regulation will remain a critical focus for policymakers and industry leaders alike.
References
[1] https://www.cio.com/article/3630070/12-ai-predictions-for-2025.html
[2] https://www.jdsupra.com/legalnews/comprehensive-review-of-ai-workplace-1114518/
[3] https://www.fisherphillips.com/en/news-insights/fps-top-2025-predictions-for-artificial-intelligence.html
[4] https://www.jdsupra.com/legalnews/top-2025-predictions-for-artificial-5395266/
[5] https://www.fisherphillips.com/en/news-insights/comprehensive-review-of-ai-workplace-law-and-litigation-as-we-enter-2025.html
[6] https://publiclawlibrary.org/ai-in-the-workplace-a-comprehensive-overview-of-legal-trends-regulations-and-future-prospective-actions-for-2025/
