AI Triggers Compliance Risks and Policy Shifts: What Businesses Must Prepare For

With the rapid adoption of AI, the global regulatory environment is rapidly becoming more dynamic, driven by technological disruption, geopolitical tensions, and rising expectations around data governance and sustainability.

Organizations across sectors are facing heightened scrutiny as regulators introduce new mandates and tighten existing frameworks. At Supply Wisdom, we are observing heightened demand for real-time compliance and risk intelligence, enabling businesses to anticipate regulatory disruptions and safeguard their operations amid constant change.

Regulatory Change and AI: Emerging Challenges in 2025 and Beyond

AI regulation is rapidly becoming a cross-industry compliance priority. Organizations now face:

• Fragmented global rules: Countries define and regulate AI differently, creating inconsistent, multi-layered compliance requirements.

• Complex regulatory formats: New AI obligations span laws, executive orders, and agency guidelines, increasing operational burden.

• Risk-based obligations: Regulators expect continuous risk assessment, documentation, and mitigation across the AI lifecycle.

• Cross-regulatory overlap: AI systems trigger requirements under data protection, IP, antitrust, cybersecurity, and financial regulations.

• Interpretation uncertainty: Broad and flexible AI rules leave organizations navigating unclear expectations.

• Accountability pressures: Global frameworks emphasize transparency, monitoring, audits, and responsible AI governance.

Key Recent Regulations Impacting Organizations:

• EU AI Act (2024): Now in force with phased obligations, strict rules for high-risk AI, extensive technical documentation needs, and heavy penalties for non-compliance.

• EU General-Purpose AI Code of Practice: A voluntary EU framework that guides transparency, safety, and documentation for general-purpose AI models, helping organizations prepare for and demonstrate alignment with the EU AI Act.

• California SB-53 (Transparency in Frontier AI Act): Enacted in 2025, this law requires frontier AI developers to conduct and publish catastrophic-risk assessments, disclose safety and governance practices, and implement strong whistleblower and incident-reporting mechanisms to ensure responsible AI development.

How Regulatory Shifts Are Impacted Businesses in 2025

The following trends highlight the industry-wide compliance pressures reshaping organizational priorities this year:

1.  BFSI (Banking, Financial Services and Insurance)

Financial institutions are grappling with enhanced global expectations around anti-money laundering (AML), sanctions, and fraud detection.

Key developments include:

• Real-time AML surveillance mandates.

• Tighter alignment with Financial Action Task Force (FATF) standards.

• Stricter cross-border Know Your Customer (KYC) and transaction monitoring obligations.

  
  

2.  IT and Information Technology–enabled Services (ITeS)

With cyberattacks and data breaches rising globally, regulators are strengthening privacy and digital security rules.

Major shifts:

• Expanded enforcement of General Data Protection Regulation (GDPR).

• India’s Digital Personal Data Protection (DPDP) Act amplifying consent, localization, and user rights.

• New controls around cross-border data flows and cloud security.

3.  Consumer Services

Privacy, labor standards, and ethical marketing are under renewed scrutiny.

2025 highlights:

• Updated Payment Card Industry Data Security Standard (PCI DSS) norms.

• Aggressive enforcement by Federal Trade Commission (FTC) and Advertising Standards Authority (ASA).

• Renewed antitrust oversight impacting digital marketplace.

  
  

4.  Healthcare

Digital health expansion has brought new risks around patient privacy and AI-enabled clinical systems.

Key regulatory trends:

• Stronger enforcement of Health Insurance Portability and Accountability Act (HIPAA), GDPR, and DPDP.

• Artificial Intelligence (AI) device governance frameworks.

• Ethical compliance in clinical trials and telemedicine.

5.  Telecommunications

Critical infrastructure risks drive stringent cybersecurity policies.

Important mandates:

• Compliance with Network and Information Security Directive 2 (NIS2) for network resilience.

• New Cybersecurity and Infrastructure Security Agency (CISA) guidance for critical telecom infrastructure.

• 5G/6G spectrum regulation and security controls.

6.  Manufacturing

Manufacturers face converging pressures - from workplace safety to environmental controls and IoT security.

Key shifts:

• Stricter Occupational Safety and Health Administration (OSHA) requirements.

• European Union (EU) Green Deal enforcement.

• New Internet of Things (IoT) cybersecurity regulations for connected manufacturing systems.

7.  Professional Services

Data protection and ESG transparency are defining compliance priorities.

Major regulatory updates:

• Adoption of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) standards.

• Mandatory Corporate Sustainability Reporting Directive (CSRD) reporting for sustainability metrics.

• Strengthened International Organization for Standardization (ISO) 27001 information security requirements.

8.  Real Estate

Sustainability and compliance transparency remain central themes.

Key regulatory developments:

• Enforcement under Real Estate Regulation and Development Act (RERA).

• Adoption of Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM) standards.

• Revised property taxation and disclosure rules.

9.  Transportation & Logistics

Global trade disruptions accelerate the need for compliance with international mobility and customs norms.

2025 shifts include:

• International Maritime Organization (IMO) and International Civil Aviation Organization (ICAO) emissions mandates.

• Data privacy requirements for digital ticketing (GDPR/DPDP).

• Digitized customs compliance and port-state regulations.

10.  Utilities

Utility providers face strict oversight around environmental protection and safety.

Key changes:

• New Environmental Protection Agency (EPA) environmental safety standards.

• Smart meter security regulations.

• Renewable energy mandates and grid modernization requirements.

11.  Energy

Climate-related compliance and Health, Safety, and Environment (HSE) obligations are intensifying.

Key developments:

• Net-zero reporting expectations.

• IoT grid regulations for connected energy ecosystems.

• Enhanced HSE compliance frameworks.

12.  Legal Services

Law firms face heightened expectations around data security, AML obligations, and transparent tax reporting.

Key regulatory priorities:

• Updates to GDPR and DPDP.

• Increased FATF monitoring for legal intermediaries.

• Global alignment with Organization for Economic Co-operation and Development: Base Erosion and Profit Shifting (OECD BEPS) tax framework.

Why Real-Time Compliance Monitoring Is Now Essential

Across industries, organizations are experiencing stricter reporting expectations, tighter enforcement, and greater emphasis on sustainability and operational transparency. Real-time compliance monitoring is now critical for anticipating risks and maintaining continuous regulatory alignment.

Supply Wisdom’s real-time alerts flagged:

• Real-time alerts on regulatory updates, non-compliance incidents, enforcement actions, and policy changes.

• Comprehensive monitoring of legal exposures such as third-party litigation, regulatory filings, and statutory compliance requirements across global jurisdictions.

• Entity- and location-level insights to help companies take action before disruptions escalate.

These capabilities support robust regulatory risk management in an increasingly complex environment.

Clients were able to:

• Respond early to new regulatory mandates by engaging third-party vendors and internal teams before compliance deadlines are tightened.

• Activate internal compliance and audit procedures to assess gaps, mitigate risks, and ensure alignment with updated requirements.

• Reconfigure operations or processes to maintain compliance, including shifting work to regions or partners with lower regulatory exposure.

From Compliance Disruption to Preparedness

Industry leaders using continuous, multi-domain monitoring report:

Fewer compliance breaches, greater readiness: Real-time visibility into evolving regulations across data privacy, ESG, AML, cyber, and sector-specific rules enables timely updates to policies, contracts, and processes before enforcement or penalties occur.

Faster compliance action through live monitoring: Continuous tracking of regulatory changes, advisories, third-party obligations, and statutory requirements reduces time-to-awareness (TTA) and accelerates time-to-mitigation (TTM) improving overall regulatory risk management.

Compliance as a strategic advantage: Proactive organizations mitigate legal and financial risks, maintain operational continuity, and strengthen stakeholder trust while others react to regulatory disruptions.

Staying Ahead with Supply Wisdom

In today's rapidly changing global trade environment, real-time risk intelligence is crucial. Supply Wisdom offers continuous monitoring across financial, cyber, compliance, sustainability, operational, Nth party, and location risks, providing real-time alerts to help businesses act swiftly and avoid disruptions. Learn more about how Supply Wisdom’s AI-powered, analyst-validated risk intelligence platform helps global enterprises minimize disruption and strengthen third-party resilience.

For more information, please visit https://landing.supplywisdom.com/navigating-csddd-compliance .This paper explores how Supply Wisdom’s tools support businesses in meeting CSDDD requirements while fostering ethical and sustainable practices.