New AI Regulations and Data Privacy Laws Set to Take Effect in 2025

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Several U.S. states are implementing new laws in 2025 to regulate artificial intelligence and enhance data privacy, alongside other significant legislative changes affecting college admissions and healthcare.

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AI Regulations Take Center Stage in Illinois and California

As artificial intelligence continues to advance rapidly, states are taking the lead in regulating its use. Illinois and California are set to implement new laws in 2025 aimed at mitigating potential harms and protecting individual rights in the AI era 12.

In Illinois, a groundbreaking law will make it illegal to distribute AI-generated digital replicas of individuals without their consent. This protection extends 50 years beyond a person's death, with exceptions for parody, political, educational, or newsworthy content 1. The legislation also addresses the serious issue of AI-generated child pornography, prohibiting the creation of obscene material depicting real or purported children 1.

California's approach focuses on the entertainment industry, requiring informed consent from performers for AI replication of their voice or likeness. This protection will extend 70 years after a personality's death, with some exceptions 12.

Data Privacy Laws Expand Across Multiple States

2025 will see a significant expansion of data privacy protections, with eight states implementing new laws: Delaware, Iowa, Nebraska, New Hampshire, New Jersey, Maryland, Minnesota, and Tennessee 12. These laws impose stricter obligations on businesses handling personal data and grant consumers more transparency regarding data collection and usage.

Maryland's law stands out as the most restrictive, limiting businesses to collecting only "reasonably necessary" personal data and outright prohibiting the sale of sensitive information 1. This wave of legislation brings the total number of states with comprehensive privacy laws to 19, filling gaps left by limited federal regulations 1.

Legacy Admissions Ban in California

In a move towards greater educational equity, California will ban legacy and donor preferences in private college admissions starting September 2025 12. This law, signed by Governor Gavin Newsom, aims to level the playing field in the wake of high-profile admissions scandals and the Supreme Court's decision to strike down affirmative action policies 1.

Other Significant Legislative Changes

While AI and data privacy take center stage, other important laws are set to take effect:

  1. Gender-affirming care: New Hampshire will join 26 other states in restricting gender-transition surgeries for minors 2.

  2. National ID regulations: Starting May 7, 2025, adults must present Real ID-compliant identification for domestic air travel and access to federal facilities, implementing long-delayed security measures recommended by the 9/11 Commission 2.

The Path Forward

As states lead the charge in regulating emerging technologies and addressing pressing social issues, the need for balanced legislation is clear. Illinois State Representative Jennifer Gong-Gershowitz emphasized the importance of supporting innovation while ensuring new technologies serve humanity's interests 1. With more laws expected in the coming years, 2025 marks a significant step in shaping the legal landscape for AI, privacy, and beyond.

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