Sentry explains: The states of AI regulation
Rhea Sahajwani, Regulatory Analyst (London)

AI has transformed the global economy, with its implications reaching far beyond the technology sector. With the US midterm elections approaching, it is worth examining the intersection of AI and indirect regulation and what this means for the data that underpins the technology.
In December 2025, President Trump signed an executive order intended to curb state-level regulation of artificial intelligence. Yet state influence over AI extends beyond the adoption of AI-specific legislation. States can shape the development and deployment of AI through indirect measures, including regulating the infrastructure on which AI systems depend, focusing on intellectual property litigation and applying existing legal mechanisms.