ARTICLE
16 June 2025

The Changing Face Of AI In The U.S.

AO
A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
Following their ranking in Chambers and Partners' inaugural U.S. ranking for Artificial Intelligence (AI) attorneys, our tech sector team has worked with Chambers and Partners...
United States California New York Technology

Following their ranking in Chambers and Partners' inaugural U.S. ranking for Artificial Intelligence (AI) attorneys, our tech sector team has worked with Chambers and Partners to write three articles on the rapidly changing legal landscape of AI in the U.S., with a particular focus on California and New York.

In this fast-moving landscape, with new regulations, risks, and opportunities emerging every day, we aim to keep our clients informed and prepared as they navigate the many issues raised by AI.

Below are outlines of each of the articles and links to the full articles on Chambers and Partners' website.

Artificial intelligence 2025—U.S.

As the leading technology market globally, the U.S. often shapes guiding legal principles in the sector. AI is no exception. Driven by federal leadership and reinforced by state-level initiatives, there has been a lot of activity in recent months concerning AI policy. The Trump administration has implemented policies to give the technology room to grow without undue regulation.

The market and its participants still recognize the importance of national security, innovation, and public trust. Clients operating in or entering the U.S. market need to be flexible and knowledgeable concerning developments at both the federal level and the state level concerning AI. This article explores in depth the legal framework, and how the evolving landscape presents both regulatory challenges and strategic opportunities for businesses leveraging AI.

Read our insights: Artificial Intelligence 2025—U.S.

Artificial intelligence 2025—California

California remains at the forefront of AI innovation and regulation, balancing its role as a global technology hub with growing legislative oversight. In response to industry disruption, state lawmakers have introduced targeted measures to protect individual rights against generative AI misuse. Collaborative efforts between government, academia, and industry aim to foster responsible AI development, with a focus on transparency, bias mitigation, and accountability.

This article explores how organizations operating in California should prepare for a maturing regulatory environment that prioritizes ethical deployment of AI without stifling innovation.

Read our insights: Artificial Intelligence 2025—California

Artificial intelligence 2025—New York

As one of the most important global markets, New York is positioning itself as a leader in responsible AI governance, combining regulatory oversight with innovation incentives. NYC's Local Law 144 mandates bias audits for automated employment decision tools, setting a precedent for algorithmic accountability. Statewide, policymakers are exploring frameworks to address transparency, fairness, and consumer protection.

This article explores how businesses deploying AI in New York should prepare for heighted scrutiny, particularly in hiring, financial services, and public-facing applications, while also looking at how they could leverage the state's supportive ecosystem for ethical AI innovation.

Read our insights: Artificial Intelligence 2025—New York

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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