AI regulation is rapidly expanding across continents, while competition among AI market participants continues to intensify. In this evolving environment, maintaining both compliance and operational effectiveness can be challenging. In response, this release introduces the fifth version of the AI Governance Policy Suite, designed to support the safe, trustworthy, and legally compliant deployment and operation of AI systems. Today marks the fifth version of our AI Governance Policy Suite!
Before you start reading this press release, we suggest you take the following steps:
- Download a new version of AI Governance Policy Suite
- Join our Responsible AI Group
- Communicate on responsible AI
1. AI Literacy goes far beyond understanding laws to practical use of AI
The US Department of Labor has recently issued the AI Literacy Framework which demonstrates AI education is a nationwide priority. Within the context of the Suite, this framework clearly signals that AI literacy is essential across industries, roles, educational sectors and workforce in general.
What’s next for you: To be properly AI-educated, team members should complete AI literacy training at least annually. Whereas certain triggers demand training more frequently, such as new changes in regulations or other significant events. The content of AI Literacy depends on the corporate level of attendances – general employees vs tech specialists vs executives.
Control: check the updated version AI Literacy Section in the AI Risk Management Policy to follow a minimum required content for AI training, the frequency of the training and related issues.
2. 🇺🇸 federal bodies seek to centralize AI regulation at the federal level
Signed at the end of 2026, the Executive Order on Ensuring a National Policy Framework for Artificial Intelligence establishes a federal policy aimed at maintaining US dominance. As a result, state AI laws will be challenged if they are against federal policy and interstate commerce. The Commerce Department will identify “onerous” state laws, particularly those impacting AI outputs or violating First Amendment Rights.
In these regards, the signal is clear – legal and regulatory changes are expected to be made within this year.
What’s next: based on our analysis, the following laws are considered as conflicting and can be challenged: Colorado AI Act, California Frontier Model Safety and
Transparency Act, New York City Local Law 144, California CCPA Automated Decision-Making Regulations. We will monitor any updates and make relevant changes as they may affect your business.
3. Grouping US applicable laws into categories like deepfakes, healthcare, consumer protection, employment and education laws
The AI Governance Policy Suite contains a list of AI laws to ensure you operate legally anywhere in the US, EU, and other countries. As of these days, US legislators remain to be the most active in adopting new laws related to AI. In the new version of the AI Governance Policy Suite and for convenience, AI laws are grouped into the following categories:
- Deepfakes
- AI Healthcare
- Consumer protection, Finance and Insurance
- Employment and Recruitment
- Education
While general AI laws provide a baseline for all industries, sector-specific laws allow for precise adjustment to address unique complexities of different industries, for instance:
- Deepfake laws: focus on transparency and mandatory labeling
- AI Healthcare laws: focus on patient safety, data accuracy, and accountability
- Consumer protection: ensure you are aligned with informed consent obligation, online safety and other requirement
What’s next: As AI evolves, laws can be updated in each category. Whenever it happens, AI Governance Policy Suite is regularly updated. You can stay connected to follow updates.
Control: check the list of applicable laws in the AI Governance Policy Suite to identify which rules apply to your specific industry.
4. New state laws affecting California
California’s AB 315, known as the AI No Defense Act, prohibits developers, modifiers, and users of AI from using the technology’s autonomy as a legal defense to escape liability for harm.
Another California’s AB 325 expands the state antitrust law, the Cartwright Act, targeting algorithmic price-fixing. Effective January 1, 2026, this law prohibits a common pricing algorithm to conspire to restrain trade, broadly defining such tools as any technology that utilizes competitor data to influence prices. Notably, the law applies even if the algorithm relies on publicly available data, rejecting some federal interpretations. Additionally, AB 325 creates a new, independent offence for using these algorithms to coerce another firm, which does not require proof of a formal agreement.
California AB 621, signed into law in October 2025, strengthens legal actions against the creation and distribution of non-consensual, AI-generated deepfake pornography.
5. Evolving AI Laws in Asia: similar risk-based approach, but light touch regulation, less penalties and restrictions than in the EU
AI Governance Policy Suite ensures that our clients operating or engaging internationally can align their AI governance structures with regulatory frameworks in Europe, Asia, and rest of the world. Notably, the East Asian region adopts new AI laws which can be called as one of Asia’s most forward-looking regulatory frameworks.
The South Korea Framework Act on the Development of Artificial Intelligence and Establishment of Trust is based on the principles of light touch regulation. In contrast to the EU AI Act (one of the most comprehensive AI laws as of these days), which adopts a precautionary, risk-tiered model with four levels of risk classification, South Korea introduces a streamlined two-tier system focused on “high-impact AI” and generative AI. The South Korean Act does not define a list of prohibited AI practices and provides comparatively lower monetary penalties. To promote innovation among developers and attract investors, it establishes government-led initiatives and dedicated bodies to promote AI development and adoption.
Taiwan Basic Law is built as a basic or constitutional-style law. It sets high-level values and principles while leaving granular technical details and liabilities to sector-specific legislation. Unlike the EU AI Act, Taiwan adopted a three-tier risk model (high, medium, and general) whereas prohibited categories are not explicitly defined.
Another unique approach taken by Taiwan is to mandate employment assistance to those employees who are displaced by AI.
6. Next Steps & Adoption Guidance
To fully leverage the enhanced Q1 2026 Policy Suite, organizations should:
Review New Frameworks & Laws:
- Assign subject-matter leads (e.g., clinical research, legal compliance, procurement teams) to evaluate new US natioinal, fededal and local laws and regulations.
Review laws across major jurisdictions:
- Create cross-functional oversight for AI laws in target markets.
Implementing technical and organization measures:
- Incorporating AI Governance Policy Suite is not enough. Adoption of the Policy Suite alone does not constitute compliance with any applicable law, regulation, or industry standard. Compliance requires a company to implement, maintain, and continuously monitor operational, technical, and organizational measures.
Stay Compliant:
- Incorporate all recently suggested improvements to your AI Governance Policy Suite.
- Conduct AI Literacy Training to include the latest additions and host workshops for AI governance teams.
Self-Attest & Certify:
- Once the updates are adopted, organizations may contact Pacific AI at [email protected]. We will quide on you for you can obtain a written confirmation of compliance to receive an updated “AI Governance Badge” reflecting Q1 2026 coverage.
