Legal changes on blast
Legal developments regarding high-risk data privacy/protection are blasting out like fire hydrants in the U.S. and EU. The EU AI Act became effective August 1 with its incorporated data protection (GDPR) compliance aspects bringing the highest risks for enforcement. ICYMI AI has been powering digital ads and website chatbots for years, but now AI is triggering much more scrutiny from consumers, legislators, and regulators with eyewatering EU penalties up to 7% of annual gross sales. New AI laws have also taken effect in the US in Tennessee and Utah with Colorado coming in 2026.
What’s driving the data privacy/protection frenzy?
- US consumer concern about data privacy/protection has skyrocketed to #2 globally (behind Germany).
- US companies are attracting new international business opportunities and enjoying $2-5 in profits from each $1 they spend on data privacy/protection compliance.
- New data privacy laws in 21 US states (CA, CO, CT, DE, FL, IN, IA, MT, NV, OR, TN, TX, UT, VA, NH, NE, NJ, MN, MD, KY, RI) are getting more like the EU GDPR. Some have heightened sensitive data protection for citizenship/immigration status, reproductive health data, biometric data, children under 13, and geolocation. Data privacy assessments and written vendor contracts with audit rights all common in the EU are now also being required by new US state privacy laws.
- US State AGs in CA, CO, CT, and OR are collaborating to harmonize and enforce their new privacy laws.
These new data privacy/protection laws have many requirements in common but also many critical differences. When you or your friends are struggling with the complex maze of new AI and data privacy laws in the US and/or EU, Practus’ data privacy/protection legal experts are here to help.
Find out which laws apply to you ASAP
If you haven’t already, now is the time to make sure your organization understands the extent to which new EU and US AI and data privacy/protection laws and regulations apply to your operations. Be sure to assess risks such as whether each AI system contains Personal Data/Information and adopt changes needed for compliance.
Linda Priebe is a renowned EU-US Data Privacy/Protection and Digital and Social Media compliance and Federal Relations lawyer who has participated in a dozen cases before the U.S. Supreme Court and served as a trusted legal advisor to three U.S. presidential administrations.
