Protecting AI and Cloud Competition in Defense Act of 2025
The Protecting AI and Cloud Competition in Defense Act of 2025 addresses procurement for cloud services, data infrastructure, and foundation models.
State contracts: certification process: Sweatfree AI Code of Conduct.
AB2653 mandates certification against sweatshop and forced labor for AI products requiring data enrichment in state contracts.
AI Regulation in the Technology Procurement Industry
State legislatures across the United States are actively developing artificial intelligence regulations that directly affect Technology Procurement companies and practitioners. These laws address a wide range of concerns including algorithmic discrimination, automated decision-making, data privacy, consumer transparency, and the use of high-risk AI systems that can materially affect individuals' lives. As of 2026, 2 states have introduced or enacted legislation with direct implications for Technology Procurement.
Compliance requirements vary significantly by state, making it essential for Technology Procurement legal and compliance teams to track both enacted laws and pending bills. Key obligations may include conducting algorithmic impact assessments, providing consumer disclosures when AI is used in consequential decisions, implementing risk management programs, and ensuring human-in-the-loop oversight for high-stakes outcomes. Penalties for non-compliance can be substantial — see our Penalty Tracker for details by state.
To assess your organization's specific compliance obligations under current and upcoming Technology Procurement AI regulations, use our Am I Affected? tool. For upcoming enforcement dates, visit the Deadlines page or the Deadline Calendar. Use the Bill Comparator to analyze differences between state laws side-by-side.