What Businesses Need to Know About New US Laws and AI Regulations in 2025

As we enter 2025, new data privacy and technology regulations are already on their way. With a record number of US states passing privacy laws in 2024, new AI legislation shaping global standards, and ongoing debates around content on social media, your business will be operating in a tricky regulatory landscape. 

Whether you’re a small online startup or a global enterprise, staying ahead of these changes is mandatory. 

In this blog, we’ll unpack what’s new, what’s coming, and how these laws might impact businesses and consumers alike. First - the US.

Data Privacy Laws in the United States: What’s Ahead in 2025

Data privacy continues to dominate legislative agendas across the United States, with 2024 marking a record-breaking year for state-level privacy laws. Four states enacted laws in 2024 (Florida, Montana, Oregon, and Texas), bringing the total number of state-level data privacy regulations to 21. Clearly, momentum is building.

But what does this mean for 2025? Let’s dive into the upcoming privacy laws set to take effect next year and how they might shape the landscape for businesses and consumers alike.

New Laws Coming into Effect in 2025

A wave of new data privacy laws will go live in 2025, with effective dates spanning the year. Here’s a snapshot of what’s on the horizon:

• Delaware Personal Data Privacy Act (DPDPA) – Effective January 1
• Iowa Consumer Data Protection Act (ICDPA) – Effective January 1
• Nebraska Data Privacy Act (NDPA) – Effective January 1
• New Hampshire Data Privacy Act (NHDPA) – Effective January 1
• New Jersey Data Privacy Act (NJDPA) – Effective January 15
• Tennessee Information Protection Act (TIPA) – Effective July 1
• Minnesota Consumer Data Privacy Act (MCDPA) – Effective July 31
• Maryland Online Data Protection Act (MODPA) – Effective October 1
  

These laws collectively cover a wide spectrum of data privacy considerations - from consumer rights to business compliance. For both offline and online businesses operating across multiple states, staying ahead of these changes is becoming a critical part of their operational strategy.

‍

What are the penalties for violating the law?

The highest fines are up to $10,000 per violation and up to $25,000 per repeated violation. Most penalties are up to $7,500 per violation. Refer to every law state law individually for specific penalty reference.

However, your business will likely face some additional costs. These may include costs for legal defense and settlements; investments in compliance measures post-violation; possible compensation for affected individuals (e.g., identity theft monitoring).

Will We See More State-Level Laws?

With the majority of US states still lacking comprehensive data privacy regulations, it’s likely we’ll see even more states join in the near future. 

States like Washington (where privacy legislation has been hotly debated but not yet passed) could make significant strides in 2025.

What About Federal Legislation?

The concept of a federal data privacy law continues to spark debate, but progress has been slow. In April 2024, the release of a discussion draft for the American Privacy Rights Act (APRA) reignited conversations. 

The draft introduces significant updates, including measures for children’s data privacy (nicknamed “COPPA 2.0”), privacy by design principles, and requirements for data brokers.

As of late 2024, APRA remains in a legislative void. With a new government set to take office in January 2025, its future is uncertain. 

Will 2025 be the year the United States finally adopts a federal data privacy law? Only time will tell, but for now, businesses should focus on state-level compliance while keeping federal developments on their radar.

AI and Data Privacy in 2025

Artificial intelligence is rapidly reshaping industries from the inside so the growing need for regulation only starts to make more sense. Although the EU AI Act won’t take full effect until 2026, it has already started influencing the global AI landscape.

AI’s Appetite for Data vs. Privacy Rights

Training large language models (LLMs) requires vast amounts of data, but this need often clashes with data privacy principles. Organizations aren’t always transparent about how they collect this data (or whether they’ve obtained proper consent). 

This back and forth between technological advancement and user privacy rights is expected to escalate in 2025. Truth is, it is hard to tell where the balance lies.

AI Laws Gaining Momentum, Globally

AI legislation is progressing on multiple fronts, with the EU AI Act serving as a global benchmark. In 2025, the European Data Protection Board (EDPB) is reminding businesses that responsible AI development must align with General Data Protection Regulation (GDPR) principles. This includes transparency, accountability, and a focus on maintaining data privacy alongside AI innovation.

Across the Atlantic, AI regulation is heating up in the United States. Colorado’s comprehensive AI laws (Colorado AI Act, set to take effect on February 1, 2026) have paved the way for other states to follow suit. California also recently passed several targeted AI laws.

In 2025, we can expect more states to introduce new laws or updates to address AI in business. 

Korea’s Groundbreaking AI Legislation

Looking beyond the US and EU, Korea is making news as the second jurisdiction in the world to pass comprehensive AI legislation after the EU. The Basic Act on the Development of Artificial Intelligence and the Establishment of Trust will take effect in January 2026.

The law aims to protect citizens from AI-related risks, while still fostering industry growth. It is an interesting topic worth monitoring if AI laws are on your radar or Korea is a relevant market for your business.

The Brussels Effect Will Spread Further

With everything mentioned above, it is safe to say that The Brussels Effect continues to influence AI laws worldwide. South Korea’s new AI law mirrors many aspects of the EU AI Act, including its risk-based approach, transparency obligations (notably for deepfakes), and emphasis on standardization.

Similarly, Brazil is moving forward with its own AI legislation. Many of its provisions directly translate elements of the EU AI Act + principles tailored to local needs.

In 2025, more countries are expected to adopt their own AI laws. Many will likely be borrowing heavily from the EU AI Act. This “copy-paste” approach saves time, money, and resources, further cementing the Brussels Effect as a driving force in shaping global AI regulation.

Social media and Section 230

Section 230 of the Communications Decency Act (CDA), passed in 1996, is an important law in the United States that significantly shapes how social media platforms operate. Often called the "26 words that created the internet" it provides legal protections to online platforms, allowing them to host user-generated content without being liable for it.

Protection for Platforms:

• Social media platforms (like Facebook, X, and YouTube) are not treated as the publishers of the content users post.
• Platforms generally can’t be sued for harmful or illegal content posted by users (e.g., defamatory posts or misinformation).

Moderation Rights:

• Platforms can remove or moderate content they find objectionable, such as hate speech, pornography, or harassment, without losing their liability protection.
• This gives them the flexibility to enforce community guidelines without being held accountable for everything posted on their sites.

Why Section 230 is Controversial

Section 230 is controversial because it sits at the heart of two significant challenges in the online world: managing harmful content and preserving free speech. The controversy arises from the complexity of these issues.

It’s true that excessive moderation can limit free expression, creating an environment where people feel their voices are unfairly silenced or restricted. However, a complete lack of moderation isn’t the answer either. Without any oversight, the internet risks becoming a chaotic, lawless space where harmful content such as hate speech, misinformation, illegal activities, abusive behavior - can spread freely.

What do online businesses need to do?

A lot of the risks online come from user-generated content, but in reality not every business hosts much of it, if any at all. For those that do, most are pretty responsible about how they manage and monitor content. As long as they take reasonable steps to keep their platforms in check, they’re not likely to find themselves in legal trouble.

The good news is that what’s considered “reasonable” depends on the risks involved and the resources a business has. In other words, smaller businesses or those with fewer interactions won’t be held to the same standards as massive platforms with millions of users.

It’s all about doing what makes sense for your business - setting clear rules, enforcing them fairly, and dealing with problems when they arise. By staying proactive without going overboard, businesses can strike the right balance between keeping things safe and running smoothly without adding unnecessary stress.

Conclusion

The regulatory landscape is growing more complex, but it’s also creating opportunities for businesses to build trust and innovate responsibly.

From the wave of US privacy laws coming into effect to the global ripple of the Brussels Effect, 2025 is shaping up to be a pivotal year for data privacy and AI.

Here at Consentmo, we keep a close eye on any privacy news and laws which may apply to your business. As a preferred compliance app by thousands of Shopify stores worldwide, we break down consent and compliance into simple terms!