AI Governance

AI regulation has moved from theoretical debate to enforceable compliance obligations. Businesses deploying AI systems now face concrete legal requirements under state privacy laws restricting use of sensitive personal data, mandating consumer disclosures, and in some jurisdictions granting opt-outs from automated profiling and algorithmic decision-making. Colorado, California, and other states have enacted AI-specific statutes layering impact assessments, documentation requirements, and governance mandates on top of existing privacy frameworks. Oklahoma recently became the 20th state to pass comprehensive privacy legislation, while more than a dozen states have active consumer privacy laws on the books.

Above the Law has published commentary urging law firms to adopt formal artificial intelligence policies now, before ad hoc generative AI use creates compliance, confidentiality, or quality control failures. The piece targets firm leadership, legal and compliance teams, IT, HR, and risk management staff with a straightforward message: governance frameworks need to be in place before shadow AI use becomes entrenched in workflows.