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

Stay Informed: Regulatory and Compliance Updates - March 2025

Welcome to our March 2025 look back summary for AI regulatory and compliance updates! A month seems like a world away now, but hope you did not miss a few of these critical advancements:

The Securities and Exchange Commission (SEC) hosted the first (in a series) of roundtables on AI with the financial services industry - the goal being a 'reset' to the previous administrations approach on AI.

• The SEC's acting chairman Mark Uyeda emphasized the importance of fostering a "commonsense and reasoned approach to AI and its use in financial markets and services".
• Among the topics, AI risk management was front and center - with a focus on data management, sensitivity analysis, bias testing, and integrating a 'human in the loop' element to AI governance.

States continued their advancement of AI policy proposals and regulations, but one of the larger, more anticipated bills was vetoed.

• Virginia's AI Bill was recently vetoed by Governor Youngkin, due to fears around undermining Virginia's progress in attracting AI innovators to the state.
• The Bill would have regulated both creators and users of AI, and included a risk-based approach to oversight.  

Philippine's Central Bank is seeking to regulate the banking sector's use of AI.

• The Central Bank's focus is on ethical use of AI and how to manage bias and improve accuracy.
• These Central Bank standards may be a first in the push to combine financial services regulation and AI oversight with standard expectations.

Finally, Spain is moving forward with fines on not labeling AI content.

• Interesting though for those in the compliance and regulatory oversight space, is that alongside this effort, Spain is establishing a first of its kind agency within the EU - the Spanish Agency for the Supervision of Artificial Intelligence, or AESIA, to oversee and enforce European regulation on AI.
• How the agency is structured, how it derives its' authority, and how it develops enforcement standards will be looked upon globally by policy makers.  

Reach out with any questions and see everyone back here in a month!

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