Global AI Policy Shakeup: New Regulations Target Data Privacy & Bias

August 25, 2025

By Silo AI Team

Global AI Policy Shakeup: New Regulations Target Data Privacy & Bias

The global AI landscape is undergoing a significant transformation in 2024-2025, with new regulations worldwide increasingly targeting both data privacy and algorithmic bias. The most significant development is the EU AI Act, which introduces a comprehensive, risk-based regulatory regime for AI across the European Union and influences global standards.

Key Developments in Global AI Policy

Several key developments are shaping the global AI policy landscape:

EU AI Act (2024/2025)

The EU AI Act establishes harmonized rules for AI across all 27 EU member states, with phased compliance dates through 2030. The Act:

Prohibits certain high-risk AI practices outright, such as real-time biometric identification in public spaces, social scoring, and exploitation of vulnerable groups.
Imposes strict requirements on "high-risk" AI (used in medical devices, hiring, credit scoring, etc.), including risk management, data governance, transparency, human oversight, and conformity assessment.
Mandates organizations to ensure employees have access to AI literacy and creates an EU database for high-risk AI systems.
Invests 200 billion euros in AI infrastructure and skills, signaling a strategic commitment to responsible AI growth.

Data Privacy Integration

Data privacy is a critical aspect of the new regulations:

The EU's Digital Services Act (DSA) now bans targeted advertising to minors and prohibits sensitive-category targeting, directly addressing privacy risks linked to AI-powered profiling.
AI systems must comply with GDPR, DSA, and the AI Act, ensuring legitimate basis, transparency, and respect for individual rights in personal data handling.
US regulations remain sectoral and state-driven, with California's CCPA and other states mandating greater transparency and control over AI-driven decision-making.

Algorithmic Bias and Accountability

Algorithmic bias is another key focus area:

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The EU Act and US state laws require transparency, fairness, and human oversight to mitigate discrimination and bias in AI systems, especially in areas like recruitment, lending, and healthcare.
NIST's AI Risk Management Framework and proposed sector-specific rules in the US guide organizations to assess and reduce bias risks, though federal legislation is pending.

Global Coordination and Divergence

Global coordination and divergence are shaping the regulatory landscape:

The US and EU are collaborating on shared AI terminology and risk benchmarks through the Trade and Technology Council, but each is at a different regulatory stage.
The UK favors principle-driven, sector-specific guidance over comprehensive legislation, though it may shift as global norms evolve.
Countries like Turkey, Taiwan, and UAE are drafting or revising laws to address local AI risks, often building on existing data protection frameworks.

Implications for Businesses and Developers

The global AI policy shakeup has significant implications for businesses and developers:

Organizations must prepare for stricter compliance, especially if operating in or serving EU markets.
Adopting robust governance frameworks, AI literacy, and scalable privacy and bias-mitigation tools is essential to navigate the fragmented global landscape.
Building trust through responsible AI practices is not just a regulatory obligation but increasingly a competitive advantage.

Conclusion

The global AI policy shakeup is accelerating, with data privacy and bias prevention at the center of new regulations. While the EU sets the pace with enforceable mandates, other regions are moving toward greater accountability and transparency, though at different speeds and with varying scope. As the regulatory landscape continues to evolve, businesses and developers must stay informed and adapt to ensure responsible AI growth.

For further insights into AI developments, check out our articles on NASA–IBM’s Surya AI Model Sets New Bar for Space Weather Forecasting and Universal Deepfake Detector Achieves 98% Accuracy Against Synthetic Video Threats.