The European Union continues to roll out its AI Act, with strict rules for high-risk AI systems like those used in hiring or law enforcement set to take effect in August 2025. Companies face fines up to €35 million for breaking these rules, but many are confused about which AI tools count as "unacceptable risks" under current bans. Ireland took a big step this week by announcing its Regulation of Artificial Intelligence Bill, which will help enforce EU AI laws for tech giants like Meta and TikTok that have their European offices there.

In the United States, government leaders are debating how to build a national AI regulation system. While existing privacy and safety laws still apply to AI, new proposals aim to create a dedicated AI oversight agency and clearer rules for AI developers. This comes as businesses push for standards that protect users without stopping innovation.

Around the world, companies are scrambling to meet AI compliance deadlines. Michael Adjei from Illumio noted that organizations are creating their own AI safety rules because international guidelines from groups like the EU leave too much room for interpretation. Meanwhile, Stuart Tarmy of Aerospike warned that the EU’s strict approach could affect businesses worldwide, as any company operating in Europe must follow its AI laws.

Experts highlight three main challenges: defining banned AI uses, training regulators to spot risky systems, and helping small businesses afford compliance costs. The EU’s AI Office has been criticized for not providing enough guidance, leaving companies unsure how to follow the new rules. As countries like Ireland show, local laws will play a big role in shaping how global AI standards work in practice.