NEWS

AI Regulation: Compliance Powered by AI

AI regulation is rapidly escalating, creating a complex and often contradictory legal landscape for businesses. To navigate this, law firms are deploying AI-powered tools to help companies achieve proactive compliance, safeguarding both their operations and consumer data.

By
LNGFRM Team
Published November 7, 2025
"Wooden gavel and sound block on a wooden desk with blurred books in the background."
Image courtesy of Forbes

The digital frontier of artificial intelligence, once hailed as a boundless realm of innovation, has rapidly transformed into a labyrinth of regulatory complexity.

What began as a technological boom has now triggered an unprecedented legislative surge, leaving businesses and innovators grappling with a patchwork of rules that often confuse more than they clarify.

This isn’t mere bureaucratic noise; it’s a global signal that governments are racing to define the very foundations of how AI is built, deployed, and governed.

The scale of this shift is staggering.

A 2023 report from Stanford University’s Human Centered AI (HAI) group revealed a near doubling of AI mentions in legislative proceedings, leaping from 1,247 in 2022 to 2,175 in 2023.

This exponential growth underscores a worldwide awakening to AI’s profound implications.

Yet, despite this clamor for oversight, the United States remains without a singular, comprehensive federal law governing AI.

This vacuum has been eagerly filled by individual states, with a remarkable 47 out of 50 states introducing some form of AI legislation in 2025 alone, according to the Brookings Institution.

For sectors already burdened by intricate regulations, like healthcare, the situation is particularly acute.

A recent Manatt report highlighted that as of October, 47 states had introduced over 250 AI bills touching healthcare, with 23 already signed into law.

The problem isn’t just the sheer volume, but the cacophony.

Without a centralized authority, many of these state-level regulations often overlap, contradict, or simply fail to speak to each other, creating a bewildering environment where clarity is a luxury, not a given.

Organizations find themselves adrift, unsure how to innovate responsibly while remaining compliant.

In this legal maelstrom, an intriguing paradigm shift is occurring: the very institutions traditionally tasked with interpreting and enforcing laws are now leveraging the technology they seek to regulate.

Law firms, long seen as bastions of precedent and human expertise, are turning to artificial intelligence to help their clients navigate these turbulent waters.

DLA Piper, one of the world’s largest law firms, stands as a prime example, investing substantially to guide clients through this evolving landscape.

Their white paper last year unveiled SAGE, a “systematic approach to data-driven AI governance.” This isn’t just a catchy acronym; it’s a sophisticated framework designed to cut through the “overabundance” of AI requirements, identify potential overlaps and conflicts, and chart a clear path to compliance.

SAGE marries human subject matter experts with AI algorithms to “atomize” complex legislation, breaking down dense legal texts into their fundamental components.

This granular analysis, further refined by AI and legal experts, culminates in a distilled, non-duplicative set of requirements, offering a clarity previously unattainable.

Perhaps even more innovative is DLA Piper’s “proactive compliance as a service” (PCaaS).

This platform deploys traditional machine learning alongside proprietary small language models, meticulously trained by domain-specific expert lawyers and customized to a client’s unique data, policies, and industry needs.

Hosted and managed end-to-end by DLA Piper, ensuring legal privilege, PCaaS can parse vast amounts of unstructured data, documentation, and real-world communications.

Its purpose: to proactively flag risk areas that might otherwise go unnoticed.

This forward-thinking approach is a game-changer.

Reactive, post-incident investigations often result in millions of dollars in fines and settlements.

Proactive compliance, especially in sensitive fields like healthcare, moves beyond financial penalties to actively protect patients by mitigating issues—such as privacy concerns, data leaks, or breaches of sensitive health data—before they manifest into crises.

Dr. Danny Tobey, M.D., J.D., partner and chair of the AI and Data Analytics practice at DLA Piper, eloquently articulates the core value of these services: empowering organizations to thrive in a complex new world and deliver value to their stakeholders.

He emphasizes PCaaS’s “risk domain agnostic” nature, meaning a small language model can be tailored to virtually any risk area.

SAGE, in parallel, serves as a robust tool for building and stress-testing AI governance programs, helping organizations reconcile often inconsistent AI regulations.

The competitive landscape in this burgeoning arena is certainly heating up.

Companies like Harvey have emerged, focusing on augmenting legal teams more generally, enhancing workflow efficiency, and streamlining due diligence.

Beyond traditional law firms, professional services giants are also recognizing the imperative.

BakerTilly offers an extensive risk advisory practice with a dedicated AI consulting vertical, while EY provides services aimed at helping organizations “build confidence in AI” and “deliver positive human impact.” The regulatory ecosystem is expanding at such a pace that there is ample room for multiple players to make a meaningful difference.

Ultimately, the importance of this work transcends corporate balance sheets.

Services like SAGE and PCaaS directly benefit consumers and, critically, patients.

The HIPAA Journal has documented a clear upward trend in HIPAA and sensitive data breaches over the past decade.

The healthcare sector, in particular, has seen a terrifying surge in cyber incidents, with ransomware attacks escalating by 30% in 2025 alone.

While external threats persist, organizations can—and must—ensure their internal processes are meticulously compliant to maximize patient security and privacy.

The landscape of AI law, regulation, and compliance will only continue to grow in complexity and scope.

For organizations to not just survive but thrive, investment in intelligent, AI-powered resources to navigate these uncertain waters is no longer optional.

It is essential to ensure the best service, privacy, and safety for their patients and customers in an increasingly data-driven world.

Author

  • LNGFRM Team

    Frank DiBernardo handles LNGFRM's Foodie and Miscellaneous writing tasks. He's always getting ideas from users, so don't be afraid to send an email to the editor.

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