Navigating AI Regulation: What Florida Businesses Need to Know

Federal and State AI Regulation: A Broad Overview

Congress and federal agencies have begun debating comprehensive AI governance. At the national level, proposals include the Algorithmic Accountability Act, aimed at requiring impact assessments for high-risk AI systems, and draft guidance from the Federal Trade Commission warning against biased or deceptive AI practices. The White House Office of Science and Technology Policy has also released voluntary AI safety frameworks, encouraging transparency, accountability, and risk management for developers and adopters of AI tools.

Despite these federal initiatives, much of the detailed rulemaking is happening at the state level. Several states have stepped in to regulate AI use directly, often focusing on specific high‑risk applications or sectors.

States Leading the Way: California, Colorado and Beyond

California has become the most aggressive state actor on AI governance. On July 24, 2025, the California Privacy Protection Agency approved new regulations under the California Consumer Privacy Act that require businesses to conduct formal privacy risk assessments, provide pre‑use notices for automated decision‑making technology, and complete annual cybersecurity audits if certain thresholds apply. Those regulations must clear a 30‑working‑day review at the Office of Administrative Law (“OAL”) but, once final, will phase in compliance obligations through 2030 for both existing and new AI deployments.

Colorado passed the nation’s first law requiring employers to disclose the use of automated employment decision tools and to provide an explanation of how those tools operate. That statute took effect in July 2023 and addresses AI in hiring, promotion, and performance evaluation. Other states, including New York and Massachusetts, have introduced bills that would mandate disclosures or impact audits for AI used in consumer‑facing applications.

Florida’s Current Posture on AI Regulation

Florida’s legislature has not enacted comprehensive AI legislation to date. The state’s 2025 session adjourned without passing any new AI governance measures. A handful of bills touching content provenance and firearm detection died in committee, and proposals for workforce AI studies did not become law after a gubernatorial veto. Earlier laws on nonconsensual AI‑generated images and AI disclaimers in political advertising remain in force, but they address narrow issues rather than general AI risk management.

Absent specific Florida mandates, many Florida businesses assume they face limited state‑level AI requirements. That assumption overlooks two realities. First, federal rule‑making may impose obligations directly on U.S. companies. Second, interstate commerce and vendor relationships often compel Florida firms to meet the strictest requirements their partners or customers face.

When Other States’ AI Laws Matter in Florida

Even if Florida itself is not actively regulating AI, Florida enterprises will feel the impact of out‑of‑state mandates when they interact with California or Colorado residents, process data from those states, or supply AI‑enabled services to companies that operate there.

• Contractual pressures: Large companies headquartered in regulated states will insist on contract terms that mirror local AI governance requirements. That means Florida vendors may need to support automated decision‑making notices, risk‑assessment reports, and audit results.

  
  

• Litigation and enforcement risks: Employees or customers in states with AI‑specific laws can bring private claims or trigger administrative investigations if notices or assessments are missing or inadequate.

  
  

• Operational alignment: Aligning policies and procedures to the most stringent requirements simplifies compliance when entering new markets or adding customers in multiple jurisdictions.

Despite Florida’s current regulatory passivity, the nationwide trend is clear. Thus, Florida businesses should not wait for Florida to begin regulating before investing in robust AI governance. Developing a plan to institute transparency notices, risk assessments, and cybersecurity controls will now reduce future legal risk and position Florida companies as trustworthy AI adopters.