Market Insight: The Evolving AI Regulation Landscape

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Executive Summary

As artificial intelligence (AI) rapidly transforms industries from healthcare to finance, the need for well-defined, balanced regulation is increasingly vital. The power of large language models (LLMs), like ChatGPT, highlights both AI's immense potential and its inherent risks – privacy issues, ethical concerns and societal impacts. This report delves into the evolving global AI regulatory landscape, offering insights into how regional approaches will shape AI’s future in business.
The critical role of AI regulation in today’s technological era
AI regulations must safeguard society without hindering innovation
Global AI regulations range from stringent control to innovation-friendly flexibility
The nascent and evolving AI regulatory landscape brings challenges
Firms can mitigate regulatory risks with training and technology
Figure 1. Global AI regulation map: strictness, implementation and legal binding status (2025)
Figure 2. Global AI regulation landscape: January 2025
Figure 3. Key factors slowing AI adoption in organizations

About the Authors

Henry Kirkman

Henry Kirkman

Industry Analyst

Henry is an Industry Analyst in the Verdantix Industrial Transformation practice. His current research agenda focuses on connected worker solutions, technologies for indu…

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Malavika Tohani

Malavika Tohani

Research Director, Industrial Transformation

Malavika leads the Verdantix Industrial Transformation practice. Her current research agenda focuses on digital technologies for Operational Excellence including digital twins…

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