As 2025 approaches, the legal landscape for employer use of artificial intelligence (“A.I.”) is poised for further evolution. In 2024 alone, over 400 A.I.-related bills were introduced across 41 states—a substantial increase from prior years. While Congress has yet to take decisive action, the trends from 2024 suggest a continued rise in state-led A.I. policies and federal agency guidance in 2025.

Key State Efforts and Upcoming Trends

In 2024, Colorado led with a landmark law aimed at curbing discrimination from A.I. tools, while California – a key player in the A.I. space – passed numerous A.I. bills. A.I. legislation in 2024 also had groundbreaking effects on employers in states like Illinois, Maryland, and Utah. Illinois recently passed legislation requiring all Illinois employers to notify employees and applicants when they use A.I. to make employment decisions, and the law also prohibits employers from using A.I. for actions such as recruitment, hiring, or promotion in a way that is discriminatory based on protected classes. Maryland passed legislation regulating the use of facial recognition services to create a facial template during an applicant’s interview without a signed waiver by the applicant. Utah law now requires businesses to disclose their use of any generative A.I. These trends indicate an uptick in state-led A.I. policies geared towards employers in 2025.

Lawmakers in Texas, New York, and Connecticut are also expected to pursue A.I. legislation in the upcoming year. With bipartisan interest, lawmakers likely will draw inspiration from successful policies in states like Colorado and Illinois. Even though there is currently no federal law regulating employer use of A.I., federal agencies have also issued instructive guidance on the issue, and we expect that the incoming Trump Administration will have views on the use of A.I. in the workplace.

What This Means for Employers

As more states consider A.I. laws, 2025 will be a pivotal year for employers who will need to navigate a patchwork of new regulations. Businesses should consider proactively assessing their A.I. practices, staying informed on A.I. advancements, and understanding regulatory changes, particularly given the continued state scrutiny in the absence of federal legislative action.