Key Developments

The global AI regulatory landscape is witnessing significant developments as the EU accelerates AI Act implementation while the US grapples with federal-state regulatory conflicts. The European Data Protection Supervisor (EDPS) has been designated as both a market surveillance authority and notified body for AI system conformity assessments under the AI Act, marking a crucial step in enforcement capability.

Meanwhile, transparency rules will take effect in August 2026, with each EU Member State required to establish national AI regulatory sandboxes by the same deadline. The second draft of the Code of Practice on AI-generated content marking and labelling is due mid-March, with final rules applicable from August 2026.

Across the Atlantic, the US is seeing unprecedented federal pushback against state AI laws. The Trump administration has established an AI Litigation Task Force and is leveraging $42 billion in broadband funding to pressure states to repeal AI regulations deemed “onerous.” Colorado has already postponed its AI Act implementation from February to June 2026.

Industry Context

This regulatory divergence represents a fundamental split in AI governance philosophy. While the EU pursues comprehensive, rights-based regulation through the AI Act, the US federal government is prioritising innovation and economic competitiveness. The US Treasury’s new AI Innovation Series for financial services exemplifies this approach, with Secretary Scott Bessent calling AI leadership “crucial for economic security.”

For Irish and EU businesses, this creates both opportunities and challenges. The EU’s systematic approach provides regulatory certainty, while the US market remains fragmented between federal and state requirements.

Practical Implications

EU-based AI developers and users should prepare for August 2026 transparency requirements and begin engaging with emerging national regulatory sandboxes. Healthcare AI systems face particular scrutiny, with new disclosure and transparency requirements taking effect across multiple jurisdictions.

Organisations operating across both markets must navigate increasingly complex compliance landscapes, with industry experts noting that 2026 will see boards “institutionalizing AI governance as a core competency.”

Open Questions

Key uncertainties remain around how US federal-state tensions will resolve and whether the EU’s approach will influence global standards. The effectiveness of national AI sandboxes and the practical implementation of transparency requirements for AI-generated content also remain to be tested.

Source: Multiple regulatory sources