Market Insight: The Evolving AI Regulation Landscape

Published 13 February 2025 by Henry Kirkman & Malavika Tohani &
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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.

Table of contents

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

Table of figures

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

Industry Analyst
Henry is an Industry Analyst in the Verdantix Industrial Transformation practice. His current research agenda focuses on connected worker solutions, technologies for industrial asset maintenance, and the industrial applications of AI, including generative AI and computer vision. Prior to joining Verdantix, Henry completed a Masters degree in Civil Engineering at the University of Exeter.

Malavika Tohani

Research Director, Industrial Transformation
Malavika leads the Verdantix Industrial Transformation practice. The team’s current research focusses on digital technologies and services that enable industrial operations become safer, efficient and sustainable such as asset maintenance and performance, industrial AI and data management, connected workforce and field service management, process safety and industrial engineering, design and construction. Malavika has over 20 years’ experience in research and strategy consulting. Malavika previously worked at Frost & Sullivan, managing and delivering advisory projects for clients involving expansion, acquisition, benchmarking and product development strategies. Malavika holds a MSc in Economics from Madras School of Economics.

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