AI Regulation and Privacy: Emerging State-Level Approaches

Privacy Challenges Are Looming Behind AI Regulation

WASHINGTON, Jan. 16, 2026 – Privacy challenges are becoming increasingly prominent as artificial intelligence (AI) emerges as a significant policy issue. This concern was echoed by panelists at a recent event hosted by the Federal Communications Bar Association.

AI and Privacy: Perspectives from Policymakers and Regulators

The initial panel of the event focused on how states like Colorado, Connecticut, and Massachusetts are developing AI strategies aligned with existing data privacy laws. Panelists, particularly from the Democratic Party, advocated for a collaborative approach between federal and state governments, emphasizing that AI regulations should primarily be managed at the state level rather than through a unified federal framework.

Panelists unanimously agreed on the necessity of integrating current data privacy laws into AI policy, although they differed in their statewide methodologies. Notably, Colorado has enacted the AI Act, which will take effect in June 2026. This legislation mandates transparency from high-risk systems regarding algorithmic disparities affecting vulnerable communities. Edgar Rivas, a senior policy aide to Senator John Hickenlooper, highlighted that despite existing data privacy regulations, Colorado will continue to revisit and negotiate laws to ensure comprehensive consumer safety related to AI.

Massachusetts is maintaining its existing laws, including the updated Shield Act, which safeguards gender-specific healthcare and reproductive rights. Although there is a willingness for future AI-specific legislation, officials feel confident that the current regulations sufficiently protect consumer rights.

In contrast, Connecticut has recently passed data privacy laws and is considering SB 2, an AI-specific regulation requiring transparency in employment. State Senator James Maroney noted that Connecticut is not as confident in its current laws’ ability to protect citizens in the AI era, particularly given the exceptions in transparency concerning employment-related issues.

Keeping Pace with AI Developments

The second panel examined how businesses are navigating the privacy challenges associated with AI integration into their operations. A discussion on broadband in relation to the evolving regulatory landscape was also featured.

Paul Eisler, Senior Vice President of USTelecom, cautioned against implementing broadband-only AI regulations, warning that it could create an uneven playing field lacking consumer benefits, complicating both broadband and AI policy. Rudy Brioché, Vice President at Comcast, supported Eisler’s concerns, emphasizing that broadband providers often overlap with general technology and cybersecurity services. He stressed that uniform regulations not only protect consumers but also promote service competition.

Adding to this perspective, Tatianna Rice, Senior Director of Legislation at the Future of Privacy Forum, noted that companies manage the complexities of varying state data privacy laws through risk mitigation strategies. Organizations prioritize high-risk areas, such as health data and AI policy, while also considering sector-specific distinctions, like broadband, when seeking regulatory commonalities.

David Valdez, Vice President of CTIA – The Wireless Association, concluded that a national regulatory framework would provide beneficial consistency across states, facilitating a more cohesive approach to AI and privacy.

More Insights

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Embracing Responsible AI to Mitigate Legal Risks

Businesses must prioritize responsible AI as a frontline defense against legal, financial, and reputational risks, particularly in understanding data lineage. Ignoring these responsibilities could...

AI Governance: Addressing the Shadow IT Challenge

AI tools are rapidly transforming workplace operations, but much of their adoption is happening without proper oversight, leading to the rise of shadow AI as a security concern. Organizations need to...

EU Delays AI Act Implementation to 2027 Amid Industry Pressure

The EU plans to delay the enforcement of high-risk duties in the AI Act until late 2027, allowing companies more time to comply with the regulations. However, this move has drawn criticism from rights...

White House Challenges GAIN AI Act Amid Nvidia Export Controversy

The White House is pushing back against the bipartisan GAIN AI Act, which aims to prioritize U.S. companies in acquiring advanced AI chips. This resistance reflects a strategic decision to maintain...

Experts Warn of EU AI Act’s Impact on Medtech Innovation

Experts at the 2025 European Digital Technology and Software conference expressed concerns that the EU AI Act could hinder the launch of new medtech products in the European market. They emphasized...

Ethical AI: Transforming Compliance into Innovation

Enterprises are racing to innovate with artificial intelligence, often without the proper compliance measures in place. By embedding privacy and ethics into the development lifecycle, organizations...

AI Hiring Compliance Risks Uncovered

Artificial intelligence is reshaping recruitment, with the percentage of HR leaders using generative AI increasing from 19% to 61% between 2023 and 2025. However, this efficiency comes with legal...