Government AI Regulations That Could Impact Your Company - Episode 228

AI regulation is no longer a future problem. It’s creating legal, financial, and product risk today. Todd Coshow and Adam Goslin break down the evolving AI regulatory landscape, from FTC enforcement and the growing patchwork of U.S. state laws to California’s sweeping AI legislation and the EU AI Act. Learn why AI compliance is now a business-critical issue, how third-party AI doesn’t shift liability, and what organizations must do to avoid enforcement, reputational damage, and costly mistakes. Essential listening for compliance, security, legal, product, and business leaders.

Episode Transcript:

Today, Adam, we are going to do a deep dive specifically about government AI regulations that could apply to your company. There are a lot of moving parts related to AI these days. Get us started on this one, Adam.

Adam Goslin:
Sure thing.

As AI has left the barn and is starting to become a barn burner of sorts, it’s more integrated into our lives. Government entities are realizing that they need to regulate the use for both consumer and citizen safety.

There’s new government laws that are constantly being introduced. Organizations are gonna find themselves trying to accommodate a bunch of different laws that aren’t aligned with one another.

This reminds me a lot of how breach notification laws started splaying out within the US, with having state-level regulations and there being a ton of complication coming into that arena. We’re heading down the same path with the AI arena.

Both in the US and EU, there have been AI laws and regulations that have been enacted that will affect businesses today, even if you aren’t located within those jurisdictions.

The problem is that failures for complying with those regulations could result in millions of dollars in fines for a given company.

It’s definitely something that the folks out there are gonna wanna pay attention to and keep their ear to the ground on.

Todd Coshow:
What do we have in the US at the federal level right now related to AI?

Adam Goslin:
Some, not a ton.

There isn’t yet a federal-level law that’s regulating AI. But there’s two different governing arms of AI regulation in the US, namely coming into play in terms of there’s a federal executive order out there. There’s also a Federal Trade Commission, or FTC.

Those two are laying the foundation for the eventual federal AI.

The FTC isn’t exactly taking prisoners, so to speak.

We’ll start with the executive order.

There was an executive order put out that just came out on June 2nd of ’26, promoting advanced artificial intelligence innovation security.

That’s the closest thing we have to really a federal-level edict at this point in the game.

The key provisions within that directive included a frontier model framework that was directing federal agencies, including NSA, CISA, to put together classified benchmarks for advanced AI.

It also establishes a voluntary process for developers to grant the government early access to covered frontier models for up to 30 days in advance of the public release.

For those that aren’t in the know, what’s an AI frontier model?

It’s a really large general-purpose AI system that represents the bleeding edge or state-of-the-art in AI technology.

The frontier models are trained on vast data sets. It often costs organizations either tens to hundreds of millions of dollars to develop.

Those systems will possess advanced reasoning and planning capabilities for predictive work, multi-step workflows, debugging code, solving complex novel problems.

They can also act as digital agents that use external tools, otherwise known as APIs, and trigger autonomous action.

That executive order is pushing for the creation of an AI cybersecurity clearing house.

It’s a voluntary collaboration with the AI industry and critical infrastructure operators to coordinate vulnerability scanning, patch distribution, threat validation, creating a central repository that’s fed into by a bunch of different organizations.