Regulatory Roundup: From the desk of Dynamo's Head of AI Compliance Strategy (April 2025)

April 2025 turned out to be a busy month in Washington DC for AI advancement, with the US Office of Management and Budget (OMB), and the National Institute of Standards and Technology (NIST) releasing critical AI guidance. But for a really unique and insightful take on AI advancement, and how the "risk of not taking action (regarding AI enablement)" is of top of mind for Japanese financial regulators, read the the Financial Services Agency's latest summary of AI being deployed across the Japanese financial markets.

• The OMB issues two pivotal memorandums (M-25-21 and M-25-22), setting the direction for Federal AI deployment, governance, and risk management. Key takeaways include the OMB's definition of 'High-Impact AI' and a concise listing of AI risks to be managed by each agency's Chief AI Officer.

• NIST's updated draft of its' Privacy Framework provides concise guidance on the intersection of AI use and privacy, making clear the growing need for privacy controls in AI use. Any feedback is due by mid-June!

• More of an early May update, but very much top of mind: Chairman Rodney Hood at the Officer of the Comptroller of the Currency (OCC) gave a speech to the National Fair Housing Alliance’s Responsible AI Symposium where he spoke of AI responsible use, and gave insights into some of the key AI governance elements the OCC would be focusing on, including concerns around security vulnerabilities.

• Our friends in Hong Kong at the Digital Privacy Office (DPO) released the Hong Kong Generative Artificial Intelligence (AI) Technical & Application Guideline, a document focused on ethical and responsible AI deployment. Relevant are the five areas of AI Governance defined by the DPO (personal data privacy, intellectual property protection, crime prevention, reliability and trustworthiness, and system security)

Finally, our friends at the FSA updated their AI Discussion Paper last month. A fascinating read for anyone in financial services enabling AI. Particular of note is the FSA's concern with the Japanese financial market maintaining global competitiveness with the use of AI.

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Reach out with any questions, and I hope to connect with our friends and customers over the coming months as the temperature heats up in this part of the globe!

Dan Ross, Head of AI Compliance Strategy

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