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ARTICLE · 30 DECEMBER 2025

AI Wrapped 2025: The Year Hypothetical AI Risks Became Operational Reality

Manatt, Phelps & Phillips, LLP
Manatt, Phelps & Phillips, LLP
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Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP

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2025 marked a material shift in the artificial intelligence (AI) governance landscape. While the United States federal government did not enact a comprehensive AI statute...

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Executive Summary

2025 marked a material shift in the artificial intelligence (AI) governance landscape. While the United States federal government did not enact a comprehensive AI statute, regulatory momentum accelerated at the U.S. state level and in the courts. Collectively, these developments transformed AI regulation from a long-term policy discussion into a near-term compliance challenge for organizations developing and deploying AI systems.

Below, we summarize the key regulatory actions from 2025 and outline what organizations should expect and prepare for in 2026 and beyond.

Recurring Regulatory Themes in 2025

Despite jurisdictional differences, 2025 legislation and enforcement activity repeatedly converged around a common set of risk areas.

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