The Growing Absence of AI Regulation: What It Means for Enterprises

The Shifting Landscape of AI Governance

Artificial intelligence is advancing rapidly, but the regulatory frameworks to ensure its safe and ethical use are lagging behind. In the U.S., the political landscape is shifting toward deregulation and increased competition with China, while the EU AI Act, once hailed as a comprehensive attempt to regulate AI, remains incomplete and limited in scope. Meanwhile, Big Tech companies are actively lobbying for fewer constraints, prioritizing performance, geopolitical positioning, and profitability over responsible AI deployment.

For enterprises, this means one thing: you can’t rely on external regulations or AI vendors to protect your brand, customers, and employees. Companies must take proactive steps to implement their own AI governance and risk mitigation strategies.

The Political Divide: AI as a Global Power Play

The regulatory vacuum is not just an oversight; it’s a reflection of deep political tensions. AI is no longer just a technology issue—it’s a geopolitical chess piece.

• ‍U.S. vs. China: The U.S. government increasingly sees AI leadership as a national security priority. The new administration, led by Trump, favors less regulation and more aggressive competition with China to maintain technological dominance.
• Big Tech’s Role: AI leaders like OpenAI and Google are lobbying for fewer safety regulations. OpenAI has even offered its technology to U.S. national labs for nuclear weapons research (TechCrunch). Google, meanwhile, is calling for weakened copyright and export rules in AI policy discussions (CNBC).‍
• The EU AI Act, Sort Of: While the EU is attempting to regulate AI, its approach is increasingly watered down by industry lobbying, raising questions about its enforcement and effectiveness.

With these dynamics at play, it’s clear that AI regulation is being shaped more by corporate interests and geopolitical ambitions than by consumer protection and ethical considerations.

What This Means for Enterprises

For brand-conscious enterprises, this shifting regulatory environment introduces serious risks:

1. Reliance on AI Vendors is Risky – AI companies are optimizing for performance and market dominance, not safety. Their goals do not necessarily align with enterprise security and compliance needs.
2. AI Risks Are Increasing, Not Decreasing – With fewer safety regulations in place, the likelihood of biased outputs, IP violations, data leaks, and adversarial attacks grows.
3. Reputational Damage is a Real Threat – Enterprises that deploy AI irresponsibly could face lawsuits, compliance failures, and loss of customer trust.
4. Lack of Standardization Means Uncertainty – Without clear regulations, companies will be forced to navigate AI safety and compliance on their own, leading to potential legal and operational risks.

In short, waiting for regulators to step in is not a viable strategy. Enterprises must own their AI risk management.

What Enterprises Can Do Now

1. Implement AI Risk & Compliance Safeguards

• Develop internal AI governance frameworks that go beyond regulatory requirements.
• Adopt continuous AI monitoring to detect anomalies, unauthorized outputs, and security risks.
• Set up clear escalation paths for AI-related incidents.

2. Secure Data & Model Interactions

• Limit AI access to sensitive internal data.
• Enforce guardrails for AI-generated content to prevent regulatory violations and reputational harm.
• Regularly audit AI-driven decisions for fairness and compliance.

3. Demand More from AI Vendors

• Require AI vendors to disclose risk assessments and comply with enterprise security policies.
• Negotiate custom AI safety controls instead of relying on default settings.
• Push for explainability in AI outputs to improve transparency.

4. Prepare for Future AI Regulations

• Track emerging AI laws and global policy changes.
• Design AI systems with compliance flexibility, so they can adapt to new regulations.
• Build an AI compliance team to manage ongoing risks and policy shifts.

Conclusion: AI Risk is a Business Risk

AI’s rapid evolution presents massive opportunities, but without proper oversight, it also introduces unprecedented risks. The absence of strong AI regulations means that enterprises cannot depend on governments or vendors to ensure AI safety.

Instead, businesses must proactively take charge of AI governance, security, and compliance to protect their brand, customers, and bottom line. The companies that succeed in managing AI risks today will be the ones that thrive in an increasingly AI-driven future.

Take Control of Your AI Risk

ThirdLaw provides real-time AI security and compliance solutions for enterprises looking to mitigate AI risks effectively. Get in touch today to learn how we can help you navigate the unregulated AI landscape.