January 2026 AI Regulatory Updates: Key Changes and Impacts

AI Law Center January 2026 Updates

This month’s update provides crucial insights into the evolving landscape of AI regulations in the United States and the European Union.

AI Regulatory Landscape: Three Things to Know

  1. New York’s New AI Law: Enacted on December 19, the RAISE Act introduces strict requirements for frontier model developers, mandating a comprehensive AI framework and a 72-hour incident reporting protocol. The law imposes significant penalties, potentially reaching millions for repeated violations.
  2. State Attorneys General Responses: A bipartisan coalition of 24 state Attorneys General has voiced opposition to federal preemption efforts that could undermine state AI regulations. They emphasize the importance of states as frontline responders to consumer complaints, highlighting concerns related to the Tenth Amendment.
  3. EU AI Act Obligations: As the EU AI Act takes effect, startups must prepare for new obligations that include AI literacy requirements for providers, users, importers, and distributors. This act represents a significant shift in how AI technologies will be governed in Europe.

New U.S. State AI Laws

The AI landscape continues to evolve with several new laws enacted across various sectors:

  • AI in Employment: New Jersey has introduced rules concerning Disparate Impact Discrimination (N.J.A.C. 13:16).
  • AI in Government: New York’s LOADinG Act (S 7543B) establishes legislative oversight of automated decision-making in government, recently amended and expanded by S7599C.
  • AI in Real Estate: Wisconsin has enacted the Advertising Enhanced by Technology Law (Wis. Stat. § 452.136(1m)).
  • Frontier or General-Purpose AI: New York’s RAISE Act (A6453A) focuses on responsible AI safety and education, with anticipated chapter amendments in A9449.

AI Bills to Watch

2026 has already seen a surge in proposed AI legislation:

  • California’s Chatbot Bill: Aims to prohibit the manufacture, sale, exchange, and possession of any toy that includes a companion chatbot. This initiative is part of a larger trend, with at least 19 new chatbot bills introduced across the country.
  • Florida’s Artificial Intelligence Bill of Rights: Proposed by Governor Ron DeSantis, this bill seeks to protect minors by prohibiting them from creating chatbot accounts without parental consent and restricts the sale or disclosure of personal information without deidentification.

DISCLAIMER: The information provided in this update is general and may not apply in all situations. Specific legal advice should be sought based on individual circumstances.

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