On July 1, 2025 the U.S. Senate voted 99–1 to remove a provision that would have imposed a 10‐year moratorium on state AI rules and blocked states from a $500 million AI infrastructure fund, signaling a retreat from federal centralization and preserving state authority; California then enacted SB 53 on Sept. 29, 2025, requiring AI developers with model training costs over $100 million to disclose safety protocols and report critical safety incidents within 30 days, defining “catastrophic” as >$1 billion in damage or >50 injuries/deaths and allowing fines up to $1 million. Meanwhile the EU AI Act, in force since August 2024, imposes obligations on general‐purpose and foundation models starting Aug. 2, 2025 (risk assessments, adversarial testing, incident reporting, transparency). Impact: states are filling federal gaps, creating overlapping compliance, operational and market risks for firms; watch other states’ actions, federal legislation, and corporate adjustments.

On 2025-11-07 Reuters reported the European Commission is reconsidering delaying parts of the EU AI Act—implemented in August 2024—after lobbying from U.S. trade officials and major tech firms including Meta and Alphabet, with talks expected to culminate around 2025-11-19 and a final decision not before that date. The reconsideration centers on compliance burdens, trade friction with the U.S., and competitiveness. This matters because the AI Act is the world’s most comprehensive AI framework; delays could reshape global regulatory standards, affect market access and revenue for multinational tech companies, and complicate operational compliance and engineering roadmaps for firms building “high-risk” models. The Commission has not named which provisions may be paused; proposed delays may provoke civil society backlash and increased regulatory divergence between jurisdictions such as the U.S. and California (SB 53, signed 2025-09-29).