In 2025, the landscape surrounding Generative AI (Gen AI) is rapidly changing privacy regulations and compliance standards across various industries. This article delves into insights shared at the IAPP’s AI Governance Global conference, highlighting the evolving governance and regulatory frameworks that are shaping AI adoption and privacy practices.
The AI Regulatory Landscape
As of 2025, AI is no longer in a regulatory void, thanks to the EU AI Act that launched in August 2024. Key points from this evolving landscape include:
- Implementation of prohibitions on unacceptable-risk AI and requirements for AI literacy since February 2025.
- Ongoing obligations for general-purpose AI providers set to take effect by August 2025.
- In the US, discussions are underway about whether to impose a 10-year moratorium on state-level AI laws, reflecting a deregulatory approach.
Gen AI Adoption and Organisational Change
The integration of AI governance into business models requires a collaborative approach across functions:
- Effective AI governance is becoming crucial in sectors such as healthcare, finance, and education.
- Governance efforts need to align with existing compliance frameworks rather than operate in isolation.
- Organisations are adapting frameworks like the EU’s regulations globally to enhance compliance.
Challenges in AI Governance
Despite progress, several challenges persist:
- Innovation often outpaces regulatory advancements, creating complexities in compliance.
- No consensus on best practices or universal governance models for AI.
- Fragmentation across jurisdictions complicates governance for multinational corporations.
What Lies Ahead?
Future developments in AI regulation and governance point towards an integrated approach:
- Companies are encouraged to leverage existing governance structures, adapting them to meet new AI demands.
- Establishing roles such as Chief AI Officer is rising to facilitate effective governance.
Why should I read this?
This article offers a critical overview of how Generative AI is influencing privacy, compliance, and governance frameworks in 2025. If you’re involved in technology, regulation, or privacy practices, staying updated on these trends is essential to navigate the shifting landscape and prepare for the complexities and opportunities that come with AI adoption.